How do you like it?

I have a job that I will be making 6 figures the rest of my life.... And retire with a pension that pays 60% of my highest 4 years salary + my 401k. But I just was offered partnership with a buy out option in an engineering firm that I know and trust (we have been their client for years) the owner wants to retire and wants a PE that has a decent personality to drive the ship.

Basically it's an opportunity to own a firm that hovers between high 6 figures and 7 figures a year the past 10 years.... It's a ton of money but i have been unemployed in the past and I'm afraid of the liability and possible failure...


Anyway tww isn't a blog I'm just wondering if y'all regret your ventures into business or if it's the bountiful awesomeness

8/26/2014 8:55:01 PM

How old are you?
Married?
Kids (if so, how many)?
What about your nest egg? Lots of debt?

I got laid off back when the economy went to shit in 2008. My entire company was shut down.

I looked for a job (was in sales) from Nov 08 - Jul 09. Finally said fuck it and decided to work for myself.

For the first 2.5 yrs I didn't make shit. Had a kid and the wife was freaking out that we were going to be broke.

Then things turned around- almost exactly the same time my first kid was born.

Now I make more $$$ than I ever did. I work for myself. No bullshit office job- I work from home.

And I couldn't imaging living the life I did before. Yes, I had a cush job, company car, an expense account (that I abused nonstop), and I travelled 75% of the time (NC/SC/VA/TN/GA/AR).

But I was living a lie. Doing enough not to get fucked w/ by the boss. That's not a way to live as an adult.

I had to be my own boss. Finally made me grow up.

8/26/2014 9:13:24 PM

Go for it.

At worst it seems you have a fall back job now.

8/27/2014 1:18:09 AM

Problem is my current job would be gone if I went out on my own. I'm always a hard worker and I have a paranoia of being unemployed again I have actually traded jobs not because I was getting lazy but because I didn't have enough to do and days were going by way too slow.

I have typical American debt, a car loan and a house loan. I have an investment account worth enough to pay them both off. And that's about it.

The truth is the switch could be better than winning the lottery. Or an engineer working for me could screw up so bad the company gets sued and I become uninsurable as an engineer.

Just something I wanted to hear stories about before I took the dive.

8/27/2014 3:41:24 AM

colangus, you need a new employee??



So sumfoo1 wants to leave cushy government job with pension and 401k, extra holidays off, and a nice work schedule that allows him enough time and money for all of his nerdy hobbies. hmmm...

8/27/2014 9:25:45 AM

when you say 6 figures to low 7 figures are you talking about the company's revenue or is that profit? that seems really low for revenue, how many employees? it sounds like a business you would need to grow a lot to be secure, is that something that you want to do? I'm assuming they are offering to open their books to you if they are offering partnership, you really need to review their books.

(maybe the consulting industry is a lot different than engineering, but a mediocre year still has 8 figure revenue for us with 9 people)

[Edited on August 27, 2014 at 10:00 AM. Reason : .]

8/27/2014 9:59:14 AM

That's the principals salary + bonus leaving enough money in the company to secure credit and loans.

8/27/2014 11:11:16 AM

you dont strike me as the super adventurous type, buddy

thats not meant as an insult

the only consideration is "are you current wants and needs satisfied?"

it seems to me you buy most things you want and always keep yourself occupied. i dont get the impression that you materialism is causing you to barely scrape by.

unless there is something fantastically expensive like a boat or airplane that you want and feel like this risk is necessary? are you optimistic about the current state of the economy?

8/27/2014 11:31:20 AM

Honestly the only reason I am considering this is beach house and car collection lol.

But yes, by nature I prefer stable...

But if I pull down half a mil a year for 5-10 years keep running my life like I have my current salary then I'll be able to retire like a ballet at 40 or something.

Truth is other than actual gambling I always get fucked when I try to do what I think is a good decision or financially wise. So probably best to play it safe and keep a pension.

8/27/2014 12:06:16 PM

Quote :

"LIKE A BALLET"

DO IT SON




On a more serious note...sounds like you've got a pretty good situation as it is. I own my own business, but if I could get into a situation like yours being a regular employee, I would probably quit my business and just try and get hired. But the job market for my profession only gives out the really big bucks to people who run their own shit. If you want to "get a beach house and have a car collection"...then start saving more of your current salary and look into investments. Invest in other businesses and/or real estate (wisely of course)...and you still might be able to retire early/buy a beach house/add a few more cars to the collection.

