Hi anyone here actually bought a business or started up one from scratch? Were you afraid to go out from current employment what were your thoughts and feelings. I am getting prepared to take the plunge and buy a ongoing business. Just want to get everyone's thoughts and ideas on how they would of or have tackled it.
Hi there Slowly but surely I am starting my own very small (but fun) business of designing little kids t-shirts with funny slogans on them. Although this is something I am building up during the Winter months to target sales for the Summer months its something I looked into a fair bit before I began. I started with something I was interested in and loved doing - I am quite artistic and love designing and I love little kids funny clothing. I then asked around my mums groups and friends to see if they would purchase that kind of thing and what they would pay. I worked out the expenses in producing a single item (which will be tshirts to begin with) so that I knew how much I would have to charge as I wanted to keep prices low as it can be a competitive market - particularly with eBay out there! Long story cut short - go for something you know but something you have a passion for so when the going gets tough your drive and determination to see this succeed keeps you going and gets you over those hurdles. My little business is meant purely for a tiny bit of side income to pay for my accounting education - but the possibilities are endless and my old employer used to tell me anything is possible really and he was so right! If you are going for an ongoing business go and see your accountant or advisor with all the figures so they can give you their perspective on things, and perhaps dont put all your eggs in once basket. It depends what sort of position you are in really. Good luck and remember you will never know of you never try! Alysha
I work with other people's businesses everyday. They are all retail businesses, food, fresh food, fashion, homewares etc etc. The lack of understanding and naivity of some of these people running a business is astounding. Some advice: Read every single contract / agreement associated with the business. Don't just be told about them, read them, understand them. Test the turnover of the business, perhaps ask for audited statements of turnover prepared by a qualified independent accountant. Same as above for the operating costs of the business. Perhaps consider using a business consultant that specialises in that area ie Food Changes for a food retail outlet. Test everything and believe nothing the seller tells you.
You might not have to quit your current employment? Why not just start on the weekends? Slowly build it up, even take one day of your holidays each week so you have a 3day weekend or something like that.
In my experience the doldrums of 9-5 tend to put a lot of gloss on the opportunity to buy a business. Trouble is at that point you don't realise just how hard it is to deal with all the crap that doesn't make money when you have a business, running an SME, and just what an easy path that fortnightly pay cheque is in comparison. My advice would be make sure you have an absolute passion for what it is you're about to leap into, so your life is substantially improved, rather than just buying another job. The passion will maybe bring the success, rather than the balance sheet and P&L being offered by the seller. And there aren't many businesses you can buy that you can't build yourself, in my blinkered view. I agree with Meggsy's comment ... Try to keep the regular pay cheques from employer coming in while using every spare moment to build the biz on the side. Then maybe reduce to 3-4 days per week at full time employer, put the other time into the business. When you are confident it is income replacement and enjoyable at the same time, pull the pin So many small businesses fail. Very few truly good businesses are 'sold' (if they're so good, why are they selling ... other than the usual marketing excuses of 'ill health forces sale' etc!) We have had mates buy high turnover industrial businesses with books 'cooked' so cleverly no one noticed for a year. Like investment in general, having a strategy is all important - for the migration from full time employment and the competitor / SWOT analysis / all the usual stuff for your business. If buying a business is purely to escape a day job, beware, is all I can suggest - 'cos you get a day job and all the responsibilities of the boss as well, if you don't set it up correctly Cheers Carl
All fair comments. Having done it now a couple of times the important issues are: 1. back your own ability 2. research and know your stuff. If possible specialise. This will differentiate you from your competitors 3. Try to avoid too much debt. loan commitments can put undue pressure on your business and influence your decisions 4. Be prepared to not earn much for 2 years 5. being in business is NOT as prestigious as many think. The buck stops with you. 6. You are now in sales, marketing, admin, debt collecting, bookeeping, cleaning, receptionist etc etc 7 The most important thing to remember is that you will only get out of it what you put into it. If you want to work 9-5, 5 days per week the chances of fast success are diminished. Good Luck NickM
Wow ! Now there's a post that will save you the $X investment in Small Business Guru seminars. (although Nick, is "boo"keeping something to do with the scares around each corner ;-) ? )
Oh, and behind every good businessman is generally a good woman that keeps them in line and does the bookkeeping. (& visa versa of course) Particularly relevant for some ! No names mentioned NickM
I thought the saying was : "Behind every successful man is a surprised woman". Also relevant for 'some' ;-)
When I was 17yo I decided that my employer was charging out my computer repair work at $80 per hour and I was only getting $320 per week, sooo If I could just get 6 hours chargeable labor per week I would be in front and spend the rest of my days at the beach! I quit my job and put an Ad in the yellow pages on credit for $1500, I got calls got some money in it was a struggle but I am 30yo now and have a net worth of over 32 Million cents hehe actually maybe less let me get the calculator. Should have stayed working and built up some funds then got into it! Ive been on the verge of my big break through for ten years now. I do well from a programming business and digital signage software I have developed AdServe Digital Signage - AdServe Digital Signage and have just bought of all things a fish and chips shop to run with my gf but………………. If I had even just $20ph for all the work I have put in over the years I would be waay in front. If you get into business you have to realise that its going to be very very hard, you cant get sick you cant take any time out you cant give up, not until you have made it and if making it only means you will make a risky 150k per year its not even worth it.
So, are you saying that you would rather still be working for your employer if he was paying you 150k, as opposed to running your business? What about the freedom of choice that you have been able to give yourself?
I agree that there are risks involved with running your own business, also some people are better off working for wages. However, it is generally more satisfying both personally and financially to be self employed. I've been working for myself for about 10 years and have a few businesses now, I work pretty hard, but can take time off whenever I want and I have assets (the businesses) which are valuable and saleable. I can't imaging working for anyone else.
Nope, you gota be in it to win it! employment and carrer advancment dont suit me, I have a huge upside available to me just need to make it happen. What I was saying is that there has to be a huge reward atainable, Its no use mortgaging the house to start a business that could only ever provide you with a slightly above average income when there is always the risk of failure/burnout.
