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A New Business Venture

Dave45 | Posted in Business on December 1, 2008 08:30am

Well, I pulled the trigger and filed for my Social Security a couple of weeks ago. I had hoped to wait a couple of more years, but work is virtually dead here and we need the money now.

Over the turkey dinner last Thursday, my daughters suggested that I offer consulting/teaching services to folks who want to DIY their projects. Apparently, several of their friends still want (or need) to work on their houses, but don’t think that they can afford to hire it done, and are thinking of trying to DIY.

I helped #2 daughter and SIL do quite a bit of work on their house over the summer. They got the “family discount” (i.e. they paid for all of the materials and did most of the work. I provided the tools and training). They said that some of their friends had asked if I would adopt them – or at least teach/supervise them while they did the work.

I’m thinking that this could be a viable business area. I would provide consulting/teaching services to DIY’ers at some hourly rate, but they would do most (or all) of the hands on work.

Has anyone done this – or seen it done? What are the pitfalls?

Comments or suggestions are welcome.

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Replies

  1. VMackey | Dec 01, 2008 10:06pm | #1

    Aside from direct overhead possible being lower, I am thinking your basic living expenses would still be roughly the same, so you would have to charge roughly the same dollar per hour to pay your bills at home, right?

    I don't see a price point where you could charge enough to live, yet please the money tight DIY'ers. And if you are going to charge enough to pay your own bills, you are probably close to charging what yourself or any other tradesmen would charge to do the job outright.

    Even if you are only going to charge "on site" time, and plan only to be there part time, you are going to have to come up with alot more clients to fill the schedule.

    If you just plan for one day on a week long project as the average, you have to find 5 times the number of clients. Personally, I don't see how it could work.

    Catering to the cash strapped isn't a good way to make money.

     

    Not sure how it works with the social security, but if you can get social security and have a legal income, I'd think about focusing on higher end work for higher end clients. Less work for potentially more money. Find a nitch market that can't support a full time worker and hold out for the best paying jobs in that nitch. Vic

    1. Dave45 | Dec 02, 2008 01:35am | #7

      Good points V, but I don't have to make my total living from it. I've been semi-retired for about four years and just need to supplement what I'm drawing from my retirement accounts (formerly known as healthy accounts - lol)If I could score a couple of days a week at my normal rate, I would be as happy as a clam.

      1. VMackey | Dec 02, 2008 08:24pm | #10

        After reading the comments about tool usage, I wonder if you could also sell small tool packages. Put together the basic hand tools needed for the various projects, or offer a couple of "speciality" tools that might be required but the average diy / homeowner would't have on hand. Small mark up and an added sale.

        Or even tool rental. Buy a cheap porter cable compressor / gun kit and offer it for rental, to be used on the projects you oversee. You could also arrange a decent tool box with all the standard hand tools, 2 of the common items for husband / wife use, and rent those as well. Might make a decent sideline income and would make for great advertising.

        You provide the tools and experience, they provide the elbow grease.

        (feel free to use that!) Vic

        1. Dave45 | Dec 03, 2008 01:56am | #12

          I thought about that, but decided not to do it. The potential liability could get pretty high. I have no problem, however, recommending the tools that they might buy or rent.

      2. peteshlagor | Dec 02, 2008 09:55pm | #11

        If you draw SS early and go out and pursue additional income (assuming you're reporting it), your SS payments will be reduced.

        If you don't report it, you're toying with additional legal exposures.

         

        1. Dave45 | Dec 03, 2008 02:00am | #13

          I'm all over that one, Pete. The ceiling for '08 is ~$13k and it will change next year. Going over it costs $1 of SS bennies for every $3 you go over. Once I hit 66, the ceiling goes away and I can make all I want to (or can, anyway). I'll just have to pay close attention to that "ceiling".

  2. User avater
    basswood | Dec 01, 2008 11:15pm | #2

    I've done that several times.

    I charge my normal rate. Show up, get things started... for instance layout a kitchen cabinet install and start by working with them on installing the first few cabinets... then I disappear once they have the hang of it (if they are fairly skilled).

    I often return to get the next phase rolling or show them how to put crown on the cabs, etc.

    Some people lack the skills or tools to work on their own, so I stay and they just help. For some, it becomes apparent that they would be better off just having me do it and they disappear.

    I only do this a couple of times a year, but if you did some serious marketing it might take off.

    Edit to add: The people I worked with were not short on money (engineer, university prof., etc.) they just wanted to learn how to take on a project and get better than typical DIY results.



    Edited 12/1/2008 3:19 pm ET by basswood

  3. john7g | Dec 02, 2008 12:13am | #3

    What would the hours be?  Seems morst DIY projects are done in the evenings and weekends.  You ready to work those times/days?

    1. Dave45 | Dec 02, 2008 01:18am | #5

      That could be an issue and I would have to really think about it. My first thought would be an hour or two on a Saturday morning to line them out for the weekend, then repeat as necessary.One issue I know will come up is the time necessary to do a project. HGTV has given people a bunch of totally unrealistic expectations regarding the time committment. Those half hour shows skim over jobs that may have taken weeks for a GC and months for a DIY'er. - lol

  4. confused2 | Dec 02, 2008 01:00am | #4

    As a DIY'er I would love this! Often it is not a money issue, we would just like the satisfaction of learning new things, doing it ourselves, having pride in the outcome. DIY'ers get into trouble, cause we don't know what we don't know. To have a resource like you would be awesome.

    Yes you would need more clients, but this may be a viable part time supplemental solution to your finances.

    1. Dave45 | Dec 02, 2008 01:30am | #6

      One of the "triggers" for this was the work at my daughter and SIL's place. When we first talked about it, I told them that I would never work FOR them but would gladly work WITH them.As we did the work, I took time to explain what needed to be done, how it should be done, and why it should be done that way - something I've always done with customers who expressed an interest. My payoff came on the last day when we finished trimming out all of the new interior doors. We got things set up and they took over. My contribution that day was to drink coffee and stay the hell outta their way. - lolTheir payoff is the pride they have in their work. My SIL told me that when their friends say "We did <this or that>", it just means that they wrote some checks. When they say it, it means that they really did it. They also told me that the whole thing was no longer a big mystery. It was messier than they expected and took longer, but it all made sense to them.One downside is that they now think that driving a nail requires a compressor and hose. We'll work on that misconception next year. - lol

      Edited 12/1/2008 5:37 pm by Dave45

      1. confused2 | Dec 02, 2008 01:52am | #8

        "driving a nail requires a compressor and hose" - It doesn't?? :)

        Seriously, sometimes it is just someone showing you the correct tool to use (that you didn't know existed) and proper technique. Understanding the why, is icing on the cake for future projects.

        I think you will have a viable part time business. What's more - as you only want ot supplement your income, not rely on it, then you can be choosy who you work with. You may just have so much fun & end up wih more new best friends than you know what to do with.

        1. LIVEONSAWDUST | Dec 02, 2008 05:49am | #9

          I have offered this to certain customers over the years, only a few have taken me up on it. It usually costs just as much as me completing the work, because the time I spend explaining the procedures is hard to make up with inexperienced help. Mostly just a way for the customer to be involved. But I do enjoy the teaching aspect.

          Just an aside, but some Habitat orgaanizations employ paid site coordinators to do just about the same thing, could be something else to pursueOops, meant to post to Dave45

          Edited 12/1/2008 9:53 pm ET by LIVEONSAWDUST

          Edited 12/1/2008 9:54 pm ET by LIVEONSAWDUST

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