Posted on 03/07/2016 5:59:43 AM PST by AbolishCSEU
There is licensing, insurance, bonding, comp premiums, having to build a customer base, dealing with employees and associated costs, etc.
Then you are competing with illegals operating out of their car trunks and union guys working on the side because they have been laid off.
I know what he is thinking regarding the money flying around but he does not see the internal workings of the business. A lot of these businesses are just making it these days.
Running a business is a helluva lot harder than collecting a paycheck at the end of the week. You now have to worry about where that money is coming from.
I watched my dad run a contracting business in upstate NY for 60 years. Not all gravy and some very lean times.
Despite the stupid commercials, NYS is one of the most difficult places to have a small business in the nation.
My brother had an HVAC business centering on Commercial Refrigeration back in the ‘80’s. Bidding on commercial contracts was blood sport. You had companies knowingly losing money just to get the contract and keep their guys working. It was crazy.
Stick with the fulltime job. As a 17 year small business owner I can tell you that pregnancy and self employment are highly overated. :-)
Or stick with the fulltime job and do it on the side til you build up a client base then go solo.
Good reason for an LLC. Don’t forget insurance.
Is there an urban or more densely populated suburban area nearby that offers a larger market?
If you truly want to have a Small Business in New York, Start with a Large Business.
$37 a month and it makes things 1000% easier. Link it to your business account. It will pay taxes for you, help you with quarterly and annual forms, checks,w-2s etc
So would love too but I work for the county and have a total 14 yrs into the retirement system. (ducks) Just started working here 5 yrs ago.
I’m 55 yrs old so and pride myself on keeping up with the latest IT stuff like raspis, etc. as I once worked in the private sector (unlike the “lifers” here who are still in the 80s and 90s as far as tech goes) Probably couldn’t get another similar job in Florida due to my age.
That being said, I pay 99% of the bills on my salary since Hubs is pretty much depleted by child support.
Not to segue off but I’d sure like to see the next prez candidate do something about the intolerable “family” court system and punitive debtor’s prisonesque tactics as far as “child” support goes.
Also your monthly tax deposit and Fed a NY unemployment payments
Yeah but then you are talking the “hood” (Rochester NY) which hubs, a small town country farmer boy, is deathly averse to.
As you know, technical and trade schools are doing very well and most grads find working shortly after graduating if not before.
Being a good salesman is only good for getting your hubby's foot in the door for the first sale. After that, it all comes down to how well the customers are satisfied with the job and the price.
If he is good as you say he is, then the only question is market growth.
Is there any new housing being built in your market?
Here and there.
Mostly in ICK-atha. (City of Libland Evil)
I should say that most of the biz comes from existing housing and existing equipment.
It’s fantastic that he wants to be his own boss. Here’s a link from New York State on how to start a business:
http://www.ny.gov/services/business
Because he’s very good at what he does and is a good salesman, I think he’ll have no problem. If all goes to hell, he can always work for someone else again. That’s what is so great about being good at what you do. You’ll never lack for a job.
One thing he needs to think about is he’ll have to occasionally have a helper so he’ll need to have several people in mind that he can call on from time to time to work as an employee.
I know it’s scary at first, but you’ll look back one day, not too far in the future, and realize it was the best thing you ever did. There are two ways to make a lot of money, one is be your own boss by owning your own business, and the second one is in sales. Your husband can do both. I’m very excited for you!
Most trade guys fail because they don’t quote jobs properly. Also, beware of newbies being taken advantage of. Some contractors will abuse newbies by not paying timely and forcing them to take unprofitable jobs by giving them so much work they are indentured servants. Be sure he understands how to include all his costs as well as profit in addition to his salary on jobs. It is better to stay home than to work for nothing.
I deal with many, many small businesses, and often pick up the pieces when they fail. My strongest advice would be to be very wary of signing a lease in the beginning. Many small businesses fail quickly, leaving the owner with catastrophic debt for having guaranteed a long term lease. Next, do not do your own payroll, have a reputable payroll service do that for you, and keep up with the 941 payments. At the same time, get a good bookkeeper. Finally, do not get involved with partners or private investors.
Has your Hubs signed a non-compete with his current employer limiting him geographically to start a business in your area for at least a year?
This is important to know.
No partners and no warehouse; will be doing this out of home. No inventory to speak of. Will be getting parts from supply house. Hubs has his own tools already
Will definitely be looking into a payroll service despite the expense. Thanks!
When you are in business you do what you must.
Think primal.
You do what you must to put food on the table.
If you can access the outer fringes of a metro area, you can find some good markets for HVAC.
Ask you hubby how much his "being averse" is actually "being afraid." Nothing wrong with being afraid...but to be a success, he will have to overcome that fear.
I agree. This micro company he’s working for now has a pretty flimsy employee handbook. I believe I checked that out when he first was employed there (a year ago)
He should consider working a deal with his current employer and making him his first customer. He can give him good rate, it will help him get started and keep everything above board.
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