[Aphex]

I've decided to leave my job. Currently I work in construction with this specific company. Having been here for 7 years I feel it is time for me to move on. Reason being I've basically peaked. Advancement is pretty much nil unless I stick around for another 10+ years doing work I truly do not enjoy. Don't get me wrong, construction has been a great skill to have. I rely on no one to fix anything in my house. But construction is hard work and I'm going nowhere here. My coworker who has seniority just got moved up into a position that had been held for 20 years and he's not going anywhere anytime soon.

My 40th Bday is right around the corner and I'm facing the harsh reality that I will not be able to retire working here. Unfortunately, having got into the game late I currently have a little over 20k saved. You can see my dilemma. I'm planning on cashing the retirement out and seeking other opportunities. It will give me a cushion while I find something else. I need something where I can advance and eventually make the kind of money I want. I have 25 years left to get my shit together and if I don't make some moves now I fear the worst, working until I'm dead at a job I can't stand.

The company I work for has been pretty cool since I gave a month's notice even offering to cut me down to 3 days a week so I can look for work in the meantime. I feel I need to make a clean break rather than be tied here for any longer, even though, rationally it makes sense to take the 3 days. I'm truly not happy here and everyday just drains the life out of me. I've felt this way for a significant time but stayed because of the benefits and the pay is good. I can't stay here any longer. I do some work on the side with graphic design generating some income and I really enjoy the work, but I feel I need to get into a corporate setting that promotes from within with solid benefits and pay that I can get behind. The only problem is I'm afraid not having the type of experience necessary to get these types of jobs will be a hurdle I have to get over. I live in a city and I imagine I'll be going up against younger guys with more experience. I'm hoping my drive, hunger, and loyalty to my past employers will mean something. That and I'm just going to have to talk myself up. My girlfriend and I live together so my bills are pretty cheap and it's the right time to make this type of move.

I'm just looking for input from you guys. I know there's a lot of smart men on this forum and I'd like to hear what you guys think. Thanks, I appreciate it.

[el mechanico]

Whatever your strongest skill is at your current job is start your own company doing that specifically also get a contractors license and pimp that out hiring subs todo the work you don't want.

[Blunt]

If you are going to start a job search or contract I would get letters of recommendation before you leave. People are usually more enthusiastic about doing that while you're still there.

[Cattle Rustler]

Letters of recommendation don't mean much these days. Your network is everything.

What are you other buddies doing? El mech has solid advice and the most profitable one. Corporate salaries don't pay as much and they're kinda iffy about gambling their chances on a older guy from another industry. What exactly do you want to do in your "corporate setting", advertising, tech, healthcare........marketing, management, finance? The only way you can make bank and advance quickly as a newbie is with a growing company in a sales or client facing position.

I know a couple of folks who've gone this way in my company and go from 40K to 120-170K in a year or so without a degree....but most of it are bonuses and winning sales contests (30K bonuses). Then again, you must keep producing and bringing biz or you're out.

As mentioned earlier, starting your own construction business based off your network is the best and most profitable way to go. You know what to do, you know the people, and I hope you can pitch sales.

[chyamor]

One thing I learned is you dont quite a job until you have another one starting the following week.

[Monty_Brogan]

You might need a little dose of reality here, OP. 20K is jack shit. And based on your title it sounds like you're planning on taking an early withdraw from your 401k? So you may net 11k after Uncle Sam gets his... I WOULDN'T DO THAT. Like chymaor said, "One thing I learned is you dont quite a job until you have another one starting the following week."

I'm in the trades too and there has never been as much construction work as I've ever seen here in Chicago -literally high rise cranes everywhere. What I'm getting at is I'm sure it's boom times in your area too, so I'd stick it out and stack some more cash. In the meantime, every free second you have should be allocated to:

A) Reducing your expenses as much as possible to increase your savings -liquid. Here's a good place to start >>r/personalfinance

B) "I need something where I can advance and eventually make the kind of money I want." Don't we all... you aren't going to quit your job and start Apple Inc in your garage. You need a better plan.

C) Networking. Like others have said. This book may be up your alley:

http://www.amazon.com/Choose-Yourself-Ja...B00CO8D3G4

If it were me, I'd hold fast at your current job until you figure it out. Cashing out your retirement to find yourself is a horrible financial move.

Like him or hate him, I still remember to this day (this was years ago) something that Donald Rumsfeld said on an interview with Larry King for his book, Rumsfeld's Rule. And I think it applies here.

