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At a crossroad in my life

J

John Achmann

Member
So I’ve been a diesel mechanic for the last 25 years. Been also doing side work at my shop at home for about as long. I’m not afraid to work on anything. I’ve noticed the last couple years that the work has picked up. This year has been extremely busy to the point that I have turned some work away because I don’t have the time. I’m to the point I need to crap or get off the pot on going out on my own. Just concerned about the unknown. There is a few other shops in the area but one the guys that own it are older and in a few years will retire and the other one has trouble going to get equipment after asked to work on it. I have a cousin that has a transmission shop that told me if I like what I’m doing where I’m at don’t quit. That’s problem number one. I like what I do most days but there’s days that I just can’t get into working with what’s going on. The second problem is the lack of communication at work. It’s horrible! Had an issue again this morning! I think I’ll make it go but to convince my wife that I can is troublesome right now! I’d say with what I have sitting in my yard and what I have to go get I’m all of a month and a half behind. Had two guys send a message this morning for repairs. Didn’t answer yet cause I don’t want to let them down and trying to figure out how to fit them in. I’m guessing there’s some of you that made this leap. What was the deciding factor to go on your own? My father always said I’ll never be happy if I’m working for someone else. I believe he is very correct on that as he worked for himself for twenty plus years. Yea there was days he said was bad but never came close to all the good days. Any bit of advice, concerns or comments will be appreciated! Thanks for looking!!
 
Yes, insurance and eventually maybe hired help. Staying small as a one-man operation is not as easy as one might think. You eventually lose customers if you can't keep up with the demand by yourself. Then rent if you are away from home, and all sorts of things that go along with that. Tough decision for sure.
 
John certainly would not be one to discourage you . Been a KUBOTA dealer for over 30 years, lots to look at, licenses, collecting sales tax, getting paid for your work. Then as all have pointed out do you have health insurance where you now work, check on that cost before you go on your own..
 
Total up all of the projected expenses.

Check your local zoning regulations. To go full time on your own, you may have to rent or lease a location that conforms to local zoning regs. That could be a deal breaking expense, and would be the first thing I would consider. Local officials may not notice, or care, if you're doing sideline work in, say, the garage at your house, while going full time would be a whole different ball game.

As someone else said, insurance would probably be the next biggest expense. Other expenses can sneak up on you. Does your wife work, in case you have a slow month, or get sick and can't work for a week? I'm not trying to discourage you, but you need to go into it with your eyes open.
 
I just turned 60, tired of owning a business and the stress that goes with it, so sold it.

I am on the other foot.
 
Health insurance is covered under my wife’s work as she is in the health care industry. I have had some trouble before on collecting money. A lot of the work now has a cash down payment that covers most parts. We also have a good size savings account so if I do get burned we have a cushion but it takes time to build back up. Nothing leaves unless it’s paid for and most of the time it’s cash.
 
It’s nice to work for yourself but when working for someone else it’s their headache when things go wrong,insurance,and all the other expenses a business incurs.ive done both and personally I sleep just fine at night not having to worry about too much when working for somebody else
 
A lot of factors like how much money do you make now compared to how much you'd be able to charge on your own.Paperwork these days is about a full time job even at a small business,getting people to pay their bills,taxes,keeping parts straight,etc, etc.AS the mechanic says that works on my tractors plenty of work but not plenty of good paying work.He works full time at a dealership does my work when he gets time I have enough tractors I can let him take awhile then
I pay in full at pick up and will also pay for parts as he needs them.Seems like you may already have trouble saying no to potential customers you need to get good at that if you work on your own.How well equiped is your shop now? Will you need to buy a lot of expensive tools and accessories before you get up and running? Definitely need some fall back money while you get the shop up and going.
 
I would not recommend anyone over 50 start a business unless they can retire.

It is a lot of work.
 
I would not want to discourage you either. But like the others said I see you have the health ins. covered. But then you will not have any vacation pay and if you get hurt no pay either. Then if you decide to do it legal like ( maybe you are now) then you have the whole headache of book keeping and taxes ! I did it full time on my own for 6 ? years. That was before health care was so crazy ! I did all the book work too. I spent a lot of time doing things that took a lot of my time and not getting paid for it. Later I had someone tell me a piece of advice he was told. It sounds like a good idea to me. He said hire a part time book keeper ! But then of course now there are several computer based programs you can get too. I also got to a point where it was hard to keep up and sure would of been nice to have a helper. But that would sure be hard to find someone that would not cost you more money than they were worth too !
 

You might look around you right now at work and see what works and what doesn't and how you'd try to improve things on your own.

There are some pretty dysfunctional workplaces where everyone from the head honcho to the guy sweeping the floor seem to be trying to disrupt the work flow. They may have competent and skilled people like you but they make life difficult usually because of personal issues or plain inability to manage a business.

