Mike L
Senior Member
I guarantee there’s a place for your skill set out there. Charge a fair rate, under promise, over deliver, and you’ll have more than enough work to stay busy. It only takes a handful of good customers to keep one mechanic busy.
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Tired
- Thread starter 92U 3406
- Start date
Tags
Senior Member
If you are good at what you do, honest with your customers, do what you say you'll do, show up when you say you will, and most importantly have good communication with customers, you'll do just fine. Don't get me wrong, EVERYBODY has a story about some cheap ass know it all no paying SOB, you figure out real quick who you'll work for and damn sure who you WONT work for ever again.
BigWrench55
Senior Member
My dad had a customer that stiffed him for 10k. We went and found his dozer and removed the tracks until payment was received. The customer called the sheriff while we were removing the tracks. Sheriff wouldn't let us leave with the tracks because we didn't sell him the tracks. But he didn't say we had to put them back on or near the machine. So we off loaded them on the other end of the field. Since this customer had burnt many bridges he had no one to put the tracks back on. He finally paid my dad and asked him to put the tracks back on. My dad cashed that check and never answered his calls again. My dad had another customer stuff him on a engine he built. That engine was repoed with cutting dikes and a gas axe. He got that payment and was paid to install it back. Can't do stuff like that anymore. The deadbeats have more rights than the honest working man.
kenh
Senior Member
" I don't know, but IO know where to find out" The exact words I used to a boss after he made the mistake of asking the shop "expert " and getting ten minutes of the guy hum-hawing.
This was aircraft instruments, I wakjed him over to the Ohver haul manuals and said this is the fount of all knowledge.
This was aircraft instruments, I wakjed him over to the Ohver haul manuals and said this is the fount of all knowledge.
mg2361
Senior Member
DMiller
Senior Member
Have researched projects over to a fault, will go back and review what need to in process of a project then ask of those I know have more knowledge than I as to what ifs and admit to it. Know not everything do Not wish to know everything and am a font of seemingly worthless information that at times has had benefit for someone else.
This X 100
If your waiting until you think you know enough, you will never do it.
Right on spot!
DMiller
Senior Member
I did it but did not put all my efforts towards that, had I done so would still be working as retirement would still be distant financially. Thirty years ago was hard to make enough to pay the bills, would still be trying to catch up or be inundated as was coming after I left mechanic. I see all too many overwhelmed by volumes and no one else approaching to take off some load.
Some helpful advise to those of you thinking about it. Keep in mind I had NO advise when I started and flew by the seat of my pants.......so consider this a jump start if interested.
1. The most difficult part of making the decision to go self employed is exactly....MAKING THE DECISION. I was no different than you, I liked the steady paycheck, the bennies, paid vacation and sick. My biggest problem was I had no where else to go......topped out in pay. Is it scary......of course it is, but its scary working for a company that doesn't value you plus the constant fear of a lay-off or firing. I decided I wasn't going to leave that in someone else's control. I made the jump when I was 27 years old with 9 years experience.
2. I had a good customer base of my own while working for the last dealer. They didn't contact my service manager, they contacted ME directly. I thought about self employment for 2 years before I did it.......How did I get that push I needed you say? I told EVERYONE of my customers that I was going self-employed. I didn't ask for their work, I just made them aware that I was no longer going to be at the dealer. You know how many of my customers called me when I started up? EVERY ONE OF THEM. You are not stealing work if they are contacting YOU.
3. I had 6 months of bill money saved before I started. I bought my first truck and paid half down. I knew that it would take some time to get my customers set up, get the truck set up, get the office system efficient where I could do it, and to also wait on receivables to come in. The first 3 months is the toughest.....but if you have money put back or bills paid forward, you wont look back at that point.
4. Get a CPA as soon as you start. The IRS loves new businesses and if you do you taxes yourself, your just begging for an audit. CPA performed taxes are 20X less audited on average. Ive been self employed for 30 years and have never been audited.
5. You HAVE to be diversified in this business if you are self employed. There will be economic situations that will curb one or more parts of this business constantly. I have customers in oil and gas, dirt construction, highway and paving, building construction, county government, and dirt pits. Regardless of what the economy does, there is always one or more of them that are not effected. This carries you through those tougher times.
4. DO NOT SELL YOURSELF CHEAP! If you have heavy experience, price yourself within 20% of the dealer rate. If your good and treat the customer right, you will have to beat them off with a stick. Customers want quick service, but they want value and a proper repair. Make yourself available 24/7 when you start off.......yeah I know that sucks, but you have to put yourself where you are willing to do whatever it takes to make that customer happy. It will greatly benefit you in the long run............then you can pick and choose jobs once you have a solid base.