Quote:

If you are lost – “climb, conserve, and confess.” (U.S. Navy SNJ Flight Manual)

Regardless, good luck and happy 40th!

[Gustavus Adolphus]

I'll put a few ideas together and post them here tomorrow or Thursday for you.

[samsamsam]

...

[Brodiaga]

You need 25X annual expenses to retire. Google the 4% draw rule: you retire and withdraw 4% of your net worth each year adjusted for inflation hoping that returns on investment, on average, make up for the withdrawals. Some people argue that the 4% rule is not conservative enough meaning that you need more than 25X expenses.

20K is nothing. It's not even enough as a safety net to quit your job. You need to find a new gig before quitting.

[Alpone]

I agree with most of the other comments: Quitting your job before you've found another solid full time gig isn't recommended even if you do have a side gig. Also, if you're cashing out retirement accounts (401k, Roths), there are substantial penalties and taxes to pay.

Quote:

I'm hoping my drive, hunger, and loyalty to my past employers will mean something

This is a noble mindset that worked in a bygone era but is no longer applicable. Loyalty doesn't mean shit to employers now (esp in corporate world).

An alternative to quitting (if it's not too late) is to take a week or so off after you've searched out jobs. Set up some informal interviews during this time and combine a vacation with a job hunting expedition. The time off will at least clear your head and allow you to think more calmly and rationally about your situation.

[SunW]

Others have read your post similar to me: are you saying that you have $20K and this amounts includes what you have in retirement, or do you have $20K plus retirement?

It depends, as $20K in retirement being cashed out won't be much after taxes, and I would avoid touching money in retirement; it's one thing to limit contributing once you have enough and you think the government will go full retard and tax, but $20K at 40 years of age isn't much to worry about.

[Harvey Specter]

Why not try your luck at flipping houses. You can take half of your money out penalty free. You can do all of the work yourself. 250k of gains will be tax free as well. Most of the people who get in trouble doing this, buy houses that have huge issues that they didn't take into account, but that shouldn't be an issue with your experience. You could work another job as well, because you are on a two year time line.

[Aphex]

I want to thank all you guys for your input. I've been busy with daily life and haven't had the chance to sit down and reply to all your comments. I can tell you that yes, all I've saved into my retirement is 20,000 US. It's not easy being able to tell you that that is all I have saved. It's not something I'm very happy about but it's what I have saved. When I have a moment to sit down and respond to everyone, I will. Again, thanks for the advice you have given me, I truly appreciate it.

[ElJefe1]

I quit my job with less than $20k in the bank a side hustle at the time that wasn't close to being 100% fail proof... I don't agree with the whole "parachute / plan b" don't quit a job without having another the next week. That's because I knew a job in the long haul wasn't for me, if A corporate job is in the cards for you and you are that miserable doing what you do now go for it. Whatever you decide to do put your blinders on and focus on that 100%. If you like your side hustle and you're making money at it go for it full time while you now have the chance ie low expenses, and a nice chunk of change in the bank. It's called taking a gamble and all independently successful people take gambles if they played it safe they'd be working for $40-60k a year and s retirement with 50k In their 401k and $900 in social security, far from being able to "enjoy the golden years".

[Deepdiver]

I would consider the following - I know what it is like working in a soul crushing SJW run environment and have walked more than a few times - best strategy is to get at least a 90 contract in a field you are good at - gets you better pay and a new fresh start - plenty of contract agencies on Monster and Careerbuilder - update your resume and use a resume writing service The Ladders charges about $200 with a staff of professional Resume writers - and then decide what you really want to do and where you really want to work - after 90 to 180 days on contract work you apply for unemployment because your contract expired - you were not fired and you did not quit the contract - in most states you then become eligible for 40 weeks unemployment insurance and adds a cushion on expenses till you get you own company running - once you have 10 to 20 guys in 4 or 5 crews working for you - you will start making real bank...

