Looking at quitting my day job????

[Jim Hager]

I was reading the thread below about pricing work and it brought up to me my desire to quit my day job of 27 years and get my cabinet/furniture shop up and runnin. I work at the local jr. high school as the agriculture teacher and do get a good bit of time in there in the shop teaching the "basics" to 8th and 9th grade students.

I have built furniture and cabinets for customers for years and somewhat understand the "pricing" that I need to use to make a pretty decent living out of my shop. I have a steady customer base that keeps me busy making rp doors and cabinet components, selling cabinet hardware at retail, and I also do my fair share of furniture projects too.

I will have a decent retirement coming in every month when I give up the day job. At least enough to meet the bills and buy the groceries. I have a 36x90 shop building with a showrooml, fully equiped with most everything I need to let er rip. I owe no man anything as of Monday afternoon when we paid off the place.

What I need is a good dose of courage. Sorta scary to think about giving up that monthly check that has been coming every month without fail for the last 27 years. I need to hear from some of you guys who might have been in the same place. I read Dev's post on the pricing thread below with his story about loosing his job and not wanting to re-locate and while it does have some insight to what I'm considering I need to hear from more of you who have been there and done that.

[Dave Falkenstein]

Jim - I quit my full time corporate world job in 1989 and went into my own business that involved recruiting computer people for technical jobs - I became a head hunter. It was not a move into woodworking, but it was a similar decision and experience. My wife and I had talked it over thoroughly beforehand, and we had agreed we would gamble two years of income to see if I could be my own boss. I started making money after six months and had some pretty good years mixed in with some mediocre ones. I never made as much money working for myself as I had made working for a big corporation, but... I was a much happier person, and I feel the experience was simply wonderful. I am now retired and I look back on the 12 years of working for myself as the best years in my career. I really enjoyed making my own decisions, and I got to work as hard or as little as I wanted to work. I sure had a lot more quality time to spend with my wife, and we were a lot happier than when I had been a corporate slave. Look before you leap, and have realistic expectations.

[Dev Emch]

Nothing motivates like a Storage Technology Corporation Pink Slip!

To get started on your own would be a very difficult choice to make. But there is one other thing I have to say. Some companies are just nortorious for layoffs and mine was/is the layoff mecca of the US. Over 3/4 of all STC employee numbers belong to layoff reciprients. The one thing I hated more than anything else about working was the constant threat of getting layed off. The gallows humor was thick. Everytime you went to a staff meeting, your heart would skip a beat thinking that there was another RIF in progress. The running joke in Boulder county is that its the only county where everyone holds an STC number and a Social Security Number.

After a while, it does get to be to much. You never know the state of the company because you cannot trust the information comming down from above. You live life one day at time and then one week at a time. You count the number of days, weeks, months and years you have been employed and give God thanks for these. And the really dynamic guys usually wind up starting their own business. Stress is stress and after a while, self imposed stress becomes better than that created by your employer. At least when you mess up, its your own fault and you have no one else to blame. I would not say its better. Its different. And its not easier. By no means is it easier.

So Jim, you need to do some real soul searching. Personally, I dont think I would give up the chance given the chance to do it all over again. I have met some really unsual folks that I in my own trek of life would never have been able to meet before. And this line of contacts is vital for me now as it brings in about 50 percent of new jobs. If I get bored and go back to engineering, then these contacts may also be my inroad to new opportunities as well. So think it over. Its a very disruptive and lifer altering experience but keep your head up and keep a positive outlook and it may be the best thing you ever did.

[Joe Mioux]

Jim, just out of couriosity, how many more years do you have before you can retire will full benefits?

Joe

BTW: I own basically three businesses wrapped up into one. There is a lot to be said about not having to pay health insurance for a family of six, which is what I do now.

[Dennis McDonaugh]

In Texas, your age and years of service have to equal 80, Your pay is figured using the formula

2.4 X years of service X your highest three years average income

Some school districts pay medical, some don't.

[Steve Clardy]

I did it full blast in 1993.
Starved for a couple of years till things took off. I was in debt too much at the time, but got it worked out.
Sounds like debt wise, you are in fine shape to go ahead and do it.
You'll never know whether it's the right thing to do till you do it.