5. I have gotten "taken" many times, IT HAPPENS. Its money I lost due to not having policies with new customers. I had to implement certain "rules" with new customers. All new customers that contact me get a free quote on the repair they need. If they approve I demand 50% up front before I turn a wrench.....and the other 50% upon completion. If they are not willing to do that.........WALK AWAY! This is the first red flag that they cant afford it. Learn from bad experiences and adjust your protocols going forward.
6. Do not be afraid to ask for your money. You earned it..........do NOT let customers stretch you. If you do, they will always do it. Have a firm pay date and stick to it.
7. Check and see if your customers will require insurance and what those requirements are. The insurance is expensive, so you have to make sure that the work you do for those customers that require it is enough to cover the cost of the insurance X 10. I have found that companies here usually have the requirement, but they also will "skip" that if necessary to get what they need done. My suggestion is to have the insurance the first 2 years.
8. The object of the tax game with our wonderful government is to not show a profit. You HAVE to spend gross profit dollars to keep your net taxable as low as possible. WAYY to many ways to do this that are perfectly legal which I wont get into right now. Its possible to live like a KING and be "BROKE" at the same time. Remember, the government will be in your pocket constantly and they modify the tax laws literally every year to gain more income from working folk........this again is why having a CPA is very important!
9. Don't panic if work gets slow because it will. Always make sure you have money set back. Use that slow time wisely to make other business contacts and check in with customers you may not have heard from in a while. Believe it or not, they are impressed when they feel like you are available and actually give a dam about them and their business. Enjoy those slow times with your family.
10. And lastly.......TAKE GOOD CARE OF THE LITTLE GUY. I don't know how many times my smallest customers carried me through bad economic times. The Big companies look out for only themselves and when things get slow they don't "need" you. Your small companies can relate as they are in the same boat as you. They want to see you succeed as much as you want to for yourself.
In closing LOL.......I could write a book on this, and the above is just a few main points of many as you learn in this business. For me, when I started it was all about the money. But after 30 years of self employment....its more about FREEDOM and being your own man. To be honest, I would have it NO OTHER WAY and have never looked back.
1. The most difficult part of making the decision to go self employed is exactly....MAKING THE DECISION. I was no different than you, I liked the steady paycheck, the bennies, paid vacation and sick. My biggest problem was I had no where else to go......topped out in pay. Is it scary......of course it is, but its scary working for a company that doesn't value you plus the constant fear of a lay-off or firing. I decided I wasn't going to leave that in someone else's control. I made the jump when I was 27 years old with 9 years experience.
2. I had a good customer base of my own while working for the last dealer. They didn't contact my service manager, they contacted ME directly. I thought about self employment for 2 years before I did it.......How did I get that push I needed you say? I told EVERYONE of my customers that I was going self-employed. I didn't ask for their work, I just made them aware that I was no longer going to be at the dealer. You know how many of my customers called me when I started up? EVERY ONE OF THEM. You are not stealing work if they are contacting YOU.
3. I had 6 months of bill money saved before I started. I bought my first truck and paid half down. I knew that it would take some time to get my customers set up, get the truck set up, get the office system efficient where I could do it, and to also wait on receivables to come in. The first 3 months is the toughest.....but if you have money put back or bills paid forward, you wont look back at that point.
4. Get a CPA as soon as you start. The IRS loves new businesses and if you do you taxes yourself, your just begging for an audit. CPA performed taxes are 20X less audited on average. Ive been self employed for 30 years and have never been audited.
5. You HAVE to be diversified in this business if you are self employed. There will be economic situations that will curb one or more parts of this business constantly. I have customers in oil and gas, dirt construction, highway and paving, building construction, county government, and dirt pits. Regardless of what the economy does, there is always one or more of them that are not effected. This carries you through those tougher times.
4. DO NOT SELL YOURSELF CHEAP! If you have heavy experience, price yourself within 20% of the dealer rate. If your good and treat the customer right, you will have to beat them off with a stick. Customers want quick service, but they want value and a proper repair. Make yourself available 24/7 when you start off.......yeah I know that sucks, but you have to put yourself where you are willing to do whatever it takes to make that customer happy. It will greatly benefit you in the long run............then you can pick and choose jobs once you have a solid base.
5. I have gotten "taken" many times, IT HAPPENS. Its money I lost due to not having policies with new customers. I had to implement certain "rules" with new customers. All new customers that contact me get a free quote on the repair they need. If they approve I demand 50% up front before I turn a wrench.....and the other 50% upon completion. If they are not willing to do that.........WALK AWAY! This is the first red flag that they cant afford it. Learn from bad experiences and adjust your protocols going forward.
6. Do not be afraid to ask for your money. You earned it..........do NOT let customers stretch you. If you do, they will always do it. Have a firm pay date and stick to it.
7. Check and see if your customers will require insurance and what those requirements are. The insurance is expensive, so you have to make sure that the work you do for those customers that require it is enough to cover the cost of the insurance X 10. I have found that companies here usually have the requirement, but they also will "skip" that if necessary to get what they need done. My suggestion is to have the insurance the first 2 years.
