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Re: Stay in-house or go independent


Owning your own business can be rewarding or a disappointment.  Just depends on a lot of things.  The first thing is money.  You will need a lot of it to start.  The obvious expenses are trucks, trailers, lashers, rollers, cones & signs, etc.  The not so obvious are workers comp, general liability, payroll & payroll taxes (the employer pays 1/2 of the employees social security & medicare which is about 7 1/2% of the payroll), FUTA, SUTA, computer, payroll and accounting software, telephone, internet, legal fees, incorporating fees, lawyer fee, CPA fees, property damage payments, repairs, tires, oil changes, interest, income tax, among other expenses.

You will need to have enough money for all the above.  Some of it you will need right away, some spread out during the year.  You also need to know that from the time you start the job, you will not see and payments until about 90 - 120 days later.  

You will quickly find out that working for your self, will consume all your time.  The first few years you will not have a day off.  If you are not working your trade, you will be looking for your next job, acting as a secretary billing, writing payroll checks, paying bills, repairing equipment, meeting with disgruntled home owners, meeting with customers, etc.

The easy work is the trade you already know.  The harder part will be selling your services to new customers, hiring & firing employees, and being a secretary.  

Another piece of advice I always give to young entrepreneurs is that you need 4 people to help you get started in the right direction; a lawyer to set up an entity such as a corporation or LLC and review contracts, a CPA to get your books set up correctly from the start and to prepare your income taxes, a good insurance agent that specializes in BUSINESS, specifically areal construction (do not use online insurance companies, You will need a real person to help you with insurance claims), and last but not least a good commercial banker (Unless you are independently wealthy).  I prefer to work without borrowing money but sometimes you have to.  It is a lot easier to get a loan if you have a line of credit established before you need it.  

There is much more but this should get you started.  If you have any questions let me know.

This is CABL.com posting #393680. Tiny Link: cabl.co/mbOzQ
Posted in reply to: Stay in-house or go independent by Joepolo
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