Question for the Entrepreneur/Self Employed People

[Creekside]

Wondering at what point you decided you had enough of your 9 to 5 and went all in with your business?

I am currently struggling with that question myself. I have a decent job doing industrial maintenance(pay is decent for the small town I am in but ~$10/hr less than larger areas an hour away). The problem is that I am busy enough on the side hustle that my 9-5 is starting to cut my own throat. My dump truck business is exploding and I am already looking to add a second truck and driver; additionally my used semi trailer sales business is really starting to get busy-they're selling as fast as I can pull them home.

Full transparency here, I'm in a little different situation than some my 9-5 is on second shift leaving me to be able to work for myself during the day. It just makes for VERY long days. My normal work shift is 4pm to around 1am.

 

[walterjay]

If you think that you can garner enough business now to make a living I say go for it. Be aware though that you will have to spend additional time on just the office/business part that someone else is doing for you now.
Get and learn Quickbooks and begin to learn it.

 

[bullwinkle]

Research the cost of solo health insurance, SSI & assorted tax payments, and the time to do all the paperwork… Most of the people I’ve known who made the jump either had to spend a lot of time on paperwork or had to pay someone to do it for them, which made it not as much ”fun”!

 

[ecotourist]

I went the other way. Had a self employed medical practice. People wouldn't realize it but a medical practice is a small business in addition to the medical practice part. Lots of angst with employees calling in sick, employees leaving for a different job (in spite of being very well paid), managing employee payroll deductions, managing business accounts and then annual income statements for taxation purposes.

I was working over 70 hours a week, not making much money (considering the hours), had no benefits except for a "company car", and had no retirement plan.

Took some additional training, got a job where I could work a 40 hour week and make far more money. The bonus was an excellent retirement income plan. Best move I ever made.

 

[eljefino]

Feel free to phone in your "steady" job so long as you can do so safely. Call out if you've got something big going on. This might also be a good time to squeeze your boss there for a substantial raise since you have the confidence you can live without him.

My high school photo teacher was also a realtor and took all sorts of leave to go to closings and whatnot. It's the American way.

 

[zray1]

One persons story and motivations are not valid criteria which can aid someone else to make a determination on what’s the best path for them. There are countless ways to arrive at the same destination. Everyone brings different qualities to the journey.

If you are not self motivated the decision is an easy one.

If you fear failure then don’t go out on your own. One well known example:Edison had countless failures before a single success. He learned from failing and used it to find success.

The same way that being on your own does.

Z

 

[Hillbilly Deluxe]

Research the cost of solo health insurance, SSI & assorted tax payments, and the time to do all the paperwork… Most of the people I’ve known who made the jump either had to spend a lot of time on paperwork or had to pay someone to do it for them, which made it not as much ”fun”!

This. Know that health insurance on "marketplace" for a family with not so good coverage, $5-8K deductibles, etc., is going to run you $2500-3000/mo. You will also pay 7.65% EXTRA in FICA taxes on your earnings.

You're also looking at having to employ a part-time bookkeeper at a minimum.

And it sounds like you're wanting to get into construction full time? I highly recommend against that. If you're dong industrial maintenance, you can probably step out on your own doing commercial handyman work or even going to work for a mechanical/electrical contractor who works in the plants around you. You will probably see a raise, work during the day, have benefits and no overhead.

I am not trying to discourage you, but health insurance and other taxes/expenses are much more than you imagine, plus the "dump truck" industry is very, very volatile. If residential construction stops much more, you might be selling those dump trucks.

 

[Hillbilly Deluxe]

I went the other way. Had a self employed medical practice. People wouldn't realize it but a medical practice is a small business in addition to the medical practice part. Lots of angst with employees calling in sick, employees leaving for a different job (in spite of being very well paid), managing employee payroll deductions, managing business accounts and then annual income statements for taxation purposes.

I was working over 70 hours a week, not making much money (considering the hours), had no benefits except for a "company car", and had no retirement plan.

Took some additional training, got a job where I could work a 40 hour week and make far more money. The bonus was an excellent retirement income plan. Best move I ever made.

Most of the doctors around here work for a mega-corp. They probably make $100k less a year, but they generally work 8-5 and much less business/paperwork.

 

[andrew_j]

I was asked to leave my full time job that was underwhelming, I did what is referred to as now quiet quitting to dial myself back and focus on my own business and surprised they kept me for 2 more years. I was woefully underpaid and thank the employer now for pushing me into self employment. Shortly after i I left they paid me as consultant.

 

[Zee09]

I would avoid the "marketplace" insurance altogether.. Many reasons why...

 

[Vil_Riker]

One of the big barriers for entrepreneurship is health insurance. The system is set up to encourage employment...

