Working for yourself!

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I don't know how many of you guys are self employed but I just wanted to know the best way about starting up my own business? Getting work, contacts, Hourly rates etc.Any advice would be greatly appreciated. Thanks
Reply:The safest route is start working in the evenings and weekends doing little jobs and keep your day job until you have enough work to keep busy.  you can work an extra 40 hours a week on side jobs and keep your main job without much problem. Talk to everyone you meet about jobs work will start coming in. when I started my business I had the idea that work would just flow in ,yeah right, I finally got tired of no work and spent 2 weeks 8 hours a day passing out cards and talking to potential clients I got one client out of all that labor but I have been busy ever since. Dont lie to your boss and if he has a problem with you moonlighting give him a choice you will not go after his customers if he allows to moonlight but if he fires you will have to do everything possible to get work. side benift you will find out how valuable you are to your boss
Reply:there are a lot of things to consider. insurance is one factor and it is hard to get.it's also very expensive. as far as for getting work i passed out business cards and put ads in the local newspapers. but word of mouth is the best way. it's slow but effective. your first jobs will make or break you. do a first class job and go the extra mile and it will pay off in the long run. i have found that if you do a good job word gets around slowly but if you do a crappy job word gets around faster than grease lighting. i would call around and ask what others charge.  you can go for a happy medium or what they charge. above all it's not easy but it's worth it. something else for ya to think about. i have had people bring me in small parts to weld that only takes about 5 minutes to weld so i just charge them for half an hour. that just me and i also back my work up. up to a reasonable time not a year down the road. good luck.
Reply:All good points so far. You should check with the local authorities also, make sure you are zoned right if you plan on doing much work at the house or where ever your shop is. You will also need to check on taxation as any materials, supplies, etc. are taxable unless you charge exactly what you paid for them (this could very from locale to locale). Also talk to an accountant and a lawyer as the IRS will use a test to determine if this is a business or a hobby, using professionals is one way to pass the test. Remember to set aside a portion (40%) for taxes. Self employment means you pay all the social security (approx 15%). A steady paycheck is not guaranteed. Good luck as it does have its rewards and benefits.
Reply:ah yes how could i forget about taxes. i take 40 % and put it in a savings account. 40 is high but you should have extra for a new tool or two.  and you'll need to get a bus license. but i guess that depends on your state. it might seem overwhelming but it's not. i just started my business not to long ago. if you have a small business development center close by i would talk to them. it's free and it's a gold mine of information. they will help you get a business plan which the bank will want before they even sit down with you.
Reply:I would be very hesitant to start up a business right now. VERY. People are not spending money right now. That is the way election years are, and hotly contested elections are the worst. Everyone with money in play is practically holding their breath to see what happens. I have been self employed for the vast majority of the time since 1985 and have never seen it like it is now. Holding onto whatever job you have now and doing side work makes way more sense right now until things stabilize. Jumping in whole hog is a very bad idea right now. There are an awful lot of us that are wondering if we are going to make it through the winter. Myself, I am downsizing my company due to the slowdown. Hate to do it, but we are running at less than 20% of normal income right now. People need and want stuff done, but they are waiting...for what I do not know. I just hope they start to let loose of the money and spread it around.QamuIs Heg qaq law' lorvIs yInqaq puS
Reply:You need to have a clear plan. Define! Define what work you want to do. Who is doing that work now? Can you make money doing that work?What tools do you need to do the work.Laws vary, but usually one will need to get some insurance to protect you but more so to protect the public from you. Knowing what work you plan on doing greatly affects the cost of this coverage.   If you plan on doing simple fixes, welding cracks in pots and pans that Joe public brings to you, insurance is cheep. If the plan is to fabricate steel for the new nuke plant then you might pay a bit more. If you want specific answers  you need to come up with vary detailed questions.I would seek out a business mentor, locally. I would say starting a business while working a full time "day" job is exceedingly difficult.Hard to look like the professional. when you can't meet with customers except after work. After several years of running Fat Fab, I have realized that showing up on time, is still 90% of life. The easy way to make a reputation is to be a flake and not show up. Nothing p!sses off a businessman more than being stood up for an appointment. Unfortunately home owners have been beat down enough that they expect it. Save the pennies till you can survive for 6 months with out the boss. Take a leave of absence, and start your new venture.  The hardest part about being a small business owner is taking ownership of your life.
Reply:One thing that I would recommend, get some business cards printed. Give them out and post them on boards in local resturants etc. Word of mouth is the best advertiser! If you do quality work, and price it fairly there is work out there. Be cautious of the leaches!!! You can spend alot of time and money working on family and friends stuff with little to no monetary return. If you don't have it invest in quality equipment that will be reliable!Theres really two theroys, start small or go all in.. Either way there are risks, and rewards depending on your time and investment!!! All the above advise is great!!! Think it through have a plan, and prepare to get dirty and burnt!!Carl
Reply:Hey Thank you all for responses! Its great to see so many people willing to help out another person. I appreciate all your comments and will take on board what everyone had to say. Once again thanks guys