TheSamba.com :: View topic - Who Has Started their Own Business and what to expect?

Wed Jun 11, 2008 1:30 pm

I was told yesterday that it takes $1M just to get a letter head in today's world.

Wed Jun 11, 2008 5:47 pm

DaveM wrote: I was told yesterday that it takes $1M just to get a letter head in today's world.

Does the guy that told you that live in his parents' basement? That sounds like something a cellar-dweller would come out with.

Wed Jun 11, 2008 6:21 pm

DaveM wrote: I was told yesterday that it takes $1M just to get a letter head in today's world.
Kinko's can do it cheaper.

Fri Jun 13, 2008 6:25 am

coad wrote: If I had it to do over again I don't think I would start a business. I'm not complaining, the money's been good, and there's a lot of good things that come with it, but as you get older the matching 401k and the medical and dental plans and all the other things that don't seem important when you're in your 20's or 30's are suddenly very big deals, and it takes a lot of money and planning to even begin to try to duplicate those things when you're self-employed.

I was talking to a banker the other day, and he quit the FDIC to become part-owner of the bank where he works. He has pretty big piece of a small bank, he's making good money, he seems to have it dicked. I mean, you look at him, and you think he's in a great position.

He sat down and showed me how much he would be making and how good his retirement and benefits and all would be right now if he had just stayed with the Government, and how close to retirement he would be, and by the time he got done, it really was a coin toss whether he made the right move.

Thats the best bit of shared wisdom and wake up call so far on the subject right there.

My added perspective is that if you are seriously considering a full time operation, you first really have to know yourself well. That first means you will need (and will have to tap into alot) truly unrelenting passion for what you do. Not just an initial liking or an interest in the area, or some means of convincing yourself its better than your day job/boss, or that you perhaps see $$ signs, etc., those are tiny subset reasons for choosing to start your own gig.

You will need the kind of unequivocable and unshaken level of passion like when a focused teenager tells you that they are going to be a doctor and nothing ever gets in their way and you see it in their eyes. Anything less than you wanting to aim for a similar bullseye everyday (even when you don't feel like it or don't feel well) and the odds of success are way stacked against you.

You next need to be willing to do any job related to your business, the support of it, nomatter how trivial or dirty etc, at any hour of the day or weekends when necessary, particularly when building your business. Also your parents, spouse, partner, kids, etc. must be completely on board, spelling out the worst case scenarios way ahead of time and rehearsing them so the expectations are clear, just to keep the emotions and resentment factors in check much as possible, and its only a question of how much those issues will rear their head, its not an if.

Also, watch your rear view mirror. That means nomatter how much your dependents and partners/family think you might be available for them, its not going to happen, and often, and usually at the worst times, even when you made them a prior comittment to an event or something. Even if you are there you will be thinking elsewhere, and it won't get unnoticed. As the saying really goes, when you run your own business you are really married to that first. So you'll have to work at paying attention to those you care about, and be proactive about it best as possible.

Specifics now. I wasn't ever a kid or an adult that knew what they wanted to do, and actually hope I never do, but I also know what it takes. So when growing up in the very early 80s, instead of going to art or music school which is what I wanted, I chose instead to go to engineering school, since tech was hot in this area, and it was a way to "ride the wave" and make money. And as my granparents told me over and over, "go and get the money while its available since it usually becomes scarce quickly and for a long time", best piece of wisdom right there.

But, if you are the least bit adventurous then, riding the wave of innovation is where to go if you aren't close to being like that teenager wanting to be a doctor. Why, because you might end up making a ton of money (or at least get comfortable enough) that will allow for you to do anything you want to do potentially a short time later, even if you muck it up a half dozen ways during and after, trust me on that.

Problem today though, is that where is that wave? Seems like its all been done right? If you choose to go after yet another service business, its usually crowded, competitive, and customers expect almost unrealistic prices, and they can shop around the net or by phone and will play everyone against each other. So get out of ANY commodity level business thats out there. But again perhaps if you do have the passion for it, the staying power, to outlast your competitors that can't hack it and dropout, then maybe you might make it, maybe.

My opinion therefore, only go after finding the wave. The real first one is if you are not willing to up and move to China and learn that language and engage in business there somehow in dozens of ways, then the second wave here in the US is in green energy. If I were to do it all over now even at 43, I'd be involved in either working for (to learn it), then starting, running, and eventually selling off an established, solar energy, wind, or geothermal combo energy business.

States and the fed govt are making alot of free money available to incent folks to convert over, and even the states themselves will be spending millions of tax dollars to convert every municipal builiding over to solar, and there are not anywhere near enough installer like businesses out there to manage it all, to collect the bucket loads of what is essentially budgeted for tax money. There are also plenty of well to do folks out there that can and will convert their own homes, and you wouldn't be able to get them all at this point even if you lived 2 lifetimes. So that is the wave now and in the future here, so the earlier you get in the better you will do, and the quicker you can get out and then go and do whatever you want. You'll usually need a decade or two to figure that out anyways so why not go after the wave.

