[The Boss]

I was reading the "When was the last time you got a raise?" thread http://forums.maxperformanceinc.com/...d.php?t=659361 and was struck by a number of the responses.

I realize good work demands good pay, and that with difficult times come compromise. However what struck me was the number of times people mentioned profit sharing, health plan contributions, bonus pay, vacation pay, and other very attractive benefits.

I've been self employed for nearly 20 years now. In that time I've paid 100% of my health insurance or gone without, paid the full 15% of Social Security/Medicare taxes, paid all of my vehicle expenses, at times gone months without pay at all, worked 100 hours in a week for only a couple days worth of pay, paid my own liability insurance, and every local, state & federal tax and/or fee those entities could conceive.

In that time I have also gone without the security of workman's comp, disability insurance, and unemployment insurance. I have received no vacation or holiday pay, no sick days, no annual bonuses, no cost of living adjustments, no 401k matching contributions and no Thanksgiving turkey. I have worked sick and with broken bones - because I had to.

As for employees, I have dealt with every possible reason for not showing up from sick kids, car won't start, overslept, still cocked from last night (it was a Tuesday), DUI arrests (multiple of these), to "I just didn't feel like coming in"! I was also asked by one of my employees for a raise once after he had just ruined about $800 worth of materials the day before!

I'm not looking to start any arguments out there, but I don't think the majority of people actually realize that for every dollar they earn in employment, there are probably 2 more it costs to the employer to have them there....that is to say, if you earn $50k a year, the total dollars spent for your employment is between $100 & $150k. The office or vehicle you sit in, tools & equipment, computers, phones, utilities, taxes, insurance and benefits all exceed your earnings.

Who else here knows what I'm talking about.

[Mr. P-Body]

I do! I do! What starts as a dream can quickly turn to a NIGHT MARE! You're right, few understand what goes on "behind" the scenes... Particularly in a "micro business" (far too small to call it "small").

Jim

[Ken -Ace- Brewer]

I know all to well! Just because you own a buisness everyone thinks you are full of cash. I can tell you it is usualy the oposite. The Nightmare? Yes I know it!

My Blue Shiled went up to over $600 this year! Almost $200 increase! Guess who is doin without now? Yup! ME.

Ace

[t/a 79]

amen the government slams us with tax after tax employees did not get a raise in 09or10 but they didnot take a cut like i did

[Bermuda Blue]

Good post Boss. The average employee has no idea what costs are involved in running a business. Federal and State government regulations, codes, taxes, fees, inspections, filings etc. make it very difficult to do business today and the average employee who gets a paycheck has no clue what it takes to generate that check.

I understand your frustration about employees. i could tell 100s of story but your story reminded me of a guy who destroyed over $7000 in equipment. He claimed he was not trained correctly and was not at fault. What kind of training do you need to realize that hitting something with a hammer may cause some damage?

You have to place a value on running your own business to justify all the headaches involved.

[T A 70]

I'll say this, working for someone else is taking the easy route generally. As an employer you never stop thinking, worrying, or living the business...BUT!! The risk, control, and income potential are worth it, at least for me.
When I bought my company it was already a thriving business; and years of corporate management gave me the opportunity to "hit the ground running" not needing further training with tax and labor laws, employee management, and cost controls. I really wouldn't recommend starting or running a business without a reasonable amount of time in upper level management...a wise time investment IMO.
For me it was harder working for someone else; harder still resisting the urge to leave without stashing a comfortable amount of cash away to buy the "right" business and not settling for a less profitable/successful venture. But I'm a control freak, surely some of you can relate to that!

[68gtoMN]

Agreed! Self-employed since 2005. Was Sr. Management at large corporate electronic retailer in Minneapolis. After that, I ventured out on my own because I felt I could do it better. Like Chris, I have worked ridiculous hours for weeks on end for little pay, had contract resources (not exactly employees, but similar) who failed to deliver (always have a back-up plan), spent months without income, paid my liability insurance, home, auto, health insurances, vehicle costs, retirement plans were 100% up to me, etc. I even have a "vendor" who still owes me enough to allow for the purchase a nice, new German luxury car in cash - but I will never see this money due to less-than-honest dealings and sneaky accounting. I use this as a learning tool and as motivation to ensure that this will never happen again.

There are great benefits to self-employment. They do not come without sacrifice, however. My subcontractors always get paid and with that they are always willing to work with/for me. As mentioned above, there are many costs associated with having your own business that the average person does not see or comprehend. Yet, with these challenges, I still would not have it any other way.

