Need some personal advice here on the pros and cons of running your own business, because right now I want to run away from it... Me and my wife are two years into this, running a small repair outfit. Mostly focusing on the rebuilding and installation of diesel engines, online parts sales, road jobs, and truck or equipment repair in our shop. Basically, she's fed up and never even wanted do it from the beginning, she's just very supportive. We had good jobs, she was at the railroad and I was working at a CAT dealer, we couldn't afford to buy a house in the Bay Area so we moved and didn't take the jobs with us. We got this business off the ground and IT WORKS. The customers like us, and they usually come back for more. But the fact is - ITS COSTING US MONEY - suppose thats to be expected when you start a business such as this from nothing, everyday I feel like I have to buy another $900 tool. The past two months have been the busiest, we have been working on and turning over the biggest jobs since we started, it just feels like something isn't working, she says I help people too much and sell myself short which is true, but thats just in my nature and thats how you build good relationships right? She freaked out on me because I sent off two invoices today (which is her job) and forgot to add sales tax, whoops. I guess what I'm getting at is, should I stick with it? I know this will work but at what cost, I don't want my wife to leave me because I'm a stubborn ******* who only cares about the business and MY dream. I figure theres plenty of you guys who have been through this, work for yourself or someone else? That is the question. Oh and on a side note, we have no kids.
Nobody can answer that for you. Good customers will understand if you forgot the sales tax but if your wife does the billing, let her do the billing. Most businesses take 3 years (or more) to make a profit. Being you're the boss you can't always just throw the extra's in. Your time is money and you're in business to make money after all. Customers will take advantage of you too. Maybe your wife can get another job if she doesn't like it at your business? I think you need to sit down and figure out how far you've come and where you want to be in 6 month's or a year and if it looks attainable to get there. It's not easy getting a business established.
I also run a small repair business. I would consider it successful from the beginning but I had a good friend who gave me a job on off-days that got me started. My wife does not participate in the heavy lifting but she does handle the back office stuff. I wonder if you could reduce her responsibilities somewhat into something more manageable for her. I looked at your pictures recently, I have nothing but respect for the work you and her do but you have got to keep it manageable. My whole desire was to be available for my family and church and for the most part it has been successful. I guess the key is no when to say no. Also make sure you are charging for all the hours you work. If a customer got into a pickle requiring lots of fiddly work to fix, at bottom it is their equipment that caused it, not you. (Unless you did cause it then see below) You will not help anybody by going out of business. If you did cause a problem or the customer reasonably expects you did then of course you do whatever it takes to fix it because word of mouth is your advertisement. (I can tell you are not the kind of guy that has a problem with this ethic) Do what you can to keep costs down. There is no shame in downsizing. Do you foresee turning a true profit on the near horizon?
Get a part time bookkeeper, billing person/dispatcher/parts orderer/paperwork nag. If you find the right person they will be priceless and you won't have much in the way of emotions getting in the way of honest communication. Ask your wife for an honest answer as to how much if any she would like to be involved and in what capacity, she may surprise you. You both need to find things to do either in this business or separately that are fulfilling and rewarding. I tend to price stuff too cheap, bid jobs too tight and help people more than is healthy for my ability to continue down this road. One thing you really need to do is be brutally honest with yourself and put together a realistic picture of the nut you have to crack each month to survive including every possible expense and calculating in at least two weeks vacation and about ten days of unpaid sick time a year just in case. Then base your hourly on no more than 50 hours a week working which may net you 35-40 billable if you're lucky. Your knowledge, experience, and ability is what you have to sell, but it's a finite thing, you can only make as much as the hours you can work WITHOUT DEPLETING OR DIMINISHING THE RESOURCE. Tired is stressed, sloppy, mistakes, accidents, you don't want to go there at least not as a rule, make it the exception. One rule an old man told me a long time ago.. if you're too busy, raise your prices until you're comfortable with the workload. Hang in there, it gets better, usually.
I haven't actually left my current job, at the moment, and have been fortunate enough to do MY WORK on the side.. BUT its a full time gig.. and I too get taken advantage of.. one customer especially, BUT.. he keeps callin and keeps putting money in my pocket, so I keep going.. knowing full well, I'm gonna get the short shaft.. As anyone on this board that has done business w/ me can attest too.. I give **** away.. Lol SOOO.. your not alone in that boat.. And I feel your pain when it comes to tools.!!! Amazon and fleebay are your best friends.. I even went so far as to get a Chase cr. crd thru amazon that gives points for every purchase, thru amazon, and 2-3% cash back thru chase.. I had enough "points" to buy a lot of tools for free.. just a thought.. There's NOTHING and I mean NOTHING, more crucial than having a supportive spouse..!!! If you get home from a ball busting job and are feelin real good about your work and you got a machine going that no one else could.. and walk in the house and get the stink eye cuz your late for dinner, your covered in grease and you didn't bring home "enough" money.. Well mister.. SOMETHING HAS GOT TO CHANGE.. Its happened to me about 25 years ago.. and I got rid of the holder of "the stink eye".. Lol and kept turning wrench's.. It was the best "business move" I ever made.. Like its been said, it takes a couple of years before you actually turn a profit.. I think your fortunate in the aspect that, you have a friend that's willing to give you busy work to help you thru the slow times.. THATS A FREIND.. don't loose that one.. BUT>> if your robbing Peter to pay Paul at the end of the month when the bills roll in.. SOMETHING has got to change.. and you should have enough money socked away for the unexpected.. Ask me how I know.. 2 major back surgerys in 2 years.!!! and a frig that costs 1500.00 to replace, this week alone.. What about a PT job w/ bennies and your business on the side.?? You'd be surprised on how much work you could get done w/ and extra 8hrs or so.. just working PT.. just until you get about 20k in the bank to "play with".. I sure hope it works out for ya..
