Confidential to business owners

[royal]

Tired of corporate thing I've been doing for last decade. I like the work, but hate working for someone else. Worth it to start my own biz? Scared of lack of stability of a regular paycheck. Where do I start? Any advice much appreciated.

[slag]

Yeah ... tell people from whom you seek advice what business you're intending to start.

[royal]

Good point. I'm a management consultant.

[KenfromCanada]

Have two business here that I am involved in. My parents and I own a golf course here, wish we still didn't, and my wife and I bought a bulk and health food store in April. Being your own boss has its perks but there are negatives as well. You no longer punch a clock, you're on call 24/7 if you want it to be successful in the beginning. Paychecks can be elusive at times and you're better not to as you'll pay tax on the income for the business as well as income tax. The business success is determined for the most part on the amount of work you're willing to put into it to make it a success. Unfortunately a good business model and and good work ethic aren't always enough. A bit of good luck is req'd as well. Not sure what you're looking into doing, try to pick a proven model or be ready to try and re-invent the wheel which doesn't always work. After years of being in a family business and owning my own I doubt very much that I could work for someone else. As my grandfather told me "the only regret we have in life are the chances we didn't take, and that its far better to have lived a life of "oh well's" instead of "what if's"

[slag]

Ok ... first tip

If it's not already, change your name to Bob

[royal]

Thanks for advice. Did research & most biz owners say it takes few yrs to turn a profit. How do ppl have that much savings to live off? I can prob get by for a year with no income coming in, but not multiple years.

[royal]

No joke most of the industry is as absurd as office space portrayed.

[Mush Valley]

Thanks for advice. Did research & most biz owners say it takes few yrs to turn a profit. How do ppl have that much savings to live off? I can prob get by for a year with no income coming in, but not multiple years.

What is that you are looking to start? Do you have experience in the business you are planning to open?

I started my own PR business about 5 years ago. I'm very good at what I do so I am able to pick up clients and perform well for them. I have absolutely zero business sense, so no idea how to grow strategically, but I've had YOY growth annually and am up to 12 retainer clients and additional piecemeal business. I suck at math so I have my wife handle invoices and taxes.

My point is - if you have talent in the business you are looking to open and connections, it's not that hard as long as you are focused and determined. Prepare to get assfucked by taxes though.

[Sugar12]

Some good points in the above. When I started my business I was in a good spot. My former company had just relocated me, sold my house for me, gave me a nice lump-sum of cash - then closed months later...Leaving me homeless & unemployed...HOWEVER - I had not one penny of debt and tons of cash...

I went from making really good money - to $24k my first year (gross)....But it got better every since and it's now at a point where I really don't have to work that hard. I blew through about $50k in savings but I am now starting to go in the other direction.

What I miss is being able to sit down at my desk and have a bunch of tasks laid out for me. Now I get to my desk and think all day - how can I make money? What do I need to do next? There's no one telling you what to do or how to do it...Which is great but it's also a challenge at times.

Bottom line - was a fantastic move. Prior to this I was working 60-70 hours per week - never got to see my daughter and my wife hated me....Now I can coach all my daughter's teams and spend a lot of time with the family....My wife still hates me though.

Don't know much about your area of expertise but for my industry (financial planning), it's all about referrals and creating a great client experience that they want to share with people they care about

[Big Little]

First off if you can do it on your own, do it.. partnerships with anyone (family, friends, twin, your doppelganger, yourself from the future) all end up ugly.. maybe not all but a shit ton do.

Secondly OUTSOURCE EVERYTHING and focus on growing your brand, it is what will make you money.

Third try and stay Strategic and not get caught up in the mundane nuances of the Tactical portion of owning a business.. too many business fail because of this.

Finally your employees are your biggest expense, turnover effects your bottom line so make sure to hire and train the top talent you can find and then keep them by offering benefits, 401k, health etc.. turnover is the second biggest killer to a business..

I do not own a business currently, working on one right now, however I work for ADP and have a ton of experience in helping owners increase their revenues.

Good luck!!

[Eagle Road]

First thing first, make sure your family or significant other (if there is one) is 100% behind the idea, because if not, at the first sign of things being tight you will hear all the "I told you so's".


Secondly, are all of your finances in order? If not pay off all of the small bills you possible can and make sure you credit is good in case you need a small loan to condense anything else you have, (obviously debt free is best), I would not recommend a loan, but there are lots of businesses that may have been successful if they only had a small nest egg to get them thru.


Thirdly, make sure you are ready to put the business first, at least in the beginning, if you think you can just rely on someone else to take care of it, you will be out of business in no time.




This is just a small sampling to get you started, for those that can hack it, there is nothing like being your own boss, BUT it comes with many strings attached.


Good luck,


Stan

[RSE]

Here's a free piece of advice. Do NOT organize your business as a single-member LLC. In New York, at least, courts will look for reasons to go through the LLC and let creditors get at your individual assets.

Have your wife or dad take a very small minority interest; you can gift them the money for an equity contribution as long as you are solvent. There will be a small increase in the fee of an accountant to keep things straight, but if you do not make it you will be glad you did it this way.

ADDED: it works in reverse too. In some states, personal creditors can force dissolution of a single-member LLC to pay for the owner's personal debts.

[thegodfather]

Tired of corporate thing I've been doing for last decade. I like the work, but hate working for someone else. Worth it to start my own biz? Scared of lack of stability of a regular paycheck. Where do I start? Any advice much appreciated.

Stared a business 23 years ago while working a great job, but just got tired of things. It was a struggle first year or two but now was the best decision I ever made. Nothing like being your own boss. Good Luck I hope it all works out for you.

[EagleInNYC]

I left a Wall St job years ago to start my own company. I'm glad I took the plunge. IMHO, here are some tips I wish someone told me:

Don't lose track of close friends and family, you will need them
Focus on customer's needs not wants
It's all about the math. Know it and own it.
Work on the stuff only you can do, delegate the rest
Get your customers to talk about you
Fire quickly. Hire slowly.
What makes your company different in 3 words
Spot opportunities that are not possible until now
Network for customers and employees
Don't get too high. Don't get too low.
Customers #1, Employees #2, Everything else a distant #3 (competitors,you)

Good luck!

[PackWest]

Good point. I'm a management consultant.

Do you enjoy management consulting ? if so, then do that and you only need a couple of clients to get started. Lower overhead and more personalized service plus you can pick your niche

If you wanna try something different- sit on the other side of the table - and help guide companies... on how to hire and work successfully with management consultants.
You know all the in & outs of the business and where all the bodies are buried. You know how the billing works and can cut through the BS. You'd be a huge asset to companies that are seeking to hire management consultants and you can help them with vendor selection, vendor performance and saving cash on the overall deal.

Its like taking a former car salesman with you when you go to buy a car...