What do you need to start a business? Three simple things: Know your product better than anyone, know your customer and have a burning desire to succeed.

That is actually a quote from Wendy’s founder Dave Thomas, but it is a mindset applicable to every industry. Starting your own business can be exciting. It can be frightening. And most important, it might just be the best — or worst — decision you make in your professional career.

For the bulk of my professional career, I worked for another contractor in a head plumber role. It was over the course of this stint that I truly fell in love with the trade. Being able to troubleshoot tricky situations is what gets me going in the morning. 

However, I’m sure I’m not alone when I say that the dream was always to operate my own business, and I do that today with my Kansas City, Missouri-based company Stine-Nichols Plumbing.  

Making the switch from employee to small-business owner is certainly no walk in the park. In fact, when you have other people depending on you, it can even be considered a gamble. You’re giving up a guaranteed paycheck to bet on yourself.

Over the deliberation process and now having run my own shop for a handful of years, I’ve created a checklist of what you should ask yourself before going all in. Here are nine questions people should ask themselves before starting their own shop.

Do I have a passion for it?

At least for the first couple of years, running your own small business is going to become your life, so you better love what you’re doing. You are no longer able to clock out at a certain time and turn the work switch off.

There will be challenges that arise. Do you believe you are skilled enough that homeowners and commercial businesses will trust you with their plumbing needs? You’re going to have to sell them on it, so you better know what you’re talking about.

Do I have the emotional support needed?

Having steady financial support is obviously critical to starting up a business, but emotional support can’t be understated. Particularly, if you are starting this business by yourself without a business partner, times can get lonely.

Luckily, in my shoes, I had a fellow plumber to get started with, but not everyone is that fortunate. In these situations, I can’t say enough about how important it is to have family and friends who believe in your dreams. The first handful of years won’t be the easiest, so having that support definitely helps you get through the initial hardships that come with every small business.

Can I manage?

This one is short and sweet: Do you know how to manage people? Not everyone is a born leader, but with the right practice, I honestly believe anyone can become a leader. 

Before starting your own business, it is helpful to have some management experience. Whether that was serving in a supervisory role with your previous employer or something similar, these are skills that will prove to be critical. You need to be able to motivate your employees while keeping them focused on the project at-hand to ensure you have a profitable operation.

Do I have the necessary equipment?

Just like with any other construction-related business, there is going to be a certain amount of equipment needed to get started. Whether that be a bigger purchase like a truck or just the basic daily tools, keep this in the back of your head.

The financial investment needed is going to be there for anyone looking to get started on their own. If you feel you’re going to be cutting it close moneywise, then I can’t stress this enough: Give it a little more time so you can build up some extra capital. There’s nothing more stressful in operating a small business than worrying about how you’re going to pay the bills and your employees each week.

How am I going to get customers?

You may be awesome at the trade. That’s perfect. This encompasses half of the puzzle in operating a business.

But keep in mind there’s another section that has nothing to do with drains, pipes and sinks. Part of it is marketing. With this being a competitive industry, it’s going to take a lot more than just paying someone to build you a website to get a steady flow of leads. Do you have any contacts who will get you started in order to get some cash flow rolling in? Possibly some commercial clients? If not, you’re going to want to look into investing in some marketing help — social media posting and advertisements, SEO strategies, email marketing and so on. All of these are elements that you’ll need to incorporate to compete with other local contractors.

While it can require a financial investment, I strongly recommend either hiring someone to fill this seat or bringing in an outside agency. One way or another, you can’t get around the fact that lead generation is needed.

Am I prepared for the time commitment?

You need to be fully aware that you’ll be required to make time sacrifices during your journey. Running a small business is not your typical 9-to-5 job. If you’re someone who thinks a 9-to-5 already takes up too much time, then starting a small business might not be the best decision for you.

You need to be prepared to work some long hours. You’ll not have nearly as much free time on your hands to hang out with family and friends. You’ll have less time to spend on any hobbies you may have. Ultimately, you need to be prepared that when something doesn’t get finished one day, it’s still on you to get it wrapped up (even if it’s in the evening or on the weekend).

Do I have the financial backing to survive if there’s no paycheck for a couple months?

Financial support is a major impacting factor when it comes to starting your own business. Take a look at your current finances. Do you have enough money to pay for all your monthly expenses (plus a little extra in case something crazy happens)?

Depending on how your margins are set up, there might be a handful of months initially where there are no profits to pay out. Of course, if you have some immediate projects scheduled, this might not be the case, but it’s certainly something worth keeping in mind.

What other people do I need?

Starting out, chances are you won’t have a complete staff across all the different departments (i.e. finance, human resources, sales, marketing and so on). However, you’ll definitely need some help.

Do you need to hire any additional technicians on the production side? Are you going to be managing them or is someone else going to? Do you have a plan of attack for marketing and generating new leads? How about accounting and finance?

Depending on the size of your business, making sure your books are in order can save plenty of headaches come tax time. A good strategy would be to create an organizational chart of all the different positions that will be needed. Figure out the time commitment that will be needed for each and decide whether you have time to accomplish that or if you’ll need to bring someone in. Also weigh the cost advantages of going with an employee compared to a subcontractor/contract labor.

What’s my final goal behind this?

I’m sure we’ve all had someone in our lives who started a business just to do it. They assumed they could do it better than the other guy and figured now made more sense than any other time.

Before going all in, write down your goals behind starting your own business. Where do you see yourself in five years, both personally and professionally? What does this image look like in 10 years? How is starting your own business going to help you get to that point? The best entrepreneurship advice I’ve ever gotten has been this: Figure out what your goal is and make it happen. Simple as that.

You Decide

Hopefully that didn’t scare you away from opening up your own shop. When it comes down to it, there’s no hiding the fact that this is your decision. If you feel this trade is something you love and you’re prepared to make it a bigger part of your life, go for it.

I’d be lying if I told you there are going to be no setbacks and that it’ll all be rainbows and unicorns. But I can truthfully tell you that if you love what you do, those setbacks are not nearly as big of obstacles as you may think.

About the Author

Doug Stine is an owner of Stine-Nichols Plumbing in Kansas City, Missouri. You can reach him through the Stine-Nichols website or Facebook page.