[Edited on August 27, 2014 at 12:16 PM. Reason : .]

8/27/2014 12:13:13 PM

Yeah I do have it good and it's not optimism this guy has his firm set up almost exclusively with government contracts... And taxes do not dwindle that much in a down economy.

8/27/2014 6:17:04 PM

I'd probably take the shot.

Life isn't full of opportunities like this one, and you'll become less apt to take them as you age.

8/27/2014 8:20:12 PM

I probably have. A few years to make a decision in reality I work with the guy daily.

8/28/2014 10:35:56 AM

I would look at silent partnership today, with a transition plan. How long till you qualify for retirement?

8/28/2014 12:31:21 PM

Lol like 25 years. I'm only 30 tho.

8/28/2014 5:52:03 PM

go for it.

People that work for someone else end up wanting to be their own boss....People that are their own boss dream of working for someone else. No one really wants to work, but if you have to, be happy at it.

I'm not happy at my current job, so I went and got another. All the while, I have dreams of being my own boss.

8/29/2014 1:58:40 PM

Quote :

"People that work for someone else end up wanting to be their own boss....People that are their own boss dream of working for someone else. No one really wants to work, but if you have to, be happy at it. "

so true, I'm self-employed and running through the great recession has been totally not what I thought I'd be getting into but life goes on. you'll make your own hours just be ready for them to be long and not ever being "off" you'll be thinking about stuff late into the night

9/1/2014 9:05:42 PM

damn man, I wish I wouldve gotten my degree in Mechanical Engineering

9/1/2014 9:35:55 PM

Quote :

"Basically it's an opportunity to own a firm that hovers between high 6 figures and 7 figures a year the past 10 years.... It's a ton of money but i have been unemployed in the past and I'm afraid of the liability and possible failure..."

Quote :

"Lol like 25 years. I'm only 30 tho."

I would go wherever more money is.

The big thing to remember about having your own business is you are responsible for EVERY detail. Most jobs have specific responsibilities and there are others around to pick up your role if for some reason you are out of work, or even at work but sidetracked doing something more important. When you own a company nobody can fill your shoes, and if you allow someone to you better REALLY trust them. The buck is gonna stop with you no matter who fucks up, you have to pick up the pieces, defend lawsuits, and make sure you can replace any clients that are lost.

I personally would not plan my life around a pension, there are too many ways to get screwed out of it when you are close to retirement. It sounds like you are looking at so much more money now that the pension should not be a consideration, just invest wisely and insulate your personal assets from the business.

Keeping the job you have now does not protect you from unemployment and failure, any company can go to shit. Successful companies go through ownership & management changes that can force you out by making you miserable, making you hate working there, changing your job description so that it sucks, dump unreasonable workload on you so you fail, force you out for younger cheaper workers when you are making top salary. You may love the company you work at now, but even if your job lasts through to retirement and the company does well there is plenty that can go wrong.

Go wherever the money is today and invest it wisely. Staying around for a pension is for old economy Steve...especially in your pay grade.

9/2/2014 1:54:46 AM

Do you like the idea of coming home every day and spending time with your family?
Do you like no having to worry about work when you get home?
Do you like going on vacation and not looking at your phone every few minutes?
Do you like the idea of seeing your kids grow up and being a part of your life.
You're retired now, with or without the pension, you never got that beach house or boat, but you family is there and you spend lots of time with them.

if yes, stay with the job where you work for the man, yeah, you could get canned, the business may fail, management could change, but that's anywhere

if you want to be the man:
There will be many days where you come home late and leave early (if you even get home)
You will still be doing work stuff when you get home, you will be in bed thinking about this stuff.
Did you enjoy your vacation with the family, even though you spent 75% of the time talking on your cellphone?
You just missed your kid's football game again, and the piano recital.
Now your kid is a teenager and you barely know them (but he is driving that nice shiny new car you bought him.)
Now you're retired, you have 3 houses, your net worth is 8 figures, you have it all, and no one to share it with, your kids take forever to return calls, and the cats in the cradle....

