So you want to start a business? Is it the right time?

Bubba1235

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Got into a discussion with friends last night (poker game) about starting a business. From around the table came all the negatives. The economy is in the dumps, credit is restrictive, my friends all tell me I am nuts, most businesses fail in the first year, on and on.

Ok, all this is true but the flip side of that is 47 people become new millionaires every day in the US. (US Census 2010) Obviously someone is doing some thing right. People tell me I am the eternal optimist and that has some truth to it because when I look around I see opportunities just about everywhere. I see so many of them the hard part is not allowing myself to get side tracked! (Just ask my wife.)

From what I have learned the "trick" to going into business is not the type of business, or having deep pockets, or even the economy. It's knowing your limitations and strenghts and then having faith in that knowledge and the DESIRE to succeed. I personally would have no qualms about starting a business in the current economy if I believe it's the right opportunity and will "fit" my style of management and personality. If the business is something you do not have a real like of, don't waste your time, it won't work. It really is all about YOU.

I will go out on a limb and say a down economy may be the perfect time to take the leap. In a down economy everyone is looking for ways to cut expenses. If you can find a way to do that for them you will succeed. The other side of that coin is people / business are ALWAYS looking for ways to increase sales / profits and if you can do it for them you can write your own ticket.

The point I was making to my card playing buddies is that if someone has a real desire and a basic concept that makes sense, I say go for it. The only tough part is being honest with yourself and knowing it's something you really want.

Disclosure: I've jumped on opportunities that did not work out. My take on that is you can never hit a home run if you never go to bat.
 

jkust

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Re: So you want to start a business? Is it the right time?

I think some people are just born to work for others. The entrepreneurial spirit as I have seen is something that you either have or don't. My wife and I are both entrepreneurial. My wife started a business when she was 31 after our second child was born. She just turned 36. She had a couple of failed startups in her 20's too. She vowed to not work for anyone else again. While all the other moms were complaining how impossible it would be, she started it with literally zero dollars and a telephone. She nets (banks) well into the 6 figures, all while working out of her home office and being home with our two kids. Now all those moms have stayed at home same as her but had no initiative, the kids are a little bigger and they have no prospects for getting back into the work world but want to. The funny thing is that when we meet people, the first thing they ask is what do I do for a living when they see how we live. No one cares to even ask my wife even all those moms what she does for a living or how her business is going. It is as though nobody wants to acknowledge a successful young lady. She now has people working for her. Our biggest problem we have had since she started her business is how to manage all the money she earns. I'm glad she didn't listen to all the naysayers as most were when she walked away from her job. I'll say she didn't spend a lot of time talking about it but just jumped in.
 

rbh

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Re: So you want to start a business? Is it the right time?

Disclosure: I've jumped on opportunities that did not work out. My take on that is you can never hit a home run if you never go to bat.[/QUOTE]

If you don't try, you will always ask yourself if you could have made a go of it.

Running a businness is not for the faint hearted you will have to put you hiney on the line trying to find capital for whats required (just ask me how I know)

But the way I look at it I am betting on myself, the more I work and the more I know, the better the odds I will succeed.
 

LippCJ7

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Re: So you want to start a business? Is it the right time?

the bigger you get the more you bet on others more then yourself, I would put myself up against anyone, its the others I no longer have confidence in.

Bubba your attitude is the reason why there are successful people, I wish you could put it in a bottle and sell it.
 

Tim Frank

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Re: So you want to start a business? Is it the right time?

.

Ok, all this is true but the flip side of that is 47 people become new millionaires every day in the US. (US Census 2010) [/I]

Maybe, but they didn't point out that 39 of them were billionaires the day before....;):facepalm:
 

rbh

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Re: So you want to start a business? Is it the right time?

Bubba, when I first started contracting I would have given my left one for a little mentoring (and still would).
MY step bros a carpenter, not taking his truck into consideration (because it is his daily driver as well, not just work) he has I bet less than $2000 dollars in tools. Electricians (home) plumbers (home), I bet have less than a $2000 investment in tools.
Why did I pick a industry were I am tool rich, but cash poor in consideration to other trades?????

And I need better networking skills, I find it hard to do local businness due to location, I should have set myself up in a bigger center. (hard to work from the center of no where, to much LOA required on bids)
 

jkust

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Re: So you want to start a business? Is it the right time?

IfI'll add that one of he critical things for a start up are your networkng skills. ;)

There are small business development centers at many colleges. My wife met with one at the college we both graduated from way back when. The person took a very academic approach. While the couselor wanted to do a lot of talking and meeting, my wife just moved ahead. Also there are networking groups of people who have small business that meet. They all had some crazy, quirky, unique businesses and ideas and were mostly struggling. Again, one meeting and done for my wife. A lot of talking and no action from so many people. I consider small business owners the tip top of the heap. So few do it, and fewer do it an pull it off to success. The key is to find an underserved niche.
 

