[Dyno]

Hey all, new member here. I'm looking for guidance and tips regarding starting a business. In the months spent researching, I've found an overwhelming amount of information regarding business structure, certifications, insurance, etc.

A little about myself. I've been with my current employer for 5 years. It's a small incorporated welding shop and I'm the sole employee. The owners are businessman who don't weld. As the only employee I'm responsible for ordering material, tools, fabrication, and installations. I also file all receipts and inventory documents. I have a company phone and deal with customers often, keys to the shop, trucks, and access to most company files on the computer. I don't deal with any of the legal accounting/tax stuff though.

Are there business owners out there who've started from scratch? I want to start small and build from the ground up while maintaining my current employment. For someone that wants to do "non-critical" fabrication, what suggestions for insurance, licensing, certifications would you suggest?

[MinnesotaDave]

How does your boss feel about you competing in the same field while still working for him?

[Dyno]

I wouldn't be competing against my employer. We specialize in hydraulic doors for hangar bays and large commercial and agriculture buildings. I have to turn down a lot of customers that want small jobs done because that's not what we are geared for. If I were to start a company, I would be focused on private/residential and small businesses.

[tweake]

I wouldn't be competing against my employer. We specialize in hydraulic doors for hangar bays and large commercial and agriculture buildings. I have to turn down a lot of customers that want small jobs done because that's not what we are geared for. If I were to start a company, I would be focused on private/residential and small businesses.

be careful you don't go from a good market where your the only one, to a market where there is plenty of people doing it.
the money may not be there simply due to the amount of opposition driving prices down.

the other possibility is start a side business. see if you can grab those customers you turn away and do those in the weekend.
at least you will get an idea of the market and pricing.

[Dyno]

Thanks, tweake. I do plan to start as a side business, working nights and weekends. I'm familiar with similar businesses in this area and am working on creating a business model to find the right niche of what people want, but isn't already available on every street corner. My hope is to build a legitimate brand rather than a reputation as "the guy who builds stuff in his garage". If that makes sense.

[tweake]

sounds good
always pays to test the market.
i ran into a problem myself many years ago. plenty of people wanting me to make a product but when it came time to open the wallet they upped and disappeared. need to test if the market is full of hot air or actually has customers willing to pay.

[cj737]

Thanks, tweake. I do plan to start as a side business, working nights and weekends. I'm familiar with similar businesses in this area and am working on creating a business model to find the right niche of what people want, but isn't already available on every street corner. My hope is to build a legitimate brand rather than a reputation as "the guy who builds stuff in his garage". If that makes sense.

The path you’re undertaking is similar to how many get going. Do the legal stuff for your side business first. Get and keep your taxes straight as tax issues are the #1 killer for small businesses.

The only thing I’d caution you about: if you gather customers due to your role and employment, but perform that work on the side, there’s every real chance that one of the customers will equate you with your employer if they have a problem. They may show up disgruntled, hold your employer liable, or worst case, cancel business with your employer due to an issue with your business. Just noodle that through, and my advice would be to inform your employer about your intention. Avoiding conflicts is the best means for dealing with them.

[MinnesotaDave]

The only thing I’d caution you about: if you gather customers due to your role and employment, but perform that work on the side, there’s every real chance that one of the customers will equate you with your employer if they have a problem. They may show up disgruntled, hold your employer liable, or worst case, cancel business with your employer due to an issue with your business. Just noodle that through, and my advice would be to inform your employer about your intention. Avoiding conflicts is the best means for dealing with them.

That's good advice in my opinion. A simple conversation with your boss of "hey, is it OK with you if I do work on the side on stuff we turn down?" may be all you need.

Some bosses like to see their employees eventually go out on their own.

[aland]

I would add this thought. Of course we all dream of becoming independent from our employers and the carrot of opening one's business is always in front of our eyes. If you have never been in business for yourself you may find that it is much more difficult than you could have imagined, it really requires a different set of business skills other than the technical skills to perform the work.

The other thing is that there is usually never a smooth transition, so even if you do create a side business it is typically not enough to fully support yourself and the actual transition going from an employee to an independent owner could still be a struggle...it just all depends and there is no right answer as every situation is different.

A good compromise may be if your current employer would entertain part time work eventually, as that would make the transition easier and help both of you out as you build your own business.

Your approach is not bad as you seem to be targeting a space your employer does not have a customer base. But as tweake points out you will be competing with many others as you transition over, so something to think about for the long haul.

I have worked on both sides of this fence, several times, and being an independent business does present some challenges, insurance being a huge one. This is especially true if you have a family to support. It's difficult to get decent insurance for independent businesses as it cost more and is typically not as good as larger group plans. Something to keep in mind. And speaking of insurance, let's not forget liability insurance you will want also, otherwise you could be put into a very bad situation as so many people in America are "sue happy". This doesn't mean it will happen to you, just that the possibility is there and you need to cover your own @$$. Just some food for thought...

You will never know if you can be successful unless you try.

Alan

[tweake]

I would add this thought. Of course we all dream of becoming independent from our employers and the carrot of opening one's business is always in front of our eyes. If you have never been in business for yourself you may find that it is much more difficult than you could have imagined, it really requires a different set of business skills other than the technical skills to perform the work.

i have to agree on that.

its certainly what trip me up and its what gets most guys.
i'm in small town where most are small business or one man bands. a lot of guys go out on their own and they are great at what they do. but most, myself included, suck on the business and paper work side. thats typically what causes the downfall.

sweating it out all day then coming home and doing paper work all night is not much fun.
even if you have your partner doing book work, thats something you still need to keep an eye on.
a mates misses was fiddling the books and spending money they didn't have. then the tax man turns up

[Dyno]

Thank you for the feedback. I've no fantasies of it being an easy transition. I'll be working harder than ever, especially in the startup phase. Fortunately, I live in a large metropolitan area and already have a good network of small businesses on both a personal and professional level. I have a few business owners and entrepreneurs in my family who are advising me on the accounting and legal side of things. Also, being a disabled veteran, I have access to certain resources that are only available to the veteran community. My personal goal is to be fully operational and independent before age 30.