Don’t be Overwhelmed!
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| Any new venture is sure to come with a whole lot of questions. Relax. We’ve identified some of the most common questions people have asked me, mainly when considering working on their own. I’ve listed them here. If you’ve got any other questions, contact me. I’m more than happy to take a look and offer my advice. Questions about starting your own business, having a career in one of the trades or getting training as a skilled technician are all welcome! Frequently Asked Questions:What if I Fail? So what. You can go out and get a job. A friend of mine, Sal, a multi-millionare used to say, “Joey, everyday you get out of bed is a gamble. You might as well go for it.” If you have that deep burning feeling that I had in my stomach, the one that told me I had to prove something, not to anyone but myself, and I can be my worse critic, you’ve got the drive to make it happen. If not this business idea, perhaps the next one. As Sam Walton, the founder of WalMart said, “Just keep moving forward.” How do I deal with The Tax Man: Remember, you only pay taxes on profit. You need to keep every receipt from your business. I mean every gas fill-up, equipment purchase, phone bill, even the highway toll booth receipts. These are your costs of doing business and these are expenses that will pull down your profit. Stuff it in an envelope, along with your sales, (the list of money you’ve collected) and your labor costs for the month. Write the month on the outside of that envelope and about every four months, take those envelopes over to your accountant. Should I lease equipment or buy it? I like to lease for the following reason: When you lease equipment that payment does not show up on your credit report because you don’t own it. Usually the lease is structured “zero money down” and comes with a lower monthly payment than if you bought the equipment. Though you may pay more in the end, these advantages are great for a start up business. It’s an instant tax break. But truly, if you need equipment to get your small business up and running, you need to buy it, lease it, or borrow it……but get it. How do I get my money due? Receivables is the money due to you for past work performed. This is your reward. This is what it’s all about. In my business, the construction side, we get 1/3 down, 1/3 payment half way through the project and 1/3 at completion. It works out well. For my lawn maintenance business, we bill every three weeks. Let’s take an example: If we bill $50,000 about $35,000 will come in about 3 weeks. Then there are the people that go 60 days or even later. At 90 days we put a stop work order for the crew to be notified. We have an attorney send a letter and a $25 late charge per month begins……Unless of course, you’ve had the customer for many years. I always try to work with them. In general, most people are good. Very good. But people do fall behind, as we know, personal problems, etc. I have found the first time someone pays will be the way they’ll always pay. How do I avoid the troublesome customer? I have found as most of us know, first impressions are very important. You could size a person up almost in minutes with their voice, expressions and demeanor. If they sound pleasant, easy, cooperative, this is a good one. But if they call quickly and say, “If you give good price, you will get job”, that’s someone you should get away from fast. Some people even voluntarily express to you that they are picky. “I want a perfect job and I’ll be home to oversee the project”. If you hear that, Head For The Hills. Again, most people are good, very good, but you do need to feel them out. Don’t be too quick to cut off a potential customer. You should have a score rating in your head:
Draw the line after “A Little Aggravating”.“Impossible”? Get Away! Should I work alone or hire someone? In the early stages of any new, small business, whether it’s painting, landscaping, trucking or carpentry, I feel that you should work alone. You can keep your insurance down, your liability costs down, workmen’s comp insurance and most of all have no payroll pressures on Friday. The best part, though, is that you will get a first hand birds-eye view of everything involved in a small business owner’s day. Whether it be 7:30 am when the van breaks down or 4:00 p.m. when you cash the check for the job you just completed and find out the funds are not available until tomorrow morning. This experience will help you down the road when you’re hiring people. You’ll know first hand what they’re going up against. Will I earn enough money in a blue collar job? Yes, you will. Most of these jobs, after two to three years experience, could allow you to easily earn $45,000 a year. If you’re a supervisor, or perhaps own the business, the numbers will climb. Won’t I get bored doing the same thing day in and day out? Not in today’s manufacturing world. Check out our interview
with John
Weiling. He’s the director of Industrial Growth Works
at Duquesne University’s Institute for Economic Transformation.
We interviewed him recently and he gave us a lot of insite into
what today’s manufacturing jobs are all about. What is the best blue collar job for me? You have to ask yourself, what do you like to do? What skills are second nature to you? How do you like to spend your days? Well, if you repair cars or train to be an oil burner technician, you will get dirty, real dirty and will need to contend with a lot of strong odors on a daily basis. A carpenter or brick layer is a lot cleaner, but the jobs more dangerous. They may even have a longer commute as the job location will constantly change. I would say electricians tend to have the best job in the trades. No heavy lifting, for the most part, a clean environment. When you think of it, these jobs are in such demand all the time because everything is somehow connected to electricity. |
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