Fun to listen to. I'm retired now but was self employed my entire adult life. I remember a lot of what you mention. Making those forms, figuring out costs, finding work, buying tools, scheduling. Good video for the young person wanting to start out.
I’ve had my electrical business for almost 11 years now. I could really talk a lot about the good and bad of it. It’s not for everyone that is for sure. The discipline it takes to get up everyday and keep moving forward is tough. There are something’s you have to remember as a business owner. You will always be thinking about your work. Some things you have to take care of because nobody else will. You have to save money for taxes Uncle Sam wants his share. Finally it’s not a 9-5 40 hour job once you start getting busy you will work a lot. Honesty with customers goes a long way you do a good job they will give your name out and that’s the best advertisement.
I'm semi-retired after 35 years and I remember the days of owning your own business. Your comment that you have to have it in your gut, is exactly right! You need a determined attitude, be a self-starter and you have to be able to solve problems. I remember the blood, sweat and tears years but it is then you figure out the solution and move forward. The only other thing I would add from my experience is that owning your own will pay off one day but that it doesn't happen quickly. Good video Ken!
Thank you Ken for sharing this information. I understand what you're talking about. I tried opening my own auto-body/mechanics shop in 1990. Even though I had the skills, most of the basic tools and equipment, and a good work ethic and reputation, I kept getting road-blocked at every turn. First my son was born and his mother left and demanded child support. That was similar to your bank requirement issues. Then there was the permit problems. Even though I was in a Residential/Commercial zone I couldn't get a business license because I didn't have a proper paint booth. So I set that plan aside for a couple years. When I found the woman that seemed to be in line with my ideas we got married and bought our first home. I was putting money aside for building a proper shop. I had half the money I needed when she decided she didn't want to be married anymore. That took half of the half I had saved. Now all this time I was still tinkering with different projects in my garage, both mine and other people's. Then the world fell apart for me with different things and I gave up. Then came along my current wife that I moved to Minnesota for. When we started working together towards having our own business together health issues came up. Our dreams are still there, just delayed. One thing you talked about was determination. I haven't succeeded with my shop, but I haven't failed yet either. Live and learn. That's something Dad always backed up. He said "if you're not learning you're not living."
Ken, your work ethics of running your own business reminds me so much of my dad and his business. Budgeting your time is just about as important as budgeting your money. Most folks won’t get upset if you can start a job sooner than the original projected date but some (not all) can’t understand if you’re going to be late!
Thank you for all the videos you’ve posted, im 18 and I’m just getting my start in construction via pool building(applying to the IBEW soon but I wish I could do carpentry), I know I’m a long way from reaching your level but these videos inspire me to get there.
I ran a construction company many years ago, as well as my design business (I figured if I could draw it, I better be able to build it too!). The big struggles I am seeing today, with the contractors that I know and work with, are labor and material pricing. As you have shown over the past few years, material just won't settle and seems to be ever increasing in price or scarcity. Time lines are stretched beyond any sensible measure. I know one project that they are still waiting on garage doors after 6 months! Tough to use a garage with no overhead doors in Canada in the winter! You are fortunate to have your son and a great guy in Dan to work for you. It's tough to get guys to show up even when the sun is shining, these days. You have a good thing going there, Ken. Keep up the good work.
Another awesome video. Yes Ken, one of the issues that has caused so many problems for everyone - Not having a full understanding of the full scope of the project. There must be a complete understanding among all parties involved as what is being done for the amount of money that it is going to cost.
Hey, this is great and something I needed to hear. I’m just starting my own carpentry business and this is the guidance I didn’t know I needed. Thank you for this!!
Your advice on tools is exactly how it should go for anyone. I have a construction business doing side jobs outside of my full-time job. The first deck I built I put together with a coil framing nailer my dad found in the trash. I repaired the magazine clip with a bent nail, fixed the back air gasket making a new gasket with cereal box cardboard. And the rest of the tools I used were accumulated over the last 6 years working in carpentry. The only expensive thing I bought was a laser transit ($580) to speed the construction and invest in future projects. Completing that deck, I paid for that transit, repaired my nailer, all consumables accounted for, fuel and so on. I walked away with about $2000 profit. I value myself at $400/day and my materials are always marked up tax+20%. That 20% usually accounts for incidentals, extra fuel, extra materials, inexpensive change orders and so on. It's low enough of a markup to be a reasonable cushion and high enough to price out potential clients who I really shouldn't be catering to. For scheduling I always remind myself to under promise and over deliver. I give myself a reasonable amount of time for stages in a project and assume that something will delay a stage in the project. I do this so that at the end of the project I'm either early in completion or right on schedule. I used to be notorious for thinking a stage was faster than it ended up being and I ultimately looked like I didn't know what I was doing in the eyes of the client. If I lay out an attainable timeline, the client is blown away with how fast I worked.
