Author Topic: Can't decide what to do  (Read 2873 times)

BiggerFishToFI

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Can't decide what to do
« on: November 07, 2017, 04:16:17 PM »
I've been having a tough internal battle for several months whether or not to start my own consulting firm. I'm going to summarize my options as simply as possible here, just looking for some input from those that have done it.

Option 1, Stay with current job: I currently make 81k base + 5-10k overtime + ~10k bonus = ~95-100k / year. Plus 2 weeks vacation, work from home, flexible work hours and get along really well with my co-workers / boss. Mostly work 40-50 hour weeks, but a couple 50-80 hour weeks disbursed throughout the year. Salary would likely increase to ~100k base + overtime / bonus over the next 5 years. FIRE is very likely within 10 years or less.

Option 2, Start a consulting business: Salary would increase to 180-200k almost immediately. Sky is the limit as far as future growth is concerned. I'm not very concerned about obtaining clients or running the business, I am most concerned about having no work / life balance thinking/working on the business around the clock. However I could potentially FIRE in about half the amount of time with greater income and greater space for tax advantaged accounts.

I go back and forth so often on what I want to do, I've told myself I need to go at least 4 weeks with my mind made up before I will make the plunge.

Thanks in advance for any input!

SC93

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Re: Can't decide what to do
« Reply #1 on: November 07, 2017, 05:22:07 PM »
I guess my only question is this.... how are you so sure you can get that many clients?

bwall

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Re: Can't decide what to do
« Reply #2 on: November 07, 2017, 05:34:39 PM »
If you have the right temperament (big if) for owning your own business, then I think that I'd take Option 2 every time.

However, I also agree with SC93's analysis; how are you so sure you can get the clients? In other words, if it's 100%, then it's a no-brainer.

Disclosure: I've been a business owner/self employed for 20+years.

BiggerFishToFI

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Re: Can't decide what to do
« Reply #3 on: November 07, 2017, 06:23:48 PM »
Well, guess I am going to sleep tonight with option 2 on my mind again.... lol.

I would say I am 99% confident I could attain enough clients to be 80%+ billable within a couple months of starting. There is a huge need for the service I am offering, I have some clients essentially lined up and I know I can do it better than 90%+ of the competition.

No-brainer!! Maybe it is but I haven't convinced myself yet!

calimom

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Re: Can't decide what to do
« Reply #4 on: November 07, 2017, 09:20:41 PM »
Just checking to make sure: your potential client base is not attached to your current client base from your present job, yes? Otherwise, it seems like it could be a solid plan, so long as you're not burning bridges/engaging in unethical behavior. Entrepreneurship can be a great road to financial security. It sounds like you know your stuff.

SC93

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Re: Can't decide what to do
« Reply #5 on: November 08, 2017, 08:13:01 AM »
You are better than your competition....... TO YOU. To potential clients..... you have proved nothing yet on your own. Do you have a marketing plan?

Are you creating yourself a J O B or will you have workers?

There is a huge need for just about every service. As a matter of fact, name me 3 services there aren't a need for.

Do you have the discipline to work for yourself or own a business? <<<< There is a difference and I don't know which you are working towards.

I am all for people doing both, working for their self and owning a business but I'm also for asking real life questions before said person jumps in the water with us. :)

ChpBstrd

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Re: Can't decide what to do
« Reply #6 on: November 13, 2017, 02:42:28 PM »
How many years do you have to FIRE?

My personal decision matrix would look something like:

1-5 years: nopety nope
6-9 years: maybe
10+ years: go for it!

As your own boss, you could probably set certain boundaries to preserve work/life balance. If it really is a situation involving a ton of OT no matter what, then your time to FIRE becomes a big consideration. That is, how are you managing work-life balance over your lifetime? Is it a front loading plan? If you'll spend 4-5 years working your ass off 70h/week to build a business only to walk away when you're done in year 5, I'd skip the hassle. If, on the other hand, you've got a long row to hoe, then I'd say go for it. The maybe range reflects a tough call factoring in kids/relationships, risk, best alternatives, hatred of existing job, etc.

Fishindude

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Re: Can't decide what to do
« Reply #7 on: November 15, 2017, 07:07:42 AM »
The fact that you can't decide what to do makes me think you would be better off continuing to work for the other guy.