All four reply's above tell it like it is real well. The only thing I can add is keep family and relatives out of the biz. I've seen and worked for several that failed for that very reason. Truck Shop
Yes good advice all over. Wife and I have been very honest with each other about her role, which is very broad. She really is good at bookkeeping/office duties which she dreads, the other big time saver is her picking up/delivering parts which she loves, its an opportunity for her to meet and greet other companies and build relationships that way, and everybody loves her, of course! Around the shop she helps too, general "safety monitor" she calls it and she's always manning the forklift when we do a heavy lift, from time to time she will tear down an engine or do a repair but I just don't like seeing her get so dirty, it makes me feel bad. Bottom line is I really do need her and we make a great team a lot of people say. You also mention finding other rewarding activities, and yes thats good advice and WAS an issue, she actually volunteers at a horse rescue which is becoming a deep passion of hers, (and a whole other issue) horses can become an expensive hobby!!! As for me I have enough interests and am never bored thankfully. I suppose the old man rule is right, I should raise prices- and hire somebody very soon.
It sounds like she wants and should be a sales rep. and a service writer for you. I was once told a good salesman will make more revenue than their salary. If that's what it takes to make your business and marriage succeed, then a bookkeeper is in the to do now list. JMHO.
Also I hate to see anybody give up but do you have the "business gene" so to speak? Analyze why you are in business for yourself and if you really like that aspect of it. If not why are you not turning wrenches as an employee? Make decent money hopefully and leave your worries at the end of the day. Just some things to think about.
I just had to laugh at myself.. I JUST got a call from that 1 pita customer I have.. He needed me for "JUST ONE MORE JOB" before my surgery.. yea, right.. I remember what was written here afew posts up and raised my fee by 200.00.. He started screaming and yelling about how he could get it done cheaper by so and so.. Now, I could have gone out there and broken my back and been in pain for a few days for a handful of hundreds, and have to listen to his crap and gotten stiffed in the end.. But I told myself, NO.. don't do it.. So that's how it ended.. him whining like a baby and me sitting on the couch, out of the rain.. I explained the situation, which he ALREADY KNEW.. and wished him luck getting so and so to do a good job.. Life is good.. So the moral of the story is.. take some of this advice and set your priorities.. and your labor rates.. Lol
Building relationships with cheap jobs? On the customer side I'm completely happy paying the right amount for a bill, if its a 4 hour job and there's 4 hours labor, all is good, if its 5 hours labor cause you had to heat up some frozen parts, well, sure just say so, we all understand rust. It took me a while to pad the hours estimates and cost pass thru numbers to keep me from getting in trouble on the short end of the rope. I think a customer is happier when the estimate fits the bill.
I have some type of gene, I don't know if it's business or what! I will be honest I have quit every job I have ever had. After graduating diesel mechanic school I have always been just so interested/curious/obsessed? with this work to the point thats its detrimental to my sanity. As an hourly employee I could never fit in, I was always "spaced out" as people would say, why is Brodie always staring up at the ceiling? Well at CAT we worked in this tractor shop that was built in the 40's and the ceiling was very interesting looking to me, a lot of birds lived up there and I would look at the bridge cranes and try to figure out how to fabricate a similar system into my own shop, so yeah, it was a safety issue, I could never focus fully on the job at hand because I was always preoccupied with my own thoughts, calculating how I could get my own customers and run my own business. I know not all organizations run the same way, but it seemed there was this military like chain of command, which is FINE but made it difficult for me to just be a worker bee and thats it.
Not necessarily building the relationships with cheap jobs, but just being generous, helpful, or available for a customer and not ALWAYS focusing on that bottom dollar $$$ flow. Guess it's not working though. Ha.
No, that's a good thing, hold on to it..... just understand that you have to make money too, not only for your personal sanity and well being, but also to make yourself available with the right equipment and wherewithal to complete the jobs you get in a timely manner. I worked for a CAT dealer for a while and would hear constant complaining about how we were "getting rich at the contractor's expense" and that our parts prices were too high, etc., on and on... I asked a few of the louder ones what they would do if the CAT dealer lowered all their prices but closed the local store in order to lower overhead... oh Lord the wailing and gnashing of teeth at that thought! What would they do if the CAT dealer wasn't there and available 24/7???? LOL.... I guess to sum it up, going the extra mile is almost never a bad thing, giving an inch and letting someone take a mile usually is...
