The Money Mustache Community
Learning, Sharing, and Teaching => Entrepreneurship => Topic started by: KarefulKactus15 on January 19, 2019, 01:05:05 PM
-
Just as the title says. I want to see how many people took the risk and regret it.
Ive read several books about starting a business and the importance of keeping start up cost low.
Ive been following MMM ways for years, I have years (Not ideal but I'm DCA ing the funds into the market) of emergency fund saved up... etc etc... Financially stable, that's the picture I want to paint.
But everyday , week after week, year after year I spend all my time making money for someone else at MEGA-corp instead of pursuing financial opportunities that interest me. (Ive kept a word document of every business idea or invention Ive ever had since about 2008)
My current opinion is that I'm pissing away life, too scared to take any big risk (Like leaving the same job Ive had since graduating college), with no justification for that fear.
SOMEONE CONVINCE ME I'M WRONG!!
- I want to hear from the people on this board who lost everything pursuing entrepreneurship and ended up with nothing and regret ever taking the risk. (I imagine I wont find many?)
-
Your bigger regret will be not trying. Its really that simple.
Start small. Do it on the side and see what happens.
-
Speaking for a friend...
Seriously, I had a friend who started a business and went through agony. He bought a two-screen movie theater that had recently closed in the small town where he worked, and reopened it. He was convinced that with better management (him) and the sweet low lease price he negotiated, surely he would succeed. Holding on to his day job, he spent many hours refurbishing the tatty movie hall, opening for business, and doing everything from taking tickets to picking movies to cleaning the bathroom. The agony part was a combination of losing sleep from the 90 hour weeks and financially losing his butt.
As the bills mounted and failure clouds grew larger, he convinced himself that with more work, he could turn this thing around. He quit the well paying job he'd had for ten years. Two or three months later he reached the point where even he had to admit the thing was hopeless. He closed the doors, moped in depression for months, and grimly avoided creditors.
"I should have listened," he said, "when my friends who owned businesses asked if I had enough of a plan." He'd gone into the whole thing on a shoestring. Now he didn't have enough money to even declare bankruptcy - couldn't pay a lawyer. Sadly, he never again got a job that paid as much as the one he left. Despite being broke, he found a decreasing succession of lower paying jobs. Gradually he drank more and worked less until he reached the brink of homelessness. Meaning, he would have been homeless except relatives took him in for year or two until he got cancer and passed away.
Strictly speaking, he didn't say that he regretted taking the risk. It seems that he was glad he tried, just embarrassed at how badly it went. Also strictly speaking, I can't prove what he felt, because he didn't discuss it that often. He was a bit incensed later though when he found out that that same theater had closed five times before!
I support the suggestions to have a well researched plan with limited risk. That said, your Mustachian abilities make me feel your outcome will be better than my friend's.
Then again, we will all be even when we're six feet under. So if you want to start a business, do it now while you can!!
:)
-
.
-
You've already had some great advice about starting small, low cost, and on the side rather than diving into it full-time straight away (which would be throwing all your eggs into one basket).
Make sure you find the MMM article where he describes his nightmare of a business/partnership failure and use it as a cautionary tale. Don't let it put you off giving it a go, though :)
-
.
-
I don't regret starting my own business, what I regret was picking shitty business partners/investors and underfunding it so it was crippled from the start. I also regret hanging on too long until I felt physically and mentally broken at 30 years old. I would absolutely do it again (and I plan to) but on my terms, with a much better funding plan and quicker payback. Don't just jump in, do your research and have an exit plan!
-
Funny you mention a 2 screen cinema. Not anything im pursuing, but I did ponder to myself how a micro cinema might work. Small cozy environment with alcohol and decent food? Run classic/ older movies for a date night crowd.
I looked into the cost and hassle of obtaining new films and I dont see how any small cinema survives. . .
-
+1 for the start it on the side advice. If that's an option of course. I've always enjoyed my job, but having a side gig I'm 100% in control of has been a lot of fun and a lot of learning. It's not always positive learning, but it's still learning!
-
Take a look at the acquisition entrepreneur book. If the point is to have a good investment and make money, I would encourage you to think about something boring like buying an HVAC company from a retiring boomer that does 2M in sales, while providing the owner with $400K/year. You could probably buy that with an SBA loan and 150K down. https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q
Like you, I day dream about starting other businesses. I probably have 20 URLs for future businesses. But as I reflect on my own experiences working with small businesses, it seems like the tremendous opportunity is to buy a dysfunctional, profitable business and then make it better.
The side projects and starting small are good for freelancing/selling a service, which is totally a viable and wonderful way to go. But it's a bit different than trying to build wealth through owning an asset.
The mistake I see my friends make when they start their businesses is that they do things other than get customers. Until you have a customer it doesn't count. My buddy spent more time picking out which van he would buy for a handyman business that never got off the ground, than actually doing the uncomfortable work of finding customers and pitching his services.
-
I've started or been a partner in a bunch of businesses over the decades. I'm glad I did them all, even the ones that failed.
https://forum.mrmoneymustache.com/entrepreneurship/swordguy's-entrepreneurial-odyssey/
(https://forum.mrmoneymustache.com/entrepreneurship/swordguy's-entrepreneurial-odyssey/)
But that's because I not only had a plan for how to succeed, I made sure I always had a plan for failing forward. That means that if I failed, I wouldn't fail in such a way that it would prevent me from trying again.
