Advice on how do I realistically turn this from a side job to a full company?

Are you maxed out at what you can offer while still working fulltime, or can you go in more?

I started doing sidework very earlier, sometime around my second month of apprenticeship, and I continued on. At some point I got my license, insurance, and a business name and turned cash sidework into a legit business, but I was still doing it on the side of my fulltime union job. So after work I would go and work another 4-6 hour at least 4 nights a week and all day Saturday and Sunday. That was in addition to the 1 man and then 2 men that I had working for me during the day while I was at my fulltime job.

It was hard, but having the security of the fulltime job allowed me to run my company better. A lot of the mistakes that people in new companies (at least in my business) make are due to desperation. Those desperate guys who are 100% in on their new business are the ones who desperately need to pay next month's mortgage, so they end up whoring themselves out at obscenely low rates, not only cutting their own throat but every other contractor in the area as well. That's just one of the many mistakes people in that position often make.

Some questions to ask yourself before quitting your fulltime job, are you going to be comfortable making no money for the next 6 months? Year? Do you have savings that you are willing to use? When that savings runs out, are you willing to use your last dollars to pay your payroll while your mortgage goes unpaid?

The reason why I didn't have any problems when I switched over was because I waited until my company was up and running and profitable with business steadily coming in. Only then did I quit my fulltime job. Like I said, it was very hard sticking it out in both jobs at the same time, but I am glad I did.

That's just my experience.

What you should do is take his father's advice and expand. Your partner should hire 1-2 telemarketers and train them to do what he does. He should print out any materials they'd need to answer questions, overcome objections and teach them to ask for the sale. After a short time he'd be able to replace himself and hire more people. Eventually you'll both be able to replace your income.

Honestly, I'm not even sure you'd need a loan to get started. You could set up a room in your house, garage, etc and just use cell phones.

Of course, not everyone you hire will work out. You may have to replace several people until you find highly motivated individuals that are able to work well without constant supervision and produce results. In the meantime, everyone you hire will be creating new leads for you, so it won't be wasted money, as you can follow-up with those people and they'll already be familiar with your company.

You can eventually have a website built and use pay per click and other methods to drive traffic and leads to your site.

Just take it one step at a time by teaching a few other people how to do what he does and over time you'll be able to leverage those individuals into a reliable income.

HTH

Joe

Go big or go home, right?

Only you and your partner can really say if going into debt to make a serious run feels right. As for me, I was on the loosing end of that same proposition a few years ago. By loosing end, I mean I lost everything. So, be careful.

Have you considered a different approach for your revenue model? Obviously you have a service people want and need, or you wouldn't have clients, right? Is it something that you can turn into a online subscription course that will become recurring revenue?

I made the same transition a few years ago: DO NOT TAKE THIS LIGHTLY.

The chain of consequences if you fail is huge. I have mentored several entrepreneurs through this transition. You need a REAL PLAN.

FIRST: Establish a series of "trigger points" at which you will go to the next phase of the plan. Don't work towards quitting your job yet. Work towards the next trigger point. Only when you complete one phase, will you move to the next. This will keep you on track.

Trigger point #1 - When to hire an assistant part-time. Find a recent college grad who wants to work in a startup and needs a job. Offer them $10-$12 per hour on a part-time basis. You are looking for someone who is organized and with the skills to be self-motivated. You need to explain that as the business grows, you will transition them to full-time. Eventually, if they stay with you, you will double their pay, and bring them into management roles as you expand. Sell the vision to this person. Not to be sexist, but I have found that smart women are TERRIFIC for this type of role. If you sell the vision to them, they will be loyal and are usually better organizers than men, if you can find the right person. She needs to focus on two things: Service the customer and build systems to make everything repeatable.

I don't care if this eats into your revenue - do it. You still have a paycheck to cover your own bills.

Trigger point #2 - When to bring on an additional seller. Again, a recent college grad who is HUNGRY. Your partner will train them how to sell and make money. They will work commission only. You will only hire one at a time and they will have a two-week trial period. They will not become great sellers in two-weeks, but you will be able to see if they are taking the sales steps necessary. If not, can them. If so, praise and reward them.

