Hello,

I was laid off recently and have thought about getting out of the oil and gas industry all together at this point. I've been through 11 layoffs in 17 years and ive been fortunate to survive all of them except this one recently. I thought about trying to start a business of some sort and wanted some advice from those of you that have been successful doing so. Below are some things about me that might help you with any advice. I would also love to talk with someone about getting into a business to avoid mistakes or pitfalls, sorta like a mentor if you will. I have a wife and 3 young children so ive been reluctant to get in too deep in case the business failed.

42 years old
The Woodlands, TX
3 kids and wife
Been in O & G, so that's what I know but am open to other industries at this point.

Please let me know of any other items that would be good to post.

Thanks in advance for your advice!

SS

First question I would ask of someone coming to me about starting their own business:

From this point, how long can you survive off of savings? 3 months? 6 months? 2 years?

This is going to dictate quite a bit.

Huntsman Corp is in the Woodlands. I retired from there. It’s chemicals, not oil and gas, but they might could use you.

My Older Brother retired from there also.

Good company....but they have occasional lay-offs as well.

I started work in 1977, I worked for two companies my whole life, the reason it’s two is because the company I work for now kept offering me a job, and I would be close to home.
I have had other successful businesses, the whole while keeping my full time job.
I have two sons in oil and gas and I hope what happened to you doesn’t happen to them.
I am in construction and my other businesses have been agriculture, cattle, hay, poultry.
I worked seven days a week for a lot of years, but I enjoyed it.
The only advice I can give is whatever you decide give it your all, you get out what you put in.
Good luck.

If your gonna go into business and feed you and your family you will have to go in deep

Economy is still pretty strong believe it or not, Going into business suxs the first few years, during the building years.

I would try to have one year of income stored away to pay bills or have access to one year of income

Good question. Quite a while as we have large amount in the checking account and savings account with a few hundred thousand in company stock that can be cashed out at any time if we had to access it. I don't want to do so though until next year due to income this year. Also, received a good amount in severance when I was laid off.

We have our house paid off and no other debt, so we have been wise financially.

Thank you, it's just hard when you dont have experience in that field. No one seems to want to hire that...

Well I hope the business you are considering is something in O&G that you are familiar with. I have had my own business since 2007 (also in O&G). Prior to starting it I worked in that exact same field from 1994-2007. Business is very competitive. Probably one of the most competitive things there is in my opinion. I think that a large percentage of the businesses that fail are ones where someone who has little to no experience in that industry and decides it would be a good idea to start a business. If you are not an expert at whatever your business does then you are going to get stomped by those that do. I can't stress this enough.

How you handle money is huge. If your spending habits have anything to do with when you get paid you are going to have difficulties running your own business. You will need a large cash cushion for the slow times. In my 15 years in business I have had a few stretches where the business didn't bring in a single penny for 2-3 months but I have also had months where we profited more in that month than I made in several years at my job.

You will work way more hours at your own business than working for someone else. It is often hard to let things go and relax. At a job when it is time to go home you really don't worry much about work related things because it isn't your problem but with your own business it never stops. That is probably one of my biggest struggles. I have a hard time just relaxing and not thinking or worrying about business stuff.

Great advice Sewer Rat, thank you a bunch!

O&G is broad. What's your skillset?

^ ^ ^ ^ THIS IS AS TRUE AND ACCURATE AS ANYTHING EVER WAS ^ ^ ^ ^

I've seen a good many businesses in every industry fail because of unqualified employees and management and
ownership. A good many restaurants of different kinds that were in business for years that were sold because
the owners got old or sick or died or just had money piled up until they couldn't resist selling. Other different
businesses as well. The automotive industry that I worked in for so many years is a good example as well.
Too many think that their business degree will carry them wherever they decide to go.
Probably won't get any better before I check out

What part of O&G were you in?

I haven’t seen many liquor stores that went out of business. I could open one here and make a killing if I wanted to mess with it.

Upstream O & G as a Landman - and/or Land Manager. Been in both management and contributor/negotiator roles.
Essentially, the in-house business side to get the wells drilled. Lots of negotiating skills along with contract negotiations/executions including but not limited to data trades, acreage trades, expert witness at the oil and gas divisions, presentations to executive management and work with geologists and engineers for any economics for the trades/acquisitions/divestitures/vertical well mitigations.
I could go on but that's the gist.

We wear a lot of hats... there's always something going on when you get into the office.

Consider the distribution side with CenterPoint. Maybe measurements if you have pipeline experience.

Seems like there would be an opportunity as an independent landman/consultant?

Have you thought about the title business. Partner up with an attorney and open a fee office. With your experience, that seems like it might fit.

You have the fundamental covered then

Go for it, from my past experience don't get into any business that deals with anything that can die or perish.