Back to a W-2: When Business Ownership Isn't the Way

March 23, 2023
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amon Chlarson was a guest just over a year ago.

He acquired an insulation wholesale business.

Well, late last year Damon decided to take a job, returning to traditional W-2 employment.

Part of this decision was driven by his sales tanking in Q3 of last year as the real estate market stalled out. Damon needed income to ensure he could continue servicing his SBA loan. Pretty scary.

But part of it was also what Damon had learned about himself.

Sales actually came back in Q4, and came back strong, so his business is healthy enough now that he could re-devote himself to it full time and leave the W-2.

But over the course of 2022, Damon realized that he just didn't enjoy the lifestyle of the business he'd acquired.

He missed structure. He didn't like working from home all day. He was driving his wife crazy.

So what's so interesting here is that Damon spent a lot of 2022 improving the business he'd acquired, and doing so successfully. You'll learn the many levers he pulled.

But he still ultimately decided that it wasn't for him, a decision that I think you'll agree is both courageous and self-aware.

And I think this is one of the hazards of buying a business that hasn't been covered enough, including by this podcast.

Put aside fundamentals & financials of the business for a second; you also have to like it.

Because imagine, you buy a business, have a personal guarantee for a million, three million dollars, and realize on day 120 of the transition, eesh, I really don't like doing this.

You can't just walk away.

So not liking it, not liking the day to day, is also a big risk.

Fortunately for Damon, he's got his business essentially on autopilot. But I'm sure there are others out there not so lucky or competent.

There's a lot to learn from this follow-up with Damon Chlarson, owner of Pacific Insulation Supply.

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Back to a W-2: When Business Ownership Isn't the Way

Damon Chlarson takes a job in tech sales, despite having improved the business he bought & surviving a tough year.

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Key Takeaways

Introduction

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D

amon Chlarson was a guest just over a year ago.

He acquired an insulation wholesale business.

Well, late last year Damon decided to take a job, returning to traditional W-2 employment.

Part of this decision was driven by his sales tanking in Q3 of last year as the real estate market stalled out. Damon needed income to ensure he could continue servicing his SBA loan. Pretty scary.

But part of it was also what Damon had learned about himself.

Sales actually came back in Q4, and came back strong, so his business is healthy enough now that he could re-devote himself to it full time and leave the W-2.

But over the course of 2022, Damon realized that he just didn't enjoy the lifestyle of the business he'd acquired.

He missed structure. He didn't like working from home all day. He was driving his wife crazy.

So what's so interesting here is that Damon spent a lot of 2022 improving the business he'd acquired, and doing so successfully. You'll learn the many levers he pulled.

But he still ultimately decided that it wasn't for him, a decision that I think you'll agree is both courageous and self-aware.

And I think this is one of the hazards of buying a business that hasn't been covered enough, including by this podcast.

Put aside fundamentals & financials of the business for a second; you also have to like it.

Because imagine, you buy a business, have a personal guarantee for a million, three million dollars, and realize on day 120 of the transition, eesh, I really don't like doing this.

You can't just walk away.

So not liking it, not liking the day to day, is also a big risk.

Fortunately for Damon, he's got his business essentially on autopilot. But I'm sure there are others out there not so lucky or competent.

There's a lot to learn from this follow-up with Damon Chlarson, owner of Pacific Insulation Supply.

About

Damon Chlarson

Damon Chlarson

Show Notes

Damon Chlarson takes a job in tech sales, despite having improved the business he bought & surviving a tough year. 

Topics in Damon’s interview:

  • Damon bought Pacific Insulation Supply, an online wholesaler
  • Difficulties in scaling the insulation business. 
  • Overview of sales in the first year 
  • Getting a regular W-2 job again 
  • New systems he put in place at the business 
  • Training his sales team
  • The challenges of working from home
  • How he runs a business with bipolar disorder
  • Fluctuation in demand for home renovations 
  • Managing a sales team in the Philippines

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