Your Own Business/Working for Yourself

[VaSteve]

With the birth of my son in April, I have been considering how to create my own empire. I started reading the books "Millionairre Next Door" and Rich Dad, Poor Dad and they get me thinking. I have not finished them, but don't expect and whirlwind insight. I do know that fortunes are often built on the backs of others.

I wanted to take an informal poll of what you do. Those of you that work for yourself either alone or have employees please respond. I want to know (only answer what you feel comfortable):

- Where you live?
- What your/your business does?
- How long you have been doing it?
- Do you have a family and/or kids?
- How old are you?
- How much do you work?
- Do you like it (seriously!)?
- What was the defining moment that made you strike out on your own?
- Are you accumulating wealth or just sustaining life?
- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)
- How much you make? (If you choose to answer, it can be any form: sales, net, X times what an exmployee would make doing the same job, etc.)

PM me with anything you don't want to post. I will NOT use it for anything other than personal research.

[Hugh R]

I was an environmental, health and safety consultant for many years. Worked for several big firms. At age 47 I found myself looking for another job. Talked to other consulting firms, at the salary I wanted, I was expected to bring in about a million $/year in sales, thus, I'd be a salesman, not a consultant. Opened my own business and got old and new clients, worked about 2200 hour per year billable. Made lots of money, worked 6 or more days/week. No family life, always worried about the next job, didn't want to take on any debt like loans. Kind of hard to feel secure when you have 14 years left on the mortgage and you've got three days of solid billable work booked. Worked that way for three years, then took a job with one of my clients. Don't make as much money (actually its tight with a daughter now in college), but I have my life back. I can go on vacation and actually enjoy it now because I have a job to come back to, not a need to rush back and hussle more work.

[Christien]

Interesting topic, pretty close to my heart. My story in short is that I took over a business my dad (successful lawyer) started as a side thing when the markets started tanking in the mid-late 90's. He and the accountant at the law firm ran it, with a (very) moderate degree of success. I graduated with a Master's degree in Music, which is and will always be my first love, but it doesn't pay the bills. (Won't even buy me a weekly coffee). My dad suggested I take over the business, I said sure, why not, and with a fair amount of hard work, found it was a pretty good money maker. The daily tasks are absolute crap (bookkeeping, calling deadbeat customers, etc) that I'd hate in any other job, but because it's my company, I enjoy it. Here are my answers to your questions:

- Where you live?
Hamilton, Ontario. Need to be involved in the Toronto music scene for my other job, but the cost of living in Toronto is way too high, so we bought a house here. (45 min west of downtown Toronto).

- What your/your business does?
Sub-prime (poor credit) used car financing. We finance used car leases for people who can't get credit anywhere else. Interest rates start at 24% APR.

- How long you have been doing it?
Took over my dad's company September 2002, found lots of problems (contracts with dealerships) so shut it down, incorporated my own Jan/03.

- Do you have a family and/or kids?
Married, no kids yet but plan on it in the next year

- How old are you?
29 for another 2 weeks.

- How much do you work?
Varies greatly - I'll go for stretches where I spend at least half the day on my music career, other times I'm in the office (home office) 8-9 hours a day. I rarely do office work more than 9 hrs/day or on weekends.

- Do you like it (seriously!)?
Love it. Like I said above, the daily tasks are *****, but because it's my own company, it's cool. I'd hate it if I were doing it for anyone else.

- What was the defining moment that made you strike out on your own?
I didn't have many other options. While doing graduate work in contemporary classical music was awesome and extremely valuable, it doesn't translate into a paying job.

- Are you accumulating wealth or just sustaining life?
Right now in between.

- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)
Again, in between. Quite comfortable, but not buying whatever we want (that's why there's no 930 beside the T in the garage )

- How much you make? (If you choose to answer, it can be any form: sales, net, X times what an exmployee would make doing the same job, etc.)
Varies greatly from year to year so far, from high 20's to low 60's, (Canadian $).

Even in low salary times, I wouldn't trade it for anything, unless my musical career allowed me to pay the bills. I love the freedom, the lack of a boss, and the satisfaction of looking at income statements that show I'm actually making it work.

