Staying a one man show has been the best for me. Good helpers are hard to find. Typically they get, "hurt" in the first week or quit after a couple months and try to take clients. I just made sure my home was zoned to allow a business to operate and have a diverse skillset, keeps work more consistent.
How old are you? Is your business sustainable? Can you earn enough to retire some day? Do you have a IRA, health insurance, disability insurance and have you paid into social security? Do you have a brand that you can sell someday? That's my issue with small. Will it pay for my means for my entire working life and can I ever retire?
@mrscience1409 I'm 37. Seems sustainable so far. All equipment and vehicles are paid off, growing investments, decent medical insurance, licensed, bonded. Social security is not part of my retirement plan. I am my brand and part of the product people pay for. If any of my kids want to continue the business then that's a possibility but otherwise when I go so will the business. The house will be paid off by retirement age so expenses will be manageable.
@@InspiredCraftsman Sounds like you have a sustainable model. The point I try to make is that covering your short term nut is a flaw in many young person's thinking. I just think that too many You tubers are selling a pie in the sky and not being completely honest.
@mrscience1409 I completely agree. The trend I see on RUclips is people teaching, "how to run a business" or "products that sell" that are content creators making revenue from ads, sponsors, courses, but don't have a sustainable business without youtube income streams. Nothing wrong with multiple sources of income, but how they represent themselves is disingenuous. My favorite youtubers are up front their business model. Most just document their jobs or builds are are just making interesting content. Pedulla studios, Spencer at insider carpenter, northeast woodworks are some that I enjoy. On the business end of things, I definitely had some growing and learning pains in my 20s. Learning to qualify customers, communication, and charging a fair but sustainable wage have all taken time. Keeping my expenses predictable and liability low has been the main driver of staying a one man show. I enjoy the craft, but when/if I can no longer do the work, I may step into project management or something similar in industry.
I am watching from Europe and I find it funny when RUclipsrs talk about earning. If I would make 16k/18k euros/gbp a month from my garage I would retire after 5 years, that's almost a year worth of money at minimum wage. I am sorry but I don't think that 20k is a realistic number for the average side hustler even in the US.
It's same for me. I'm from EU (Croatia) and if I would make 12-14000 €/month I would be a king😂 I just don't understand the prices in US 7 years ago I bought my 170 m² house for 30.000 € together with 60m² workshop (rural area) So the numbers in this video don't make sense in Europe
$20k a month is really at the absolute top of earning potential for a solo guy in the states. After $20k/mo, you’ve gotta start bringing on help. Also - at $20k/mo, you’re full time at that point as well. Most wood working side hustles in the states are doing around $500-5k/mo. Depends on if you can find and acquire clients
$12-14k per month. Let's use the high number. $2142 Self employment tax $8770 Federal and state tax $1200 Health Insurance $560 disability insurance $700 IRA contribution $300 Life insurance Wow, you made about $300.
@@thewoodworkingbusinesscoach Sorry, my bad, taxes on "net" revenue would be around 38-40%. If you were talking about gross revenue then we have a very serious problem. In order to cover your means as a small business owner and be middle class, you need to pay yourself about $100k per year. If you have a decent job about 30% of your compensation is benefits. Looking at my last paystub, my gross pay for 2 weeks is $5942.58. Benefits paid by my employer was $1794.82. So a self employed person who paid for his own insurance, retirement and social security make $100,000 would take home about $70,000 before considering income taxes. As a sole business owner of a manufacturing business, you can expect to work at least 60 hours a week average. That is about $22 per hour. If you consider the most you could probably obtain is a 20% profit margin, in order to pay yourself $100,000 you would need to generate $500k in sales, per year, every year. If you generate more than a 20% margin, competition will find you.
Staying a one man show has been the best for me. Good helpers are hard to find. Typically they get, "hurt" in the first week or quit after a couple months and try to take clients. I just made sure my home was zoned to allow a business to operate and have a diverse skillset, keeps work more consistent.
