Author Topic: Moving to a DIY job...  (Read 1776 times)

saijoe

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Moving to a DIY job...
« on: March 09, 2018, 09:58:53 AM »
I am 53 and pretty darn close to FIRE.  NW around $1.4 and debt free.  I currently work as a salesman for a technology company that works in the railroad industry.  I want to do my own thing and sell for a company that happens to be one of my current customers.  I spoke to the owner of this new company and he was interested and we intend to meet in a couple of weeks.  He said that he'd think about how it might work and that I should think about that as well. 

So, here's my questions.  How should it work? 

- Should I start my own company and be a rep for this particular company?  Or should I become an employee again? 
- There would be some regional travel.  Could I ask for reimbursement for my travel expenses if I'm not an employee?  If not are there some tax implications for business travel? 
- What's the compensation look like?  X% on all equipment sold? 

I would like to get some guidance as to how others have done something similar.  Any help would be much appreciated. 

www.gettinclosetothefire.com

lexde

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Re: Moving to a DIY job...
« Reply #1 on: March 09, 2018, 10:47:06 AM »
First...What does your current employment agreement (if any) say on taking clients with you when you leave? Do you have any non-compete agreement?

saijoe

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Re: Moving to a DIY job...
« Reply #2 on: March 09, 2018, 02:08:45 PM »
No, I don't have a non-compete.  Even if I did, I would essentially be helping to sell my current employers products, so I don't think it would apply.  The company I'm talking to is a dealer for the current employer. 

SC93

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Re: Moving to a DIY job...
« Reply #3 on: March 09, 2018, 11:59:19 PM »
Here is the way you need to look at it..... YOU are in 100% control. You asked if you can ask for reimbursement..... Don't ASK.... tell them this is how it's going to be. You don't have to be a dick about it, be nice and explain how it WILL be. Are some things negotiable? That is for YOU to figure out before you tell them how it is going to be. Tell them straight up... you want 90% of everything you sell. Yes, they will look at you crazy (And this is where you have totally thrown this off course so now they are probably no longer on their A game) and then tell them to give you a counter. When they offer 8% now you look at them crazy and say I might as well watch Dr. Phil every day if I don't get atleast 28%. They say, the most we can do is 12%. Stick out your hand and say... if you can do 15% you have a deal. BUT...if they say no and you think 12% is too low, tell them thank you very much and have a great afternoon... and walk away. If you have to walk away make sure your posture is straight, don't slump. And have a happy face on. They could give in tomorrow or the next day but if they see you slump, they will think YOU will give in tomorrow or the next day. Remember, you don't need this money to eat.

^^^ This is how I make money each and every day. I don't play ball, I own the team. When you sit down to strike a deal with me you better be a fast thinker and good with numbers on the quick! By the way, in my mind, I would have probably wanted something like 10-12% in the scenery above as my minimum because I would already know what the going rate is. But I'm good at negotiations and usually can get more. But don't take less. YOU have 100% control of this situation, not them.

saijoe

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Re: Moving to a DIY job...
« Reply #4 on: March 10, 2018, 10:35:37 AM »
Hey, I appreciate that.  I think that 15% is where I need to be based on my experience of the industry.  So, for travel expenses, I'm thinking I just handle them and deduct them from my income.  Is that the norm?   

SC93

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Re: Moving to a DIY job...
« Reply #5 on: March 10, 2018, 03:08:38 PM »
You would need to check with a tax expert on that. You may or may not have choices.

Go in there playing hard ball. If you don't get what you want, don't do it. On the other hand.... you need to be very good at what you do, if you are going to be tough, give them 110%.