One thing that's important to note is that the only way I was able to get this off the ground was with the financial backing of my dad. I think anyone can start a successful business, but you need startup funding, which can be really hard to get. I got lucky in that respect, and frankly I doubt I could have done it otherwise.

Chris

[motion]

Tabs? Tabs?

[Dantilla]

Construction background. Lotsa framing and painting.

It has evolved into property management. Some residential rentals, some commercial space, a new industrial park here pretty soon on the land next to my warehouse, Buy & sell "fixer-upper" houses occasionally.

Usually I have a very flexable schedule. That's important to me. My income depends on my performance, but not my hours. People pay rent if I'm working somewhere, or if I'm goofing off. They don't know the difference.

It allows me to race Porsches, fly airplanes, and live in a comfortable house. Works for me. YMMV.

[einreb]

As for 'rich dad poor dad', you may find this interesting/amusing...

http://www.johntreed.com/Kiyosaki.html

I found it much easier to go out on my own once i was married and had the safety of a second income and health insurance (no kids at the time).

-bernie

[Christien]

Bernie makes a good point. My wife works as a teacher, providing a guaranteed income (though in 2 year contracts) and health benefits. It'll be several years before my company's big enough to provide benefits.

[Jims5543]

- Where you live?
Jensen Beach Florida - 40 miles North of West Palm Beach.

- What your/your business does?
Land Surveying - 30% Mortgage financing support, 70% Builder support.

- How long you have been doing it?
Worked in this field for 20 years, owned my own business for 8 years.

- Do you have a family and/or kids?
Married for 15 years with a 12 year old and 2 year old, both boys.

- How old are you?
39

- How much do you work?
35-50 hours a week on my own schedule. I take off where needed to be there for my family though. Never miss a school function. Used to take every Friday afternoon off until recently but hope to be doing that again soon. I promoted my #1 man in the shop to VP and he does a bang up job managing the place so I don't have to be there as much. (This all has happened over the last month though)

- Do you like it (seriously!)?
I love it and hate it. The liability of the work in unreal. Compared to other contractors I do not get nearly the money I should get for all the liability I take on. The stress level can be extremely high one good mistake and someone hiring a good lawyer and I could be out of business. I love it because I do make my own hours and make good money.

- What was the defining moment that made you strike out on your own?
Took a good paying job (at the time) in West Palm Beach then realized that it was not worth loosing my family for a 45K a year while working 75 hours a week salary. I have treated every place I worked like it was my own business. An engineer friend urged me to go out on my own and he would feed me enough work to get off the ground. I never looked back.

- Are you accumulating wealth or just sustaining life?
I have tried very hard not to keep up with the Jones'. I live in a working class neighborhood. I have wanted a couple of times to sell and buy bigger in a better neighborhood, perhaps where all the doctors and lawyers live. But, what has stopped me is my mortgage. I paid 95K for this house in 1997 and its now worth 375K. People are dying to get into this area and there are no new homes here. The county will not o.k. many new subdivisions. Instead of spending like a loon I payed off my mortgage in 8 years. I have ZERO debt. I am am saving and plotting to invest in my future. Working out my retirement if you will.


- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)
I live very comfortably. But I still mow my own lawn take care of my own pool, install my own fencing, etc.. (I am about to install my own upgraded windows and storm shutters) I prefer to put my money in the bank than waste it on things I can do myself.

The only reason I do not have a 930 yet is space. I have 3 vehicles plus my wifes Audi. (I own all 4 outright) I am out of room. The 2 cars I still want are a classic Mini and a 930. I also own my own office which is a house along a commercial corridor that 2 car garage houses my RX-7 and Mini. I am having a hard time parting with either one to make room for the 930. I feel an addition coming on.

- How much you make? (If you choose to answer, it can be any form: sales, net, X times what an exmployee would make doing the same job, etc.)

