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Employee side business

ikarasu

Active Member
You're in a different position than the standard employee. The high rent district you're in also throws a curve ball in going out on your own. You also have a game plan to retire early where a lot of people's goal is to make more money to buy more things. That greed factor makes a big difference in a person being willing to step on someone else, even when it gets them nowhere. Ive seen many trade guys step out thinking that they'll make a mint, mainly welders and mechanics. They usually fail once they start getting hit with all of the costs and realize they are working more and making less. I have a soft spot for people trying to get going but it usually burns me cuz they charge stupid money, don't have the right equipment and really don't know as much as they think they do.
You talking about money also reminds me of truck drivers that I worked with. 2 guys, both made the same amount, 1 was always broke and took all of the O/T he could. The other driver had a new car, house, wasn't up to his eyeballs in debt, always had money and would leave early every chance he could. We never could understand it. 2 of my employees are like that too, step brothers, both have kids/wife but one is broke the day after he gets paid and the other always has cash on him.
People are idiots with their money. We've had 4 wide format operators quit and start their own business - AFAIK they never had a side business before they quit, it was before my time - and maybe thats why my place is so open to letting people have a side business... If someone wants to, they're going to...May as well keep them happy and on staff vs having to find and train someone else. Around here... 90% of the shops are from people who decided to go out on their own, I'm sure 90% of the owners on here are the same - Whether its taking over a family run business... or they just wanted more for themselves. Most sign shops are run by previous sign shop employees!

3/4 are out of business because as you said, people are idiots and suck at managing money. They see dibond costs $20 a sign, material costs $10, and you sell it for $100... that's $70 profit for 10 mins of printing and 10 mins of laminating! Then they start their own business... then after a year when they do their taxes, they cant figure out why theyre in the hole. They dont realize taxes are 30-40% (Canada sucks, I know), rent isn't just rent... You have internet, phone, cell phone, electricity... There's ink cost, you've spent 10k on repairs on your printer... And that $100 sign is now a $10 profit, and you're making 10% of what you thought you were making. Then next year... its the same thing, untill they end up in a hole they cant dig themselves out of, and they go out of business.


I think for the first year of my side business, I probably didn't make a penny because I was still learning and money was being wasted on everything. I have like 15K of material on my shelf still because I had to buy every all the reflectives, holo, metalics...window perf when I dont even do installs...etc! It is a learning curve, for sure
 

netsol

Premium Subscriber
I was also told to never let the person that is doing the books, sign the checks. Some people, successful or not, don't understand business and never will. As a small business owner, you are just another employee and if you make yourself not needed, then you will become unneeded. Especially if you train someone to do your job for you so you can go screw off everyday while they work. It can be done but you need to be large enough to where employees have individual roles.
Your dad was 100% on point about what he drove around customers. Same deal goes around employees. Showing everyone your toys is about the fastest way to kill morale and get the side eye from customers.
never let the person that is doing the books, sign the checks

i don't know if you have the big gerber engraver, but, you should carve that in stone

2 LARGE long time clients ignored that rule (1 had over 2200 employees) and went bankrupt
one the bright side, they sent the embezzler to prison
 
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