Might partner up with someone and clearly define your goals and expectations and be ready for a lot of hard work.

Been on my own for over 15 years and when I have days where it gets overwhelming and there's not enough help I remind myself that at least I'm not working with a bunch of people who are actively trying to make work not happen.

Kinda hard to eliminate the human component in the workplace and everything that goes with it. Short-term goal might be for you to go to the top of your organization and voice your concerns. If they are interested in making money and staying in business, they will probably listen to you. Nothing may change, but at least you can say you tried.

Gerrit
 
Sounds like you have studied this and gotten some good advise. The friends I have enjoy being their own boss. They have a terrible time collecting money. Lots of promises but no money. Some people are experts in not paying. People expect all repairs to be warrantied for life. Everyone stops by to chat. Especially when it rains. People call for free advice and these last two can consume tons of what would otherwise be billable hours. Sometimes the repairs are more that the equipment is worth and they never pick it up. In my opinion you have to decide how badly you want to be your own boss and is it worth it for all the hassle.
 
There's a third option. What about going to the guys that are going to retire soon and see about a transitional buyout of their operation? Then you could be the boss, keep anybody that is good, dump the trash and have the business side already setup. Work would be more consistent, they have a customer base already, they have an easy retirement option...
 
Only you can make the decision,, I always wanted my own repair shop,, had been doing repairs at our Case dealership until it was sold in 1976, then worked for others first at the local FORD dealership 5 years, then went to work for the local county road and bridge, worked there until 1994 when I started from scratch my own shop,, over 24 years I ran it almost 7 seven days a week, 18-20 hr days,, one day I looked out and seen I had 35 units I was working on at once, never in that time did I hire anyone, or have a secretary ect,, I did EVERYTHING,, I got to where I hated to even walk in the shop I was so burned out,, my only suggestion is this do not open the shop at your home,, I made that mistake,, they never leave you alone,, I also have to say I thought often of the song by Dire Straights money for nothing,, working for someone else is just that money for nothing,, yes you work but on a day you do not feel like busting your hump you can take it "easy" and still get paid the same,, working for yourself is nothing like that,, would I change what i chose if I could do it all over again no I don't think so but I might modify the plan a bit
cnt
 
Lots of good advice here. I've seen good mechanics go on their own before and fail for two reasons. One, they are excellent and talented at pulling wrenches but couldn't keep books or manage money to save their soul. Two, they get in way too deep with the demand and can't figure out why people are ------ when they don't get their tractor or truck back after three months.
Both scenarios can be solved by doing one simple thing. Charge way more money. Everybody wants your services when you work too cheap and if you charge more, you can afford a part time bookkeeper.
I would also recommend getting accident insurance to pay bills if you get injured. You can get it on your own like health insurance, you don't have to be working for someone else to get it. Like a farmer, if you get hurt, who runs the business? You ARE the business so insure yourself.
 
First of all you said there is a lack of communications at work. Then you said you have customers that you haven't returned a call because you don't want to let them down. You have to call them back NOW and let them know that you can't help them for a few weeks, months or what ever it is. But you have to call them if you want to be in business. Second, I spent many sleepless nights wondering if I should quit my cushy job and go into business for my self, I a weeks time I made the decision to go for it and have never regreted it for one second. Third, my guess is that you are a good mechanic but make sure you are ready to go into business. You will need about 3 months expense money on hand to start, a CPA, (not a bookkeeper) to set up your books correctly from the start, a lawyer to set you up as an LLC or Corporation, and a banker with a line of credit. May not need the banker but you should have a good relationship with one just in case.
 
20+ years in business for ourselves. Zero regrets. I doubt I could ever work for anyone else again. Sounds like you are half way there anyway.
 
its a lot of work that you do not expect.i did a mower dealership/ repair for over 12 years. it grew way to fast to my suprise and i could not keep up, had hire employees, this in when things will go down hill. also when i started i was turning the wrenches cause that s what i enjoyed also but soon just after first year the phone and daily orders took my away from the wrenches, last five years of business i never got out of office chair or away from the phone. do you have a good accountant to do the books etc. do you have ins where you are at. i turned 66 trying to still get out from under my last small business. trust me it will become more than just turn few wrenches to make it work, the customers will also want you to become there BANKER. BUT YOU DECIDE AND GOOD LUCK. IT WAS AN EXPERIENCE THOU . the demand for small engine techs is way out this world but you need have accountant and ins figures ahead of time.
 
