Contemplating Career Change - small business networking questions

[hazmat]

Since we don't have a business forum yet (hint hint) I'll put this here.

I'm currently employed as an engineer at a large company. I'm having a bit of an early mid-life crisis. I don't enjoy my work. I'm on my second "career" in the company currently working as a six sigma / lean blackbelt in supply chain. formerly worked in engineering design. I worked for a smaller company just out of college & didn't enjoy that all that much either (though it was better than the large company).

Anyway - I'm seriously considering starting a handyman / home improvement / eventual General Contractor business this January. I'm an accomplished amature carpenter / all around handyman and often get requests from friends to help them out. I really enjoy the work, and think I would be successfull at it.

I'm putting together a business plan now. Loosely the plan is to start with smaller projects and progress to remodels and perhaps new construction as experience, demand & appropriate liscense requirements permit.

As part of my planning - I'm doing a bit of networking. I'm putting together a list of questions for my mentors. Looking for a little help. So far the list is 3 pages long, which I suppose is too much. What 1 or few questions would you ask someone if you were considering going into business?

Thanks in advance for the help.

My top 5 would be:

What is your best success?
Worst Failure?
Are you meeting your financial goals?
Does your family support the business?
What would you do different?

 

[tallyho8]

My only statements are that if you are lazy the business will fail and if you are not lazy and are ambitious and hard-working, be prepared to spend many more hours working for yourself than you would be working for others.

 

[hazmat]

...if you are not lazy and are ambitious and hard-working, be prepared to spend many more hours working for yourself than you would be working for others.

That is my wife's fear. I figure if I'm working too much, it's time to raise my rates - right? I'll task my wife with keeping track of that.

The ironic thing is that what I like most about my current job is how little I have to be there - 4 weeks vacation + Christmas week = 5 weeks off, plus we work a modified work week to get every other Friday off. Its a sign to move on, when what you like most about your empoyment is how little time you have to spend there.

 

[scott_vt]

Afternoon Haz,
I can understand your desire to strike out on your own doing what you want to do and being your own boss in the process ! I have been in my trade for more years than I care to think about so I can relate to your desire to do something you enjoy more than what your doing presently !

Off the top of my head I would say your best bet in terms of success would to build your business on a part time basis. Of course the drawback on this approach is that your going to spend considerably less time with your family than your going to like ! If your wife is supportive and has the same plan in mind as you, that will make the whole thing work much easier when time is at a premium ! Obviously your going to build the name of your business and your contact list and customer base in the meantime !

Im planning on doing something similar when I retire from my job, actually would like to build custom cabinetry and furniture, but by that time I will have my retirement money rolling in so its not imperative to actually make any significant money doing all of this !

In any event Haz, if you do decide on this new endeavour, my hat is off to you and wish you the best of luck !!!

 

[AlanB]

I would love the business forum as well.

Some random thoughts, Not direct answers to your questions, but maybe something to think about. Things I say to folks that talk to me about small business.

The secret to success is to only work half days, the good part is, it does not matter which 12 hours you pick.

Things that jump out at me from what you typed.

Although you probably feel like work in that field is "plentifull, or More then I can handle" at the moment, put in the back of your mind the caveats that it is plentiful partially because you are probably doing it at lower cost then if you were making your living at it, and that if you were spending 80 to 100 hours a week doing it, would you still be booked solid.

Networking is great, have you spoken with your local SBA, probably they have some SCORE guys there, that can sometimes be a great asset, and sometimes they can be out in left field. Just have to work through them a bit to find which is which.

As to your list, if you were coming to me, I would hope you would not present it that way, ie list form. Take me to lunch, ask about things, but some of those questions will be a bit more personal then I would want to discuss with a "stranger". Ask questions, listen, then lead along and you will get the answers.

If I was going to directly ask questions, it would be about only 3 or 4..

Assuming you and the person know each other and they would be broad to get as much info as possible.

1. Would you reccomend I go into this business for myself?

2. Who would you reccomend I work with as a professional staff such as CPA, Banker, Lawyer, insurance agent. (for us CPA and Insurance agent are the biggies)

3. What need do you see that I could fill in the community?

So, some other random thoughts that hit home for me a lot.

Work ON your business some (which it sounds like you are doing now, but when you get busy is easy to sideline) NOT IN your business.