This was one of your best, educational videos Ken. I appreciate your sincerity & explanation of what it REALLY takes to be your own boss & offer employment to skilled tradesmen.
I am a self employed shed builder for the past 3 years now. We like to focus on just sheds and garages. I think finding a niche is important to really be able to dial in on cost of your operation. Ive done plenty of other jobs like decks siding roofing ect... But i always seem to go back to the sheds they are simple and quick. I absolutely agree about learning from others you can learn something useful even from the new guy. Lol. I admire your carpentry ken hope to see more build videos and informative ones like this. Cheers!
It's very nice of you to make such an understandable video for the person who asked, and the people who hadn't, but are thinking about it. I truly enjoyed it, and I am not planning on going into this business. I believe your guidelines are great for any type of business someone wants to start. Have a good and blessed day.
I really appreciate your videos. I'm just starting out doing home improvement on my own. We're lucky to have you sharing your experiences and wisdom! Please keep videos like this coming!
Great information and I hope young people will listen. Don't work for the other guy to make him rich, work for your self to make you rich. You may not get rich but at least you are your own boss.
That is good advice. I wanted to learn to build on my own for a few projects and took a bunch of time off work and helped some carpenter friends build their homes just to gain the knowledge. My first build was a cabin six miles from a road and I am just finishing a duplex. I’ll be 70 next month. My day jobs were In electronics and communications.
For person just starting out along with knowledge of all the normal things you mentioned is good help. You need a helper or 2 that is just as dedicated to the job as you. If you hire slackers that want to look at their cell phones when you're not looking or taking smoke breaks or just not showing up for work , YOU will fail .
Mr. Ken, I LOVE your tutorials on these subjects! You explain the details in the simplest of terms👍👍 Looks like a LOT of rain for us today and much more needed snow for y'all 🤣jk. God Bless and be safe my friend. 🙏 Jay 🕊🕊🕊
Thanks for a really great, heartfelt story of how you found success. I appreciate your humble style throughout the story telling. Your approach has a lot to recommend it to many other fields and I only wish more young people would take their professions up with the same can-do, goal-minded strategy in mind.
Thank you that was a great video that’s exactly what I was looking for so my goal when I asked that question yesterday was to build Gambrills style garages here in Maine in an apartment style fashion for rentals almost like affordable housing
I’m working on starting off on my own now. So far, everybody wants more and more on top of what was agreed upon in the beginning. It’s never ending. “Oh can you do this while you’re doing that” and “just throw it in with the rest of it” like it doesn’t cost me time or money.
Like @BeeHiverson said, change order forms. Put a change order clause in your original contract stating that any additional work not covered in the original bid will cost extra money equivalent to the materials and labor necessary. If it’s in the contract that they sign, they can’t argue it. Some people will still try to, but that’s why having an airtight contract is 1,000% necessary, and one of the most critical aspects of a successful construction business.
Plus, if it’s something small and you don’t mind throwing it in for free because it won’t take you any time at all, that will make them feel like they’re really getting a deal because you’re going above and beyond your contractual obligations, or waiving agreed upon costs. Be very, very weary of doing that though, because many people will then take advantage of that and expect more and more each time free of charge. I will very very rarely do this, and it’s only for very minor things. Something that may take 10-20 minutes to do. Like if a customer has a door that has a gap that can be fixed by shimming a hinge or installing a new long screw, I’ll do it. That way they don’t buy a new door unnecessarily, or pay someone to come do a 10 minute job. Discretion is key when doing stuff like that, and do NOT feel obligated to every do any additional work free of charge. I’ve said to one customer before “if you were getting heart surgery, would you ask the surgeon to go ahead and check your lungs out as well while he’s in there?” Your time is your money, and unfortunately we are in an industry where people feel extremely comfortable asking for/demanding more than what was agreed upon. You’ve gotta learn to stand your ground. It is not bad customer service to say no to peoples stupid requests. Best of luck!
Thanks for the video! I always wished I had focused on a specialty instead of doing general carpentry. You end up with a lot of tools and equipment I rarely used, and needed a lot of space to store them.
My son-in-law has started his own business and after watching your video it makes very me proud of him since he has done all that you have said. It seems at any point you might be out price yourself but believe me if you don't follow these "rules" you'll be in debt and out of business in a couple of years if that. Carpenters are very susceptible to this due to fluctuating prices. Just think , if you don't open a wall up how can up be sure tere is no rot and/or termites in there? You bid 8 studs based on what you can see and not what there is in the wall . You open it up and now you need 12 studs and the plate , not to mention what to do about the termites in there. Thanks for the video, you are doing these young men a great service.
My family was self-employed. My father said, ",Youre on call 24/7 ; The last person to get paid is owner; every customer is your boss" words of wisdom.
