Any of you out there looking to give advice? Im looking for some mentoring and insight on starting a business. Ive started drafting a business plan, based on info and research ive found online but just would like to hear some thoughts on personal experiences from those who have been there and started a business of their own. Any thoughts are appreciated.
Business owners
- Thread starter derockgt
- Start date
Do you have carnal knowledge of the industry in which you are going to start competing in?
I have a base knowledge. Also have supply chain/logistics and procurement knowledge.
I never understand why everyone who post on here asking for business advice never specify what type of business they are starting. Everyone on this site is a millionaire already, so no worries they'll steal your idea, lol.
Input can vary widely depending on business. What kind are you starting OP?
Input can vary widely depending on business. What kind are you starting OP?
Best piece of advice I can give is that the business eats first. If you're expecting or requiring to pull a paycheck immediately, you'll likely fail.
A lot of truth in this. Also plan on the first 2 years being hard, it's true that most fail in the first two years.
Edit:
Another thing to ad, is if it's a service type business. Don't live job to job. Have some money on the side to take into account slow/non payers. I have a customer now who owes me a few grand and get the joy of sending it to collection/court process in 15 days.
Last edited:
borrowing makes the first 2 years even more complicated. What percentage will you be borrowing? It's best to use your own money, 100% if possible. You can't assume you will make ANY money the first two years. Assume you will be breaking even.
The best advice I can give you: DO NOT START YOUR OWN BUSINESS. There's a reason so many new businesses fail. If you want to start something do it on the side and when it grows large enough quit your job.
The best thing you can do is hire a broker and find an existing business for sale in the field you want to enter. You'll have a paycheck on day 1, employees and equipment that are already dialed in, and a business model that's already been hashed out and producing money. At that point all you need to do is figure out how to make it grow.
The best thing you can do is hire a broker and find an existing business for sale in the field you want to enter. You'll have a paycheck on day 1, employees and equipment that are already dialed in, and a business model that's already been hashed out and producing money. At that point all you need to do is figure out how to make it grow.
Now that seems like a good idea!:read: thanks
All it takes is purchase money and the front-end ability to run a business. If you have these, wade in.
dude, WTF are you talking about? :nonono:
obviously owning a business isn't easy. But if you understand the market and the customers, you can make it happen....as long as you have the initial investment.
+1
Some people just can't hack it. Being a business owner takes time, patience and know how
Statistically survival rates of new small businesses is abysmal. But hey, this is SVT where we all beat the odds when they're stacked against us
So tell me genius, which is you best option. Take a 20% chance with your livelihood or save up a for a few years and buy a business where someone already took that chance for you?
http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/
"According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn."
Yup, a lot of people will jump feet first into a business and if it isn't booming right away, they fold up. Know a couple who I tried giving advice but they knew better and few months later they were back to working for the man.
Statistically survival rates of new small businesses is abysmal. But hey, this is SVT where we all beat the odds when they're stacked against us
So tell me genius, which is you best option. Take a 20% chance with your livelihood or save up a for a few years and buy a business where someone already took that chance for you?
http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/
"According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. A whopping 80% crash and burn."
Starting a business isn't a guaranteed success. Buying a business is just as risky. Your employees and customers can bail to a competitor if the owner was the only reason they stuck around.
I saved a lot of money by starting my own business and not buying one. Not to mention the ability to pick and choose your staff, customers (just because you have customers, doesn't mean they are the kind you want), and bookeeping.
It's not and keeping customers and employees is the tricky part. I wouldn't say it's just as risky because statistically it's not.
Generally a mass exodus customers is due to changes in quality but if it's done right they don't need to know the company has changed hands.
Employees are harder to deal with. Most are afraid their jobs are in jeopardy so I've found that it's best to be completely honest with them. The ones that leave are always cancerous employees to begin with and I've had very few of those over the years. Most are excited for a change of pace and growth. I have an entire speech about my history as a business investor that's done a great job at quelling employee fears over the years.
That's funny because I have.
Learning the business is the only way to ensure success. Absentee owners never, and I mean never, work. In the beginning it's a scramble to learn something new, that's why you retain the old owners as part of the contract for a specific time along with a withholding of the purchase price that's contingent on a measure of success. It gives the old owners both legal and financial incentive to ensure your success and gives you a timeline to learn what you need to know. That's all part of doing due diligence.
If you think you're the exception than by all means play that lottery. Even more conservative data shows over a 50% failure rate. Romanticize it all you want, those are horrific odds.
Last edited:
Agreed, but we're forced to work on assumptions because every person who ask this question, is secretive about what it is they're trying to open for some reason.
Users who are viewing this thread