Decide if you want Employees or not. While being a one man band has some distinct advantages, there are some matching disadvantages to be weighed out. Not the least of which is having someone around when things are not going well to help pull things through.

If I was doing the type work you describe, I would seriously consider flipping houses, or working with a house flipper, and minimize my # of "customers". There are advantages and disadvantages, as with everything, but constantly selling is not my strong suit.

Good luck.

Why is your screen name Hamat by the way?

My wife's business * Hanna Bechard * A Woman's Touch * Clarksville * TN * Landscaping * Lawncare * Patios * Ponds *

What I do too support the wife's business

Fort Campbell Environmental Division

 

[Kendall69]

Some of the conclusion I have come up with is this.

Whatever you do, you need to have employees make money for you, being a handy man will only allow you a finite amount of money - so much per Hr/Job, times 10-12 hrs a day, that's it YOU alone will never make more than that.

Now add one employee and you've gained that much more a day, obviously minus wages etc, but none the less you made more money - times 10 you've made even more etc.

There is this strange black hole in growing a business, when you make more by yourself, not as much when you are a medium size business, and then again you earn more when you are a large company. It's that middle range that business people wonder "what the heck am I doing this for" - "I'm working for the landlord ( store) the employees, insurance, electricity, overhead, accountants, and our friend the Government.

It's at this point a lot of business cease to exist and rightly so, if you have to spend $1.10 to earn a $1.00 you've got to stop, at least a smart man does - some continue on.

Now just because you hate your current job, chances are you could hate being a business owner. Dealing with difficult situations, employees problems , liability issues, and people who refuse to pay really make one hate being in business also. Just being in "business" is not the be all and end all - it's not as rosy as it's made out to be. If it was everyone would be in business. It takes a certain kind of animal to stick with owning a business.

I've owned my own business for 25 years,and there are days I would never do it again, and days I wouldn't do anything else.

Lastly, think out of the box. Don't just limit yourself to your current skills. Just for fun, you may want to do an ice cream shop, refinish antiques, sell real estate, flip homes, be an Ebay guru, buy and sell something.

What I did before I left my cushy job with several secretaries, and started a business with no money, no customers, buy a clear idea of what I wanted to do. I took my last two week vacation and read EVERYTHING I could on leaving my job and starting something new - I motivated myself to get the guts to leave,because I had it too easy and leaving would turn my world upside down. It worked, because the next time the boss "called me in on the carpet" for something out of my control, I was able to look him in the eye's and say I QUIT!!!!!, he said " was it because of what I just said" - I said " No because I don't want to BE YOU, in the next 20 years".

It felt great, even if I made hot dogs on the corner, those dogs would be made the way I wanted to make them and served to who I wanted to serve, and anyone I didn't want to deal with I could say ' TAKE YOUR BUSINESS ELSEWHERE" - because I could!

 

[jimg]

Hazmat: I did almost this very thing exc my business was high end cabinets/solid surface tops and solid wood furniture. I really enjoyed it!!! Anything has its good & bad sides and I suppose those depend on your mental makeup. You MUST enjoy practicing the skills necessary to run a business, its MUCH more than just your trade. You must have an exceptional work ethic, strong drive to persevere, refuse to be discouraged, be an exceptional problem solver and have excellent people skills. As the owner operator you dont get sick days or time off w/o prior planning. For the first few years plan on working w/ little or no time off. Also plan on working LONG days....very, very long days. It will help if you can get your wife to help w/ books, phone, keeping your calendar, etc. In any case you both need to be on the same page mentally b/c your family cant insulate itself from what goes on w/ your business.

 

[randy41]

i would hesitate going into the building trades at this stage of the economy.
successful businessmen make their business their life. 24/7.

 

[Toiyabe]

One of the most important things is getting started at the right time. IMHO, now is a really really bad time to get into the home improvement buisness. Five years ago would have been a great time. Ten years from now might be a good time again.

Ask your mentors whether they think the housing/home improvement market is growing now and will in the near future. Ask them if they think they could have gotten their buisness started in a contracting market.

 

[hazmat]

Great feedback guys - I've got the rest of the week off to go sailing - I'm going to be planning & contemplating during that time.

RE - "bad timing" - here in new england the building trades aren't as cyclical as the rest of the country - there just isn't that much open land and thus not really that much new construction.