Good advice, had several opportunities to have my own business, didn't want the responsibility on top of the work quality, I ran the business that someone else owned! i could then concentrate on the quality of goods being made!
I’ve used contractors, subcontractors and handymen for various home projects. My experience with them has been that they charge me for items they’ve purchased NOT pertaining to my project. One example is the “worker” goes on to show me a receipt (I guess he’s trying to do that in good faith but it backfires). As I look over the receipt I find items that have nothing to do with my project. I ask him about that item and ONLY THEN does he say “oh, I’m sorry. That was for something else”. I guess he didn’t think I would have noticed. It has happened way too many times by different workers in different States throughout the span of many years. In any case, Ken, THAT’S why I LOVE your work ethic.
Great info, Ken I retired a year ago and could use a side hustle to get a little extra income coming in. Would love to see more of your wisdom videos in the future.
it is a labor driven biz model and there no skilled labor left in America it is all grey-haired guys anymore and we are on our way out been doing it for over 35 years and its sad to see whats happened over the years we were always tried at the end of the day but had pride of a job well done held our heads high and shook every tradesman that came our way some really good times for sure
@@kenskarpentry still here working just solo most times now fund my own projects so no customer these day don't make as much but i enjoy it much more limit the stress hahaha
Ken, great content, skills, scheduling, bank(know finances), checklist, alway improving the process, all good points. Can you give an update on lumber prices for spring 2023, we know it a ball park, but a educational guess would be helpful. Enjoy you content, thank you!
A wise man once said, "if you fail to plan you might as well plan to fail" and it doesn't always hit home till you realize it's all about the small / hidden things, let's call them details, that we forget to consider. Knowing the cost to open the doors every day includes so many small things, but they add up to thousands at the end of a month. For instance, gas in the truck is easy to remember and if it's a new truck you have payments and oil changes, plus insurance. (which may be different for business use) Somewhere down the road a few years there's added costs of brakes, tires, tune ups, fender benders, etc. Some people buy a new truck every 3-4 years just to keep costs consistent.... but they forget about that $10-$20k down payment.... lettering on the vehicle, etc. you just forgot about $5k a year right here! There are other expenses like office space and equipment within your home, (or rented space) like light, heat, phone, etc.... and that time to manage the business. (another 10+ hours a week?) You did want to get paid for ALL of your time, not just the 40 hours of productive work, right? How about work clothes, worker's comp insurance, liability insurance? There's also tools, safety gear, and misc. consumables. (GPS for the truck, work phone, more office supplies to have on the road, first aid kit, etc) My list above is several thousand a month, without payroll.... and it's all legit. It's hard to project that for a new business up front, but if you track those things, after a few years (sooner?) you will see a number that you can break down to a daily expense, which is what you add to your garage / project estimate... and that (plus mark up) is the finished price to the customer. You can also go the next step and figure your base costs versus selling price, so you have a running tally for your personal records. At that point you have something you can sink your teeth into and know where you stand on a daily or weekly basis.
There’s only one reason to go in the business and that is to make more money than you could working for somebody else. In many cases the employees make more money than the business owner. I love watching your videos best of luck to you and your family.
Ahh the memories you brought back. I started a glazing contracting company in 1991 with $100 and a pickup truck. I retired at the beginning of 2021. I sold the company because I had started a manufacturing business in 2010, jf was much more profitable and no field work.
Hi Ken. I wish my contractor had your level of knowledge and skill. His estimating/job costing skills are pretty bad leading to personal and professional financial struggles on his end, and his construction skills are probably equal to or worse than I could do if I had the time. It's led to some hurt feelings, disappointments, cost overruns and an overall negative feeling about how everything has went.
Where did you learn the trade? I learned from my grandpa. I was fortunate to learn from him he built back in the day when carpenters did all trades from digging foundation to cabinet work and everything in between. Thanks
Thanks Ken for the great info. I'm retired now, I was self employed most of my life in masonry. Was wondering how long you did carpentry before you started to build garages, thanks
1. Do you find the name “Carpentry” in your company name potentially restricts your client’s expectations of what you can do? I.e. no clue you build houses but thought you do finish carpentry, didn’t know you could lay concrete, etc? 2. Seems if I went into your business I’d have to find at least a second person for the daily help. After watching your videos not sure how you could do some of the trusses and joist work single handed. 3. Lastly, do you recommend someone first working for someone of your stature a few years to learn the ropes (potentially could be bad if they learn incorrectly)? Seems with a strong attitude and RU-vid University I could manage without years of learning on the job?
Thanks again Ken, I wonder what type and cost of insurance you might have for yourself and your workers and also the warranty you offer to your clients on work and materials ?
Hi, did you pay yourself a set salary for your work like you paid your employees? How else did you keep business money separate yours, employees, coasts over runs, bonuses, equipment expenses-tools replacement and future needs to keep your business going?