Thing is you have to be ruthless in business a friend was running a paint contracting business in upscale New England Ocean front communities and he would literally offer a 5% cash discount if they would go to the bank and pay him in cash versus by traceable check and then he would pay his crews cash which they were happy to take on half the jobs other jobs were on books so the guys could show some taxes and and social security workmen's comp and unemployment so that when the season was over and they were neck deep in snow they could rent their houses on AirBnB for a few months during the winter and go play golf, fish and work on their income properties in Florida. Wherever they go they have and on books and off books cash flow - with LLC taxes and regulations and fees and Obamacare exceeding 110% of income in some states an "on books off books" strategy allows them to accumulate over a quarter million in cash hidden in sealed non metal cash containers - never put that money in the bank where it is suject to "Staging" seizure - buy items with intrinsic value - Guns Ammo, Gold Silver anything that increases in value (Old Antiques) prepper food and survival supplies - new quality tools and construction equipment - basically anything your crews would be happy to work for in lieu of taxable cash - then take what small profits you show from On Books work to invest in solid ETFs and Dividend Paying funds ...

This on books/off books strategy is the only way a regular middle class guy can set himself and his family up for surviving the coming fiscal and social chaos that is coming as sure as the Sun will rise and SJWs will demand welfare payments. The most successful guys I know have off shore IBCs and are still nervous about talking to anyone about it in out of control unconstitutional IRS Civil Assets Seizure Obamerica.

Every wonder why so many immigrants do so well in the USA - because they work harder and smarter than YOU? Hell NO they have more off shore rackets and transfer pricing and family padded offshore padded payrolls and money hidden out side of the USA in female family members names in countries where if these women ever walked off with the money it would cost them their lives... they are just ruthless and you have to be too to survive the upcoming turmoil in the current Obamination.

[Brodiaga]

Hey deepdiver, why do the cash containers have to be non-metal? Just curious.

[Gustavus Adolphus]

Hi Aphex,

Please excuse the delay. I wanted to make this post from my laptop and was waiting on a new hard drive to come in after my old one failed. I am just now up and running.

As promised, I'd like to help you understand your options. Not because I am an expert, but because I am interested in your journey. You have received a lot of good comments to your inquiry so far, so I will just expand on what is relevant at this point. Let's call this our brainstorming time.

The way I see it, you have three options. Quit immediately, Stick it out and save more money for a startup, or go the corporate route. If you think the corporate side is your conviction deep down, I would only point you to something I discussed here in the "Job offer dilemma" thread.

If you think you'd like to work for yourself, which I personally think is your best bet for long term financial prosperity, let's figure this out. I am sure some additional members will chime in once they know your intent and specific goals. But first, we need to be a bit abstract.

My background is marketing and sales, and I have had several friends start and maintain their own businesses. Understanding the key driving forces seem to be indicative of success or failure.

Whether you are building fences, pools, or granite kitchen counter tops; or repairing A/C units, appliances, or bathroom remodeling, the recipe seems to be similar (I am excluding city/ gov't work- I have no intel on the hoops you have to jump through to become a contractor in that capacity). From what I have seen, the key factors to sustainability seem to be:

1. A product or service that is geographically in demand.

2. Market saturation of business segment has not been reached.

3. Utilization of SEO (Search Engine Optimization) for passive and/or primary lead generation. If you are not on the first page of google results, you're fucked. (Top 3 would be worth whatever the cost given consumer tendencies, in my opinion.)

4. Minimal overhead or a Cost reduction strategy, i.e., materials are prepaid; or, initial work order is done on % retainer, paid in full upon completion.

5. Personal living expenses are covered in cash for a minimum of 6 months, 1 year preferred. (This EXCLUDES business expense/ line of credit/ startup costs.) You need this time to not only start the functionality of your business, but depending on net payment terms, it's not a sale until money is COLLECTED.

6. The entrepreneur has the ability to work the day job and the side hustle simultaneously, often with significant sacrifice, until the moment the hustle makes sense to tell the boss you aren't coming in on Monday.

I am unwilling to lean you towards the corporate or independent route; in general, I think if you have the skills your best opportunity is to use your construction expertise and leadership to be the foreman of your own destiny. Like Mech said, outsource what you can't handle, or until you learn. It will be less profitable, but it will complete the job at hand and get your revenue steam moving. The worst possible scenario is a lot of inventory/ capital expenditure not revolving fast enough. Once you get a solid customer base with available cash assets, you can focus on brand image and marketing, or even franchising if you want. For you, $20k is not a lot, but it might be enough to get you started on something you can sink your teeth into, something you can be truly passionate about, or a side hustle at a minimum. If that's not enough, is $40k? $100k? Only you can answer that.

If you want it, go get it. Just be sure to be absolutely certain in your advisors. They are the ones who are going to help you with your break-even analysis, cost of doing business, and all things tied into EBITA, if necessary.