[Charlie Plesums]

I took early retirement at age 62, but decided not to actually collect retirement... if you bet you will live beyond 80, it is usually financially better to just quit, and wait until 65 or so to start the retirement benefits if you have the savings or other income to carry you.

My wife loves her job, and wants to continue working, so my health insurance on her policy is only about $300 per month - if you think that is bad, try pricing a non-group policy.

I have had a continuous backlog of work since pulling the trigger, but I haven't built the speed required to "make a living." It is a nice supplement to the family income, but I would need to put out a lot more work if I were the sole breadwinner. My productivity is improving, but it is a huge step from being a fast hobbyist, to being a breadwinner. If you need the woodworking income, I suggest that you measure your productivity, not just the most effective minutes, but overall including cleaning the shop, sharpening tools, ordering materials, and updating web site or other marketing program.

Good luck ... keep us posted!

Charlie

[Jim Hager]

Jim, just out of couriosity, how many more years do you have before you can retire will full benefits?

Joe, my retirement benefits will be reduced by 5% by retiring one year early. Right off the bat I will get a 3% COLA which will bring me back up to within 2% of full retirement benefits. I have considered staying one more year and may still. It may cost me some business growth though. I'm doing about all I can on weekends and evenings.

[Allen Bookout]

Jim,

Sounds like a no brainer to me. You would not have to make much extra to more that make up the two percent.

I will not go into my story to deeply, but I gave up a great deal to retire five years early (nine years ago) and have never regreted it. I will say that it was a little bit scary at the time. I could always spend more but I have plenty for what I really need or want. If I had wanted to start a business it would have been an even better decision. Luckly my wife and I agree, quality of life is more important than more money than you have to have to make you happy.

Looks like to me that you cannot go wrong. Could retire now with very little loss of retirement income and promote your business or if you REALLY want the extra two percent twelve more months is really not that long---inless of course you really hate your job and then it is an eternity.

Sounds like a win, win situation. Easy for me to say!

Let us know how it goes. Could be an inspiration to others.

Good luck!!! Allen

[Chris Giles]

I made the decision to go into business back in my twenties before I had the responsibilities of wife and kids, so my situation may seem very different from yours. But actually, I made it based on the same issues you are now considering. Quality of life, self-fulfillment and accomplishment, as well as a true passion for the art.

I remember hearing the same thing from most of the older people I knew at the time, which is that the greatest regrets they have are the chances they did not take. Many feel their lives have passed them by without ever fully tasting some of its richest rewards, because they always played it safe. Your situation is far better than most for making the jump to full-time woodworker, as you have a hard-earned safety net to ease you through any tough times that may lie ahead. From the tone of your letter, I would say you have already begun the transition in your heart, and the rest will soon follow. There's no turning back now, so do what you have to do, and reap the rewards as well as the slings and arrows of this great adventure. I'm confident this is one decision you will never regret.

[Dan Racette]

I am on the fence as well. It comes down to insurance for me, that I would need to be in a profit situation within 5 years. Until I can get all of that taken care of, the day job stays. They have, however, been making drastic changes, so, my hand may be forced anyway.

I wonder if there is a woodworking health plan that we could all start as a group!

Wouldn't that be nice.

dan

[markus shaffer]

Jim,

You've gotten really good advice here so far. Probably better than what I can give as most people who've responded come from a similar background to you. I'm still somewhat of a young buck with only myself and a dog to support. Thus, my responsibilities are probably not the same as yours.

I will say that if you take this on as a full time job, prepare to work harder than you ever have before. Perhaps with your retirement it won't be the same issue as with me, but as stated before, there's no one above you to blame or to take up the slack. Also, the happiness it brings you as a hobby will very quickly dissapate if you're not careful. There are many days where I am lothe to drag myself out of bed to go to work.. Those are the days I have to remind myslef that I get paid to play with big machinery and power tools. For a boy, that's pretty damn cool. (this doesn't always work though and sometimes I do still wish I could stay in bed)

I think the most important thing I can say is what I posted in Tom's thread about charging for work. Do not sell yourself short. Look at the competition in your area and see what they are charging. "You are worth at least what they are charging if not more." This is a mentality, not necessarily the truth. Granted I'm in NYC where there is always some jackass willing to spend thousands of dollars on just about anything. There are plenty of people here making "furniture" that I personally think isn't fit to be used as firewood yet people pay obscene amounts of money for it. You may not have the same market, but what has surprised me as I raised my prices was that I didn't necessarily get more affluent people coming to me but rather more "enlightened" people regarding the idea of "custom made." You don't need a rich client base so much as one that is just repectful of what it takes to get what they want versus what the local furniture store has that they will settle for.

