Transition from wage earner to self employed....

[LexTech]

I have posted a little about myself and ideas, but regardless of what my business model will be or how I plan to run a business, theres one topic that really scares me... And Im not sure how its done, or if I can do it at this point in my life.

 

I am the main bread earner for our family. Im married with 2 children, ages 10-12. I provide the income and health insurance through my employer and need the paychecks that are coming in to pay the bills and everyday living expenses.

 

How do you go from one to the other without losing it all...

 

Which leads into my other question that I have read a number of different opinions about. When I do start a business, how do I pay myself? (I think alot may have to do with how the company is set up) I know I cant just take money out of the till to pay my electric bill at home....

 

Maybe others can share how they did it when they satrted out...

 

Thanks for the advice!

[Joe Marconi]

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[CARMandP]

I couldn't agree more with what Joe just said. I went from Tech to business owner about 2yrs ago. Man, what a challenge. DO YOUR HOMEWORK!!! Take the time to do a little business learning. Just cause you may be the best tech in your shop doesn't mean you are ready to start your own business. Get some business management training before you start. Also make sure you have a plan for what you want to do and how.

[LexTech]

Thanks guys, I can see there is a wealth of knowledge and experience here on this forum. I am I thankful I found it.

 

I know i might be throwing a bunch of questions out there, but I am just in the beginning stages of learning all I can about starting a business, my head is spinning with questions and what if scenarios..

 

I guess my biggest decision I have to make is when (not if) to do it. If I do it soon, with my family relying on my income to live, could it be to much of a financial risk to struggle with a new business and pay the bills, insurance..etc.. Or should I wait until my kids are older and less dependent on me (maybe even out of the house) when it would be easier to take a risk like this.

 

I truly am tired and fed up for working for someone else, not to mention I am ready to put down the wrenches.. Im at the stage as a tech where you start looking around to see where all the old techs are, and what shape are they in.. its a pretty bad thought.... If I never try, I may be doing this literally, till the day I die. There is no such thing as retirement for me as a tech. Its a hard way to make a living, as Im sure you all know.

 

I guess what I was hoping to find out when I started this thread was, is it possible for someone to start their own business and still earn at least what they have been earning as a tech. Even if it will be more hours and work. Should I expect a pay cut when I start my own business?

 

I know thats a hard question for anyone to answer, there are so many varibales.... but in general, if a tech openes his own shop, do they typically take a large paycut to keep the business going?

 

I dont want to sound like all Im doing this for is the money.. Im not. I know those who have been succesful have worked their ass off for it. I just want to be able to plan for my familes future at the same time. Im willing to put the work and effort in, I just want to know what to expect.

 

Thanks again for the advice, I will be reading books and learning as much as I can in the near future.

 

If theres any good resources or books you would recommend I would appreciate it.

[xrac]

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[DewayneP]

All of the above is great advice. Here's my take: Can you start out part-time and still work at the dealer? You said you are willing to put in the hours, this would allow you to continue to draw your pay from the dealer and slowly build your business. This is what I have been doing for the past 3 years. There was some talk that the company I work for would close so I started a repair shop on the side. It's hard and a lot of work but it has allowed me to slowly build clientel as well as getting the necessary equipment without any loans of any sort. If I were to call it quits today I could sell all of my equipment and put that money in the bank, not use it to pay off a loan. This would also give you the wiggle room to make a mistake or two without causing undue harm to your family. If it takes off, then you quit your job. If not, you still have an income. Just a thought.