8. The object of the tax game with our wonderful government is to not show a profit. You HAVE to spend gross profit dollars to keep your net taxable as low as possible. WAYY to many ways to do this that are perfectly legal which I wont get into right now. Its possible to live like a KING and be "BROKE" at the same time. Remember, the government will be in your pocket constantly and they modify the tax laws literally every year to gain more income from working folk........this again is why having a CPA is very important!
9. Don't panic if work gets slow because it will. Always make sure you have money set back. Use that slow time wisely to make other business contacts and check in with customers you may not have heard from in a while. Believe it or not, they are impressed when they feel like you are available and actually give a dam about them and their business. Enjoy those slow times with your family.
10. And lastly.......TAKE GOOD CARE OF THE LITTLE GUY. I don't know how many times my smallest customers carried me through bad economic times. The Big companies look out for only themselves and when things get slow they don't "need" you. Your small companies can relate as they are in the same boat as you. They want to see you succeed as much as you want to for yourself.
In closing LOL.......I could write a book on this, and the above is just a few main points of many as you learn in this business. For me, when I started it was all about the money. But after 30 years of self employment....its more about FREEDOM and being your own man. To be honest, I would have it NO OTHER WAY and have never looked back.
Mobiltech
Senior Member
One thing I found is that once you are putting all the repair and parts money in your pocket instead of the living wage you get from your dealer boss your net worth increases dramatically. Yes you have buildings and equipment but when you’re done it’s still yours. I figure I would have had to work 30 years at the dealer to get to where I am on my own in 12 years.
If bill working for dealer makes 100,000 a year and has 60,000 living expenses he has 40,000 to blow.
If Jon working for himself makes 200,000 a year and has 60,000 living expenses he has 140,000 to blow.
That’s without the tax difference of bill paying 30% personal tax and Jon only paying 13% corporate tax. Plus all your tools and equipment are a write off.
These are just rough numbers but you get the idea.
If bill working for dealer makes 100,000 a year and has 60,000 living expenses he has 40,000 to blow.
If Jon working for himself makes 200,000 a year and has 60,000 living expenses he has 140,000 to blow.
That’s without the tax difference of bill paying 30% personal tax and Jon only paying 13% corporate tax. Plus all your tools and equipment are a write off.
These are just rough numbers but you get the idea.
Tags
Senior Member
Well said Vtech63, great job putting that all together....can we use your business model for the strip club??
Ill check with the boss/wife
Welder Dave
Senior Member
Agree that you should never feel bad about asking to paid for work you did. Taking money up front requires you to be bonded. This is where a lot of people have been taken by so-called contractors. Not saying anyone on here is a bad contractor. I think a better policy is progress payments if it's a big job. I lawyer could help with this. I think being a mechanic involves some specific parts to the contract such as who buys parts. As far as what to charge, you should be able to find out what the going rate is and be close to that. Undercutting can give you a bad reputation. Don't sell yourself short. When I did landscaping I needed to raise my rate and my dad said if people complain about $40/hr. they're the same people that would complain about $35/hr. so why not get a little more if they're just going to complain anyway. Also worry about the jobs you have more than the jobs you might get or don't get. You're not going to get them all but some customers may wait until you can get to them.
For some reason I don’t think the strippers are going to tolerate the wrenches, prybar javelins, and f-bombs being hurled at them daily.
Also hitting them with a hammer to make them work again is not only aggravated assault with a deadly weapon but also against employment laws.
Also hitting them with a hammer to make them work again is not only aggravated assault with a deadly weapon but also against employment laws.
Our strippers are going to be gorgeous, athletic types that could beat a perverts ass down if necessary. All we have to do is sit back and watch the entertainment.....one way or the other. It’s a win win!
DMiller
Senior Member
Nice little Atoll
My buddy "Roid Rage" went from being a full time bouncer to club owner. You think you are tired now? Try employing super-hot wimen that know they are super-hot and want to be paid for being super-hot. It's fun for awhile, but it won't be too long until jumping off a very tall building looks good.
92U 3406
Senior Member
Athletic beats skinny every day of the week.
Pass. I hate flying. I'll take a boat trip though so long as I'm surrounded by bottles of rum.
old-iron-habit
Senior Member
- Joined
- Nov 22, 2012
- Messages
- 4,233
- Location
- Moose Lake, MN
- Occupation
- Retired Cons't. Supt./Hospitals
You make a lot of very good points here. I will add one. The dealer rates are covering, health, welfare, and retirement funds, besides wages, overhead, and profit. Make sure you pay yourself a good wage. And then take as much extra profit as you can and put it into a retirement plan for yourself. This is the one step that many fail to fund while self employed. With the tax deferred plans available today you can stash up to around $100,000 a year. At some point you will want to retire and the best way is to do it well.