I worked for a major truck leasing company for 40 yrs as a mechanic, and a good part of the time as leadman as well as mechanic. I made good money and have 2 pensions and a 401k that did well. I worked 40hrs each week, and that was all I needed to worry about, the rest of the week was mine. When I had heart surgery, my short term disability paid me close enough to my regular paycheck that I did ok. My health insurance paid the medical bills. I got 5 weeks paid vacation after my 22nd year until I retired. I used several weeks each year to farm, and usually took an away vacation somewhere each year.
Yes the job sucked at times(new work rules, bad bosses-though when I left the bosses were the best!) and sometimes I hated it. But I sucked it up and today I am glad I did. If I went out on my own, I always figured I would need $125,000-$150,000 to make the same standard of living and pay the same benefits. Employer paid benefits- health insurance, life insurance, short and long term disability, extra insurance at low cost to me, 401k match, discounted stock purchase plans, and employer social security contributions- all add up. Your own business would need a lot of liability insurance as well as other expenses.
If you can make enough money on your own, collect that money(I got burnt once when I was young), save enough to have an IRA, and stand the headaches of running a business, then you should have a chance of making it. If you are too busy-raise your rates-if you are good they will come to you. There was a lot of good advice in all the answers on here to consider and reconsider. Good luck, Mark.
 
Going it on your own is a real challenge but if you can maintain a work ethic and good discipline of your time you will do OK. It just means you change work address. I am 89 now but over the years I worked mostly for myself and found it to be very rewarding. The biggest problem is if you grow too fast and hire help that is not as good as you. Employees are your biggest problem you will face having to redo bad workmanship and their personal problems such as alcohol and/or weed, I had one employee foe over 20 years but every so often he would go one a binge land I would have to do his work and mine. The only reason I put up with him was when he did work he was extraordinarily in what he did. Just be careful when you hire and DO NOT HIRE RELATIVES by any means. My advice is to go for it
 
OK, here is my little bit of opinion...

Right off the bat, you have to decide if you want to be a mechanic or a business man. There are a lot of things to consider. The big killer is overhead. Especially in the line of work you are in. Big shop, high insurance, and dealing with the government.

I had my own shop for a couple of years. A lot of time was spent being a clerk for the government. Bookkeeping, sales tax, business tax, permits, licenses, and the list goes on.

Then there are the bad debts. Believe me, there will be "friends" of all sorts coming out of the woodwork. They will want favors, freebies, or just to "hang out" in the shop. Then there are the ones that will come with a sob story. I got to have this thing fixed so I can feed my family. Then when it comes time to pay, they either beg for credit or just disappear. There are also the ones that want to go to the front of the waiting list because they have a fleet of vehicles. One of those jerks caused me a lot of trouble. He expected to be treated like royalty, wanted discounted rates for volume, and flooded my shop with enough work to push out my regular customers. I did not want to be his employee.

There is plenty more. I could write a book!
 
Were these guys ahead of you at the crossroads?
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(quoted from post at 18:15:22 10/26/20) In my opinion, times are too uncertain right now. Be patient, keep doing what you are doing.
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X2. I haven't had a w2 since 1968. Been ups and downs over the years but not having to punch a clock has definitely been worth it to me. I can certainly understand and appreciate all of the above comments. One thing nobody has brought up and worth serious consideration is your age. When I was about forty I realized that I probably wouldn't be able to keep up the pace indefinitely and began to transition into work where I used my head more than, or instead of, my back. At 73 I am still physically active and able, but nowhere near what I was at 60, which was less than I was at 50. I have a 50 year old BIL who is an auto mechanic and finding it difficult to keep up the pace, he can't find decent help at any price and struggles to maintain the productivity to make a decent dollar.
 
Make sure you have your Social Security hours covered enough for retirement. Can't remember what I did for the ten years I had my ranch and didn't pay in, must have had enough hours from when I worked.
 
I am at that crossroads too, but in a lot different sense. I am 70 years old,been in business for myself for 44 years. I have customers that are still with me that have been there since day 1. I have cut back to 4 days a week and still turn down more work than I do.I already have work booked for February of next year. I am not interested in getting into hiring anyone else this late in the game.I have the best equipped shop in the area, but I have no one to pass it on to.Everything I own is 100% paid for. If I sell out, Uncle Sam will end up with most of it. I don't need the money, my wife doesn't need the money, so where do I go from here? I still enjoy what I do and I still get jobs that are a challange and that keeps me going, but I'm getting old and I don't want to die and leave this mess for her to deal with.
 
