Starting Part Time Business Question?

[WLee]

Originally Posted by bcnc Not sure if this is the right place to post this but here it is. I have some metal working equipment in my garage and do some playing around as a hobbie. My question is: Is it worth starting a small part time business,or is it not worth the hassal of dealng with the taxes, Etc? I have a few people interested in having some work done and I want it to be all legal like if I were to do work for them. Thank You

Best advice would be to get and read a book called "Small Time Operator."

Amazon.com: Small Time Operator: Bernard B. Kamoroff: Books

Amazon.com: Small Time Operator: Bernard B. Kamoroff: Books

Follow the advice in that book and you can make sure you do all the paperwork (which these days is not hard) that will keep the IRS from calling you a "hobby" and negating your write-offs or causing you other problems.

Unless you have some insane/masochistic love of paperwork and bureaucracy, then the main thing you want to avoid (or delay as long as possible) is having non-family members as "employees" -- the amount of paperwork (insurance, unemployment, withholding, etc) that is necessary for even just one "employee" will drive you nearly nutso.

It is definitely wiser in terms of time (even if a bit more expensive in terms of dollars) to sub-contract any/all non-production work out to other local small businesses for as long as possible (i.e. if you or a family member is not competent at something then find some contractor to do your accounting, rather than hire an "employee" to do it; likewise, for as long as it is possible & practical, hook-up with independent sales and/or service-reps on a contract/percentage basis rather than hiring your own sales or service people, etc.)

In my experience, the only time you should hire employees is when you HAVE TO -- for your profit generating main "production" work (and even then only when you have "long term" production and/or contracts scheduled -- even paying a premium for "temps" can save you a lot of hassle if the need is to have help with some short-term "overload.")

[cob]

ok I know this post has not been updated for a while but here is a delema i would be facing .
I am working for a machine shop know how to do just about everything from start to finnish for every part that comes in. I have been having thoughts about starting a part time on the side but here is the question my boss would find out I have a shop they would fire me then they would try to take same legal action against me.
how would some of you guys go about this.

[bukky633@yahoo.]

Did you sign a no compete form with them?
Are you going to be doing work for their customers?

I think if you are doing it on the side for your own customers/contacts or if you are offering a little bit different service it is none of their buisness what you do with your own time/money.

Just my thoughts
Nick

[jmsrbrt]

I agree with the other poster, except, I see no need for a non-compete clause unless you're doing the same type of work (on the side or otherwise) as your employer. And if you ARE doing the same type of work, you'd better be looking for other employment.

[WA Toolman]

I got fired once when my boss found out I was just thinking about starting my own shop. That said, usually you won't get much hassle if you are not directly competing. In other words, if the company you work at in the day time maKes gears, and you make say, custom motorcycle parts, most bosses will be cool with it and may even help you. Assuming said boss is reasonably sane. One guy I worked with had a CNC router, my (our) boss had the guy make some signs for him.