Starting a new business

[DoubleF]

Originally Posted by undercoverbrother

I worked for myself for 3 years. I made very good money, but my quality of life sucked. The office was always "on". Every vacation was spent pushing work forward, there was nobody to cover.

After 3 yrs my wife told me to find a new job or a new family. I was a horrible and grumpy #######.

Now 5 years down the road I have a great life/work balance. Work does suck at times, but it sucked when I worked for myself.

You bit off more than you could chew, no?

IMO, sometimes, maintaining good business means you have to turn away business. Maybe you have a pain in the butt customer who can literally affect your ability to service other customers. Those customers are not worth keeping long term. They don't appreciate the work you do for them. In the same vein, sometimes you do business where you lose money for good business.

Sometimes I think business owners forget that they have the right to say no as well. The customer isn't always right. If you can't handle their job due to your business capacity or they're a waste of your time, let someone else take it.

[Locke]

Originally Posted by troutman

Consult with an accountant asap.

I hate to (so obviously) state the benfits of a good accountant, but when it comes to business its very important. Most people start a business because they want to do the very first thing every decent business school tells them to do:

Do what you're good at and stick to your core competencies.

For many people that isnt accounting. But as an accountant I've helped start a lot of businesses, but at the same time I cant tell you how many I havent started. Talk to someone who has done this a lot before you get started. It will save you time, money and stress.

Also if your accountant doesnt land at your workplace in a helicopter you should fire them! Fire them immediately! We have a reputation to maintain!

[Muta]

Originally Posted by Locke

Also if your accountant doesnt land at your workplace in a helicopter you should fire them! Fire them immediately! We have a reputation to maintain!

That commercial is one of my biggest pet peeves.

[undercoverbrother]

Originally Posted by DoubleF

You bit off more than you could chew, no?

IMO, sometimes, maintaining good business means you have to turn away business. Maybe you have a pain in the butt customer who can literally affect your ability to service other customers. Those customers are not worth keeping long term. They don't appreciate the work you do for them. In the same vein, sometimes you do business where you lose money for good business.

Sometimes I think business owners forget that they have the right to say no as well. The customer isn't always right. If you can't handle their job due to your business capacity or they're a waste of your time, let someone else take it.

You could be very correct.

I will say that I am happier now, and my home life is better and that is what matters.

[Locke]

Originally Posted by Muta

That commercial is one of my biggest pet peeves.

I love it. Its so ridiculous.

I mean, I've never been in a helicopter but I once checked an expense account for a client and spoke with the holder and distinctly remember the conversation as:

"You know how expensive helicopter rides are because you've seen the account, you dont take anyone unnecessary."

And you know who is unnecessary in any helicopter I can imagine? An accountant. Unless you're the accountant for Jurassic Park or something.

[troutman]

We know what happened to the lawyer in Jurassic Park.

[mikephoen]

Hmm, I guess no one liked my advice. Maybe it is a terrible idea. Please disregard!

I'll stand by my suggestion to go for it though. You'll never know unless you try!

[Locke]

Originally Posted by mikephoen

Hmm, I guess no one liked my advice. Maybe it is a terrible idea. Please disregard!

I'll stand by my suggestion to go for it though. You'll never know unless you try!

I dont know. I think in some context your advice is okay, except it isnt really simulating the real thing.

As someone who has worked countless jobs, I always knew I was cut out for self-employment. It didnt matter how many other jobs I had, I didnt care. Its just a job. Not a career. I wasnt invested.

Now, I fully admit that this was during a time when employment in Alberta was ridiculously plentiful. I wasnt going to starve or anything, but these were just jobs, they were a means to an end. Gain experience where you can and then move along.

So just getting another job to see if you can physically and mentally deal with the additional hours, while helpful in some ways, isnt really the same.

When its your business, your livelihood, your day to day living, its a whole other world of stress and responsibility. Its not like picking up a few hours a week at the local 7-11.

I dont feel that its really about the hours, I feel that its about the emotional and mental investment. Thats something that people have a hard time with.

Oh, and a great partner. By that I mean wife/gf that is understanding about the hours and stress. Not a business partner, those are a nightmare, never do that.

[Russic]

Originally Posted by heep223

Terrible advice.

Working for the man can be extremely rewarding, depending on who the man is and what the work is.

And working for yourself can absolutely be soul sucking.

This may be my favourite comment/avatar matchup.

[Locke]

You're the man Mike, I still need to come by your place. I used to love that place when I was a kid!

[DoubleF]

Originally Posted by mikephoen

Hmm, I guess no one liked my advice. Maybe it is a terrible idea. Please disregard!

I'll stand by my suggestion to go for it though. You'll never know unless you try!

Well, there is no set way to start/run a business other than to set and end goal of more revenue than expenses.

I think I get where you're coming from (could be wrong). If you're working at a business on the side and making money, then go ahead full bore without much change in the workload. But if not, then a bird in the hand?

I've seen the business side of owning a business through a family business. It's so easy to take any issues with the business personally and get all bent out of shape and waste time and resources trying to fix something that isn't worth it. It's like taking criticism. Constructive criticism, consider it and improve. Negative criticism, consider it to see if there is something to learn, if no, ignore it. Because once you resolve the issue, they'll find some random thing (that's not even serious) to nitpick.

But back on topic...

In all seriousness snowshoe. Just go ask a few business owners their story. Not advice, story. Listen to their successes and failures and figure out your own route. Mimicking someone isn't going to do you any good. You learn from their mistakes of course, but following someone else's path step by step is not often something that will bring you true success. Carve out your own unique path.

[snowshoe]

Originally Posted by TurdFerguson

Why do you need a business plan? Going for financing? My experience has been they are generally a waste of time based on BS assumptions that you are forced to make. That said, the process of thinking through your idea in the context of the business realities and market challenges, which is often what creating a business plan forces you to do, to some extent, is very valuable. Do you need to formally document that? i don't think so.

what kind of business is it? Consumer product, professional services, etc? there are a number of fantastic resources in calgary for this but it really depends on what you're doing.

It's a consumer product. I'd want to do the plan for myself just to get some prospective numbers lined up and get the best game plan I can together.

[snowshoe]

Originally Posted by DoubleF

Are you in Calgary snowshoe? I don't know if you qualify for the following, but I think the following is worth mentioning anyways.

Depending on your situation, a local non-profit has workshops regarding self employment that may benefit you (free if you qualify). I'm not sure if you want reference material, mentoring etc., but this organization could possibly help you. They have a micro loan program as well (if you qualify) that may help you jump start your business as well. It does take about 10 weeks before the business would be launched, but you'd continue to be in the program for a bit after it.

Momentum (the organization) is located less than 10 minutes outside of downtown. Just follow Memorial drive East.

http://www.momentum.org/self-employment




Full disclosure: I am not part of this organization and have never used their services. I just have a friend who works there.

Again, I don't know if this program is right for you and this program might not be necessary for you to get your business off the ground. Either ways, good luck on your endeavor.

I don't qualify at the moment but who knows what'l happen with O&G in its current state! Think I'll still check it out though, sounds like a good program

[Phanuthier]

Originally Posted by snowshoe

I don't qualify at the moment but who knows what'l happen with O&G in its current state! Think I'll still check it out though, sounds like a good program

I work in a series A funded startup that has one of its applications in O&G. Surprisingly, the price of oil really has no bearing on O&G as a customer. A BP and advising is helpful, sometimes you have sell a quarter for 20 cents to get some traction... this is where a VC helps.

[Winsor_Pilates]

Stop listening to most people and surround yourself with a few people who really get it. Make these people your core group that you go to every time business struggles arise and you need advice.

Majority of people will not like you for stepping out of the "normal" 9-5 life and trying to start your own business.
For some reason, most people have a strange animosity towards you for breaking the mold.

Finding a mentor is a fantastic idea, but will depend on your business and contacts for where you do that.

[snowshoe]

Originally Posted by DoubleF

In all seriousness snowshoe. Just go ask a few business owners their story. Not advice, story. Listen to their successes and failures and figure out your own route. Mimicking someone isn't going to do you any good. You learn from their mistakes of course, but following someone else's path step by step is not often something that will bring you true success. Carve out your own unique path.

That's what started me thinking about it. I helped a friend out with expanding his business and some of the stuff I learned in 1 meeting with him and his IT guy started me wondering if I could be a business owner. I like this idea of just meeting with other business owners and get their story. There are a few other people that I want to meet with for the tech side and a partner to help with the work load!

[snowshoe]

Originally Posted by Phanuthier

I work in a series A funded startup that has one of its applications in O&G. Surprisingly, the price of oil really has no bearing on O&G as a customer. A BP and advising is helpful, sometimes you have sell a quarter for 20 cents to get some traction... this is where a VC helps.

A VC? what's that?

[Northendzone]

I hope your idea is not a restuarant that specializes in making boiled potatoes, as I have studied this market for years and to me there is a demand for this type of restuarant, and I hope to be in a position sometime in the next few years to open up a chain of these and hopefully franchise within two years.

My other small business idea is a car wash - all I need is the money to open one

[DoubleF]

Originally Posted by snowshoe

A VC? what's that?

I think he is talking about a Venture Capitalist. AKA Angel investor. Shark Tank/Dragon's Den (show) should be an idea how this works. Great series, worth watching.

Start up money +connections and business guidance not from a bank usually in exchange for a percentage of your business.

[DoubleF]

Originally Posted by snowshoe

There are a few other people that I want to meet with for the tech side and a partner to help with the work load!

Be VERY VERY careful with potential business partners. Similar in nature to a dating relationship, if the relationship with this business partner goes sour, it could very well tear the company apart. Learn how to protect yourself and the business interests. If anything, get said individuals to help out as contractors first. If they share the same enthusiasm as you and aren't looking at this project as a "get rich when it gains traction" scheme, consider them then, but not right away.

IT guys are often more than happy to work on contract for money. Don't give them half the company shares! (Seen/heard this before. Guy thinks the idea is hot stuff, technically owns the program and idea takes their work and starts and new company)
If you need help on workload, get a secretary to deal with nitty gritty and pay her a salary.

Again, be VERY careful with business partners, this cannot be stressed enough. They could do nothing and still cash out huge on your business even though you did all the work.