Starting a small business

[oznerol]

So I'm aware a few people on ATOT have their own companies, so I figured it wouldn't hurt to ask.

I just graduated with an EE degree, I have a couple of friends of various talents also recent graduates, and we're interested in starting a small business. We're all either working, looking for jobs, or going to grad school, but we'd like to start something in our free time. Possibly something we can go balls-out with if the opportunity would arise and we get lucky.

So business guru's of ATOT, skepticism and pessimism aside, what're some of the steps in getting something going? What's a good market to get into? How much money would be necessary for a small start-up? Etc, etc. Do any of you have any stories to share with your own business experiences? I'd be interested in hearing them.

None of us have any real money to invest in the company (at least not as much as we imagine it would take), but we do have the skills and drive to get something serious going. Don't really care if it's opening a pizzeria, comic book store, or web development company, we can handle it and we're open for suggestion - just not sure what the starting point is for this stuff.

Basically, we figure now is probably the best time in our careers to attempt this, as we don't really have any other serious commitments or responsibilites - not much to lose.

And, to get them out of the way, we aren't going to: sell drugs, sell ourselves, sell organs, or do any other garbage some of you smartasses will reply with.

Also, I'm not interested in hearing how we will fail and how impossible it is. We're aware. It's just an idea, and if nothing else, it's an interesting conversation if it amounts to nothing else.

Cliffs:
Recent grads
No cash
Want to start a company
Ideas/suggestions/experiences?

 

[essasin]

I suggest you come up with an idea first.

 

[bctbct]

mow lawns, shovel snow to raise capital?

 

[ponyo]

Originally posted by: essasin
I suggest you come up with an idea first.

Brilliant.

 

[essasin]

Originally posted by: Naustica

Originally posted by: essasin
I suggest you come up with an idea first.

Brilliant.

Thanks I knew 4 1/2 years of college would come in handy some day.

 

[God On Alcohol]

24/7 delivery service? You buy stuff that people call u to buy for em and deliver it to em

 

[xanis]

If you're actually serious about starting a buisness, you first need to come up with an idea. After you have your basic idea and buisness model down, you need to come up with some money to bankroll you're little startup. Seeing as you have no money, you're going to want to pitch your idea to investors to get the cash. After you have some money and a buisness mode; you want to get yourselves known. You better make a kick-ass website or hope to God you get A LOT of word-of-mouth advertising. Hope that helps.

 

[everman]

My idea: do something better than everyone else.

 

[Sentinel]

If you have a good idea there are a lot of people who would be willing to invest into your company. However, it does have to be good. I have read about this type of thing, not necessarily experienced it.

 

[imported_surferdude]

I started my company for the low cost of ....drum roll please......... 100.00 US

its a small pool service company and all i started with was a pole,hose ,head and truck.

started cleaning then moved on to renovations and such.

at 1 point i had 6 employees, then i got tired of all the BS with taxes IRS ect ect.

trimmed back to just myself.

uncle sam sees that i make 30-60K yr

buddy also in the buss. only cleans pools has 60 regular accounts and is all above board with IRS grosses 250K.

personnaly i dont like 20 grit sandpaper with my bend overs so i keep most customers on a CASH or barter system.

 

[Soccerman06]

Dude most banks arent going to give you a loan to start anything cause your a risk to them and you have little/no colateral, so get some. What you need to do is get an idea, then get a proper business plan, then go survey people on whether they need your service or not. DO NOT start a business without conducting those few things first, or become partners with someone with colateral. Theres much more, but i suppose you can figure it out from there (franchise easier than starting a business btw).

 

[EyeMWing]

I operated a small custom computer business - the taxes are suck and fail. Such a pain in the ass. Customers suck. Gave it up, went to college. Best decision I've ever made. And I actually did quite well, financially.

 

[oznerol]

Originally posted by: Sentinel
If you have a good idea there are a lot of people who would be willing to invest into your company. However, it does have to be good. I have read about this type of thing, not necessarily experienced it.

Who would be willing to invest in a company? How do you find these people? And what is in it for them - ie, how do they get paid and how much of our profit would go to them? How is that any different than selling shares of a company's stock? We just want a small, private business, we don't want shareholders.

I personally think the idea is less important than the execution. Whether we open a comic book store or a pool cleaning business, so long as we execute properly (and have some luck) there is always potential for success. That is essentially what I'm asking - what are some tips for proper execution of a business.

 

[troytime]

Originally posted by: ducci

Originally posted by: Sentinel
If you have a good idea there are a lot of people who would be willing to invest into your company. However, it does have to be good. I have read about this type of thing, not necessarily experienced it.

Who would be willing to invest in a company? How do you find these people? And what is in it for them - ie, how do they get paid and how much of our profit would go to them? How is that any different than selling shares of a company's stock? We just want a small, private business, we don't want shareholders.

I personally think the idea is less important than the execution. Whether we open a comic book store or a pool cleaning business, so long as we execute properly (and have some luck) there is always potential for success. That is essentially what I'm asking - what are some tips for proper execution of a business.

finding venture capitalists or angel investors is the worst
are they out there? sure
easy to get? nope

and even if you DO land some investor - chances are that after a year, that 3rd party that owns 95% of your business will take it over when it becomes profitable

your best bet - get friends and family to invest
once you have your idea, research it - discuss it with people to make it shiney and nice
start a business plan - and make it GOOD (don't use some crappy template, buy a book, follow the instructions)

take that plan to your local SBDC. they'll give you free consultation on what you need to do and how you can improve your plan. They'll also be able to answer all of your questions.

as far as the money - you will need at least 30% of the total finalcial need amount in cash. cash, not equity or other collateral.

if you need 150k, no bank will give that to you unless you have 50k of your own chipped in.

a lot of small businesses don't need that amount of capital though. if you don't need a retail store front or new building, chances of succeeding increase exponentially.

you can lease office space for as little as 300 bucks a month (including utilities).
or you can work from your basement, garage, spare bedroom.

internet businesses are great because they don't have the typical overhead - but there's a ******-ton out there, so you either gotta be really good, or be really good at marketing

try to find a niche.
try to do something new.

read the purple cow book, by seth godin

 

[RichardE]

Originally posted by: essasin

Originally posted by: Naustica

Originally posted by: essasin
I suggest you come up with an idea first.

Brilliant.

Thanks I knew 4 1/2 years of college would come in handy some day.

All that dept...the brilliance shines through

 

[Journer]

i own a computer repair business...it costed pretty much nothing to start up...its good money but the work sucks sometimes because customers are just insane...real estate is where its at

 

[Randum]

just find first of all
SOMETHING YOU LIKE TO DO
and then, come up with an idea.

I have had the provledge of starting a couple, and now working on number 2 with someone- put in as many hours as you can, and if you want it to work...you will find a way to make it work.

 

[badmouse]

Okay, whatever business you start, you have to sell something. Either a product, or a service. What you sell is pretty much irrelevant, the important part is the system.

Say that you are selling towels. The system has to include: finding sources of towels to be resold. Finding customers to sell those towels to. A way to get the towels from the source to the customers. A way to keep records of the costs/income. A way to figure out at all times whether or not you're making a profit.

And ways to deal with all the "stuff", such as taxes, insurance, licenses, VAT, disability, towels infected with bird flu, longshoreman's strikes, and so on.

So, start looking around for sources of goods to sell at a profit. Once you find something, start looking around for customers. Crunch some numbers. If it looks good, give it a test whirl and find out what the hidden downside is - all products have hidden downsides, some are manageable and some are not. (There might be a Towel Mafia that doesn't like competition . . . )

Once you start thinking like a businessperson, the pieces fall into place. You have a source for a million towels, and customers for those towels, it's much easier to walk into a bank (or empty your mom's bank account) to pay for those million towels, with a good chance of paying it back with interest. THAT is the point at which you look for money.

The questions a bank, or an investor, will ask are the questions addressed by the above. What's the cost of your goods? What's the profit? Have you figured in the (name expense here)? Have you done this before? How do you compare with other towel sellers? Etc.

Check out the SBA website, they have a lot of great informatin about starting a business.

Good luck.

 

[Sentinel]

Originally posted by: ducci

Originally posted by: Sentinel
If you have a good idea there are a lot of people who would be willing to invest into your company. However, it does have to be good. I have read about this type of thing, not necessarily experienced it.

Who would be willing to invest in a company? How do you find these people? And what is in it for them - ie, how do they get paid and how much of our profit would go to them? How is that any different than selling shares of a company's stock? We just want a small, private business, we don't want shareholders.

I personally think the idea is less important than the execution. Whether we open a comic book store or a pool cleaning business, so long as we execute properly (and have some luck) there is always potential for success. That is essentially what I'm asking - what are some tips for proper execution of a business.

Don't you have to have a solid idea in order to execute it properly? So you could start a pool cleaning comic book shop pizzaria, without a clear vision where are you going to end up?

Ah yes, that was what I was thinking of: venture capitalists or angel investors

 

[purbeast0]

I too am actually thinking of possibly starting a small business. However I was possibly going to Franchise out from another company. The other company is located in Ohio and I would have absolutely 0 competition in this field if I were to do it. I only need one of those little RMU's that you see in the middle of the mall. I am actually going to go to a mall this week and ask how much they cost to rent out and see how much it will cost me.

I have some $$ saved up from working full time that I could pay straight up for the Franchise that will get me setup, so I am seriously considering this. The only problem for me with doing so is that I have a 9-5 right now and don't know how I could manage starting up this other little business meanwhile.

 

[Panthro]

You Have a PM.

 

[Sentinel]

Originally posted by: purbeast0
I have some $$ saved up from working full time that I could pay straight up for the Franchise that will get me setup, so I am seriously considering this. The only problem for me with doing so is that I have a 9-5 right now and don't know how I could manage starting up this other little business meanwhile.

Only way to be successful is to try.

 

[iwantanewcomputer]

wait...you do't have a buisness plan, a technology, an idea, or even know what field you want to do buisness in?

may the force be with you

 

[Epic Fail]

Buy low, sell high.

 

[PingSpike]

Originally posted by: surferdude
snip

Not judging you or anything, but personally I'd advise against admitting to tax fraud in any medium...including this one.