"I have to ask myself if a new $30k truck would make me any more money than my dependable teenager."
Hey Shawn, can you really get a new pickup in Texas for $30K? If so, I will be right over. They start out at over double that here in Utah!
Back on subject, years ago we made $2,500 on a million in service/sales. It was scary thinking that if we had bought more expensive toilet paper that we could have only broken even. That is a lot of risk for not much gain.
Depends on what you get, but new is a relative term to me. 🙂
If it costs more than $5000 I'm not interested. Seriously. Show doesn't make me money. Banging through fields I've never been in before does.
Mark Silver, post: 378467, member: 1087 wrote: "I have to ask myself if a new $30k truck would make me any more money than my dependable teenager."
Hey Shawn, can you really get a new pickup in Texas for $30K? If so, I will be right over. They start out at over double that here in Utah!
Back on subject, years ago we made $2,500 on a million in service/sales. It was scary thinking that if we had bought more expensive toilet paper that we could have only broken even. That is a lot of risk for not much gain.
"That is a lot of risk for not much gain."
That seems to be what most surveyors love!
Holy Cow, post: 378362, member: 50 wrote: There is a very old story in ag country relating to a couple bachelor brothers of a specific ethnic origin who thought they could make it big in the hay selling business. They were buying it for $1.00 per little square bale, trucking it a couple hundred miles and selling it there for $1.00 per bale. Lots of volume though. When one discovered they weren't making any money he suggested to his brother that they buy a bigger truck so they could haul twice as many bales on each trip.
Jerry Clower once told a story where a former classmate, who had really struggled in school, had become wealthy owning a steakhouse. When asked how he did so well, he replied that he was not greedy, and was content to live on a 3% profit. His father in law sold was a rancher who sold him steaks at $1 each which he sold in the restaurant for $4!
Thank you all for the valuable information. I will certainly take into account experiences listed above. I understand the concept that gross revenue means squat unless you know/control what your costs and expenses are, and would never operate a business in that manner.
Was more of just getting an idea of what some of you experienced when you took the leap as far as workload is concerned.
Have spent much time factoring in every expense and cost I can think including (insurance, vehicle maintenance, etc etc etc). I think one of the hardest parts to wrap my head around is approaching and pursuing potential clients without unethically stepping on the toes of my current employers, never burn bridges.....
This forum appears to be a great source of knowledge. Look forward to chatting with you all in the future.
I'm in the exact situation. I started my journey in March and as of this last month fully recognized by the state and feds to operate.
I am in a different scenario though. I work for a firm an hour from my house (I live in a rural/agricultural area) and have discussed with the owner about opening my own firm. He didn't object with the idea of me doing my own thing part time with aspersions of making it a full time gig.
I've set my goals to make 3K a month for the remainder of the year (increase to 7k one year from now.) I plan to send out about 150 mailers in the next week as an introduction. So I have not accepted a single project to this point. I anticipate spending 2K out of pocket for marketing etc (excluding equipment costs) before I make a single dollar. Fortunate for me, I can use my 'disposable' income to finance this crazy a$$ venture.
Watch out for the first ones to respond. Bargain hunters or they don't intend to pay in the first place. Some agents (real estate, bank, etc.) seem to love to ferret out anyone who they can recommend that promises to be $5 cheaper than the current surveyor they have been recommending. Then when someone else comes along for $5 less than you, your name is mud.
When I split with my former employer over 20 years ago it was the result of a failed negotiation to buy into the business, so ethically I didn't have any restriction on approaching his clients. However, I elected not to do any hard selling. I bought a business suit, made appointments to meet with selected clients I had dealt with at the other firm, and in those meetings made it clear that I was in business for myself. But I didn't discuss cost and didn't say anything negative about the other firm. It was simply a face-to-face introduction of my changed circumstance, and I left it to them to decide whether or not to send any work my way.
I also sent letters to some other clients whose work I didn't really want or expect to get, but whose paths I expected to cross due to location and common acquaintances. I told those clients of my situation, and stated that I thought they were being well-served by the other firm, but if I could be of service to please let me know. It was just a courtesy thing.
One of my first jobs came from one of the clients I met with. It turned out that they weren't happy with the communication about billing they were getting at the other firm, and decided to try me out. I'm still doing work for those guys today, although the principals have migrated through a number of mergers and acquisitions. And through one of the early jobs they tossed my way I connected with an institutional client that's now one of my biggest year in and year out.
And I still have the suit. I wore it a few weeks ago at a memorial service, first time I'd put it on in about 15 years. I need to get the pants waist let out about an inch, but otherwise it still fits.
Jim Frame, post: 378539, member: 10 wrote: I need to get the pants waist let out about an inch, but otherwise it still fits.
An inch in 20 years, you're doing great.
Jim Frame, post: 378539, member: 10 wrote: And I still have the suit. I wore it a few weeks ago at a memorial service, first time I'd put it on in about 15 years. I need to get the pants waist let out about an inch, but otherwise it still fits.
I dragged out my suit out recently.
It is no longer wearable
The moths have had a lovely time feasting on the trousers
jim.cox, post: 378622, member: 93 wrote: I dragged out my suit out recently.
It is no longer wearable
The moths have had a lovely time feasting on the trousers
Sadly I'm at the age where I keep dress clothes laundered and pressed for attendance at funerals...but I won't care if they're clean or not for the last funeral I attend however.
Bruce Small, post: 378399, member: 1201 wrote: I would think your starting billing would be more like $6,000 to $9,000 a month. I took me three years to reach $20,000 a month.
My best advice: Figure your lump sum fees based upon an hourly rate that is at least as high as the big firms, then deliver a quality finished product in a fraction of the time. It is easy competing with the big boys on time because you can start an hour from now and have it done before they get the paperwork processed and a crew lined up. Time is money, and clients understand this.
Duly noted! Good reply, putting this one in the cranial file cabinet.
For those of you who do run your own business. How do you and/or the company pay for trucks? I get if your a sole, but I may have a partner so an llp or llc. I have a nice half ton truck, but I would eventually like to upgrade to diesel. I like nice trucks, so I would use it for work and personal. Some of the $ for it could come from my personal income if need be. Just not sure if I'd want to spend the money to outfit the half ton for survey if I am going to upgrade soon.
Jon Collins, post: 380565, member: 11135 wrote: For those of you who do run your own business. How do you and/or the company pay for trucks?
There are lots of different ways to run businesses and handle assets. I have been both an S and C corp (at different times) over the years and they both handle assets similarly.
Vehicles? The company buys, owns and maintains the vehicles. They are "fixed assets":
"Fixed assets, also known as Property, Plant and Equipment, are tangible assets held by an entity for the production or supply of goods and services, for rentals to others, or for administrative purposes. These assets are expected to be used for more than one accounting period. Fixed assets are generally not considered to be a liquid form of assets unlike current assets. Examples of common types of fixed assets include buildings, land, furniture and fixtures, machines and vehicles."
Everyone with my firm operating a vehicle also uses it to get back and forth to work. And the company pays for the gasoline and maintenance. Now technically, personal use of company supplied vehicles should be reported as income by the operator. We all live fairly close and the mileage is almost insignificant to report. If the IRS is going to bust me for running to the lumber yard on a Saturday in a company truck and not reporting the use, I'm sunk. Let them, they're bigger fish to fry I'm sure.
Contact your accountant on how to handle your fixed assets.
