sparker133
Silver Member
- Joined
- Sep 15, 2009
- Messages
- 174
- Location
- Green bay, Wi
- Tractor
- 2013 Deere 4320 cab, 180 loader, 485 backhoe, 2021 Deere 1023e, Vermeer trencher, 2022 Deere 26g
I have owned my own company for over 5 year now and my parents owned company's. It always the hardest the first couple of years. I had people the same as you that wanted me to do work for them. That is great but they do not always have enough work to pay the bills. Right now I am at the point where I am turning away work because of word of mouth about my business and my normal clients. I have been looking for a skilled worker for awhile now that meet my standards and is proving impossible. Hours can be long and sometimes you can spend every waking moment dealing with you company. I always make time for my family, it helps me keep my sanity.
One of the biggest problems is getting customer to pay. Problem is the bills still keep coming even if the customers don't pay. A line of credit can help get you through. One day your bank account can be bouncing and the next you have enough to pay all your bills and then some. I get 50% up front form my customer. That helps pay for materials and some labor, then if they don't pay I am not completely eating all the costs of the job. When I bill it is at a net 15 or I have them pay when the job is complete. As far as rates you can call some of your competitor and ask them what they are charging it will give you a good feel for the market. Also if you are bidding job you can gauge what you are charging on how many you are getting. If you are getting them all you are not charging enough and the same if your are not getting any. It can be quite a learning curve, I have quite a few jobs over the years that did not go well and under bid. That is all part of the learning experience and you learn from your mistakes and move on. Make the customer your first priority and it might cost you some profits to make them happy but it will be worth it in the end. I have had a couple of customers over the years that I lost money on their jobs and now are some of my best clients and have made that money back and then some.
I also use quickbooks and a CPA to do the year end stuff. A good attorney is always good to have you never know what can happen. With a insurance agent make sure they know the business that you are in and ask a lot of questions. My first insurance agent I thought was good did not know anything he just gave me a generic policy. After finding a good agent I found out how open I was to big problems and how much I was not covered for that could have destroyed my business.
Keep detailed records of everything it helps in the future. Have your customer sign everything keeps you and them covered. (found that out the hard way) Have your attorney draw up something that your customer signs for payment terms and lien rights.
Owning a company can be great picking your hours and your jobs if you have enough work. When I first started my company I was taking every job I could find. The pride of knowing you are working for yourself. It can also be very stressful and sleepless nights. Dealing with customers, money, taxes, and customers can have is down falls. But that all being said I would not change anything, I love working for myself and plan to keep doing it as long as I can.
Good luck with ever you decide. What ever you decide just stick with it and work hard and you will know you did your best. :thumbsup:
One of the biggest problems is getting customer to pay. Problem is the bills still keep coming even if the customers don't pay. A line of credit can help get you through. One day your bank account can be bouncing and the next you have enough to pay all your bills and then some. I get 50% up front form my customer. That helps pay for materials and some labor, then if they don't pay I am not completely eating all the costs of the job. When I bill it is at a net 15 or I have them pay when the job is complete. As far as rates you can call some of your competitor and ask them what they are charging it will give you a good feel for the market. Also if you are bidding job you can gauge what you are charging on how many you are getting. If you are getting them all you are not charging enough and the same if your are not getting any. It can be quite a learning curve, I have quite a few jobs over the years that did not go well and under bid. That is all part of the learning experience and you learn from your mistakes and move on. Make the customer your first priority and it might cost you some profits to make them happy but it will be worth it in the end. I have had a couple of customers over the years that I lost money on their jobs and now are some of my best clients and have made that money back and then some.
I also use quickbooks and a CPA to do the year end stuff. A good attorney is always good to have you never know what can happen. With a insurance agent make sure they know the business that you are in and ask a lot of questions. My first insurance agent I thought was good did not know anything he just gave me a generic policy. After finding a good agent I found out how open I was to big problems and how much I was not covered for that could have destroyed my business.
Keep detailed records of everything it helps in the future. Have your customer sign everything keeps you and them covered. (found that out the hard way) Have your attorney draw up something that your customer signs for payment terms and lien rights.
Owning a company can be great picking your hours and your jobs if you have enough work. When I first started my company I was taking every job I could find. The pride of knowing you are working for yourself. It can also be very stressful and sleepless nights. Dealing with customers, money, taxes, and customers can have is down falls. But that all being said I would not change anything, I love working for myself and plan to keep doing it as long as I can.
Good luck with ever you decide. What ever you decide just stick with it and work hard and you will know you did your best. :thumbsup:
:drool: