Any self-employed, home based business people out there?

Been thinking lately about going self employed business doing body and metal work ,building and maybe flippin some cars. Needless to say I'm scared to death of the risk of making it work but I know if you dont take a risk you 'll never know. Anyone have any words of wisdom and advice ? Pro's and cons?

 

Save for a rainy day. You won't have anything to fall back on if you were to get hurt and couldn't work for a while.

Good luck, hope it turns out to be a great thing

 

start small, buy as little as possible, use space you got now,pay as you go,do good work
THE DOWNSIDE the economy is not so good , about 1988 it was on a wild upswing and it lasted 10 years everyone wanted to put money in your hand
everyone out there wants your money now


charge enough, and be sure to collect everything when done, its kinda A rude awakening learning all the ropes of bad customers and sometimes even getting sued
good luck on your adventure

 

Yup: The best way to make a little money selling cars is to start with a lot of money.

If you're honest, you'll never make it. I was in new car sales for a year. Still work at a new car dealership. Could I tell you stories...

Cosmo

 

Make sure you're self motivated to work without someone over you shoulder!

Sucky part about working for yourself, is usually 5 o'clock never is quitting time!

 

You only live once, give it a shot.

 

There are pros and cons in every business venture. For the last year I have been trying to change careers (for the 4th time) to flipping cars and getting deeper into carburetor work. My last career is still hanging in there so I will stick it out for a few more months. I do have an investor that will front the money when I do start flipping cars. He has a garage to store them (but not work on them). We have already looked at a few cars, however, you must be wise and walk away from some that sound good until you do the math. We were very close on two last month, however the sellers would not lower their price to a reasonable amount. (both are still for sale at the higher price for what needs to be done with them) Get to the vehicle ASAP and check it out. Take cash in hand and a trailer. Do not leave the vehicle with the seller after you purchase it...not matter what they say !!!! Take a odometer statement with you so the seller can sign it. No papers, no sale.

 

Can't think of any advantages beyond being your own boss. Are you that self motivated? You'd have to cover building, materials, utilities, insurance, health insurance, retirement and other benefits, cash for the slow times, advertising, accountants, lawyers, code enforcers, personally deal with customers, wait for payment, take the heat with dissatisfied folk, on and on. Most small business start-ups are horribly under-funded and fail. You can get advice from your local Small Business Development Council-free. You should check them out and develop a business plan before you make the jump. You do have a business plan and a budget, right?

Best of luck.

 

Business software, sole proprietor, or Corporation, Federal tax number, State registration, City registration, Fictitious name registration, Paint regulations, paint booth and environmental issues, Insurance, County regulations about home businesses, neighbors, Advertising, Sales, Dealer license.

Just a few of my favorite things to add to the above poster.

 

Here's the word from a person with ZERO experience who got into nostalgia car book authoring and publishing: Don't ever give up. You must have discipline and desire. It will take years to break even. There are people out here in So-Cal who flip HAMB friendly cars. A few of them are successful at it. People who operate a business with ultra-high standards will see the results of their efforts pay off.

 

Your finished projects will be your best business cards, just dont get carried away when the snap-on truck shows up.

 

I've been self-employed for 35 years. You are never not working 24/7. You could be watching tv with a beer and in the back of your mind your thinking of the business. On vacation laying on a beach; you're feeling guilty that you took the time off and bumming about the income your losing. Week-ends? That's a chance to get caught up on stuff because the phones not ringing sucking your billable time but you have to in order for new or repeat business. Heaven forbid you have employees, making payroll is a bitch and many times they went home with more scratch than what you have left after paying the overhead.

The upside: I don't take no shit from anyone and many times I'm the vendee which means they are sucking up to me for my business. I like to do business with people I like and who are like me.

The other upside: I can't make as much money as I would working for someone or a corporation doing the same thing. Sometimes big money, last few years not so much.

Oh yeah, I wouldn't have it any other way.

 

Do exactly as eugene suggests. Ease into it and remember the flippin cars thing is quite risky.

 

Going to do it all yourself? Keep in mind it's not just the work, there's also the paperwork - licenses, taxes, accounting, ordering, inventory, etc. And, yeah, keep it as small as you can and still do the work. Firstly though you should make sure there's a market for what you're going to do in your area that's large enough to support what you want to do. A little market research can go a long way.

Good luck!

 

Go for it! It takes time to develop a successful business, but there are great rewards - like being your own boss. If it is your dream then don't hold back but get out there and see what happens! Good luck!

 

I have been self employed since I was 16. I am 44 now. I operate a hot rod / race car fabrication shop that I started from the ground up. The last 12 years I have been building and selling parts that I fabricate on the Internet. It is not easy, but I love what I do and I have free time whenever I want it. you have to figure out why you are going to do, and do it.

 

self discipline is the key to success , be honest with yourself...

 

think about the job type mix that will keep you motivated. i.e. a lot of shops can't make the cash turn around strictly doing long term projects, while strictly doing short term projects may not keep your interest. Do you have a local university near you? Many business schools have students perform business model/market analysis and present the results for credit. Our local university does it for free.

 

And no matter how bad you think you need it NEVER take on a partner!

 

doing to much of what you love, can make you hate it. i'm a cabinet maker, but do you think i have a nice kitchen? i do but...still.

 

All work is paid for, when completed, in cash. No credit to anyone (usually the ones that demand credit are looking for a way to screw you). Collect money for parts up front. Expect to be broke for the next 5 years. Business is never constant, you either have more then you can handle, or you don't have any, and it can change either way in a single days time. When you're busy, don't spend all the money, you have to keep some back for the weeks you may not make $10. Every line of work has slow times and busy times of the year, ideally you have two lines of work that are opposite each other during slow and busy times (one is busy when the other is slow).

If you're going to do this at your home, be aware of zoning issues. Be friends with your neighbors, respect their lives. Don't make noise when they want/need quiet. Have posted hours and be "closed" when it is not normal business hours. I work out of my garage at home, If someone shows up after hours to have something "quick" done, the rate is 2x the shop rate with a minimum fee, (I consider it an emergency, if I need an emergency repair, I expect to pay extra), or they can come back during normal hours and pay the normal price. Eliminated a lot of BS drop ins all hours of the night. Also, the business has its own phone, that phone does not ring in the house, and there is an answering machine attached to it.

Its been almost 20 years now, I could never work for anyone else, even though I could probably make more money. Gene

 

Exactly, NEVER.

 

I've been self employed all my life--a farmer. Just got done for the day(or was that yesterday?)& flipped on the HAMB. Dont even think you'll be successful working 40hrs a week. More like 24/7. Gotta be up at 5:30........... You gotta be dedicated to it.......

 

If you have a shop set up with everything you need and work lined up ready to do, then get up at 6 a.m., get a coffee and egg-a-muffin and go out and start working. Otherwise, keep your day job until you have everything sorted out and ready to make money.

One of the most common mistakes made when entering a venture like this is "I think I can get by starting with just these tools until I make some money to buy what I really need". Or, "I think I can start in my 2 car garage until I make enough to build the shop I really need". Working in a tight space with inadequate tooling will have you constantly moving things around to make a space to work, you will get frustrated because you are inefficient and wasting time, and it's downright dangerous. So, don't think you're ready until you're really ready.

 

Rent a commercial space for your work..... yeah pricey but there are at least two important reasons....If you're going to work on someone else's car in your home shop or garage there are all kinds of insurance problems associated with it. Tell your insurance guy what you want to do and see what happens. Better to learn it now than after a fire or theft.

Secondly, as Sting Ray said, you're never 'off the clock'. Every time you walk out into the shop that car is there, reminding you that you should be working on it. Even flipping a car you're reminded of all that money sitting there.

I make headliner kits for '49-'51 Ford and Merc woodies. I have done about six in my garage/shop and I am tense the whole time that car is in there. I'm changing my website to remove the option of installation. It's just not worth the stress....

That being said, I was self-unemployed as a general contractor for many years and they were great....I was broke most of the time but the personal satisfaction of deciding your own destiny....to a point.... was almost worth it.

Probably the hardest part is being completely honest with yourself how much the job is worth. You MUST factor in rent, utilities, insurance, a real wage for yourself, wear and tear on tools and never skimp on the time needed for the job. We have a tendency to price low so we get the job but if you're not going to make money at the end, what's the point?

Someone mentioned getting cash at the end of the job. I prefer to get it in stages along the way and ALWAYS BE AHEAD OF THE CASH CURVE. Then even if the job goes sideways you're not going to lose too much money. To wait until the end and have to take someone to court is an expensive process.

If you have some cash to fall back on for the lean times, already have people wanting you to do work for them and can be honest with yourself about all of the above, I say go for it. If one of these is missing, you're taking quite a risk.

 

There is a real good chance that you can make what you are now, IF you go to work EVERY DAY at the same time you do now and don't quit til you would normally, EVERY day! Discipline is necessary, because, all of a sudden, there are a million distractions, things come up, you are "available" to friends or spouses. People need favors. The list goes on and on. UNLESS, they, and you, KNOW that you WORK, between the hours of x and x. I am willing to bet, that if you work, for yourself, and pay yourself what you make now, while charging a shop rate and banking the difference, that you can make it.

 

How many people do you know in the hobby within a 100 mile drive with $1,000. to spend?

 

There is a lot of good advice here. I'm 62 been self employed almost since 19. Seems like when your the boss you can never be there too early or stay too late!. To me there are a lot of body guys on here and in the world, some are making a living some not. If you want to do it go for it. But if you take in customers, do what you say when you say, and charge enough to be worth it..My expertise is upholstery, I think there is a lot less of us, so easy to stay busy. It's also quieter, cleaner ,so neighbors usually don't know if your working or not. Good luck Jack

 

and insurance,,,shit has a way of finding the honest and unsuspecting

 

Do it! When I get back from this deployment I am on I will be starting my own business. Start small and work the shit out of it from there. Small business small overhead. Remember that!