Tim Frank

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Re: So you want to start a business? Is it the right time?

I think different people succeed (or fail) in business in different ways. Some are plodders and very conservative while others will jump in with both feet and devil may care attitude. My take is you have to be somewhere in the middle and be ready to play both ends. Be conservative until the right opportunity comes along and then jump in with everything you have. Yeah I know, easier said than done. :)

I often ask people that are thinking about going out on their own, "What's the worst that can happen?" In the vast majority of the cases the answer is they go back to doing what they were doing before to make a living. Now assuming they didn't mortgage the house, the car and the kids they are no worse off for having tried.

Couldn't agree more. But the list of considerations/constraints expressed by your poker pals aren't ....IMO....reasons that a business will fail or succeed, just signs of current conditions.
Unless a business is pre-destined for a short life based on product/niche life-cycle limitation (hula hoop, 8-track tape) most new businesses fail or prosper based on a pretty predictable set of criteria.
 

Summer Fun

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Re: So you want to start a business? Is it the right time?

I started a snow removal from roof's business :)

People laughed at me but I made $3.000 bucks in profits from it.

I have 1 worker that does most of the work & I payed him $13 a hour.

I say go for it !!. :). Just treat your employee right if you get one. :)
 

WIMUSKY

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Re: So you want to start a business? Is it the right time?

Mentors are in short supply to be sure but many overlook mentors because they aren't in the same field as you are. My preference is for somneone that is actively running a business and doing it well.

Most people around here are tight lipped because they want to protect their livelihood. Even if we're not in the same field they don't want to disclose information because they don't know for sure what you will do with the information. Paranoid I guess. Tough to blame them. I found out the best teacher is by doing. May take a few lumps, but you learn in a hurry.

rbh - Hey bud. My acronym knowledge is limited. Maybe because I've never texted. What do you mean by LOA? $2000 invested in a business is dirt cheap. If you already have the tools you basically have nothing to lose. To answer your "why" question, probably because you enjoy what you do.

I'm in the lawn care and snow plowing business. I work by myself. I still have $15k invested in 1 mower, only $3.5k in another, $5k in a trailer and whatever in trimmers, push mower etc. $6500 in a plow and I need to include the truck since it's either towing equipment or plowing all winter. Wont even go into the price of it. No employee overhead or storage since I work solo and out of my home. Just a fair amount of money in equipment. And that's dirt cheap compared to large companies that do the same thing. Still it's a business that's either feast or famine.

Given the state of the economy and what I do, I could be one of the first expenses people cut out of their budget. Stressful times........
 

rbh

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Re: So you want to start a business? Is it the right time?

Most people around here are tight lipped because they want to protect their livelihood. Even if we're not in the same field they don't want to disclose information because they don't know for sure what you will do with the information. Paranoid I guess. Tough to blame them. I found out the best teacher is by doing. May take a few lumps, but you learn in a hurry.

rbh - Hey bud. My acronym knowledge is limited. Maybe because I've never texted. What do you mean by LOA? $2000 invested in a business is dirt cheap. If you already have the tools you basically have nothing to lose. To answer your "why" question, probably because you enjoy what you do.

I'm in the lawn care and snow plowing business. I work by myself. I still have $15k invested in 1 mower, only $3.5k in another, $5k in a trailer and whatever in trimmers, push mower etc. $6500 in a plow and I need to include the truck since it's either towing equipment or plowing all winter. Wont even go into the price of it. No employee overhead or storage since I work solo and out of my home. Just a fair amount of money in equipment. And that's dirt cheap compared to large companies that do the same thing. Still it's a business that's either feast or famine.

Given the state of the economy and what I do, I could be one of the first expenses people cut out of their budget. Stressful times........

LOA-living out allowance (per day), usually around $125 per man in the winter, $150-160 summer (high time for hotels)
Work for us is usually within a 12 hour drive span (lots of travel time hard to compete with someone closer)

Cost comparison between trades and required tools.

Carpenters hammer-$15-$25+- VS Gmp cable lasher $6000 (1 per truck)
pick up truck new $22000+- VS telsta t40c pro bucket truck $375 000 +- new
radial arm saw $250+- VS fiber optic fusion machine $8-10 000

ETC
(and guys that do good in the contracting world are verry tight lipped on how they do things, this ain't retail.
 

WIMUSKY

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Re: So you want to start a business? Is it the right time?

It's kinda funny in a way, no matter what business we're in or how much we have invested, we all pretty much have the same goals(other than we want to make a fortune), make enough to pay the bills and have some left over to put in our pockets.
 
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