granted, this is a worst case scenario, but I know a few very "successful" business owners who wish they could go back and not do it (watch the movie Click sometime)

this is a decision that will change the course of the rest of your life, and you are going to second guess your decision many times down the road no matter what decision you make

talk to some business owners in your field, not just the guy who wants you to take his business over, if they don't line up with what I said above go for it

good or bad, this is it bro, the fork in the road

(/I don't come on TWW to be serious)

9/2/2014 8:48:08 AM

well said

9/5/2014 3:45:03 PM

I think it's silly and biased

9/5/2014 6:27:04 PM

drod just a heads up i've had a unique career with ups and downs... but i've always worked hard and done my best and it has me in a good place in my life. But owning your own firm we can make better than doctor money because not every client has to be seen by the principal engineer when they stop by.

I've always been a work to live, not a live to work kind of person and i do know that no matter how many houses and how many cars no free time to enjoy them will eat me up.

the truth is i want to get into drag racing (x275 series if anyone knows what that is) and i'd like a beach house sometime but if i get no time to enjoy them then what's the point... if i have the money to race but not the time... what's the point...

and i know my boss always says "contractors are like whores if you pay them enough they'll do anything".... i would be becoming a consulting whore lol...

I'm just stuck because it to me would be like winning the lottery annually financially i mean like a 500% raise.... but the horror stories of becoming a true work a haulic frightens me.

As i am right now i'm pretty much on call all the time... although there is another engineer at my level he is civil/structural which if he has any problems its not going to get fixed over the weekend because something fell down... where as i have to come in to help fix leaks, power problems, generators, and ac (4.7 million sqft is a lot of shit that can break) about once a month so i'm already at work 80% of the time.

Thanks for everyone's input !
At this point I've talked to the engineer and I know my boss should be leaving in the next couple year (he hits his magic 30 year mark and i know he's leaving when he hits it)
If i get his job i'll probably just continue down this road if I don't I'll probably consider the consulting gig the engineer thinks thats a good idea anyway as i'll be able to continue building relationships with architects and other people in the county and become even more invaluable to them thus that much more likely to be hire to consult. This is my way of letting god/the universe/fate/whatever you want to call it make the decision.

9/5/2014 6:33:31 PM

I've successfully ran my own biz for the past 2 years. 2014 has seen month after month record breaking growth.

It's pretty tough. Not for the weak of mind or spirit.

Things I've learned:

Lesson #1 When you're the boss there are only 2 ways to get things done. And this applies to EVERYTHING. You either have to do it yourself, or pay someone to do it. Or, it doesn't get done. Seems simple, but this applies to every part of your business. Be prepared to outsource and delegate if you want to be successful.

Lesson #2 Everything costs more, earns less, and takes longer than you hoped it will. When I do my biz planning I inflate costs by 30%, deflate profit by 30%, and estimate time to take 30% longer. If the numbers still work out with those adjustments, take the shot!

Lesson #3 Be prepared to put in the time. Unless you are great at delegating and compartmentalizing, work is going to creep in to every hour of your day. Even your dreams.

Lesson #4 Marketing and Sales is probably the hardest and most important part of practically all businesses. Learn how to do it, and realize everything you do is in some form marketing.

Lesson #5 Most people have no clue WTF they are doing, even when they think they do.

I love being the boss, wouldn't trade it for anything and will never go back to the corporate grind.

9/6/2014 8:23:21 AM

Just wanted to see if anyone who has started a small business could possibly PM me some info. I am looking for recommendations on a lawyer who I can sit down with for a bit and go over my idea and make sure there aren't any issues I haven't considered. Also any recommendations on banks in the area that I can go sit down with and at least get an idea if my plan is even reasonable before I go putting too much time and effort into things.

[Edited on October 17, 2016 at 8:56 AM. Reason : .]

10/17/2016 8:52:56 AM

You may have better luck if you post that question here:

https://www.reddit.com/r/smallbusinessideas/?

10/17/2016 12:52:53 PM

^^TGD does business start up. http://www.tgdlaw.com/

[Edited on October 17, 2016 at 12:53 PM. Reason : not enough ^s]

10/17/2016 12:52:56 PM

So what did sumfoo1 end up doing?

10/19/2016 7:43:37 PM