how much $

[se215]

i have been a journeyman plumber for 5 years and was an apprentice for 3 years,i work for a company now and will be taking my masters in 4 months

i have been reading some old threads and saw a couple people have just started their business (service guy,drain medic) ,thats my plan but not for another year or two
i already have my own truck(stocked) ,most of the tools i will need,
drain machines,and some steady customers (investors/rehabs/bar owers)
that i do side work for

how much money would you need to save to start a service/drain business (insurance,advertising,ect)
i am trying to do all my research now and be prepared in a year or two

[stxrus]

i like to have a 3 month cash reserve in the bank judt in case something happens. that covers the van, gas, advertising, insurance, my salary, etc.

now your circumstances will vary but that's my fallback

steve

[DuckButter]

i like to have a 3 month cash reserve in the bank judt in case something happens. that covers the van, gas, advertising, insurance, my salary, etc.

now your circumstances will vary but that's my fallback

steve

Exactly what I was just gonna say.

The cost to open a business is completely variable, depending on what source of advertising, tools needed, and overhead.
But regardless...make damned sure you have at least 3 months banked for survival, times DO get tight.

[ToUtahNow]

A general rule of thumb is it takes 5-years for a business (any business) to start being profitable. Those businesses which survive the hard times are those who have enough capitol for a one year reserve. That does not mean you cannot accomplish it with less but the percentage go way up when you do.

Mark

[garager]

Right now you should be doing after work stuff for yourself. This is a good way to start with word of mouth only. As you start to become more popular and more work is flowing in, this will get you off to the right start. But certainly stash at least $10,000.00 in an account if you can. If you have to take out a loan, do so that way you do have money to live off of for many months....

Good luck on your venture when you get going....

[se215]

how much do you pay yourself salary?
does this number change or do you always keep it the same
and when your profits are alot more than your overhead and salary
how long do you keep that extra money in your business account?

[DuckButter]

My salary is $500K/year.

I'm trying to figure out how to write off the lost compensation in salary on my taxes.

[stxrus]

check your P.M.

any money made by the company stays with the company. it builds that pad up. i was able in just over 2 years pay cash for a SeeSnake and not deplete the coffers. it's mine and i don't have to worry about it "paying for itself" as it's already paid for. i avoid going into debt for the company, if i can.

my salary remains the same. if in the future i need to give myself a pay raise, hopefully i can do it and not feel a pinch.

as big pifall is pulling money from the company for things you think you need, like a boat or something else. if you have a shortfall and need that money it's not there if you have spent it. i prefer to keep the coffrs as full as possible and only spend what i need.

steve

[se215]

what about credit cards...do you accept them
how much does it cost a month
do the also charge a %...do you have to charge the customer more if they pay with a credit card

[DUNBAR]

what about credit cards...do you accept them
how much does it cost a month
do the also charge a %...do you have to charge the customer more if they pay with a credit card


Yes.


2-3% on average.....don't sweat it......no matter what, jack the bill up to compensate for the charge.......give a "slight" discount if they pay by check.

So easy, japanezy!


Perfect statement to all who ride the fence on credit cards:

Would you spend $20 to get a $100 bill? I would, all day long.


People love convenience and plastic is common. I also like the speedy instant direct deposit it provides in sometimes 24 hours.

[PLUMBER RICK]

[quote=garager;164710]Right now you should be doing after work stuff for yourself. This is a good way to start with word of mouth only. As you start to become more popular and more work is flowing in, this will get you off to the right start. But certainly stash at least $10,000.00 in an account if you can.
quote]


i agree;)

i always moonlighted when i was doing new construction. ;)instead of telling the customer that i would be there after 4. when i went into business for myself, i just bumped the time down to 8am.

you could be the best plumber in the area, but if nobody knows you, you'll be sitting home.

build up some study customers and then you can phase out your current everyday job and go into this full time.

rick.

[gear junkie]

There's a book sold at HD called "smart business for contractors". It's not the business bible but it sounds like you'll find it very useful. Another option you might consider is when you get your ltradesman icense(at least here), you have to go through a 8hr business course given at a local college. It was very informative and cost 160. There's a book called "emyth for contractors". It has a love hate relationship, some love it, I think it's useless and is basically a menality mindframe change. Try it out though and make your own opinion up.

[gear junkie]

Moonlighting isn't a bad thing imo if done correctly. You should;

-tell your boss what your doing
-never ever steal one of his customers
-never use any of his tools, materials, truck without prior authorization
-never do sidework on company time

[se215]

what is the best way to get more side jobs?

i already do work for a couple investors that gut houses rehab them
and rent them out(re-pipe from the basement up and all gas lines and sometimes heat work),i also do work steady side work for a couple bar and
restaraunt owers,and family and friends(but usually dont charge them
much if anything at all)
i hand out business cards when ever i can

is there anything else i can do to build up my clients
advertising?