You are going on 40. That means you have 20-25 years before your body can't handle the trenches. After that, you can still have the passive income and influence of chairman emeritus, or sell it off for what it's worth. That is enough time to bank serious cash if you grind hard for a decade. Plan everything down to the dollar. Be detailed. Then go start the best business possible and destroy your competition. Work harder, faster, and smarter. A lot of business owners are fucking lazy. You won't be because your life depends on it. Exceed your customer's expectations. You are on this forum for a reason. Be confident in all your endeavors. You can do it if you really want to succeed.

Best,

Gus

[renotime]

Don't quit your job.

Work on your side business until it earns you enough money that you can quit.

Your employers sound pretty cool. If they are a small company and open to new ideas, think of ways you can make them more profitable and/or develop streams of revenue.

[Aphex]

(08-11-2015 10:45 AM)el mechanico Wrote:  

Whatever your strongest skill is at your current job is start your own company doing that specifically also get a contractors license and pimp that out hiring subs todo the work you don't want.

This works and I've done it before a few years back but I'm looking to change careers. I'm just fucking tired of construction man. It brings me no happiness at all.

(08-11-2015 03:33 PM)Blunt Wrote:  

If you are going to start a job search or contract I would get letters of recommendation before you leave. People are usually more enthusiastic about doing that while you're still there.

My employers are being really cool and they said they'll give me an excellent recommendation wherever I decide to go.

(08-11-2015 05:06 PM)Cattle Rustler Wrote:  

Letters of recommendation don't mean much these days. Your network is everything.

What are you other buddies doing? El mech has solid advice and the most profitable one. Corporate salaries don't pay as much and they're kinda iffy about gambling their chances on a older guy from another industry. What exactly do you want to do in your "corporate setting", advertising, tech, healthcare........marketing, management, finance? The only way you can make bank and advance quickly as a newbie is with a growing company in a sales or client facing position.

I know a couple of folks who've gone this way in my company and go from 40K to 120-170K in a year or so without a degree....but most of it are bonuses and winning sales contests (30K bonuses). Then again, you must keep producing and bringing biz or you're out.

No doubt, I'm actually thinking about going the sales route. I've got good charisma, thanks to developing it through game, and I know what it takes to make the sale, and I understand people's motivations. Learning techniques would be what I would have to focus on but I see potential in this.

(08-11-2015 05:13 PM)chyamor Wrote:  

One thing I learned is you dont quit a job until you have another one starting the following week.

Yeah, it was a hasty decision on my part because I need to make a radical change in order to be happy. I see how just quitting cold turkey, yoloing that shit might not be the best idea.

(08-11-2015 09:01 PM)Monty_Brogan Wrote:  

You might need a little dose of reality here, OP. 20K is jack shit. And based on your title it sounds like you're planning on taking an early withdraw from your 401k? So you may net 11k after Uncle Sam gets his... I WOULDN'T DO THAT. Like chymaor said, "One thing I learned is you dont quite a job until you have another one starting the following week."

I'm in the trades too and there has never been as much construction work as I've ever seen here in Chicago -literally high rise cranes everywhere. What I'm getting at is I'm sure it's boom times in your area too, so I'd stick it out and stack some more cash. In the meantime, every free second you have should be allocated to:

A) Reducing your expenses as much as possible to increase your savings -liquid. Here's a good place to start >>r/personalfinance

B) "I need something where I can advance and eventually make the kind of money I want." Don't we all... you aren't going to quit your job and start Apple Inc in your garage. You need a better plan.

C) Networking. Like others have said. This book may be up your alley:

http://www.amazon.com/Choose-Yourself-Ja...B00CO8D3G4

If it were me, I'd hold fast at your current job until you figure it out. Cashing out your retirement to find yourself is a horrible financial move.

Like him or hate him, I still remember to this day (this was years ago) something that Donald Rumsfeld said on an interview with Larry King for his book, Rumsfeld's Rule. And I think it applies here.

Quote:

If you are lost – “climb, conserve, and confess.” (U.S. Navy SNJ Flight Manual)

Regardless, good luck and happy 40th!

Yeah man, here in Seattle is pretty much blowing the fuck up as well. My employers put out ads for hire and they've only gotten one applicant for my position since I quit a week ago. I am holding fast and they've agreed to let me work four days a week to help me focus on switching careers which means I can still get matched on my 401k, keep my benefits and such and still make decent bread. I'll check that reddit finance link and that book. Thanks again.

