I have been managing an offshore inspection company for the last 4 years. A couple of weeks ago the company I worked for got a little sideways with me and I was given the option to resign or be terminated. I chose to resign. I have been talking with a couple of companies about starting a marine division and they have shown great intrest.

Now for some history. When I started to manage this division it was on the rocks and the owner of the company was really considering saling the division off. I had a total of 5 employees including myself. Over the last four years the division has grown such that when I left two weeks ago I had two offices one in houston and one in mississippi (that I opened two years ago) and 24 employees and the office in houston went from 700 sq ft to 1400 sq feet. My employees are waiting for me to find a new home as well as several of my customers.

Now for the part I would like some advice on as well as opinions. One of my customers called me today and asked where I was working and I told him that I am still in nogtiation. He asked me why not just start my own business and that he would back me finacially. And that I would be doing all his work. He has several projects that will be starting in the next couple of weeks that will be well over 500k each. I also know that all of the work in Mississippi would be coming my way. The employees out there are working an average of 50 hrs a week. Plus there are several areas that have been untapped as far as additional work load.

The part I am not sure of is workmans comp. Insurance both business and health. The overhead is next to nothing because everything we do is billable as well as the equipment. I am 42 years old and I am really tired of making other people rich. I am not looking to get rich but I would like to live a better life than I do now. So what do you think? If you think it would be better to correspond by email please do. johnny_arms2000@yahoo.com

Thanks for any help or advice in advance.

 

If there is room to start your own business, go for it. It is always better to play your own fiddle than someone else's. As far as questions about Insurance and Workers Comp go they are state specific from what I understand.

Most states have government agencies set up to assist with all of these things and answer whatever questions, as they may be business specific. I would check and see if there is a Small Business Bureau in your area that assists in this, although it sounds like your business may not be "small" I'm sure they can point you in the right direction.

 

Rock on! Sounds like a great opportunity.

 

Im not a business owner but definitly start your own business. Have the guy that is willing to back you help out. An accountant should be able to help you also. Good luck.

 

I guess I'll comment also, even though I have no real info you're looking for. I would go for it. I've been trying to get into my own business for ever but it just never works out. Eveyone I know that has done it tells me you just have to take the plunge and do it. You know the business and it sounds like you have plenty of customers just waiting for you. Plus, with the financial backing, it pretty much makes it a no brainer.

Get it started and then hire me I need a new job.


BREW

 

I appreciate the encouragement from every one so far. I am really leaning towards doing this. But I will be honest it scares me alittle. It is a really big step. One thing is for sure at least I will be able to opperate the business as I see fit and with out my hands tied from upper management.

 

I've had my own business for about 12 years now. It's a lot of hard work, but very rewarding, not just personally, but financially. I'm not getting rich either, but I make a decent living. However hard you think it might be, multiply that by ten. Contact your local Small Business Administration and you can get lots of help there.
In my experience, two things you definitely need are an accountant and an attorney. These people know the in's and out's of the beaurocracy (sp?) and there's no need in you spending your time trying to learn it.
Employees make things more complicated in dealing with Workman's Comp, Federal and State tax witholding, and any benefits. This is why an accountant is so useful.
You have one thing that I also had. A ready clientel. That makes all the difference. That base will be enough to get you moving. Then you can work on getting you name out there. One word of caution, though. If your client is going to financially back you, he may think he "owns" you. Make sure your working relationship is clearly spelled out if you go that way. You will always do more and bend over backward for that client, but he can't run your company. I have a client that almost single-handedly kept me going the first year. He's my biggest PIA, my best client, and an all around good guy. I do more for him, at better rates than anyone else. I believe in loyalty...although sometimes he makes me question that.
Good luck, and be prepared for the ride of your life.

 

Just want to say thanks again for all of the encouragement. Ya'll rock

 

Johnny i have a business in Houston and I deal with alot of the big boy companies. net 30 is a joke, I get paid in 90 to 120 days. i have had some hairey times waiting to get paid on some big jobs. i like the big jobs but at that 70 day point you start running to the mail box every day. I had a car manufacturer hold me out to 100 days on one of the bigger invoice we have done and it was not fun. I on the other hand had to pay one of my east cost suppliers at 40 days or they would cut me off, so i floated 60 day of my money to one of the wealthiest car companies on the planet. lucky we have been at it a while and have enough capitol to meet payments, but in the first years of the company i would have been going to the bank to borrow money.

as for inspection, i would guess the liability is big and would require a big umbrella insurance policy.

i am currently going thru a states sales tax audit. all my records for the past 5 years, over 20,000 invoices and 1400 customers to have tax form on. i had 2 girls in the office doing nothing but this for 2 weeks and i am paying my accountant to handle it.

i love owning a business , but it is a 24/7 deal and when you are an employee you walk away everyday not looking back, as an owner you sleep with one eye open and once I hit 15 employees, i always have one that is unhappy, sick, quiting or wanting a raise on a dailey basis. the up side is i choice who i will and will not do work for and I make a salary that is better than average.

 

Hey brotherdave i can certainly understand about 24/7. Unfortunately that was my work schedule just as a manager. The paying habits of my customers I already know because they are the customers I had when I was working for the other company. And surprising enough the liability for this type of inspection is not as bad as you would think. We just inspect it and turn the findings over to the companies and they make the recomendations and evaluations. The employees I already know becuase they will be the ones that have worked for me for the last several years.

But the insurance is gonna be pretty high. I need a 5 mil umbrella. Longshoremans insurance. I have a couple of companies working on quotes that I should receive tommorrow.

 

with out getting into your business, what kind of things are you inspecting for (stuctural, safety, pmi......ect)

i was at a place today and the guy had pmi tester that looked like a big cordless drill..it cost $45k

 

I say go for it. It sounds like you have the key factors to make the business a success - hard work, experience, and start-up money.

 

Brotherdave the inspection we do is NDT (non destructive testing). This includes inservice inspection of critical welds, thickness measurements of steel for wastage, new construction welds, and such.

 

I say go for it. You have a client that wants to help back you as well as other clients and employees from old firm. You will definetely need a CPA and an attorney. Maritime and Longshore insurances are $$$. Also check with the SBA. There should be some business mentor groups in the Houston area. Yes, there will be more work, more head aches and stress to go with the rewards of owning your own company.

 

Here is a helpful article about outsourcing HR related functions. By letting another company focus on this type of minutae, it will let you focus on building your business...

http://www.entrepreneur.com/article/...305528,00.html