He is very good at the HVAC biz; everywhere he goes people demand only him to work on their equipment (residential mostly)
But I"d be lying if I said I don't have concerns since NYS is most hostile to the biz.
He's stb 48 yrs old with approx 10 yrs experience. I have a full time job that I would be keeping.
Any advice?
Get books and read.
The best advice I can give is to move to Florida. Better business environment and year round work. :)
Seriously though, good luck whatever you guys decide!
NYS is a nightmare to have a small business in. He should look to see what his comp premiums will be before he does anything.
Upstate can also be problematic as to the economic conditions in your specific area. The money is just not there in some places.
Southeast NYS is probably the best area to have a small business but costs rise substantially over upstate.
Have a business plan that is sound before you start anything and look into costs associated with what you are trying to do.
NY is like two states with vastly different economies.
I would recommend getting a UPS store address or similar if you work out of a home/shop. It gives you a cushion between you and everybody else, and allows you to move.
Then check out the individual competitors. Are they struggling or do they appear to be busy?
Go to local hardware stores and ask the owners about the local demand and supply for HVAC service providers and the market in general.
Go to the local chamber of commerce. Ask them how the town is doing. Any new businesses coming to town.
Study, study, study.
Leave no stone unturned.
Wishing and hoping don't matter.
If your hubby is good, then the only concern is the market.
Separate bank accounts for the business with no mingling. The company account only pays for company stuff. He pays himself a salary from the business.
He’ll have to pay for items up front and hope the customer pays the bill so you will need a hefty cushion to cover. If he isn’t good with financial matters, you will have to do it. There is a good chance he won’t make a lot of money in the first quarter as he builds some equity. None of this “I need a new truck and some new tools”. You’ll know you are ready to go into business for yourself when you have the money to do it.
Like with all things, the first question will be “How will you pay for it?”.
Tell him to write a comprehensive business plan for himself. The financial section is a real eye opener.
Visit your local small business administration offices and sit down with a free adviser.
If it’s going to be solo it’s less complicated. He can run it as a S-corp. Get yourself an account at a payroll vendor like Intuit Online Payroll. This makes it simple to pay all your taxes,issue pay checks,w-2s etc.
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.
If you truly want to have a Small Business in New York, Start with a Large Business.
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?
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.
its only hostile to white males....If you can put the nosiness in your wifes name, you just might have a chance
Check out the Small Business Admin in your area. They are extremely helpful I am told and you get help and advise from other local small business owners.
https://www.sba.gov/tools/local-assistance
My advice is move to Georgia.
Great resources:
www.gosmallbiz.com
www.legalshield.com
Don’t try doing all the research yourself. There are resources out there to assist you. I’m going to use examples from my experience in my state but I’m sure there are parallels to be found in NYS. Proceed accordingly.
First, find a Small Business Development Center. (This is NOT the Small Business Administration!) Quite often, these services are associated with community colleges or four-year institutions. Arrange to meet with a counselor for a one-on-one conversation. It’s possible they offer classes to get in-depth info...enroll in the class, both of you! Grab every publication they offer. Ask for a specific list of state/county/city websites you need.
Next, consider the trades licensing department for HVAC as a resource on any licensing matters you may encounter. It’s one thing to hold an individual license, it’s quite often another to hold a license as a business or contractor. Get the details. Start at the state level, get copies of all laws and regulations that apply. Ask for any necessary license application packets. Ask for their website resources.
Next, taxes - start with the feds and state income taxes while also getting info on the lower levels, if applicable. Forms are available on their websites. Make sure the info you get from the Small Business Development people above includes comprehensive info on this aspect of business start-up. You’ll need to register as a business and get a tax permit in order to buy supplies without paying sales tax. You’ll collect sales tax when using those supplies on jobs. Usually, the service itself is not taxed, only the supplies used. Make sure you get a full understanding of the rules on this in NYS.
Next, insurance — previously mentioned by others and it can’t be repeated often enough. General and professional liability, Workers Comp, vehicle, health, etc. Find a broker you can trust and question everything. Insist on quotes and coverage summaries.
Now, you have the basic info to figure out if you really can make a living as an individual HVAC service person and how much it costs to just leave the house on a service call, let along make a dollar or two along the way. Of course, your competition has already set the going rate for services in your area. Will that amount cover the nut?