(08-11-2015 09:18 PM)samsamsam Wrote:  

...

I got your PM sam and I'll be checking out that book. Good looking out.

(08-11-2015 09:27 PM)Brodiaga Wrote:  

You need 25X annual expenses to retire. Google the 4% draw rule: you retire and withdraw 4% of your net worth each year adjusted for inflation hoping that returns on investment, on average, make up for the withdrawals. Some people argue that the 4% rule is not conservative enough meaning that you need more than 25X expenses.

20K is nothing. It's not even enough as a safety net to quit your job. You need to find a new gig before quitting.

I agree. I'm getting into studying ways to really grow personal wealth. I guess coming up on 40 with so little saved really gave me the kick in the ass I need to get serious and stop being a lazy ass. Luckily my debt is low, my credit is high, I have no car payments and split the rent and bills with my chick. So I can start putting cash in the right places instead of blowing it all, which is easy as hell.

(08-11-2015 09:45 PM)Alpone Wrote:  

I agree with most of the other comments: Quitting your job before you've found another solid full time gig isn't recommended even if you do have a side gig. Also, if you're cashing out retirement accounts (401k, Roths), there are substantial penalties and taxes to pay.

Quote:

I'm hoping my drive, hunger, and loyalty to my past employers will mean something

This is a noble mindset that worked in a bygone era but is no longer applicable. Loyalty doesn't mean shit to employers now (esp in corporate world).

An alternative to quitting (if it's not too late) is to take a week or so off after you've searched out jobs. Set up some informal interviews during this time and combine a vacation with a job hunting expedition. The time off will at least clear your head and allow you to think more calmly and rationally about your situation.

Yeah, the penalties and taxes are a complete fucking cash grab on withdrawing my 401k. It sucks that loyalty doesn't mean much but I'm gonna try and leverage it anyway. I did already quit but doing so made my employers, who really don't want to see me go and think very highly of me, my work and my work ethic, to give me 4 days on 3 off. So I inadvertently got the break, however small but necessary, I really want from a job I'm very unhappy at and also if I have interviews lined up, I can take off when I need to. All in all they're being really cool.

(08-12-2015 10:30 AM)SunW Wrote:  

Others have read your post similar to me: are you saying that you have $20K and this amounts includes what you have in retirement, or do you have $20K plus retirement?

It depends, as $20K in retirement being cashed out won't be much after taxes, and I would avoid touching money in retirement; it's one thing to limit contributing once you have enough and you think the government will go full retard and tax, but $20K at 40 years of age isn't much to worry about.

Yeah man, 20k in a 401k. I plan on still contributing and opening a Roth IRA and contributing to that as well. I agree with you, I'm not going to pull the cash out of retirement.

(08-12-2015 04:08 PM)Harvey Specter Wrote:  

Why not try your luck at flipping houses. You can take half of your money out penalty free. You can do all of the work yourself. 250k of gains will be tax free as well. Most of the people who get in trouble doing this, buy houses that have huge issues that they didn't take into account, but that shouldn't be an issue with your experience. You could work another job as well, because you are on a two year time line.

This is another avenue I am considering.

(08-13-2015 09:31 PM)ElJefe1 Wrote:  

I quit my job with less than $20k in the bank a side hustle at the time that wasn't close to being 100% fail proof... I don't agree with the whole "parachute / plan b" don't quit a job without having another the next week. That's because I knew a job in the long haul wasn't for me, if A corporate job is in the cards for you and you are that miserable doing what you do now go for it. Whatever you decide to do put your blinders on and focus on that 100%. If you like your side hustle and you're making money at it go for it full time while you now have the chance ie low expenses, and a nice chunk of change in the bank. It's called taking a gamble and all independently successful people take gambles if they played it safe they'd be working for $40-60k a year and s retirement with 50k In their 401k and $900 in social security, far from being able to "enjoy the golden years".

No doubt. That's dope you were able to pull it off. I was made a pretty decent offer to stick around and I can split at any given moment if I feel the need and I have the freedom to explore whatever I choose to focus on while still making cash in the meantime. I totally agree, you have to take risks in order to succeed. I took the risk to quit with no idea what the fuck to do next and an opportunity opened up I didn't even consider possible.

