Starting Your Own Business - Inspiration/Turning Or Breaking Point

[wj4]



As someone who's both worked for the man and had my own business what's most important is- DO WHAT YOU LOVE. The money will follow.

Everytime I check into this thread, I feel more motivated.

I already know that my turning point will be soon. Like others have stated, I'm scared because I will be going from a stable job with great benefits to a venture that does not gaurantee a stable income and worst case scenario is I lose everything. I feel like the time to do it would be soon because I'm still in my mid-late 20s and can recover from a lost quicker than if I were to already have a family.

I've talked to a few respected professors who have/had their own businesses and they stated the same thing as you, Steve B. You need to do what you like and the money will follow. Those who do what they enjoy become great at it. And the greats in all fields, be it sports or doctors or whatever, make great salaries.

Steve B: If you don't mind me asking, what is your business? You can PM me if you don't wish to disclose the info publically. I always try to connect with members who have stories and lessons to share as I find them valuable.

 

[Imhoff]



Personally I do it for the excitement, and the money it has made me over the years is good as well. The first business I set up went spectacularly bankrupt and I was completely wiped out for a few years but it taught me an awful lot of lessons that helped me subsequently. The biggest lesson was was manage your cashflow obsessively, you can have a huge paper profit and still be dead if you don't have cash. Applying that lesson in later startups made sure they worked. I am an adrenaline junkie, I actually enjoy the startup phase, once the business is running happily I get bored and move on to the next one. The startup is about surviving until the first big break and praying it comes before the money runs out!
The only other things I would say is never set up a business that relies on the weather (although the skiing business was fun), and if you are in the UK use the Small Firms Loan Guarantee Scheme - it's the cheapest insurance you will ever buy.

Great anecdote. You bring up an important lesson in that if a business does fail or doesn't achieve what you were hoping is to learn and not be discouraged. In fact, one little startup up business I got involved in with a couple friends was a little self-serve carwash. The business failed in spectacular fashion, but I walked away with a greater knowledge of what was done wrong, and hopefully, to not repeat it. I cannot say the same with a couple of the other guys involved, as they were too hot headed and focused on their anger of the carwash failing.

 

[Imhoff]



Everytime I check into this thread, I feel more motivated.
I already know that my turning point will be soon. Like others have stated, I'm scared because I will be going from a stable job with great benefits to a venture that does not gaurantee a stable income and worst case scenario is I lose everything. I feel like the time to do it would be soon because I'm still in my mid-late 20s and can recover from a lost quicker than if I were to already have a family.
I've talked to a few respected professors who have/had their own businesses and they stated the same thing as you, Steve B. You need to do what you like and the money will follow. Those who do what they enjoy become great at it. And the greats in all fields, be it sports or doctors or whatever, make great salaries.
Steve B: If you don't mind me asking, what is your business? You can PM me if you don't wish to disclose the info publically. I always try to connect with members who have stories and lessons to share as I find them valuable.

I have the exact same feeling that you are having. Been working for "the man" since I was 15. And advancement has been "stagnent" to say the least.

I feel you are absulotely correct in that being so young gives you the ability to bounce back from something that may not take off. Once you have a family and settle down, it becomes almost impossible to risk their future as well as yours.

 

[paradoxical3]

I have a debilitating independent streak and simply won't be able to work for anyone I don't respect. With a startup, if I fail it's because I screwed up, but if I succeed, it's because I did a good job (and of course, luck, opportunity, etc, but you know what I mean). That appeals to me.

 

[Rockwell]

Personally, I think in the real world, there are many misconceptions.

Do what you love: Sure, but within reason. I make money doing things that I'm not necessarily passionate for, but it gets the bills paid and it allows me to afford the things I want to do. Some people say they will take a pay cut for something that they love to do, which is fine, but personally, I say work is work and hobbies/passion is separate. I'm not saying to go out and get a terrible job just to make money, but consider this...If you like cars, you can go work as a valet, or you can make something of yourself and be a car collector.

Don't make money for other people: I understand that you don't want to make money for someone else, but that is a poor mentality for someone who really wants to make it. When you work for someone else, you can analyze the organization from the inside out. You can get valuable information and experience that you can't get from the outside. I'm not saying to steal ideas and stuff, but you can gather a great amount of knowledge that will be invaluable to you.