My business pulls down over a mil a year in sales. From 1.1M to 1.5M depending on the year. (Last year was down due to two hurricanes hitting back to back)

I used to make 70K a year then bumped it to 90 then to 150k a year over the last 3 years. My wife and I figured out the other day we are paying almost 40K a year in taxes between out personal and business profit.


When I first started my own place in '97 it was not easy. I was very slow and the money was not coming in. Money was VERY tight. After two years it was better. I was a 2 man company, a high school kid part time and I. I was grossing 150K a year until 2000 when I purchased a deceased friends 20 year old liquidated business for $25K. I basically got files and clients. I quickly realized I needed help. (He was a 2 man shop also, that is what killed him, 70 hour work weeks @ 53 years old killed him) I went from a 2 man shop to a 5 person business overnight. Made some heartbreaking bad moves, hires some real a-holes that almost put me out of business. Finally in 2005 I have the place exactlythe way I want it. I pay me employees more than any competitor so they will stay with me. It was not a easy road to travel but it has paid off very well.

If you have a sure thing, a good niche, go for it.

Good luck!

[Shaun @ Tru6]

- Where you live?
Cambridge, MA

- What your/your business does?
line of clothing and accessories for pre-teen girls based on a national community of girls interacting in local events as well as online

- How long you have been doing it?
1.1 years. Knew nothing about fashion/apparel going in, background is in publishing, custom marketing. Serious learning curve.

- Do you have a family and/or kids?
No. Someday.

- How old are you?
37, my how time flies.

- How much do you work?
Work? What's work, this is fun. Seriously, 60 to 70 hour weeks.

- Do you like it (seriously!)?
LOVE IT!!! there's nothing better than working for yourself. Building your own business from scratch, making real decisions, creating your own future. It's the best. Having a philanthropic, girl-power mission adds to the mix. I feel like I'm really contributing to the world.

- What was the defining moment that made you strike out on your own?
In one week, three distinct occurences/opportunities/ideas coalesced to form a unified vision. In addtion to thoser three, I had reached my creative limit at my old job and had to work with some unethical people, tried to change that, couldn't, so moved on.

- Are you accumulating wealth or just sustaining life?
Accumulating debt! Seriously, with more and more stores everyday starting to carry the line, the future looks pretty bright. If the trend continues, I could see real wealth down the road.

- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)
Gone through my savings and have accumulated significant debt, but have maintained the basics of a previous 6-figure lifestyle. It's really big-picture, longterm that's important.

- How much you make? (If you choose to answer, it can be any form: sales, net, X times what an exmployee would make doing the same job, etc.)
Haven't taken a salary since starting, but have 75% of a company with $800K in 05 sales, projected $3M in 06. The new line is really taking off. Shameless plug: http://www.g9girl.com/showroom/

[Christien]

Shaun and Jim, you guys have got a couple years on me, and have been at this longer, but man, your stories are really inspiring! Thanks for sharing them.

This thread is really interesting - hearing stories like these helps me keep a good perspective when the going is rough.

Chris

[VaSteve]

Yes, this is good reading. Please folks, keep posting. Post bad stories as well. Seriously!

[VaSteve]

Originally posted by motion
Tabs? Tabs?

I said "work" - not whatever tabs does.
No disrespect, tabs...

[juan ruiz]

Interesting, heres my storie.

Where you live?
Florida

- What your/your business does?
Private Label, I design and put together a complete line of automobile car care products, we deal with the sport compact market.

- How long you have been doing it?
We start on Nov 04

- Do you have a family and/or kids?
yes 2 boys

- How old are you?
just turn 40

- How much do you work?

Average 10 hrs a day after my regular work, weekends and any other free time I will work

- Do you like it (seriously!)?

Yes, seen what we have done in such of short period is a great feeling.

- What was the defining moment that made you strike out on your own?

When a co-worker got promoted after been in the company for 4 months and many of us with over 8 years never had the opportunity to apply for the job, when I ask the big boss why, he replay"Thats the way it is" fine with me.

Are you accumulating wealth or just sustaining life?

Since I have a regular job we move on as we go, zero pressure.

- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)

Very tight, credit cards, second loan on the house, you named all the way in the hole, our product will be a big hit is just matter of time.

How much you make?
zero, every penny goes back into the company.

America is a great country, is the land of the opportunitys, you just have to look hard and find them.

Good Luck

[id10t]

I supplement my income by doing side work. Live in Gainesville, Florida. Setup small home or small office networks, reinstall windows (I don't bother trying to fix), setup various network services such as file/printer shares, network based fax machines, email servers for small offices, etc. Make a few hundred extra per month.

[arcsine]

- Where you live?
at the time Seattle

- What your/your business does?
graphics and design specializing in the scientific field

- How long you have been doing it?
I freelanced for three years

- Do you have a family and/or kids?
at the time a wife but no kids

- How old are you?
at the time, 35

- How much do you work?
I worked between 30-50 hours per week

- Do you like it (seriously!)?
I loved the design work and landing jobs. I did get tired of the endless taxes (quarterly) and having to be "ON" all the time looking for the next client.

- What was the defining moment that made you strike out on your own?
I was tired of doing research at a biotech and did not see a desireable long term future for me. I spent two years looking at potential second careers that interested me and I could be successful. I was about a year away from pulling the trigger on the graphics thing when the company I was working for decided to consolidate our site to New Jersey. That sped up my timeline and I used the severance package to get my company up and running.

- Are you accumulating wealth or just sustaining life?
I broke even.

- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)
Definately tried to live within means. Lived OK as wife was bringing in big bucks and we ran up some big credit debt.

[Instrument 41]

This is a great thread! I am in the same boat as the original poster. Talking with others now that have struck out own their own and getting bits and peices of advice. Been in Fluid Power and Instrumentation sales since 89. Always wondering if that one opportunity has passed by and either I didn't see it or didn't have the balls to grab it. I have seen people go into a business and have no experince in that feild and be very sucessful and seen others go into the feild that they have worked for years and fall on their face. At 42 I feel that things are passing by.

[pohsche]

I have created a mobile screen print business that I run from my home. It has become so successful that I have requests to teach people from all over the country to replicate my success. I have created my own machine, written a book, and filmed multiple instruction videos about my business.See www.profitprinter.com. to get a feel for what I do. It is interesting that you mention Rich Dad, Poor Dad, as I have met Robert and have used many of his lessons to turn my excess cash into long term investments in Real Estate. His stuff works if you take the time to actually study it and do it. I have investment properties in AZ and HI and have started off shoot businesses from the understanding of money and business that I learned from his series of books.
I have two kids that grew up with the business and know want to start their own version of my process in HI and AZ. I am 50 years old in Oct. and have been working for myself for 22 years. I love what I do and would not trade my life despite the hardships and turmoil I have gone through while learning.
I am answering all these questions by scrolling up and back so they are a little disjointed. I knew I wanted to work for myself the first day of the first real job I had when I was fourteen. It was at a restaurant and the dishwasher was smoking opium, the cook was doing lines of cocaine, and I walked in on the manager f------g the head waitress in the walk-in cooler. Yes I am getting ahead(thanks to Robert) and I take home more than 2/3 of America.
Let me give you some strong advice. Don't start a business the way the books say to. You have to have something that cash flows from day one! Don't borrow money hoping you can get something going and hoping it will build. Do your homework and have something that can crack the nut right away. It is HARD WORK, but worth it if you really want it.

Alan Poh
' 77 Carrera 3.0

[rob macdonald]

- Where you live? Upstate NY (currently Tikrit, Iraq)

- What your/your business does? Carpentry, GC, Res. Construction

- How long you have been doing it? 17 years S-E, 30 years total.

- Do you have a family and/or kids? DINK (due to a combination of two jobs, and probably a little loss of focus on the marriage).

- How old are you? 44

- How much do you work? A whole lot; 6-7days, 10-14 hours.

- Do you like it (seriously!)? I must. It's good to see a product or result at the end of a day. And I've made some great friends out of my customers.

- What was the defining moment that made you strike out on your own? Post grad wasn't cutting it. And I grew up with it.

