Should I make the jump to start my own company?

  • I have almost 20 years of automation experience with robotics and plcs. Is it time for me to start my own consulting and programming company? Or do I just keep working for someone else? Not in a good position to be without income for an extended time period. Anyone out there have any advice ?

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  • Will it really be worthwhile to do that? Are you well compensated now with pay and benefits? Your pay will go up but benefits such as health insurance will be on you then. You will have to pay all your income taxes as well as record keeping. You will have to do invoicing and make sure that you get paid. Unless you hire someone which will also come out of your earnings. For me it seems like too much. Pimpin' ain't easy.

  • I woke up one morning and decided to do it, no real thinking time, no prior experience of setting up, running and maintaining a business, I just did it on the fly.

    Looking back, would I have done things differently, absolutely.....RESEARCH + PREPARATION

    Depends on your circumstances, family, finances, location etc what is involved, but below is a summary of areas to consider:

    1. Current finances and family lifestyle.

    - How this will impact on those dearest to you.

    - Do you have their support, financially, and the reality of the emotional pressure impact.

    - Are you prepared to work more hours (admin of a business takes up huge chunks of time).

    - Can you manage to work from home, a room you can setup as an office.

    - Have you the finances to support a start-up period of suddenly receiving no income.

    2. Do you require an accountant and book keeping.

    - Currently you may not be aware of the inner activities of the company you work for.

    - If you do require one, shop around.

    - One that specializes in small companies and is prepared to educate you along the way.

    - If you have a friend whom is an accountant, that could be very beneficial.

    3. What start-up costs are involved.

    - Initial setting up the business (do you need to register the business etc).

    - Insurances and Public liability associated with your intended business.

    - Do you need to upskill, many tasks undertaken by the company you work for, you will need to do.

    - Business website and email, are you looking at having these, designing and creating yourself, hosting.

    - You may have current access to Printer/Photocopier, PC, Tools, Vehicles, Cell phone, insurances etc.

    - Your business will need to supply those above that you do not personally own at the moment.

    4. Regular monthly costs.

    - What minimum costs are required to establish and maintain the business.

    - Can you cover these minimum costs even with no work/income coming in and for how long.

    - Running month to month is difficult due to payment terms not providing payment upon completion.

    5. What type of business do you want to create and what does it involve.

    - Are the services you are intending to supply, regularly required, in demand.

    - Are you starting the business to make oodles of cash, or just out of satisfaction/enjoyment.

    - How much are going to charge for your services.

    - Are there similar businesses operating and what do they charge, can you be competitive.

    - Can this generate a minimum revenue inline with your lifestyle.

    - Try and establish some firm orders (officially) before hand.

    - Consider doing some 'moonlighting' on the side of your current role to establish this (risky).

    - Consider approaching your current employer and ask the question of sub contracting(risky).

    - Sometimes a company may look at the benefit of losing someone full time and use as a subby.

    - Promises from others do not always come to fruition when you ask them to stand up to the plate.

    The above are not in any particular priority order, just some bullet points to consider.

    The grass may appear greener on the other side of the fence, it's not until you step over the fence, you begin to realise that the green grass requires a lot more to keep growing and to remain green.

    Not having a guaranteed paycheque at the end of the month is a real wake up call.

    Doing the job you currently do is a no brainer, can you make it work as business by supporting the business in the areas that are currently being provided and undertaken by others inline with your current personal circumstances - That is the question?

    Good luck with whatever direction you decide to take........... :top:

  • - Initial setting up the business (do you need to register the business etc).

    - Insurances and Public liability associated with your intended business.

    Most likely, here in the US and perhaps abroad, that would involve setting up an LLC or S type corporation. You need to separate your own personal assets, e.g., your home from the liabilities of your company.

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