So even if you don't have a deep passion for green energy, its at least a business that has integrity and can be proud of, high cool factor, its good for the earth, its a win-win all the way around, no other time than now such a great opportunity existed. The passion is likely to self-feed itself anyways when you are going after mulitiple rights.

On the flip side if that doesn't cut it for you, definitely start a part time business in addition to your day job, as really even now and in the future you won't really have a choice in order to consider affording to retire somehow anyways. Best suggestion though, FOCUS SOLELY on finding a us mail job or a state of fed job of some kind that will pay you a pension. Even the clock punchers down at the DMV are going to get nice pensions and health care, and do much better than folks who look rich today in the long term. I ask the DMV gals I see down there about it everytime I'm down there, they are just counting the days and hours until they can retire, they hate it (and they make sure you know it too)but you can't beat a good pension and health care. Some get in a place like that at 20 something and are out by 40ish, and then doing whatever they want to stay busy, same goes on at the post office. Sure they aren't the sexiest of jobs but all things considered they are the best choice for most average folks.

Trust me though on another thing, that one day you will wake up and be 40 and wonder what the hell happened, and then ask what the hell do you have to show for those years? Then the concept (or the panic) of retirement and having enough will bat you in the face like being hit with a 2x4.

So the clock is ticking, and if you aren't the type willing on your own to go at least 12+ hours a day and 7 days a week for months on end, for perhaps years or until you give out, then please please go and find a state of fed job that will cover you for a lifetime and likely make you live longer anyways. The future costs of retirement and healthcare in the next 8-20 years are going to explode, and for younger folks today I can't see any way to prepare for it either than being deeply involved in real needed innovation, or by "getting in" (as they say) to a state job. The world isn't a fair place, the rules change all the time, and to some degree you have to play within those changes to your best advantage.

Good luck folks, just opinions based on countless hours of my contemplation and observations from everywhere I can gather them.

Fri Jun 13, 2008 6:34 am

EverettB wrote: DaveM wrote: I was told yesterday that it takes $1M just to get a letter head in today's world.
Kinko's can do it cheaper.

I told the guy I could do a lot more with his $1M investment.... then again, I don't have much faith in venture funds.

Fri Jun 13, 2008 6:57 am

EverettB wrote: DaveM wrote: I was told yesterday that it takes $1M just to get a letter head in today's world.
Kinko's can do it cheaper.

:lol:

Fri Jun 13, 2008 4:05 pm

Be prepared for change. What you think will happen, may not happen, and opportunities will come from places you didn't anticipate. The big things you sweat over won't turn out to be your biggest problems, it's the ones that blindside you that are most difficult to resolve, and it happens more frequently than anticipated. Save you money for a rainy day, problems you can't forsee can be very harsh without funds to keep going thru a tuff spell. Relationships can suffer. A business is much like a small child, requireing an incredible amount of attention. Not everyone shares your desire to build a business. It will certainly test your relationships. Find something that means enough to you that you can tolerate all the crap that accompanies operating any business. Don't forget about taxes and social security, you get to pay all your social secuity now. It takes much more income to exist as a business than most people think.

Fri Jun 13, 2008 4:30 pm

All these posts and nobody has said how to count your money , You really need to know how to count all that money you have as a self employed person. I mean I have a hard time keeping track of all my money. :roll:

That is the funny part about being self employed everybody thinks you are loaded. :lol: :lol: :lol: If i had half the money people think I have , I would be doing really well. :lol:

Fri Jun 13, 2008 7:44 pm

i found this link for you....

http://app1.sba.gov/sbat/index.cfm?Tool=4

Fri Jun 13, 2008 11:45 pm

On the top of the list is people owing you money.

Sat Jun 14, 2008 12:54 am

#1. Employees suck. Excuses. Theft. I wouldn't even do it if it means someone else counting your money. Calling in sick gets very old.

#2. Disloyalty sucks more. Don't take any of your current employee's customers or build off of him. Karma sucks as well (or whatever you want to call it). Your current employer has trusted you enough to pay you.

#3. Do something you enjoy. No amount of money is worth your being miserable.

#4. You usually don't make as much money as you planned.

#5. Get used to the idea of your stepping out to do something new, take a serious risk, make investment, yet the gov't gets a good cut of everything you make. Even more so than before. :evil: Your SS alone goes from 7 1/2% to the full 15.

#6. I'm sure some will disagree...but protect your property and possessions and incorporate. Don't forget a little insurance goes a long way.

