Posted on 03/07/2016 5:59:43 AM PST by AbolishCSEU
Hubs is thinking of starting an solo HVAC business in upstate NY. Advice?
He is very good at the HVAC biz; everywhere he goes people demand only him to work on their equipment (residential mostly)
But I"d be lying if I said I don't have concerns since NYS is most hostile to the biz.
He's stb 48 yrs old with approx 10 yrs experience. I have a full time job that I would be keeping.
Any advice?
Get books and read.
The best advice I can give is to move to Florida. Better business environment and year round work. :)
Seriously though, good luck whatever you guys decide!
I would love to move to Florida, but my job is the “breadwinner”s job and fairly secure.
I have researched LLCs, workers comp, FICA, unemployment insurance, etc.
I work on computers (IT) and have some familiarity with Quickbooks
NYS is a nightmare to have a small business in. He should look to see what his comp premiums will be before he does anything.
Upstate can also be problematic as to the economic conditions in your specific area. The money is just not there in some places.
Southeast NYS is probably the best area to have a small business but costs rise substantially over upstate.
Have a business plan that is sound before you start anything and look into costs associated with what you are trying to do.
NY is like two states with vastly different economies.
That’s just it. He’s worked for several small businesses over the years and sees “lots” of money change hands for “his skill” IOW he thinks he is making the companies he works for very profitable.
I told him that is just gross receipts. Right off the bat he has a 1K monthly bill for child support alone.
I would recommend getting a UPS store address or similar if you work out of a home/shop. It gives you a cushion between you and everybody else, and allows you to move.
Then check out the individual competitors. Are they struggling or do they appear to be busy?
Go to local hardware stores and ask the owners about the local demand and supply for HVAC service providers and the market in general.
Go to the local chamber of commerce. Ask them how the town is doing. Any new businesses coming to town.
Study, study, study.
Leave no stone unturned.
Wishing and hoping don't matter.
If your hubby is good, then the only concern is the market.
I already have a P.O. box that I use for my Amazon kindle book. Hubs has a supplier for parts lined up.
Separate bank accounts for the business with no mingling. The company account only pays for company stuff. He pays himself a salary from the business.
He’ll have to pay for items up front and hope the customer pays the bill so you will need a hefty cushion to cover. If he isn’t good with financial matters, you will have to do it. There is a good chance he won’t make a lot of money in the first quarter as he builds some equity. None of this “I need a new truck and some new tools”. You’ll know you are ready to go into business for yourself when you have the money to do it.
Like with all things, the first question will be “How will you pay for it?”.
two counties. One major company with a less than steller reputation for one county.
Other county hashes out between 2 smaller companies, one with a bad reputation (that hubs used to work for) and a larger company that generally services a major metro area just to the west of us.
One of the counties to the north of us that hubs would be covering has a LOT of older hvac equipment that he could sell to newer equipment very easily (hubs is also a VERY good sales person and could sell snow to an eskimo)
Tell him to write a comprehensive business plan for himself. The financial section is a real eye opener.
Visit your local small business administration offices and sit down with a free adviser.
Not sure how it works in NY, but I’m considering starting my own LLC in Florida and I’ve looked into it extensively. If you’re going for an LLC with just you and your husband as the only employees/partners to start off with, things will probably be easier for a while at least, until you take on more employees. The taxes and liability/contractor insurance (which your husband will need since he’s doing physical labor on other people’s property) are probably going to be the biggest headaches (and the insurance is a risk as it’s an up-front expense).
Your state (and maybe even county) should have an online resource center for new small business owners. I’d google for that and start from there. (Probably here? http://www.ny.gov/services/business )
Whatever you do, you should have your husband do what is necessary to ensure that he’s going to have customers right away. I’m sure his current employer has rules about securing independent business while out representing them. Not knowing the specifics, you’ll want to make sure that he doesn’t violate any agreements he already has, and keeps things vague. Like “I’ve been thinking of starting my own company...” and see what the customer says, maybe following up with “and if I came calling, you’d be interested?”, that kind of thing. I assume he’s completely banned from securing contracts for his own work while still on the job where he is now, so even this is a risk.
At any rate, I wish you guys all the best!
I used to do rental real estate and know about no co-mingling. I have a separate credit union acct for my amazon kindle book.
He is definitely NOT good with financial matters or paperwork. That would be my dept. Thinking of putting the biz in my name to avoid any issues with the ex-shrew—basically making hubs my employee.
What industry is the company in?
Thanks, he is getting ready to gradually leave the current micro company that he works with (against my better judgement as the current owner is using the hvac side to prop up his failing appliance store biz)
Yes there is a blurb about no compete clause that I read for his current position.
I’d certainly come to FL. We moved down ehre and it was the best move we have done. Your hubby would make a fortune here with HVAC as we are growing like mad and seeing housing popping up everywhere.
I would suggest you could find a job here in FL and both of you make a fresh, warm, sunny start.
If it’s going to be solo it’s less complicated. He can run it as a S-corp. Get yourself an account at a payroll vendor like Intuit Online Payroll. This makes it simple to pay all your taxes,issue pay checks,w-2s etc.
HVAC, stand by generators, well pump issues.
We live in a semi-rural suburban area.
Hubs is an expert in water conditioning, wells, propane, stand by generators, latest HVAC stuff like tankless waterheaters, etc. He does not do a lot of geo thermal.
Is that costly (Payroll services)? I was going to do an LLC obviously and file schedule C.
My future daughter in law’s dad is a successful accountant.
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