Self Employed, and loving it (what I have learned)

anti-sophist (56)in #selfemployed • 7 years ago (edited)

I have been self employed full time for approximately 5 years. I'll tell you it's been quite a ride, but all in all I don't see myself going back to be on another man's payroll anytime soon.

Since work has been so good this year I haven't had as much time to peck away at the Ole keyboard as much, but I would like to take the time and offer up some of the lessons I have learned in the last few years to any small business owners and prospective small business owners.

I'd like to break this down into a few simple what to do/not to do bullet points.

Understand first off. The nature of my business may differ greatly from yours and all of this is just anecdotal. I do feel there will be at least something of value for most people in here though.

~I am an electrical Contractor who deals directly with owners and also sometimes with General contractors or builders.

What not to do:

(1.) **Acquire large amounts of debt right off the bat: **Going out and buying topnotch equipment and vehicles so you can project some sort of inflated image of your company is a black cloud of oppression I wouldn't wish to hang over anybody. Start out with the necessities that you will defintiely use then work your way up.

(2.)Cowtow to flattery and hot air promises: Many more experienced contractors will attempt to flatter you and dangle carrots of opportunity in front of your face especially, if they see a noob who lacks confidence and basic knowledge about the scumbaggery that seems so prevalent in the construction industry.

One of the more prevalent ones: "If you can cut us a break on this job there's a lot more work coming your way." ** Translation**: I'm throwing out a crap test to see how much money I can beat out of you in the future. Don't fall for this.

(3.) Sign complicated contracts without consulting someone knowledgeable in contract law: If you don't understand it, don't sign it! The more complex a contract is, the more likely it was designed with the intent to screw you.

(4.) Hire people who have known substance abuse problems: I know... This should go without saying, but in the skilled trades there are quite a few highly skilled people I've come across over my two decades in the profession who drank and drugged a little too much, but were very high functioning addicts. The problem with hiring people like this is: They are going to crash! You just don't know when, most likely it will be at the worst time possible for you and your organization. Protect yourself and your other teammates. Trust me on this one.
These are people on a path to self detruction. They don't care about themselves, which would follow that they don't care about you or your organization.

What you should do:

(1.) Treat people, both customers and team members with the respect that you would want: I've seen many companies who put customers first and employees are second always. this is a great way to breed apathy and burnout in your team. Without a good strong team to deliver, customers and sales are practically meaningless. Also consider your customers as more than a source of income. It will make work much more pleasurable.

(2.) Clearly list In writing your scope of work, terms of payment, and exclusions: Have the client sign off on it before committing any real resources to the project. Contracting 101 "If it's not in writing it didn't happen."

(3.) Interview you potential clients as vigorously as they interview you:You don't have to be extremely overt about this. Just ask pointed questions that are relevant to the project and feel out the client as best you can.

~ In the case of General contractors: Find out from other subcontractors who have worked for them and see how they rate. If the general contractor is unwilling to tell you who they have worked with in the past this should be a huge red flag!

A. Do they pay on time and consistently?

B. Do they coordinate well and work well with others? Or do they run projects like tyrants? (This relates to point #1 on what to do.)

C. Do they practice safe workplace policies?

(4.) Understand the value that you bring: Walk in confidence not arrogance in the fact that you have a valuable service that you are bringing to someone's home, business, or life. If your potential client doesn't understand this consider if it will be worth it in the end. For me it's not. Just because they are holding the checkbook doesn't make them any more a person than you. Understand that not every project is a good project that you would even want!