Trigger point #3 - Assistant goes full-time. At this point, your salesman and partner are making more sales. You and your assistant are overloaded with work. Full-time assistant is the next step. YOU DO NOT GO FULL-TIME YET. You hold phone meetings twice-daily, once in the morning to discuss that days work, and once in the evening to discuss what was completed. Results are all that matter. Check-in phone calls during the day to handle things that come up. You are going to be busting your ass at this point. You will be working like a slave day and night. It will become obvious that you need to transition soon.

Trigger point #4 - You have enough cash in the bank. You have fulfilled X number of contracts, your service is continually getting better, and you know this can really continue. You have a "going concern" - now you can begin to think about jumping ship. You have cash in the bank to cover expenses for several months, and contracts to continue the revenue. You have calculated your cash burn-rate and you know exactly how long your runway is. You know exactly how much new business you will close in the next 12 months. You can begin to plan your escape. Ask about a sabbatical. Ask about some extended unpaid leave. Take all of your vacation and go full-time. Only one partner should go full-time at this point. The first one who can do it, gets the most compensation.

Only now should you consider it. This is bootstrapping. It is the way a startup is done today. The old "get a loan" style is so fraught with danger. Do not get a loan - make the business build itself and leverage the work of other people. You have no idea if you can scale successfully and your career and future are nothing to gamble with. DO NOT GAMBLE - KNOW!

I do not believe in statistics, I believe in calculus. You need to have every number planned out and a clear plan how to hit each stage. If you can reach the next stage, great. If you can't, you will know it was a good thing you didn't quit your job.

At least a year of revenue for a bank or SBA loan, but with this kind of business I also do not see a need for a loan. My sister worked for a software company that was acquired by GE and 10 million
pumped into it. A very short time later, the 10 million was pretty much gone and the founder had to come back in to save the company. Maybe some line of credit for more computers and office equipment
if you're hiring people who work at one of your homes or offices.

What I would specifically address to go full time is to get your lead generation systems and sales
systems set up. Takes a while to get good people whom you can work with. From what you have described I see the need for a salesperson or telemarketer, an assistant as Dan McCoy suggested,
and if you don't already have - good web design and graphic artists you have access to.

These are some helpful threads:

http://www.warriorforum.com/offline-...r-clients.html

http://www.warriorforum.com/offline-...owed-down.html

http://www.warriorforum.com/offline-...-out-line.html

http://www.warriorforum.com/offline-...g-clients.html

I just bought this and am not an affiliate and have not gone through it yet, but nameless is one of the
very knowledgeable and has done it:

http://www.warriorforum.com/warrior-...ml#post9692532


And, Claude Whitacre's book on local advertising - he covers the internet marketing package
he delivers.

Dan

Some great advice on how to be a shark.
Great advice on how a shark should plan, should swim and should eat.

The BIG question is are you really a shark?
Is your partner? Are your wives and family able to live with a shark? Do they have a bit of shark DNA so that they will not be miserable as there will be fallout at times.

For me this is NOT the statement of a shark, not seeing the passion.
"Ultimately, I'd like this to be profitable enough to be both of our full time jobs. Earning enough to pay a small sales team & account managers, as well as have enough left over to pay ourselves and support our mortgages & families."

Do you have a burning desire to do this?
Does the thought of working for somebody else for a set fee make you physically ill? It makes me want to vomit! Seriously.

Sharks would rather:
Get cut off notices for their bills, tell their kids there is no money for many gifts this year and suffer all kinds of defeats and humiliations along the way than give up working on their own business.

The money and business plans will not matter if your not hardcore built to do this because no amount of loans and business plans will make this work with certainty.

That is what makes this so damned exciting and so gratifying when you reach levels that allow you to live a lifestyle nobody else gets to. This is also what guarantees that only a small group will ever make it at this.