Replies

1. 
   Michael_Rimoldi | Jan 06, 2002 03:49pm | #1

   *
   J,

   Inquire about local licensing, insurance, administrative details to get you "legal" in your area.

   Then hit the advertising big time!

   Mike

1. 
   Danial_T | Jan 06, 2002 04:59pm | #2

   *J, I went to the local Chamber of Commerce and talked with the small business advisor. She asked me to make up an informal business plan. I didn't want to do it but agreed. Best thing I could have done. It forced me to make decisions as to what I wanted, what kind of business and what kind of money I needed to make in order to make the money I wanted. It also got me thinking about insurance, advertising etc. DanT

1. 
   GACC_DAllas | Jan 06, 2002 07:34pm | #3

   *J Stein,Where do you want this ball to end up? That determines which direction to push it.Ed.

1. 
   Peter_Koski | Jan 06, 2002 08:10pm | #4

   *Let's see.... if I were to list my 10 top principles that I wished I knew when I started out... In no particular order. 1. Quickly raise your rates that you charge to a professional level. You will know when to do that because you will have a book of jobs lined up and the people WANT YOU! When you are in demand start inching up with your hourly rates. In Georgia one man I am charging 57.50 per hour. 2. Make sure that you cost out all of your jobs. In other words subtract what you earned on the job from what expenses you had (including YOUR LABOR!) The difference between your income and your expenses is your profit. Now divide your profit by your income, that is your gross profit percentage on that job. 33% is a good "benchmark" to shoot for. To achieve a 33% profit you have to mark up your COSTS 50%. 3. read Read READ!! Buy Linda Case and Victoria Downings books. They are a must on understanding this business. Walt Stoeppelwerth's stuff is excellent too. Go to Conventions ... weatlth of knowledge. Enroll in CGR classes. In other words dedicate yourself to a lifetime of learning about this business. 4. Advertise judiciously. Nothing more frustrating than advertising with no results. Cheapest and best advertising is Yard Signs (Dee Signs does a great job) , Truck Signs. You want some really inexpensive advertising but EFFECTIVE? Volunteer lots of time with Habitat for Humanity or other such organizations. Especially in the beginning you have to advertise. It smooths out the rough spots and allows you to pick and choose your jobs. 5. Learn as much as you can about keeping your books. Find a good CPA and let him help you set them up then watch your finances like a hawk. Set aside time ea. day and week to monitor your progress. 6. Being self employed means lots of freedom. That is both good and bad. Work when you are supposed to work and relax when you are sposed to relax. Dont mix the two. 7. Network. Take a few minutes of time with suppliers, competitors, cpa etc. to get to know them. You never know where your next job is coming from and it very well might be them. 8. Set aside money for the rainy day/broken arm (heaven forbid) fund. Shoot for a minimum of 2 mos of overhead and your salary. 9. Get physically fit and stay that way. I would go out on a limb and say that lots of accidents or injuries can be avoided by a better maintained body. 10. LEARN HOW TO SELL!! The person that SELLS remodeling makes a whole lot more than the person who presents bids. Even if you are a one man operation you must SELL your services. This amounts to a post I made on another site. Hope it helps

1. 
   Orlo | Jan 06, 2002 08:28pm | #5

   *Peter, In my opinion, your is a excellent suggestions for any one starting out and very detailed. Larry

2. 
   Terry_Smiley | Jan 07, 2002 03:10am | #6

   *PeterYour post was very informative. You've obviously been doing this for a while (how long). How long did it take you to figure this all out, is it from the school of hard knocks? Just one question: If someone is just starting out what is the most important trait they can bring to self employment.I've done it too and I learned the hard way.Terry

3. 
   Peter_Koski | Jan 07, 2002 07:14am | #7

   *Thanks Terry.Knowing what to do and doing it is two different things entirely. Going thru the toughest time of my business career right now. Should have taken some of my own advice!!Lots of this is hard knocks but it is also hanging around this board and the JLC board and the Remodeling Online board and absorbing what some of the older guys have to offer. They are so quick to help and insightful, it is really a gift.Also, the conventions that are offered are invaluable. CGR courses too. As I mentioned before the Linda Case, Victoria Downing books are phenomenal as well as Stoeppelworths.The most important trait I can think of for this business is to Enjoy It!! It is one of the greatest businesses imaginable. Talk about a $0 down proposition! A few tools, lotsa energy, some business smarts and there is no telling how far you can go. Enjoy the work, enjoy your customers, enjoy your suppliers, have a good time. That is half the battle because people will love working with you and you will look forward to getting up. Nothing worse than a sour puss contractor who only smiles when someone else hits their thumb with a hammer.Temper that giddiness for your job with a healthy dose of self discipline (otherwise you will be just another nice..and broke..contractor) and you are well on your way.

4. 
   blue_eyed_devil_ | Jan 08, 2002 12:58pm | #8

   *Good luck J.Stein.Your 12 years qualify you as a carpenter. Now you are an apprentice business man in a ruthless industry. I'd find a mentor, fast.I'd find a saleperson mentor, fast.I'd read, read, read, and join professional organizations fast. I'd set up a business plan before I did anything. That is the blueprint and road map of your business.If you don't know where you are going, you'll waste a lot of time and money.Write your goals down. Read them every day. Be specific.Look in the mirror. Search for traits that are weak. Don't run from reality.Enjoy your career and hang around here. This forum will help you. I wish I had this resource when I started in the early 80's.blue

5. 
   Dan-O | Jan 08, 2002 08:57pm | #9

   *Hi J Stein,1) Get a job. Finish it. Get paid.2) See step one!Just kiddin'! Good luck and enjoy the work. What's your bailiwick, or favorite kinda work? Make that your focus early as experience pays dividends.Get yourself a routine and get organized.Make time to be business man. Maintain records.Keep a job diary or file. Keep yourself busy and then some. And get help. All kinds from subs to helpers to mothers-in law..ha ha!You'll need it and its a cost of doing "biz."Dan-O

6. 
   GACC_DAllas | Jan 08, 2002 11:59pm | #10

   *Well said Dan-O.That's the best 2 step plan I've seen here.And it works too.J Stein........keep it simple.Ed.