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  • how much $

    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

  • #2
    Re: how much $

    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
    In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

    Comment


    • #3
      Re: how much $

      Originally posted by stxrus View Post
      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.

      Comment


      • #4
        Re: how much $

        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
        "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

        I never lost a cent on the jobs I didn't get!

        Comment


        • #5
          Re: how much $

          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....
          Great Link for a Construction Owner/Tradesmen, and just say Garager sent you....

          http://www.contractorspub.com

          A good climbing rope will last you 3 to 5 years, a bad climbing rope will last you a life time !!!

          Comment


          • #6
            Re: how much $

            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?

            Comment


            • #7
              Re: how much $

              My salary is $500K/year.

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

              Comment


              • #8
                Re: how much $

                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
                In the never ending struggle to keep the water flowing.... The Poo Poo Cowboy rides again!!!

                Comment


                • #9
                  Re: how much $

                  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

                  Comment


                  • #10
                    Re: how much $

                    Originally posted by se215 View Post
                    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.
                    Northern Kentucky Plumbers Twitter Feed | Plumbing Videos

                    Comment


                    • #11
                      Re: how much $

                      [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.
                      phoebe it is

                      Comment


                      • #12
                        Re: how much $

                        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.
                        Buy cheap, buy twice.

                        Comment


                        • #13
                          Re: how much $

                          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
                          Buy cheap, buy twice.

                          Comment


                          • #14
                            Re: how much $

                            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?

                            Comment


                            • #15
                              Re: how much $

                              Originally posted by gear junkie View Post
                              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

                              Comment

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