 

[Dave Hess]

I would avoid the "marketplace" insurance altogether.. Many reasons why...

People can get insurance from wife’s employer.

 

[Creekside]

This. Know that health insurance on "marketplace" for a family with not so good coverage, $5-8K deductibles, etc., is going to run you $2500-3000/mo. You will also pay 7.65% EXTRA in FICA taxes on your earnings.

You're also looking at having to employ a part-time bookkeeper at a minimum.

And it sounds like you're wanting to get into construction full time? I highly recommend against that. If you're dong industrial maintenance, you can probably step out on your own doing commercial handyman work or even going to work for a mechanical/electrical contractor who works in the plants around you. You will probably see a raise, work during the day, have benefits and no overhead.

I am not trying to discourage you, but health insurance and other taxes/expenses are much more than you imagine, plus the "dump truck" industry is very, very volatile. If residential construction stops much more, you might be selling those dump trucks.

I am in multiple different markets with the dump truck that stays steady year around. I primarily do municipal work for our county that will keep the truck busy 50 hours a week. In addition to that I am usually 2-3 weeks backed up on private requests, I haul ag lime to farmers, wood blocks for home heating in the winter out of a local sawmill and have even hauled corn silage out of the field for farmers. Nearly nothing that I do is tailored to residential construction except for maybe an occasional load of driveway gravel.

I am 27, single with nothing on the horizon, healthy, no kids, land is paid for free and clear and living in a 4 season 5th wheel that is also paid for. I know the insurance is a huge expense and one of the #1 reasons why I have stayed employed this far. I'm still researching options there.

I also plan to hire a CPA to assist with books. I should have before now but I have a great tax lady with H&R Block whom I've known for years. Her and her husband own several small businesses including the H&R franchise so I've felt confident that she was giving solod advice throughout the year for my operation. I don't have Quickbooks yet as I'm fairly proficient with Excel and track everything in spreadsheets. Come tax time I run totals on everything and forward to her.

 

[Creekside]

I was asked to leave my full time job that was underwhelming, I did what is referred to as now quiet quitting to dial myself back and focus on my own business and surprised they kept me for 2 more years. I was woefully underpaid and thank the employer now for pushing me into self employment. Shortly after i I left they paid me as consultant.

I am set up as a vendor for my employer in addition to being a full time employee. I supply most of the gravel for the lot and roads on the 100 acre complex as well as any of their specialized wrecker or towing needs. Kind of a similar situation I suppose.

 

[2strokeNorthstar]

Watch the news. A lot of hopes and dreams were crushed by the 2020 lock downs. My side business of 15+ years I gave up on during that scare. Just be very careful before you cut ties with the fall back job.

 

[John105]

I’m a co man. My buddy who has never been such said leave your job you’d make 3x on your own.

One thing I learned from my dad was he said sales is easy, support is tough. He sold his own software.

I can envision that….one disasterous implementation could be a big deal. I admire those who make self employment work. There are times I’ve had enough of being corporate employee 7243321….

 

[Vil_Riker]

I don't know why this discussion reminded me of this song

 

[dkryan]

I am in multiple different markets with the dump truck that stays steady year around. I primarily do municipal work for our county that will keep the truck busy 50 hours a week. In addition to that I am usually 2-3 weeks backed up on private requests, I haul ag lime to farmers, wood blocks for home heating in the winter out of a local sawmill and have even hauled corn silage out of the field for farmers. Nearly nothing that I do is tailored to residential construction except for maybe an occasional load of driveway gravel.

I am 27, single with nothing on the horizon, healthy, no kids, land is paid for free and clear and living in a 4 season 5th wheel that is also paid for. I know the insurance is a huge expense and one of the #1 reasons why I have stayed employed this far. I'm still researching options there.

I also plan to hire a CPA to assist with books. I should have before now but I have a great tax lady with H&R Block whom I've known for years. Her and her husband own several small businesses including the H&R franchise so I've felt confident that she was giving solod advice throughout the year for my operation. I don't have Quickbooks yet as I'm fairly proficient with Excel and track everything in spreadsheets. Come tax time I run totals on everything and forward to her.

Based on your info above, I would encourage you to go for it!

Otherwise, twenty years from now you’re going to be asking yourself, “why didn’t I make that move?”

At your age, your health, with no dependents and apparently little, if any debt, you can afford to take that leap. Yes, health insurance will cost you but you’ll be able to afford it.

I would look upon the CPA less as a bookkeeper and more of a business advisor. A good one is worth their fees and can often head off potential problems in several areas.

Good luck and re-open this thread Labor Day weekend 2024 and let us know how it is going.