Always remember that a normal profit is part of cost.f you are not making a normal profit, you are not covering your costs and you cannot stay in business, for if you do, you are paying yourself to work for yourself.
Help the customers that pay esp with knowledge. Instead of sending out invoices hand it to the customer, he hands you check, you hand him keys. Extending credit will not end well for you. Make sure you document your time daily so,you don't give your labor away. Adjust as necessary. Often on a three hour job you can charge for three hours, but on a 100 hour job it might not justify billing 100 hours. Multiple small jobs have always been more profitable for myself. When billing by the hour, your revenue is finite; limited by the amount of hours you can work. Find something to sale. Some people think this is crazy, but I my shop, two people have to tighten oil plugs , the one that tightens the oil plug first has to then call in someone else in , hand them the wrench and verify its tight and this includes me. I have maybe posted about this before, but it accomplishes two things. One , I won't have a loose oil plug wipe out months profit. Two, quality control.
One thing I noticed is that you are making your own reasons/excuses as to why your wife has to do the things she doesn't like doing. This WILL NOT end well. It's your dream not hers. If she doesn't enjoy what she's doing, she will start regretting that she is working with you no matter what she is doing. Being in a family business can be and usually is a really tricky situation. That's why many businesses have a policy of not hiring relatives and often friends as well. Find out what your wife enjoys doing and let her do that. If you expect her to do the stuff she doesn't like or she feels she doesn't have a choice, you're doomed. It's also hard being around each other all day and all night. A part time bookkeeper is a good idea.
Wise words indeed Welder Dave... as the saying goes, happy wife=happy life.
I think this is great, quality control, team effort, things just CANNOT get done ALONE. I had a guy help me out today finish up a truck thats been a pain for us, he noticed I left an oil pan bolt loose, and I was really greatful. I looked at the the bolt and noticed it was a 17mm non CAT bolt and I remember I skipped that one because the rest were 16mm, I guess I told myself I would get it later..well...I didnt...I promptly pulled the bolt and put in a 16mm CAT bolt. Really good advice given to me is to do your best to never leave things loose to be tightened later, you will always forget something.
Good advice for sure, and that scenario had begun to play out recently, which is why I don't force her to do things she doesn't like, well not anymore anyways. But, there are many aspect of this business including some of the repair work that she truly enjoys doing, and lets face it, it empowers her as woman. When she can confidently talk shop at a parts department or at another local business its really helpful for us. Were just not making enough $$ right now so sometimes it seems hopeless, like we bought ourselves a job!!
Don't try to speak for her just give her the choice of what she wants to do. It's been said that if you're not making a profit after 3 years it's not a business but a hobby.
Brodiesel, I'll have some free advise: Increase your prices and let your customers tell you what you should do. From what you said, it seem like you are not earning enough. If that is so, then either the field you are working in is not profitable enough for a small scale business, or your business is not charging high enough prices for the field that you are in. Which of those it is, is the important question. If you are in a business where knowledge has high value, then charge more. If you are doing volume-is-profit kind of business, then quit. I hope that helps.
Think I'm going back to work for Peterson CAT.
I think it is a shame to hear that...I like hearing about independents getting it done...but whatever gets you the best pay with reasonable hours is the bottom line. Where would you be working?
I'm with you B.V. To bad he couldn't do both.. maybe on the weekends. part time.?? I KNOW being a HEAVY mechanic is a lot different than what I do.. and customers aren't always willing to wait on a repair until you can "get around to it".. Heck, I cant count the # of jobs in just the 2 weeks I've been out of surgery, that have passed me by.. Sorry to hear that Bro.. but we do what we have to do to eat and keep momma happy.. Then again.. your fortunate enough to have a place to go back to.. think of it that way.. Good luck..
Still trying to figure out the bottom line, I suppose it comes down to the bigger life picture, in the long run what is best!?? My wife is just stressed and wants a stable career for me, and I'm 100% on the fence about it. Manager at the Redding store was great and offered me a position and they may buy some of my equipment, but nothing is set in stone yet.
Yeah Im glad I left on good terms, so that I have the option to go back. I can't do my own thing on the side, managers know I have my own business and told me it would be a conflict of interest.
"A good mechanic isn't valuable, he's priceless", to quote willie. Right on, and best wishes. PS: youtube's DieselTechRon (God bless him) was a line mechanic who probably saved more money for all of the Ford Power Stroke owners than any man who's lived. Abom79 is a journeyman machinist who is probably kicking it with youtube revenues. youtube's AvE is kicking it by being a clown. vantagetes and the Burn Out equipment drivers prob likewise. Buy a GoPro and share what you're doing... maybe you can have a side job without any conflicts of interest...
Yes of course, I agree. I'm not giving up making a little supplemental income here and there...but secretly running a side business in the same industry doesn't make sense, and would conflict.