Before Starting Your Contracting Business – Issues To Consider

It’s amazing that most people do not really go through the thinking process when they contemplate the idea of going into business for themselves!  Before making any hasty decisions you really do some serious thinking!  Sidestep the dreams and wishes; you need to do some research and brainstorming to think about all the pros and cons of getting into business.  You might be the best plumber or electrician or in the world, however, you need to understand all the hats you will have to wear once you begin.

Besides working in your trade you will have to do the marketing, the negotiating of contracts along with scheduling your projects and then take care of all the office work that goes into running a business.

You need to remember that approximately 7 out of every 10 businesses fail each year!

Most people go into business because they know they are as good a technician as their boss is and figure if he can make it I know that I can.  They don’t realize that most business owners usually work 60 to 80 hours each week and they are never able to get completely away from the business.  If they are not working at the business they are usually thinking or dreaming about it.  There are a lot of nights where sleep is impossible because of worries about paying bills or making payroll.

Being an employee is about leaving the job at the end of the day and kicking back, forgetting about work, having a beer and forgetting about work until the next day.

Being in business is a challenge and it can be rewarding but you need to do some serious thinking before jumping in!

While you are in the process of contemplating the thought of starting your business you should consider the following.

You need to think about a game plan for your business.  I recommend working both ends and going towards the middle.  A lot of the gurus snicker when I make this recommendation; however, I believe that you need to think the complete process through.

Besides thinking about how you are going to get your business off the ground you need to think about your exit plan.  You are not going to want to work forever.  Sooner or later you are going to want to slow down and take it easy.

  1. How many projects are you going to need to make the salary you are making as an employee?
  2. How many years do you want to work in your business?
  3. Are you going to sell the business or have your family run it after you retire?
  4. Does your family want to have anything to do with your business?
  5. How do you plan to spend the rest of your life after you quit?
  6. Are you going to have enough money to live the life style that you want?

Most people forget that life is a journey.  It is an ongoing process of setting short term and long term goals and periodically something happens that may make you change course and head into a completely new direction.  The same thing could happen in your business career so you need to consider how you are going to approach that potential issue.

The thing is; if you don’t have anybody to take over your business and support you in your later years you should position yourself to be able to sell it when it is possible.  This is going to require you to do a lot of planning and creative thinking.

We’ll discuss that later.  In the meantime you continue to dream and digest what I have already fed you!

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