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.