- Are you accumulating wealth or just sustaining life? I am comfortable, and am sustaining that in a manner that I enjoy.

- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?) I know the difference between want and need. I don't want much anymore, and don't need too much either. I like toys, but don't have a lot of time to play with them. I am a toolaholic, though.
And, I don't have a new P-car.

- How much you make? (If you choose to answer, it can be any form: sales, net, X times what an exmployee would make doing the same job, etc.) Varies by year and customers.

Right now I'm on the government dole, enjoying free food, travel, accomodations and clothing. In October I'll have 26 years in the Nat'l Guard. It's kind of funny, after a little under 24 years in, I got activated and sent to war. Go figure, my business is in the crapper right now. I've got a good customer base, and they're aware of my situation. I think I'll have plenty of busness when I return. And I'm, we're, doing okay considering the circumstances.

[adamred]

I'm also with the original poster and finding this facinating. Long story short, I work on the "vendor/agency" side of the pharmaceutical marketing mix and am waiting to hear if my main client contact and now good friend makes the jump to a new company.

If so he has all but guaranteed to put a partner and me in business with our own agency....one of the most low risk ways of opening your own agency in this business....for me this could be the difference between a solid-lower six figure income (plus decent bonus) but handing all of the profits over to the company, the company's holding company and the holding company's holding company or striking out with a partner and keeping the darn profits!
If the stars align properly I could make multiple times my salary and just plain silly end of year dollars, so I have been polling many of my friends and now this site to get their stories, so how timely!
Thanks for sharing your experiences.
Adam

[Wrecked944]

Originally posted by VaSteve
I started reading the books "Millionairre Next Door" and Rich Dad, Poor Dad and they get me thinking.

I also read those two books and found them, inspiring. True, the author of RichDad/Poor Dad could not write his way out of a wet paper bag. And I actually found the book painfully ineloquent at times. But the underlying message that "income producing assets beat a day job" is, in my experience, correct and sound. The advice from "Millionaire Next Door" also taught me about frugality which has done a lot to help me acquire those assets.

- Where you live?

Worcester, MA - Fifty miles west of Boston.

- What your/your business does?

I am a very small time landlord - just two units. I have a property manager who handles most of the headaches so I can also hold down a full time job in computers.

- How long you have been doing it?

Bought my first rental unit three years ago.

- Do you have a family and/or kids?

Nope. Zippo.

- How old are you?

39

- How much do you work?

Forty hours a week in the "day job" and then at least another 10-16 on weekends maintaining the rental house when my property manager occassionally falls down on the job.

NOTE TO SELF: Never again buy a 90 year old house and expect to make a profit from it.

- Do you like it (seriously!)?

No. Computer programming is dull as dirt and being a landlord can be a PITA. However, when my property manager is doing his job (which is, granted, most of the time), the landlord thing is pretty sweet. It is like pennies from Heavan. But when he screws up, I am reminded that it all ultimately falls on my shoulders.

That said, had I stuck to buying condos as rental units instead of buying a 90 year old 2-family, I'd have a LOT fewer backaches and skinned knuckles. My condo unit has 1% of the headaches of my house.

- What was the defining moment that made you strike out on your own?

When I read the two books mentioned above. They were lent to me by a far more successful colleague and I took them seriously.

- Are you accumulating wealth or just sustaining life?

Definitely the former. Even my tiny real estate empire has done more for my net worth than all of my years of wage slavery - and yes, I have made it a habit to keep track of my net worth.

- Do you have a comfortable lifestyle (buy whatever you want? within reason? unlimted?)

Aside from my admittedly rediculous car obsession, I live like a monk. No movies. No toys. No trips. No vacations. I'm saving to buy more real estate when the market collapses.

My only frivilous expenditures are for my cars. I figure no human can live without some fun.

- How much you make? (If you choose to answer, it can be any form: sales, net, X times what an exmployee would make doing the same job, etc.)

$120k from the day job and another $20,700 in rental income. At present, every penny goes to paying down the mortages and saving for future purchases. Ask me in ten years if it was worth it.