If you must work for friends and relatives, do it sparingly and be absolutely sure that there is understanding of what the deal entails. It never ceases to amaze me how poorly people can behave over money. As I stated in Tom's thread, all of my work is by word of mouth. There is nothing better than a good reputation in terms of advertising. Stand by your work and be ready to bend over backwards (within reason) to rectify any issues that arise. We all make mistakes and hopefully when you make yours, it'll happen to be with customers who are understanding. In some ways, I think that's what has gotten me more work. My willingness to make up for a mistake has, in some instances, impressed people more than the pieces I had made for them.

I'll second what Richard has said about finding a niche. Don't try to take on everything that comes your way. Know what is within your capabilities and don't push yourself too far out of that range. I turn down quite a bit of commercial work for the simple fact that my shop is not big enough to build large projects. It's not that the work itself is beyond my capabilities, but I have to factor in what I can build and "store" as I am finishing pieces. Also, I very much enjoy working alone. I can work at my own pace, listen to whatever loud heavy metal I want, stop when I want, etc. I don't take on any jobs that I can't do by myself.

Look at the market in your area and see what people are spending money on. The story Dev related about the knucklehead calling him to see how much cheaper he could build something than the Pottery Barn price will come up fairly often. Show those people to the door immediately. I have pretty much crash-coursed my way through this over the past few years and I spent the first couple years wasting entirely too much time with these kind of people. Realistically, you do have to start somewhere and depending on your skill and capabilities, you may not be able to charge a premium for your services right away, but don't settle for less for too long.

As Chris Giles has stated, your final choice should have to do with your quality of life. If you take care not to let what is now an enjoyable hobby turn into something that you resent having to do, then all should be well.

Good luck with whatever choice you make.

-Markus

[Ian Barley]

Now you see - this morning I wrote a brilliant response to this thread - witty, educated, comprehensive - simply brilliant. Then there we had a power cut and I lost it before I could submit it and I get back home this evening and Markus has said evrything that I did but only better.

The only thing I would add is that I would wait the year until the full benefits flow. Use the time to fill in all the gaps around marketing, accounting etc. If the business is there it will still be there in 12 months time.

Good luck

[Bernie Weishapl]

Jim, you have gotten some good advice here. Markus and Ian are dead on in their advice. My only comment would be to hold on to your job for the year you have left to get full benefits. During this year which will go faster than you think, I would get all my ducks in a row so to speak. As Ian said get your marketing, accounting, insurance, etc. all ready to go. Do a few jobs during this year so you can just step into this without missing a beat. 5% is 5%. That could pay your health insurance.

I have a clock repair business with woodworking on the side that I do part time. I repair a lot of clock cases and build clocks for sale. I have often thought of quitting early and doing this full time. I sat back, have watched and talked with others who have went the early retirement route. 5% doesn't sound like much now but as the years progress each one of these people I have talked with said don't be silly like me and quit with 1 or 2 years to go. There will be seasonal flucuations where when I first started I am glad I had my main job to get me by. I don't worry so much about it now but will finish my 30 years then will retire to do this full time. I have about 2 years and that will go pretty fast.

Just my $1.298.

[Jim Hager]

Thanks for all the kind replies. I have studied this thing pretty thoroughly and still cannot make up my mind for sure. I will have to move on this one way or the other come March. That is when the school district will offer me another contract and I will have to say yea or nay. Come July 1 of 06 I will either still be in my rut or off and runnin. My quandry is that I can't decide. I'm all over the road as if I had been to the local pub too long and now driving myself home. Maybe it is just not time for me to decide just yet.

I know in my heart that I will make it just fine because I will have a decent retirement income that is more than lots of people around here live on every month. Is that enough for 10 years from now with the 3% COLA. I don't think anybody can say.