#7. Work hard and enjoy it!! It's still better than working for someone else!!! :wink:

Sat Jun 14, 2008 5:32 am

My wife and I bought a sandwich shop in March. Haven't made any money yet, seasonal people aren't here yet. Have to have at least $50k in the bank to make it through the winter. It's freaking scary! We get all freaked out because we ourselves aren't getting paid yet. All bills are paid, all employees get paid, all taxes get paid, We use a payroll co. so we don't get all fecked up with the tax man. We are still confident that we'll make it, even after freaking out. We get customers actually calling back after eating a take out order raving about how good our food is. How often does someone call for a compliment? The previous owners menu is a great menu but he let the store get filthy. The health dept. thought we bought new equipment, no we just thoroughly cleaned and painted the place. Lots of good advice here. Don't screw around with the taxman, just pay it and don't procrastinate on it. Don't hesitate to hurt an employees feelings if said employee has screwed up, but be the kind of boss you would like to work for. Did I say don't screw around with the taxman? That is one of the main reasons start up business's fail. That and drugs, especially in the restaurant business.

Everyday is like a Saturday when you work for yourself. You have shit you have to do and you do it in the order that suits you, not the way some clown, that hasn't a clue, wants you to do it.

Sat Jun 14, 2008 7:21 am

I would wait till the economy gets a little better, I own a well known cabinet shop thats been around 50 years and am able to keep steady work coming in, but its not crazy like it should be at this time of year, and I see a lot of businesses struggling and going under in our area, I'm having to downsize myself, its a very scary time to own a business. Unless its something that people really NEED and not a luxary item you are selling, I would get all your ducks in order and wait till the economy picks up, whenever that might be :roll:, and then go for it

Sat Jun 14, 2008 7:54 am

BigHerc wrote: I would wait till the economy gets a little better, I own a well known cabinet shop thats been around 50 years and am able to keep steady work coming in, but its not crazy like it should be at this time of year, and I see a lot of businesses struggling and going under in our area, I'm having to downsize myself, its a very scary time to own a business. Unless its something that people really NEED and not a luxary item you are selling, I would get all your ducks in order and wait till the economy picks up, whenever that might be :roll:, and then go for it US business history is rife with examples of companies that have started during "down times" and have flourished. Maybe you're in a crappy area, but where I am, businesses are going strong.

Sat Jun 14, 2008 8:38 am

People with money always have money. The economy doesn't scare them as it scares people like me. Provide a service that people with money will use. The location of our restaurant is in a summer vacation destination. The highest density of summer rental cottages for Cape Cod is reportedly in our village. There are also lots of second home owners in the area. Nan is a licensed real estate agent and the word is that all the cottages are booked for the season. People can pay for gas to get here or lose their deposit, I think they'll come, the deposit is usually way more than a couple tanks of gas, even an SUV at these prices. We only do breakfast and lunch, people will skip expensive dinners and go out for breakfast/lunch instead, least thats what we're hoping.

Sat Jun 14, 2008 8:54 am

Icy wrote: BigHerc wrote: I would wait till the economy gets a little better, I own a well known cabinet shop thats been around 50 years and am able to keep steady work coming in, but its not crazy like it should be at this time of year, and I see a lot of businesses struggling and going under in our area, I'm having to downsize myself, its a very scary time to own a business. Unless its something that people really NEED and not a luxary item you are selling, I would get all your ducks in order and wait till the economy picks up, whenever that might be :roll:, and then go for it US business history is rife with examples of companies that have started during "down times" and have flourished. Maybe you're in a crappy area, but where I am, businesses are going strong.

this is true but it takes a large financial backing to do this in order to keep it going until its well established, a lot of small business's simply don't have these means. I am centralized in LA and yes competition is very high here in CA, there's a cabinet shop on every other corner.

Sat Jun 14, 2008 9:41 am

financial institutions don't loan money as easily when the economy is slow. A business has little credit strength until several years of operation.

Sat Jun 14, 2008 10:03 am

The best credit we could get from vendors, with a personal guarantee sig. and that was 2 weeks past delivery date. Most gave us 1 week, some wouldn't give any, they will get none of our business. Ever. We will stay loyal to those that stuck their neck out for us, unless of course their prices get stupid in comparison to others. No matter how good you think you are doing live like you are poor for at least the first year. Thats our plan anyway.

Bill

Sat Jun 14, 2008 10:32 pm

Lots of good info in this thread.

One of the big reasons I started mine was because I don't want to work for an employer and I don't want employees.

Sat Jun 14, 2008 11:04 pm

I work harder as a business owner than I ever did as an employee. I put in more hours and I also have the "worry". I worry about income all the time, which is weird because I'm sure I have the only business on here that is garunteed customers until the judgement day.

I've got 2 side jobs that I do in my "spare" time for extra $$. One is a self employed type job that is fun but a lot of paper work. The second is working some shifts for a friend in his business. After killing yourself at the office dealing with everything that comes with being an owner sometimes its nice to just turn your brain off and go punch a register or stock shelves for someone else.

If I ever get wealthy enough not to work I think my dream job would be flipping burgers in a diner just to have fun.