(08-13-2015 10:18 PM)Deepdiver Wrote:  

I would consider the following - I know what it is like working in a soul crushing SJW run environment and have walked more than a few times - best strategy is to get at least a 90 contract in a field you are good at - gets you better pay and a new fresh start - plenty of contract agencies on Monster and Careerbuilder - update your resume and use a resume writing service The Ladders charges about $200 with a staff of professional Resume writers - and then decide what you really want to do and where you really want to work - after 90 to 180 days on contract work you apply for unemployment because your contract expired - you were not fired and you did not quit the contract - in most states you then become eligible for 40 weeks unemployment insurance and adds a cushion on expenses till you get you own company running - once you have 10 to 20 guys in 4 or 5 crews working for you - you will start making real bank...

Thing is you have to be ruthless in business a friend was running a paint contracting business in upscale New England Ocean front communities and he would literally offer a 5% cash discount if they would go to the bank and pay him in cash versus by traceable check and then he would pay his crews cash which they were happy to take on half the jobs other jobs were on books so the guys could show some taxes and and social security workmen's comp and unemployment so that when the season was over and they were neck deep in snow they could rent their houses on AirBnB for a few months during the winter and go play golf, fish and work on their income properties in Florida. Wherever they go they have and on books and off books cash flow - with LLC taxes and regulations and fees and Obamacare exceeding 110% of income in some states an "on books off books" strategy allows them to accumulate over a quarter million in cash hidden in sealed non metal cash containers - never put that money in the bank where it is suject to "Staging" seizure - buy items with intrinsic value - Guns Ammo, Gold Silver anything that increases in value (Old Antiques) prepper food and survival supplies - new quality tools and construction equipment - basically anything your crews would be happy to work for in lieu of taxable cash - then take what small profits you show from On Books work to invest in solid ETFs and Dividend Paying funds ...

This on books/off books strategy is the only way a regular middle class guy can set himself and his family up for surviving the coming fiscal and social chaos that is coming as sure as the Sun will rise and SJWs will demand welfare payments. The most successful guys I know have off shore IBCs and are still nervous about talking to anyone about it in out of control unconstitutional IRS Civil Assets Seizure Obamerica.

Every wonder why so many immigrants do so well in the USA - because they work harder and smarter than YOU? Hell NO they have more off shore rackets and transfer pricing and family padded offshore padded payrolls and money hidden out side of the USA in female family members names in countries where if these women ever walked off with the money it would cost them their lives... they are just ruthless and you have to be too to survive the upcoming turmoil in the current Obamination.

That's a pretty slick idea working the contract/unemployment game like that. I never even considered anything like that. On and Off the books strategy is a great idea. I actually ran my own painting company back where I was from but I was young and not business savvy at the time to pull some shit like that. I could've pulled some bank. I'm not fucking with construction anymore. The cash is definitely there but I'm unhappy as hell. Who knows maybe I might decide to roll with that but I feel like I need to do something else with my life.

(08-14-2015 11:51 PM)Gustavus Adolphus Wrote:  

Hi Aphex,

Please excuse the delay. I wanted to make this post from my laptop and was waiting on a new hard drive to come in after my old one failed. I am just now up and running.

As promised, I'd like to help you understand your options. Not because I am an expert, but because I am interested in your journey. You have received a lot of good comments to your inquiry so far, so I will just expand on what is relevant at this point. Let's call this our brainstorming time.

The way I see it, you have three options. Quit immediately, Stick it out and save more money for a startup, or go the corporate route. If you think the corporate side is your conviction deep down, I would only point you to something I discussed here in the "Job offer dilemma" thread.

If you think you'd like to work for yourself, which I personally think is your best bet for long term financial prosperity, let's figure this out. I am sure some additional members will chime in once they know your intent and specific goals. But first, we need to be a bit abstract.

My background is marketing and sales, and I have had several friends start and maintain their own businesses. Understanding the key driving forces seem to be indicative of success or failure.

Whether you are building fences, pools, or granite kitchen counter tops; or repairing A/C units, appliances, or bathroom remodeling, the recipe seems to be similar (I am excluding city/ gov't work- I have no intel on the hoops you have to jump through to become a contractor in that capacity). From what I have seen, the key factors to sustainability seem to be:

1. A product or service that is geographically in demand.

2. Market saturation of business segment has not been reached.

3. Utilization of SEO (Search Engine Optimization) for passive and/or primary lead generation. If you are not on the first page of google results, you're fucked. (Top 3 would be worth whatever the cost given consumer tendencies, in my opinion.)