Only those who have money can make money: Totally false. Those with money earned it just like anyone else who has money, hard work. Usually people who are successful have incredible work habits and practices. Claiming that you need money to make money is a lazy way of making excuses for your failure.

You can't take risks when you're older: You can, if you're taking calculated risks and you have a recovery plan.

my 2 cents.

 

[ImaPro]



Only those who have money can make money: Totally false. Those with money earned it just like anyone else who has money, hard work. Usually people who are successful have incredible work habits and practices. Claiming that you need money to make money is a lazy way of making excuses for your failure.

Within reason you do need money to make money. You can start from scratch but its gonna be ******* hard, and odds are you won't make it very far.

 

[paradoxical3]

Within reason you do need money to make money. You can start from scratch but its gonna be ******* hard, and odds are you won't make it very far.

My opinion is somewhere in the middle - the thing is, you need something usually, but only enough to develop it to the point where you can ask investors for more. People tend to think "Oh woe is me, only millionaires can start businesses!" That's just not true.

I started with $10,000 that was partially from me, but mostly borrowed from family. I realize that is an advantage that some people don't have, but I also feel $10,000 is not such a huge sum of money that it is unattainable. I used that $10k to flesh out the idea and prove the feasibility of the design, which enabled me to borrow enough to actually launch the business and complete the prototype. Now we're in the middle of closing an angel round, and this will give us significantly more room to breathe.

Even if you can't come up with several thousand on your own, if it's a good idea that is truly profitable, all you have to do is show someone who has money that it will work. 99% of businesses aren't self funded entirely; so I feel that the mantra "it takes money to make money" is tired and overused.

 

[jpierceny]

To have the freedom and financial security that only owning your own business can provide.

 

[vanDiem]

I'd say take risks and be sure about your product, owning a business is very satisfying.

 

[Gus]

Everyone I know had to use savings, credit cards, borrow from friends and family, take out a second mortgage on the house, etc., to make their new enterprise happen. By doing so, you are putting your name and reputation on the line. It creates stress yes, but it is also motivating. I know it was for me.

 

[DHall806]

I'm thinking about making the jump sometime soon for all of the reasons above. Naturally I'm a bit frightened by the uncertainty of it all. But I like the idea of having my own office where I can snort coke whenever I want.

That is freaking AWESOME!!

 

[nootje]

I didnt want to put anyone's money on the line, so we didnt except our own.
Have yet to get that first client though....

The motivation for all three of us was that the opportunity was there, its a great market for the coming years, and I doubt that anyone else will want to jump into it.

 

[Maximator]

I absolutely hate being told what to do by others, so I don't do well at all in a hierarchical system. So I wanted to be able to make my own decisions. the second part was the money. Not so much the absolute amounts, but I slowly but surely started to hate the idea of working my but off to make someone else rich. I figured if I'm going to work hard, it might as well make ME rich.

The turning point came when I found a very reliable business partner that wanted to start a company with me. Currently we're getting started with building prototype facilities, which is something I enjoy very much as it involves me working with my hands again. I also have complete freedom to whatever I want whenever(and obviously the responsibilities that entails).

 

[Relentless]



Within reason you do need money to make money. You can start from scratch but its gonna be ******* hard, and odds are you won't make it very far.

I could not agree more. Unless you are going to go out and sell your body on the street (as some of you probably do / wish you could), you are going to need some amount of money to get inventory, equipment, licensing, floorspace, raw materials, etc. In my business, you cannot even place an application with the state unless you have $25,000 and a surety bond with the state as the beneficiary. Anything that pays well takes money and hard work to get going and be profitable, IMHO. Even if you are going to do the most basic thing, such as lawncare, you need a transportation, a lawnmower, and some fuel. Have a great day gents and let's make some ******* money!!!

Cheers,

The Relentless One

 

[Osqua]

Figure out what you really need to live, including taxes, and then add 10% or so and make that your salary. DO NOT spend anything in the business account on anything other than business. If you are in a bind, you can loan yourself some money but pay it back and don't make a habit of it. Think of your accounts and the business accounts as two completely different entities. It takes discipline but you can do it.

This, and more covered in a great little book on the topic. If you can get your hands on a copy of "The Knack" by Norm Brodsky and Bo Burlingham do it.

Its all basic stuff for those looking to start up a business, and a good resource to keep for the occassional reality check along the way.