People in every field surely desires upward mobility, but as life often shows us- the grass is not always greener on the other side. Working and spending time as an employed electrician, probably even doing more work than the owner, it would seem that hanging your shingle is the next logical step. However, be aware that being your electrical contractor may not be everything you wish it to be.

The Perils Of All Businesses
It is known that those who decide to become business owners often forfeit being a craftsman for being a salesman. Meaning that a proprietor may love what they do and do it well, but when one decides to be their own boss they have to bring in dollars. The owner spends his or her time getting the business and not doing the business they love. Additionally, there is a lot more to a business than simply getting business cards- payroll, accounting, regulation requirements, marketing, all add hours to small business owner’s day. Yes, these duties can hired out but that can just means more money going out the door.

Run The Numbers
As an electrician you know what you bring in after deductions. The number, while it may be thrilling, you know it and can count on it. So, let’s say that you make $20 an hour or $40,000 a year before taxes (a rule of thumb- multiply an hourly salary by 2,000 to get the annual salary). The owner would have to have a net profit of 4% from one million dollars to get what you earn as an employee. That means after the owner pays for all materials, employees, insurances, accountants, taxes, vehicles, property, after everything he is able to clear 4% net profit just to get the money you do. When you are staring at $1,000,000 a year in sales and making sure everyone actually pays you, being in business in for yourself may not seem so lucrative.

Being Your Own Boss
It has been said that there is a difference between being self-employed and being a business owner. Essentially if one is working twice as hard to make the same money they would if employed, easily that is someone who is self-employed. Also, dismiss any idea of more time or free time; because a business owner will find that their time is eaten by numerous sources, and that there is no five o’clock when work stops. For many business owners the evenings and weekends simply means its time to do paper work. It is actually like having two jobs- being an electrician and being a businessperson for less pay.