By Tom Grandy, Founder
There will be about 15 seconds between the time you jump off the 100-foot cliff and the time you hit the ground. Ten seconds into the fall is NOT the time to consider the consequences of hitting the ground! What’s the point? Count the cost before you jump.
Nearly all trades companies are started by technicians that used to work for someone else. From the techs point of view, they are being paid $XX.XX/hour and the customer is being charged a huge hourly rate, often many times more than what the tech is making. The thinking is simple enough to understand. “If I quit and start my own company I could charge less and still make a lot more money.”. In theory that’s true. In practice it’s an entirely different story.
Before you quit that 40-50 hour a week job that allows you to go home and enjoy time with the family, count the cost. As a new owner, you will need cash and lots of it. You will need cash to start the new company and cash to purchase the needed new truck, not to mention acquiring equipment or parts inventory. Cash will be needed to cover payroll because believe it or not, all customers don’t pay on time. Yes, you are often on call at your current job, but guess what? As a new owner you are on call 24/7/365. When (not if) a tech doesn’t show up for work, who has to do the job? What do you know about payroll taxes, matching social security, and Worker’s Comp insurance? Do you understand the whole principle of cash flow? Best study it because cash flow is the Number 2 killer of small businesses, with improper labor pricing being the Number 1 killer. There is a reason 50% of new businesses fail the first year and only 1 out of 1,000 that start up this year will ever see their 20th birthday.
Yes, the grass ALWAYS looks greener on the other side of the fence, but it still has to be mowed. Now, I am not telling you not to quit and start up your own company. That is how our industry grows. However, what I am saying is this. Count the cost BEFORE you turn in your notice to your current employer.
Two great money saving Website Specials are going on this month that will help you understand the business side of the business:
Money Matters – This new self-paced online program covers the monthly review that every business owner should be conducting to make sure your business is staying on track financially. This process will help to identify issues when they come up and allow you to make changes before they become a real problem. The normal investment is $159.00 but the Website Special is only $139.00. Order today and get your money organized tomorrow!
- Lesson 1 – Foundations of the Financial Review (30 minutes)
- Lesson 2 – Profit and Loss Statement (30 minutes)
- Lesson 3 – The Balance Sheet (30 minutes)
- Lesson 4 – Payables & Receivables (15 minutes)
- Lesson 5 – Hill & Valley, Debt Reduction, & Profit Sharing (25 min)
- Lesson 6 – Tying it all together (40 minutes)
Labor Pricing for a Profit software – This industry acclaimed software will model your company, by department, setting profitable hourly rates, creating month-by-month cash flow budgets and much more. The normal investment is $399.95 but this month’s Website Special is only $299.95. Order today.
Like all Grandy products, we offer 100% satisfaction or you will receive a full refund. No fussing!