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Old 02-19-2012, 02:40 PM   #1
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Default BizBrew - More Than Owning A Job

I thought about leaving this in the Biz Bar but really there is no reason to try to hide it. This info is already available everywhere for free. I want EVERY business and potential business operator to do well. It is in all of our best interest's for that to happen.

The reality is that not all succeed. There are many reasons. Chief among them is that they were either ill prepared for the task at hand or should have never went into business to start with.

The attached document is an attempt to provide the absolute most basic of information needed if you are considering the jump to being a Plumbing Business Operator. There may be spelling and grammar errors. There may also be a few details that some disagree with. That is fine. I am still learning too. I only have 20 years in as a Plumbing Business Operator so it won't hurt my feelings if you feel the need to armchair quarterback the document. After all, MizBiz second guesses me every day.

Many newer business operators have recently become frustrated (or even fed up) with some of the replies and reasonings of more experienced business operators on the Z.

The main questions I am attempting to answer are:

How much do I charge?
What is a fair price?
What if my price is too high?
What is the magic formula?

This is not a book, encyclopedia, or the infallible word of God. It is just a few pages of the very basics to get you started in the right area. It is also by no means new. These are simply things that I have learned from much more experienced and smarter business operators than myself.

PLEASE NOTE: THE NUMBERS IN THE EXAMPLES ARE JUST ILLUSTRATIONS. THEY ARE NOT MY NUMBERS, THEY ARE NOT REAL, AND THEY ARE NOT SUGGESTED NUMBERS FOR YOU TO USE. THE NUMBERS ONLY SERVE TO ILLUSTRATE THE PROCESS OF DETERMINING A BILLABLE HOUR RATE.

I hope it is helpful to somebody and if not, well...you got your money's worth.
Attached Files
File Type: pdf What Do I Charge 20120219.pdf (21.0 KB, 952 views)
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Old 02-19-2012, 04:10 PM   #2
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Very Nice Biz. Show someone how to do the numbers. The numbers don't lie.
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Old 02-19-2012, 04:32 PM   #3
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Very well written...

Only problem I couldn't make it to the end you keep telling me to get out now
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Old 02-19-2012, 04:48 PM   #4
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Default Amen! Amen! Amen!

I am going to print that attachment out. That attachment is by far the BEST and MOST VALUABLE thing EVER posted on PZ.

There are too many in the industry with the false belief that they don't need the numbers. They work hard, they are good people, and they expect it will all work out fine. Numbers don't lie.

If it does work out, ignoring the numbers, it will only be by dumb luck. No one should ever count on luck for their livelihood.

Let me add another thing - there is no shame in working for someone else. Guaranteed pay, holidays, weekends, no responsibility for other's livelihood, no liability, etc. You probably won't get rich, but you won't go bankrupt either.

Owning a business can be a joy and exciting, if you possess what it takes.

If you don't have what it takes, you better learn quickly, or as Mr.Biz said "Get out now!"

Owning a job comes with all the headaches of owning a business, without any of the rewards.

Work for someone or run a business. The choice is yours.

Owning a job will leave you unfulfilled and miserable, wondering when you will catch a break. Always at the mercy of outside factors, with no control and no guaranteed pay. Owning a job is akin to insanity IMO.
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Old 02-19-2012, 05:24 PM   #5
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Quote:
Originally Posted by Phat Cat View Post
...Let me add another thing - there is no shame in working for someone else. Guaranteed pay, holidays, weekends, no responsibility for other's livelihood, no liability, etc. You probably won't get rich, but you won't go bankrupt either....
Very true PC. Although there are volumes written every day on getting in and staying in business (the whole American dream thing), precious little is available that affirms the benefits of having a great job.

Great jobs are wonderful to have. How many OMS' would not have been started if they had a great job to start with? But there again is another reason for people to realize how serious starting a business is.

I feel very lucky to have the employees that work with us. Hopefully it is a great job for them.
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Old 02-19-2012, 05:54 PM   #6
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So I printed that out

I am going to place them at the supply house and let the contractors read it
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Old 02-19-2012, 05:57 PM   #7
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Thank you so much for that John. Now that you have laid it out for all to see in the undeniable, unarguable accounting language, yet wrote it in a way that even the least of us can understand, those of us who have struggled with this can now sit down and crunch our numbers.

The numbers don't lie, and I cannot wait for the person who argues it.
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Old 02-19-2012, 06:33 PM   #8
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Quote:
Originally Posted by OldSchool View Post
So I printed that out

I am going to place them at the supply house and let the contractors read it
Great idea, I'll do the same.
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Old 02-19-2012, 07:37 PM   #9
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You guys trying to get the competition to Get Out Now.
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Old 02-19-2012, 07:45 PM   #10
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Quote:
Originally Posted by DesertOkie
You guys trying to get the competition to Get Out Now.
You catch on pretty quick for a transplanted Okie.
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