I got cold feet!
I got cold feet!
(OP)
Well, I started an LLC, got my business bank account, started a website and now I am in the process of getting my e&o. All of the suddent I got cold feet. I am currently still employed. I am afraid if I start my own business I wont float. I just feel very unethical to do side job while working with my current employer. Plus, it is kind of hard to handle side jobs since my office suite is a little small. People can hear other people conversations. Do you guys have any tips to get me going? If I quit the company, my wifes income is not enough to cover everything and we will be using credit card a lot! Any advice?
Never, but never question engineer's judgement





RE: I got cold feet!
- not a great time to be starting out with the way the general economy and the housing market appear to be heading.
- side jobs should be worked from home, not your employers office.
- it might be ok and ethical to work side jobs if they don't compete with your employer and don't affect your day work (see lots of other forum topics in this araa).
- if you can't live with zero income for 6-12 months without borrowing, then you are not ready to work on your own. Keep your job and start saving $. Don't plan on living off credit cards.
- if you can't live on one income (your wife's) then reduce your lifestyle and expenses.
RE: I got cold feet!
As SWComposites says you will need to get by for a minimum of six months with zero income as well as all the expense of setting up your company, insurance, accountant, letter heads, business cards, office furniture, office equipment, computer hardware, computer software the list goes on and on. Expect a minimum outlay of $20K.
To work weekends on your own stuff whilst employed is debatable but to do in during work time and using company time and equipment is a definite no.
RE: I got cold feet!
* Expect to have a year's worth of your after-tax income in the bank before you decide to quit your job, you're going to need it (and most often quite a bit more). What if your wife loses her job in the meantime? Then you'll have zero income. CC companies look down on making zero monthly payments.
* You should never engage in your side-business affairs while on your current job. If you find yourself handling side-business stuff during that time, you have an ethical, moral, and probably legal responsibility to log off the clock. And don't forget the time you spent before and after thinking about what you were just doing, time to ramp back up to your 40-hr/wk job's responsibilities, etc. Plain and simple, don't mix the times, it's not worth the hassle.
* I used savings and CC to start my business. That was nearly five years ago, and I'll only have the CCs paid off before this year is out. While for some jobs it's useful to use CCs as a quick money fix, it's also quite dangerous and can kill your credit for many years to come... be aware of that danger.
* Be prepared to live on canned tuna and crackers when things get tight (and I may not necessarily be speaking metaphorically here, either). Turning the A/C off in the summer and the heat off in the winter can save big-time money, especially in these days of high-priced electricity. Consider getting rid of any luxuries, like extra cars, or big screen TVs... selling them before you're hurting for money is more profitable than when you let that 50" plasma go for $200 because you need to eat this month.
* Be prepared to pay big bucks for the same health insurance your current employer is probably subsidizing at the moment. You do not want to have major surgery for a heart attack or accident without insurance covering your behind... that's a surefire way to the poorhouse within just a few weeks. Also consider any employee matching being done for your 401(k) account... you may not even be able to contribute yourself with no money coming in, and that can hurt retirement.
Dan - Owner

http://www.Hi-TecDesigns.com
RE: I got cold feet!
RE: I got cold feet!
I started my company with absolutely nothing but my reputation, my personal PC, and a little bit of home equity! It can be done if you answered yes to the above questions. Most important, you have to be disciplined and work hard. It's tempting and too easy to sit in your "office" and just surf the net or play PC games. If you don't work, you will have no pay check. That should be motivation enough.
RE: I got cold feet!
When you have developed a confident, positive attitude, and developed a sound plan of attack, plus an extensive network, go for it. I can't emphasize the network enough. A good one will save your heiny many times over.
Mike McCann
MMC Engineering
RE: I got cold feet!
Never, but never question engineer's judgement
RE: I got cold feet!
RE: I got cold feet!
Never, but never question engineer's judgement
RE: I got cold feet!
So far, this is the best job I have ever had - working for myself.
Don Phillips
http://worthingtonengineering.com
RE: I got cold feet!
RE: I got cold feet!
Don Phillips
http://worthingtonengineering.com
RE: I got cold feet!
Anyway, the best luck for your LLC!
RE: I got cold feet!
Un huh, how is that working out for you?
RE: I got cold feet!
It's not just liability, but also conflict of interest and competition issues.
Make sure YOUR clients are YOURS, and YOURS alone, with absolutely no ties whatsoever to your current employer.
Mike McCann
MMC Engineering
RE: I got cold feet!
What I keep hearing from architect's is their firms are scared to death of a moonlighting employee's client suing the firm. Not that the firm will lose the case, but the cost to defend is too great.
Don Phillips
http://worthingtonengineering.com
RE: I got cold feet!
I assume you are in Colorado? I started my LLC 18 mos ago in CO, residential structural & land development. Things were going GREAT and now we are dead in the water, 1 employee I am struggling to keep. Forunately I have a small construction company I can use him for. This economy is slipping quickly around here. I personally went from billing 188hrs one month last fall to only billing 35hrs last month. Thank God for my Home Eq loan. As you probably know there are a lot of AEC layoffs around here. I do hear the western slope, grand junction, is doing well, I may end up over there son. Lots of projects getting put on hold. Be carefull.
RE: I got cold feet!
Yeah right...the same said the people who built the Titanic , and some guys in charge of setting the last Challenger launch date (even after being warned about possible rocket failure)
RE: I got cold feet!
Dan - Owner

http://www.Hi-TecDesigns.com
RE: I got cold feet!
Never, but never question engineer's judgement
RE: I got cold feet!
Don't worry about the rest you will find a way.
You only have one life to live. So live it now.
Paul Jager
RE: I got cold feet!
The biggest change for me was payroll. Instead of an LLC, I went s-corp, so I have to pay myself a salary. But profits I do not pay self-employment taxes on, which saves me like 15% in social security.
And for $100 a year, Quickbooks made payroll not only easy, but it does direct deposit and everything. Very slick - but I digress.
Don Phillips
http://worthingtonengineering.com
RE: I got cold feet!
Good luck!