[se215]

Moonlighting isn't a bad thing imo if done correctly. You should;

-tell your boss what your doing
-never ever steal one of his customers
-never use any of his tools, materials, truck without prior authorization
-never do sidework on company time

i already have my own truck,tools,and materials
and do all my side work after 4pm or on weekends
why should i tell my boss...i dont want them to think i might
steal his customers or material

[gear junkie]

Because you have nothing to hide. If your boss has never expressly said "no side work" or made you sign a non compete clause then reasonably speaking, you should be alright.

[spodelee]

what is the best way to get more side jobs?

i already do work for a couple investors that gut houses rehab them
and rent them out(re-pipe from the basement up and all gas lines and sometimes heat work),i also do work steady side work for a couple bar and
restaraunt owers,and family and friends(but usually dont charge them
much if anything at all)
i hand out business cards when ever i can

is there anything else i can do to build up my clients
advertising?

Your side job customers will change when you go into business and must charge them realistic rates. Do yourself a favor and start inching up their rates now so when you make the switch they will not be stunned. If you don't, you are likely to find that those "regulars" quickly go away when they find out they will no longer receive your services for next to nothing.

Try to answer this question before you make the switch and need to count on your side job customers for income: Are they using my services because they want to do business with me, or because I am the cheapest guy in town?

[Drain Medic]

One thing i learned about the drain biz is, no one is loyal no matter what. You could have customers for years, but god forbid you mess up once, or cant get to their job in under an hour, they will find someone real fast.

Just treat your customers, even side job customers like every single one of them is your best customer. There are ways to satisfy everyone. Just be honest and fair, do not ever hide anything and keep them in every loop. They will love you for it.

[gear junkie]

Your side job customers will change when you go into business and must charge them realistic rates. Do yourself a favor and start inching up their rates now so when you make the switch they will not be stunned. If you don't, you are likely to find that those "regulars" quickly go away when they find out they will no longer receive your services for next to nothing.

Try to answer this question before you make the switch and need to count on your side job customers for income: Are they using my services because they want to do business with me, or because I am the cheapest guy in town?
This is great advice here. Definently follow this one.

[NHMaster3015]

If I was your boss and you told me you were moonlighting I'd let you go.

When you do these "side jobs" how much cheaper is your labor cost than what your boss charges?

It's unfair and dishonest for you to be building your business in competition with your employer while he is still paying you.

[DUNBAR]

I agree......



I've been getting a lot of customers trying to pay me in cash because they think I'll do it cheaper off the books.

"It's the same price, cash or check, all spends the same."

And I've had a few get a little perturbed with me because they couldn't hustle a few 20's off the bill as a result.

Just don't call me back, it's that simple hoss. Get your good deals somewhere I aint.

[drtyhands]

I like that about our understanding between employee and employer out here.
You get hired,understand what you need to do.Do it,get payed.

Wether you moonlight or go out and get drunk,both drop productivity.Unless you become a liability.Who cares after you clock out.

Smaller the town I could see a problem.Less work..Gossip Ville could put a guy out of business in no time.

[JCsPlumbing]

I also think your responsibilities are in direct proportion to the amount you should have saved to go out on your own. Completely by yourself $. Wife and kids $$$$$.

Also, how bad do you want it? How many hours are you willing to put in the first year? Are you willing to pull a hard 14 hours, fall asleep in the chair, put on the same pair of pants because you didn't wake up to do a wash, and put in another 14? Do it everyday as long as it takes? Work a month solid? The first year can be like that easily. If you answer yes to alot of these, then go for it. If not, there is absolutely nothing wrong with being employed by someone. Sometimes you can be alot happier that way.
Either way, good luck.

J.C.

[Tyman]

If I was your boss and you told me you were moonlighting I'd let you go.

It's unfair and dishonest for you to be building your business in competition with your employer while he is still paying you.

A well grounded employer will not be threatened. Most likely they will wonder why you're moonlighting if they care about you.

What you do on your own time is your business. However, it is important to be ethical. Don't take your bosses customers, ever. Do not conduct any business related activities on the clock and that includes handing out cards.

When I hired in, I told the owner I did side work. I even handed him my card.
He told me that someday he would like to pay me enough so I would not have to work so much.

We even talk about some of the jobs I done and he lets me order/buy parts on his accounts. I trust him and he trusts me.

[drtyhands]

A well grounded employer will not be threatened. Most likely they will wonder why you're moonlighting if they care about you.

What you do on your own time is your business. However, it is important to be ethical. Don't take your bosses customers, ever. Do not conduct any business related activities on the clock and that includes handing out cards.

When I hired in, I told the owner I did side work. I even handed him my card.
He told me that someday he would like to pay me enough so I would not have to work so much.

We even talk about some of the jobs I done and he lets me order/buy parts on his accounts. I trust him and he trusts me.

Exactly!!
All the way down to using the larger contractors account.He likes it when a guy can put substancial purchases on his account.
What a lot of guys do out here is let employees buy material on their account and work off the balance hourly.Employee loves it,low prices on material plus I think there are some big tax advantages in there somewhere,but can't comment on that:rolleyes: