Question for the independent guys.

[catfixer]

I'm starting to look into buying my own service truck and working the field for myself.
Being only 22 I know I will need a few more years experience under my belt first but I
Figure it's never too early to start planning. My question is, how do you determine what you pay yourself? I know the first couple years in a business you want to put as much money back into it as you can. Do any of you have a breakdown of where the money goes per hour? And I know it's a personal question but would anyone mind sharing what they pay them selves wether it be per hour or per year?

 

[Scrub Puller]

Yair . . . catfixer. Every one will be different but, for me, it was survival rations only for the first couple of years.

No parties, no booze, no toys . . . just get in there and make it happen.

It helps if you have a smart supportive lady who can help you with the paper work . . . there is no point in working your butt off and then screw up with the billing.

Cheers.

 

[overworked]

Scrubs correct, sometimes you don't get paid. Get a good business plan and try to stick to it, an accountant to listen to, try to talk to TIO on here, he will have some good points, sometimes it's better to have someone else to do the billing and you keep turning bolt's, let them complain to someone else. A well off man of 83 years told us " make a list of good customer and bad, only work for good ones, if your slow don't go back to bad ones, they will get in the way of the good." I feel he is correct, good luck.

 

[oldirt]

that 83 yr old guy was so right.

 

[pajibson]

Soooooo right.

 

[tctractors]

catfixer,you are starting on a path similar to how I set off, I had been married for nearly 2 years when I set off at 21 working for myself as a mechanic, I did have a few good skills 1 being a very good arc welder plus holding a HGV1 ( top truck permit) hooked up to the willingness to work like a dog, in the early years first 5 or 6 I would think, life was fairly tough with getting any good coins in my hand for the sweat I put into earning them not happening, but the worker was always knocked back in those days and things had to change, at about 35 ish I wanted to pack it all in and possibly take a different path as all I seemed to get was the jobs that no 1 else wanted, then I sharp twigged on to the fact that these jobs pay top coinage and adjusted my mindset to seek out this sort of work, I am now near 59 and still working like a dog most often 7 days a week, the bonus is I love what I do so in reality I have not been to work 1 day since I left school at 15, on the money front well the coins you lads get paid for easy stuff in the USA are double and some what is paid here in the U.K. for tough work, it would be wrong for myself to comment, but if you do it just for the money try robbing a bank, the pay might be better with a lot more time off, you need to like what you do.

hope this makes compus mentus and I wish you are graced with good luck tctractors

 

[partsandservice]

Selling labor is finite. You can only make more money by working more hours. From personal experience extended periods of 100 hour weeks will wear you body down and affect your home life. To sell labor you have to be frugal and willing to live within means. But at the same time I have to be the boss so self employment is the way for me. Try to find something you can sale along with the labor it will make things easier as you get older.

 

[tctractors]

In the U.K. selling parts to customers that I do work for would most probably end with myself being skinned alive, I dont go this route as the personal risk to myself financing other peoples dramas would be mental, its bad enough usualy just to get paid for the work I do, so my advice catfixer is unless you are well wedged up in the piggy bank to avoid trying to be the big "Firm" for bad paying customers it is best just to keep things happy but keep the begging bowl in their face, in the end they will cough up the coins, Court action is costly and usualy a waste of time compounding your dismay, so try to keep the hours you work reasonable at around 65-70 as that is what I am happy with and find it comfortable, if you cannot make a good earner at this level something is very wrong.
tctractors

 

[catfixer]

Thanks guys for all of the wonderful advice! This forum is always good for the sharing of knowledge. I have always heard the hardest part can be collecting. I am trying to budget out right now just how much it will cost to get this thing rolling as I start working on my business plan. Another question is. do you feel it would be better to get a smaller, cheaper service truck like a 5500 with a crane as opposed to a large one and then upgrade later as business grows or to try and go ahead and get a bigger truck? My last job I had a 5500 dodge and It was pretty much slammed full, and If I go out on my own I will probably end up having much more stuff on my truck.

 

[overworked]

The larger truck works well for the independent. You want to have as much with you as you can, hours ad up quickly when you have to keep running to the shop, try to scheduled large jobs in am, then if you finish early you can try to sell some pm work or other smaller repairs on same site to finish day, trying to start a big job in afternoon on different site sometimes makes the moon appear and buy the time you get home Cinderella is gone, you will have plenty of late nights as it is. A lot about getting paid is the attitude, when customers call to get work done, ( yes, 988B brakes jerky, OK . how will you be paying the bill? Check, credit card, or cash? Do you use a PO number, yes, OK give me one now. ) take care of it up front, their interest is to get machine running, Yours is getting paid.good luck, and bigger trucks can be cheaper used than little ones.

 

[nowing75]

I was talking to the John Deer dealer today and he was telling me they are really cracking down on giving information to customers. Fortunately I have found a lot of info on the Internet but it looks like the newer stuff is going to be getting harder to acquire for us independent guys

 

[grandpa]

Well I would recommend starting off paying yourself the same wage you are drawing now from your present job. This will show you two things. First thing would be you would know the very first month if you are cash flowing. Such as after all your bills are payed for the month whats left should measure up to what your previous job payed. The second thing it will show you is how da*n good your previous job really was... I wish you the very best of luck.

 

[DoyleX]

Keep your debt low and do not overspend with your new found income amount. Thats when your working for yourself and not the banker.

 

[02Dmax]

All good advice here. I'm 28 now and went out on my own 6 yrs ago so you're on a similar path. I tried the big truck and an f450 with enclosed trailer ended up being just the ticket for me. All depends on what you do. You'll "feel" like you're making a lot of money if you're successful off the bat but keep in mind YOU'RE the one buying fuel, tools, tires, and a newer truck someday. I make a great living but I end up paying myself half or less of what I gross.

 

[SE-Ia Cowman]

I have been on my own for 3 years and thing are going great, but I am 37 years old have a shop that was on the property and ready to use before I took the big plunge, and a service truck that I added about a year in to the new indever, and live in a small rural area were agriculture is a big business and I know about every farmer and construction contractor in a 50 mile radius, I worked for the local deere dealer for many years and gained valuable experience and met a lot of my customers that I have now. Most of my tools were paid for before I went off on my own. my advice is pay yourself 25% of your hourly rate put 25% in savings for taxes, insurance, and unforeseen and pay your bills with the other 50% don't buy a $100,000 service truck start with something usable and affordable. I sell a lot of parts and with the right aftermarket suppliers you can sell your customer parts for 50 to 75% of oem parts and still make 20% on the parts But you have to know and trust your customer, I have in over 3 years of business been screwed 1 time for $1700 and I may get it yet, but I know my customers. My best advice is be honest with your customers treat them good and do good work and they will come back and spread the word that you do good work. I wish you the best of luck