ECN Forum Forums General Topics of the Trade Business Related Discussion Business or Job?

Here is an interesting article about owning a business or owning a job.
Title: Do You Own A Business? Or Do You Own A Job?
By Jim Olsztynski http://pmmag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,2379,5124,00.ht ml

[This message has been edited by A-Line (edited 01-09-2005).]

How did the country song go? "Work your fingers to the bone and what do you get? Boney Fingers!" I have read alot of what Michael Gerber has written. I highly recommend his book "The E-Myth Contractor". It is a small book but sure puts a different light(no pun intended) on just what we are looking at here. We need to build value fellas. Let's get to it! We are smart enough! By sharing our resources here on this site, we will all benefit! None of us are as smart as all of us. Education is the short-cut to experience. I am approaching the age that all of my "experiences" need to be profitable. I come here for the education and it has already paid big dividends, and I thank you. I purchased and read "Mark-up and Profit" which is also a terrific book. I found its recommendation here! If I look back 20 years from now and just shake my head in remorse of my "Should haves, could haves and didn'ts", I deserve nothing more than one of my old wore out Red Wing boots applied to my backside! Not to mention what my family missed out on because I could not get my act together! We all are self-starters and self motivators. We have to be. That is our nature. We are a different breed, but I would not have it any other way. I am proud of our field and what we do. Whether it is "teckkie stuff" with all the new VDV or other low voltage systems or just getting someones power back on. And I want to do what I can to raise our standard as electricians not only as our trade demands, but also wise businessmen and women who have corporately got their act together. I long for the day when Plumbers will be checking our sites!

Thanx A-Line and Les.

Very well said Steve.
Ron

well if you read that article you will see how bad business practices will effect your company. For you new guys starting one man shops remember you own a business not just working for your self so don't be afraid to charge what you need to break even and profit.
WHO WANTS TO WORK 70-80 HOURS A WEEK AND DIE BROKE AND IN DEBIT?

[This message has been edited by slumlordworker (edited 01-10-2005).]

Here's another good read. http://pmmag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,2379,21594,00.html

I second the recommendation of "The E-Myth Revisited" book. I haven't read the one for contractors, but have been told the main book gives the same info and more.

I just ordered a copy of the book yesterday.
Thanks for the info.

That was an interesting article, as are others from PM mag. I really wish I had more business sense on this. My feeling at the moment is..if I bring his annual wage from $35,000/year to $80,000/year, do I really care if it's a job or a business?

Dave

If his personal income is $80,000 per year but the net profit of the business is -3% then I would be concerned. If his personal income is $80,000 and the net profit of the business is 15% then I would be much happier.
In a business your salary is seperate from the net profit of the business.
Someone buying your business is going to look at the net profit of the business.
Also your business should structured so that it will still operate with you being absent.
This would be hard to do though if you are a one man shop.

"A contractor will try to sell the business, maybe even retain a broker for that purpose, but then gets slapped in the face by harsh reality. He finds out that nobody is willing to pay much, if anything, for a company that is run not as a business, but as a job.

Ok, maybe I'm missing something here but what's the difference between a business and a job? Obviously a company that has assets such as a building and vehicles, inventory, employees and a customer base as well as a known presence will be worth more than a guy working out of his house with an old truck.

Is this what he is talking about?

-Hal