How old are you? Is your business sustainable? Can you earn enough to retire some day? Do you have a IRA, health insurance, disability insurance and have you paid into social security? Do you have a brand that you can sell someday? That's my issue with small. Will it pay for my means for my entire working life and can I ever retire?
@mrscience1409 I'm 37. Seems sustainable so far. All equipment and vehicles are paid off, growing investments, decent medical insurance, licensed, bonded. Social security is not part of my retirement plan. I am my brand and part of the product people pay for. If any of my kids want to continue the business then that's a possibility but otherwise when I go so will the business. The house will be paid off by retirement age so expenses will be manageable.
@@InspiredCraftsman Sounds like you have a sustainable model. The point I try to make is that covering your short term nut is a flaw in many young person's thinking. I just think that too many You tubers are selling a pie in the sky and not being completely honest.
@mrscience1409 I completely agree. The trend I see on RUclips is people teaching, "how to run a business" or "products that sell" that are content creators making revenue from ads, sponsors, courses, but don't have a sustainable business without youtube income streams. Nothing wrong with multiple sources of income, but how they represent themselves is disingenuous. My favorite youtubers are up front their business model. Most just document their jobs or builds are are just making interesting content. Pedulla studios, Spencer at insider carpenter, northeast woodworks are some that I enjoy. On the business end of things, I definitely had some growing and learning pains in my 20s. Learning to qualify customers, communication, and charging a fair but sustainable wage have all taken time. Keeping my expenses predictable and liability low has been the main driver of staying a one man show. I enjoy the craft, but when/if I can no longer do the work, I may step into project management or something similar in industry.
Horrible year, crummy week, okay day......Great video! tHanks and have a super weekend!
this was a good one man
Thanks man! Hope you’re doing well!
I am watching from Europe and I find it funny when RUclipsrs talk about earning. If I would make 16k/18k euros/gbp a month from my garage I would retire after 5 years, that's almost a year worth of money at minimum wage. I am sorry but I don't think that 20k is a realistic number for the average side hustler even in the US.
It's same for me. I'm from EU (Croatia) and if I would make 12-14000 €/month I would be a king😂
I just don't understand the prices in US
7 years ago I bought my 170 m² house for 30.000 € together with 60m² workshop (rural area)
So the numbers in this video don't make sense in Europe
I can barely make 12-14k a year In Scotland
$20k a month is really at the absolute top of earning potential for a solo guy in the states. After $20k/mo, you’ve gotta start bringing on help.
Also - at $20k/mo, you’re full time at that point as well. Most wood working side hustles in the states are doing around $500-5k/mo. Depends on if you can find and acquire clients
I need your help to grow I'm in Scotland uk 😮😢
I want to Definitely stay small
I'm 66 not looking for bigger
When we talk
I’m in lake Dallas/hickory creek. Would that put you in conflict to work with you?
We could work with you man! Book a call and we can connect. calendly.com/zvaughtteam/wwbap-discovery-call
$12-14k per month. Let's use the high number.
$2142 Self employment tax
$8770 Federal and state tax
$1200 Health Insurance
$560 disability insurance
$700 IRA contribution
$300 Life insurance
Wow, you made about $300.
How are you getting $8770 taxes on $12-14k gross revenue? There isn’t a state in the country with taxes that high.
That is a 73% tax rate. 🤣
@@thewoodworkingbusinesscoach Sorry, my bad, taxes on "net" revenue would be around 38-40%.
If you were talking about gross revenue then we have a very serious problem. In order to cover your means as a small business owner and be middle class, you need to pay yourself about $100k per year. If you have a decent job about 30% of your compensation is benefits. Looking at my last paystub, my gross pay for 2 weeks is $5942.58. Benefits paid by my employer was $1794.82. So a self employed person who paid for his own insurance, retirement and social security make $100,000 would take home about $70,000 before considering income taxes. As a sole business owner of a manufacturing business, you can expect to work at least 60 hours a week average. That is about $22 per hour.
If you consider the most you could probably obtain is a 20% profit margin, in order to pay yourself $100,000 you would need to generate $500k in sales, per year, every year. If you generate more than a 20% margin, competition will find you.