(quoted from post at 20:40:56 10/26/20) I am at that crossroads too, but in a lot different sense. I am 70 years old,been in business for myself for 44 years. I have customers that are still with me that have been there since day 1. I have cut back to 4 days a week and still turn down more work than I do.I already have work booked for February of next year. I am not interested in getting into hiring anyone else this late in the game.I have the best equipped shop in the area, but I have no one to pass it on to.Everything I own is 100% paid for. If I sell out, Uncle Sam will end up with most of it. I don't need the money, my wife doesn't need the money, so where do I go from here? I still enjoy what I do and I still get jobs that are a challange and that keeps me going, but I'm getting old and I don't want to die and leave this mess for her to deal with.
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I hear you loud and clear! I still work one or two days a week for long time clients because I enjoy what I do. Spend the rest of my time playing on the farm, but the little lady can't seem to understand that a beach in Florida is the last place I want to be. She retires January 1, let the fun begin......
 
Don't worry about the 'mess' like I told my wife when I croak,bury me,call the auctioneer,have the auction then call my buddy that runs the scrap yard he'll take from there everything cleaned up and gone in about 6 weeks.She can go on a big vacation,she deserves it.
 

I am gonna put ya at 45, 45 is the crossroad... BTDT if I had taken all the offers I had then I could be retired and living off the tot...

Start charging the top shop rate in your area at home if folks pay it you can make it on your own... The best employee I have ever had does side work at home he's higher then me and I am know as the highest around.. I trained him well : )...

From 45 to about 55 I felt I could whoop anyone then the years caught up with me... You will hit it you will not be able to turn the work out you use to that's OK if you charge well you don't have to work as hard : )... If you go out on your own insure your life well get long term health insurance on your family if you say I can not afford it then then don't go out on your own...

What does a good diesel mechanic fetch in your area...
 
I don't own my own business, but I have been at the "crossroads" with a decision to move and whether to take a pay cut to do it....

It seems to me the biggest factor in having "enough" money is not how much you make, but how much you spend. Sure, you have to make a certain amount or the options become severely limited, but if you can control/eliminate your expenses, you can put yourself in a situation where you don't have to make a ton of money right out of the gate. With 25 years experience, you are probably a much better mechanic than you were with 1 year experience. It is going to take time to learn to be a business owner and you will be better at it in a few years than you might be right out of the gate.

If you aren't mortgaged up to your eyeballs in your house, don't have car loans, boat loans, camper loans, atv loans, credit card debt, (I think tractor loans are maybe OK? LOL!), and medical bills, you might be able to get by for awhile (2-3 years?) on your wife's salary while you carefully build your business (again, without loading yourself up with debt). If you can't afford to be without your current paycheck due to your current expenses, you're taking a much bigger gamble and putting yourself in a "do or die" situation - while motivating, it can also lead to tons of added stress (which is hard on you and everyone you love). It might be wise to work to get yourself in that position first before leaving the steady paycheck?

I took the pay cut and I don't regret it. We live in a much nicer/smaller/safer community. We could only do it because we carefully planned our expenses around the new salary - without needing to rely on a second income from my wife. It was tight at first, but by God's grace and going without some of the "fancy things" we really wanted, we always had "enough"!

A good friend and mentor also told me, "Whatever decision you make is the right one!" Best wishes with your decision!
 
Thinking about it if you are into buying and selling you'll probably get a chance to buy some very good bargains running a shop like that you can turn around for a profit or part out.Also you can get a TISCO or A&I dealership to make a few buck$ on parts.
 
Do you have the grab the bull by the horns attitude needed to go it on your own.

It takes a lot out of you and nobody is there to bail you out when things go to hill in a hand basket.

Customers, suppliers, employees, paperwork, inventory, receivables, payroll, health, home life, weather, cancellations, wrong parts, missing deliveries, tools, equipment.

All of these can eat up a lot of your time and or drive you crazy.


If you are thick skinned, have a strong work ethic, deal well with others and have a strong just get it done attitude versus a wait and worry approach to problems you can succeed.
 
You will have never had a boss that made you work harder than 'you the boss'. And almost cast in stone, that you will be gradually removed from the work that you like to do & into essentially management. Maybe you will like management? I didn't.
 
The deciding factor is if you have a "burning desire" to own your own business. If you're just "on the fence" then don't quit your day job. There's a lot of pride and satisfaction in building a business and having good relationships with customers you're serving. There's also a lot of crap you have to put up with and a bad customer can really make your life miserable. One bad employee can do a lot of damage. Do research and talk to other business owners to see what's all involved in owing and operating a business - any business not just mechanic repair shops.
 
John, I have read all of the replies and I'd love to talk to you and tell you my success story. It would give you a much different outlook! Jim in N.M.
 
The only problem is that people do not pay, I know several mechanics that went out on their own and their biggest problem is collecting money that they are owed . I have a little shop where I fool around on my own projects and I would be glad to take in work , but I would never get paid for half of it .You almost have to take credit cards and debit cards.If you have a customer base that you know will pay their bills on time, then go for it.
 
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