4. Minimal overhead or a Cost reduction strategy, i.e., materials are prepaid; or, initial work order is done on % retainer, paid in full upon completion.

5. Personal living expenses are covered in cash for a minimum of 6 months, 1 year preferred. (This EXCLUDES business expense/ line of credit/ startup costs.) You need this time to not only start the functionality of your business, but depending on net payment terms, it's not a sale until money is COLLECTED.

6. The entrepreneur has the ability to work the day job and the side hustle simultaneously, often with significant sacrifice, until the moment the hustle makes sense to tell the boss you aren't coming in on Monday.

I am unwilling to lean you towards the corporate or independent route; in general, I think if you have the skills your best opportunity is to use your construction expertise and leadership to be the foreman of your own destiny. Like Mech said, outsource what you can't handle, or until you learn. It will be less profitable, but it will complete the job at hand and get your revenue steam moving. The worst possible scenario is a lot of inventory/ capital expenditure not revolving fast enough. Once you get a solid customer base with available cash assets, you can focus on brand image and marketing, or even franchising if you want. For you, $20k is not a lot, but it might be enough to get you started on something you can sink your teeth into, something you can be truly passionate about, or a side hustle at a minimum. If that's not enough, is $40k? $100k? Only you can answer that.

If you want it, go get it. Just be sure to be absolutely certain in your advisors. They are the ones who are going to help you with your break-even analysis, cost of doing business, and all things tied into EBITA, if necessary.

You are going on 40. That means you have 20-25 years before your body can't handle the trenches. After that, you can still have the passive income and influence of chairman emeritus, or sell it off for what it's worth. That is enough time to bank serious cash if you grind hard for a decade. Plan everything down to the dollar. Be detailed. Then go start the best business possible and destroy your competition. Work harder, faster, and smarter. A lot of business owners are fucking lazy. You won't be because your life depends on it. Exceed your customer's expectations. You are on this forum for a reason. Be confident in all your endeavors. You can do it if you really want to succeed.

Best,

Gus

Glad you're up and running! You raise some excellent points and entrepreneurship is something I definitely feel is the right move for me. It's always felt that way. I've just handled it in a very immature manner. Construction isn't the direction for me. I'm going to keep doing it for the time being and develop some side hustles in the meantime hoping to go independent one day. I've been lazy. Like you said my life depends on it now. It's unfortunately taken me some time to realize that but nonetheless, I know now, and now is all that exists.

(08-15-2015 11:52 AM)renotime Wrote:  

Don't quit your job.

Work on your side business until it earns you enough money that you can quit.

Your employers sound pretty cool. If they are a small company and open to new ideas, think of ways you can make them more profitable and/or develop streams of revenue.

Solid advice and they are pretty cool. They are pretty much backing me up and want to see me succeed.



I want to thank all you guys for your advice and I'm glad that I can put something up and feel like you guys give a shit. I needed some more guys to talk to about this outside my circle and you guys delivered.
Thanks again.

That being said I ended up quitting and giving a definite date I was going to leave. It was probably a few days after I posted this. I was just dead set on getting the fuck out of there. I gave them a months notice because my boss was going to be gone for 2 weeks vacation the day after I planned on telling them I quit. I didn't want to fuck him/them over right before he leaves. They ended up wanting me to stay and have been working with me on cutting me to 4 days with 3 days off, providing me a much needed break, albeit a small one, to look for work and the freedom to come and go as I please if I have interviews setup, as well as, an excellent recommendation to wherever I go. I can cut to 3 days a week if I want but I feel 4 is good for now and I can keep a steady income. I'm going to keep my retirement untouched and keep contributing and open a Roth IRA as well and find other ways to invest. Again, thanks for your input and suggestions that are all pretty spot on to how I feel about the direction I want to go which is more independent. Cheers.

[samsamsam]

Aphex, best of luck. I appreciate how you responded to the guys who took the time to give you some thoughts. Stand up move.

[polar]

One more thing:

Rather than cashing out your 401k, consider rolling it into a Roth if and when you leave your current job. With Roth you can't touch the principal for five years, but interest is fair game to withdraw... So invest into dividend stocks, short term bonds, or something else with a high yield. This way you won't get hit with heavy taxes while still having a bit of a financial cushion. Later on, you could change up the investments once your new job is up and running.

*not financial advice, consult your financial advisor, accountant, lawyer...