[nashcar]

Good post, all good points. I've owned my company for over thirty-five years. Workers with a benefit package got nothing to complain about. My son-inlaw is a police officer. He's going to retire in 6 years at the age of 45, I'll still be working. Right now work is slow, just recovering from having a stent put in a main artery. I have to pay $2500 deductable and I can't collect any disability or unemployment. Maybe I should go to the state capitol and protest.

[sleepy]

Yep. I don't pay myself.(my wife make good money and pays the household bill,carries OUR insurance) All of the money I make goes back into the business. That's not to say I don't have a LOT stashed away for emergencies(like $15,000 to rebuild a motor last week)(or the $36,000 for plates last month).
I just don't spend on the nicest high dollar new pickup for me to drive around when i can get a nice couple year old pickup for 10s of thousands less to do the same job. I save the buying new for the semi's(mostly for warranty and write off).
I pay Half the health insurance for the drivers and match what THEY WANT to contribute for the 401K.
I pay based on performance and so far nobody has quit for greener pastures.

[Gulliver]

Yep, self-employed since... forever. I have had a few jobs working for others in the past, but it's been a looong time.

I am a freelance recording engineer, fortunate enough to get my foot in the door with the major labels in Nashville years ago. The pay "can be" good, but it might take me 6 months or even a year (!) to get paid for an album project. I also own my own recording studio, with it's own property maintenance and employment issues with engineers and musicians. Talk about a money pit, lol- this stuff is e x p e n s i v e.

I do tangle in the collector car and real estate markets as well, but it's all hard work. I've found that I get paid about equal to what I work. There's still lots of opportunity in America, but not many shortcuts..

[mike nixon]

Right there with you guys! Been self employed for 10 yrs full time and with other jobs off and on since the 80's.
Right now I'm teaching part time for a local community college for side income.

If you figure your time invested self employment is the worst pay you'll ever make and the most rewarding experience you'll ever have!

[Old Blue 66]

Originally Posted by mike nixon

Right there with you guys! Been self employed for 10 yrs full time and with other jobs off and on since the 80's.
Right now I'm teaching part time for a local community college for side income.

If you figure your time invested self employment is the worst pay you'll ever make and the most rewarding experience you'll ever have!

Id love to hear more about the great experiance. Id also like to hear more positive things about being self employeed. Seems here per Chris's original post, working for yourself really sucks. Than why would you do it??

My dream is to work for myself. I love the fact that the money a client or customer is paying out is coming to ME and not to the company investors to make them rich. Ive just never had the idea or been able to put up any capital to start something.

[David Jones]

Originally Posted by Old Blue 66

Seems here per Chris's original post, working for yourself really sucks. Than why would you do it??

I don't think he was saying it sucks as much as he was saying a lot of people think that the employer is living high because he "owns" the company. That is seldom the case. The company owns you. On the flip side there is a pretty good feeling getting up in the morning and knowing what you do today is YOURS.

[Gulliver]

Originally Posted by David Jones

I don't think he was saying it sucks as much as he was saying a lot of people think that the employer is living high because he "owns" the company. That is seldom the case. The company owns you. On the flip side there is a pretty good feeling getting up in the morning and knowing what you do today is YOURS.

^this. David makes a great point here,

It is hard work to be self-employed, but you need a good work ethic. For me, I'm even more willing to work harder knowing that only MY family (and the gov't) is reaping what I'm sowing. I made a lot of money for other people's businesses and families while I was working for someone else. It was not a good feeling, and never made sense to me. That's what drove me to work for myself.

It's hard for some of us to "clock in", to have to ask for permissions, go 'by the book', take direction from a company fanboy, etc. I'm open minded, but don't want to answer to an 'inferior superior'. It's extremely frustrating when you disagree with a company policy or boss's work ethic. If you're on a payroll, you just have to eat it. I've done that enough, and now I don't have to ask anybody anything. My successes and failures are purely mine.

If you trust your own work ethic, there's always this nugget:
"If you want something done right, do it yourself."

[The Boss]

Originally Posted by David Jones

I don't think he was saying it sucks as much as he was saying a lot of people think that the employer is living high because he "owns" the company. That is seldom the case. The company owns you. On the flip side there is a pretty good feeling getting up in the morning and knowing what you do today is YOURS.

Something like that. There are times when it sucks, but there are times when it's great.

Today for example, I wrote a job proposal this morning, visited the project I'm doing around noon time to make sure things were going well and to pick up a check. I then drove an hour & a half up to the nursing home in Massachusetts to visit my Mom - something I've done at least once a week, every week for the 9 months she's been in there. We got to visit for a good hour before she fell asleep for her afternoon nap. I didn't have to ask anybody to go or explain to them why I did. Today was a good day, but it was also my choice.

Mostly I don't think that people who've never done it, have any idea. There are days, that for a crisp $20 bill you could have the whole deal!

[T A 70]

Originally Posted by Old Blue 66

Id love to hear more about the great experiance. Id also like to hear more positive things about being self employeed. Seems here per Chris's original post, working for yourself really sucks. Than why would you do it??

My dream is to work for myself. I love the fact that the money a client or customer is paying out is coming to ME and not to the company investors to make them rich. Ive just never had the idea or been able to put up any capital to start something.

It definitely does not suck. Wouldn't trade it for ANYTHING. And the possibilities are endless for income if you are successful. Freedom and control are very important things to me. But so is discipline. If you neglect the business or forget for any length of time that is about making money you can get yourself in trouble pretty darn fast. Delegating effectively enables you to keep your eyes on the business and build sales. Get too caught up in the grind of it all and the opposite happens.
Also, what you do with the money you make is extremely important; you must build a nest egg of cash for the down times or recession. All these shuttered businesses of late didn't do that. Reinvest in the business to make it faster/efficient to improve cash flow as well. If the business slows down, you can still "make it" with quick turn around times in many businesses. Not all, but specifically manufacturing.
You know what the biggest inspiration was for me? Watching all the immagrants over the years come here to do just that-start their own business in this free country of ours. Whether it be a liquor store, dry cleaner, coin laundry, etc. they did it!
I'd be damned if I let that pass me by in my life.

[Old Blue 66]

Originally Posted by T A 70

It definitely does not suck. Wouldn't trade it for ANYTHING. And the possibilities are endless for income if you are successful. Freedom and control are very important things to me. But so is discipline. If you neglect the business or forget for any length of time that is about making money you can get yourself in trouble pretty darn fast. Delegating effectively enables you to keep your eyes on the business and build sales. Get too caught up in the grind of it all and the opposite happens.
Also, what you do with the money you make is extremely important; you must build a nest egg of cash for the down times or recession. All these shuttered businesses of late didn't do that. Reinvest in the business to make it faster/efficient to improve cash flow as well. If the business slows down, you can still "make it" with quick turn around times in many businesses. Not all, but specifically manufacturing.
You know what the biggest inspiration was for me? Watching all the immagrants over the years come here to do just that-start their own business in this free country of ours. Whether it be a liquor store, dry cleaner, coin laundry, etc. they did it!
I'd be damned if I let that pass me by in my life.

All great advice.

[mike nixon]

Originally Posted by Old Blue 66

Id love to hear more about the great experiance. Id also like to hear more positive things about being self employeed. Seems here per Chris's original post, working for yourself really sucks. Than why would you do it??

My dream is to work for myself. I love the fact that the money a client or customer is paying out is coming to ME and not to the company investors to make them rich. Ive just never had the idea or been able to put up any capital to start something.

Paul, For the most part I set my hours. If I want to work nights I work nights and get other things done during the day. I take time for my kids when I want / need it. As the boss I can pick and choose what jobs I take on. Snow season is the exception I work when he weather's at it worst and still like it for the most part. If I want to throw a trailer on the truck and haul a load somewhere to pick up something of mine I can do it. I don't have to put up with an asskisser who sucked his way into a position of power [BTDT while working nights at Crown Equipt Co]. In all honesty I love it, long hours, pissy customers and all. Business sucks right now in the automotive field so I took a part time job teaching and like that alot. I don't know that I'll every give up being self employed totally tho. I like what I do, I'm good at it and when the work's there it's lucrative. I'm back down to being a one man shop but when it picks back up I've got a guy I'm going to hire.

Whoever said FREEDOM nailed it.

As I said before I put more hours in now for less money on the hour as the boss but it's worth it.

Just be aware of the bad before you jump in. If you can take that the good is gravy.

[Bjorn]

I was......but I had such a bad boss , I never got vacation, so I took employment 15 yrs ago with my largest client...no more hassles with , payroll, taxes, invoicing clients , and
"going without" in bad months.......this is something union employees have NO CLUE about!

[gregsgtos2]

raise? isnt that what you do when you get out of bed in the morning?