I know other people that regret going into business, but most of those had their egos in the way of having a "fail forward" plan and implementing it before the business trashed their future.
-
I'll share my failed business from about a decade ago and my thoughts on it years later.
My wife and I had been consultants in an unrelated field (at a life sucking mega corp). We were pretty young and were completely tired of where we were living (LA), what we were doing (life sucking mega corp work), and decided to jump out. My mindset at the time was a whatever it took.
My wife loves to cook so we decided to buy a catering business out of state (we'd been there on vacation and liked it) with little business knowledge and some capital to buy but unbeknownst to us at the time, insufficient operational capital.
Our adventure lasted about a year: my wife ran the cooking, I ran the books and sales (we both worked on the side as well doing some consulting in old business) and I think if the year hadn't been 2008 we might have had a shot.
The big take away from the experience was that 1) certain industries are very cyclical and dependent on the economy, 2) you need a lot more working capital than you think, 3) it was hard but very fun.
Interestingly, we both pivoted well after that incident. I went back to working in the old industry but at a much better company and with a confidence for sales was quickly able to get into a much better position than before. My wife moved to teaching where she felt her efforts better reflected her values (helping others). The hard financial lessons we took (nearly went bankrupt before reselling the business to the former owner) laid the foundation for our current fiscally prudent behavior.
Overall, while it was a failure I don't regret our choice. We escaped LA, the bad jobs we were in, and reinvented ourselves (although differently than we had imagined at the time). The amount of confidence and skills you will learn as an entrepreneur are nearly impossible to replicate any other way. When you face great pressure you tend to grow and that we certainly did.
Good luck, regardless of your decision.
-
I've had a few in my time, from things that were really no more than sidehustles to a cafe and a retail store. What I've learned is you need hard work, a willingness to do the dirty work and a good business model. No matter how much of the first two you put in, you will never overcome a crappy business model. The second thing I've learned is that you need multiple sources of income. Yes, I had a cafe that made money from food. I also rented the kitchen to another business overnights, and I was a hub for a bike courier company. Yes, I had a retail store.... but I sold online as well as to walk-ins, and I took orders to source products for people.
The guy with the movie theatre probably had a crappy business model. He could have hired out space for community type groups or churches, he could have hooked up with a video producer and shown wedding vids on anniversaries for private groups, or held graduation ceremonies or held small screenings for local filmmakers. Hell, he could have specialised in popcorn flavours that couldn't be found anywhere else except for that theatre and online sales from it's website. Could have replaced all the seats in one theatre with bean bags and become the go to place for standup comedy and beer. It's all about thinking outside the square.
-
The mistake I see my friends make when they start their businesses is that they do things other than get customers. Until you have a customer it doesn't count. My buddy spent more time picking out which van he would buy for a handyman business that never got off the ground, than actually doing the uncomfortable work of finding customers and pitching his services.
This. So much This. If most entrepreneurs worried about finding paying customers half as much as they worried about the paint color, the logo, the business title, the business cards, how to write-off every penny of business expenses, the carpet color.... then they would either a) be fine, or b) realize they didn't have a viable business model. Sadly, I only know this through experience and occasionally forget it.
-
Take a look at the acquisition entrepreneur book. If the point is to have a good investment and make money, I would encourage you to think about something boring like buying an HVAC company from a retiring boomer that does 2M in sales, while providing the owner with $400K/year. You could probably buy that with an SBA loan and 150K down. https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q
Like you, I day dream about starting other businesses. I probably have 20 URLs for future businesses. But as I reflect on my own experiences working with small businesses, it seems like the tremendous opportunity is to buy a dysfunctional, profitable business and then make it better.
The side projects and starting small are good for freelancing/selling a service, which is totally a viable and wonderful way to go. But it's a bit different than trying to build wealth through owning an asset.
The mistake I see my friends make when they start their businesses is that they do things other than get customers. Until you have a customer it doesn't count. My buddy spent more time picking out which van he would buy for a handyman business that never got off the ground, than actually doing the uncomfortable work of finding customers and pitching his services.
I need to check that book out. While it's great to start a side hustle trading my time for money, the ultimate goal is to manage assets that aren't mostly my time.
-
It was 6$ on Kindle so I got it. Liking it so far. In the first 20% it's addressed a dilemma I have that's been holding me back from business.
-
I just recently went the route of buying an existing business with an SBA loan. It's only been 3 months but so far absolutely no regrets. I would caution about buying a business that you couldn't run if all of your employees quit on you on the same day. Either buy something you can run on your own in an emergency, or if you buy that HVAC business, learn HVAC ASAP.
Be smart about it and remember that cash is king in the beginning.
-
Interesting topic. I want to do sewing handmade linen. And I think to start from the Instagram page. Ie with minimal investment. But advertising and promotion can pull a lot of expenses and time if you do it alone. A bit scary. But I want to try. This can be a good start and an opportunity to understand whether I like this kind of work.
While just starting. But I already see that there is both demand and competition. And psychologically scary.
The main thing is not to go with the sole purpose of income, but also a favorite thing.
*IF* that's your goal.
There's nothing wrong with starting a business for the sake of profit. A lot of people are very happy running very successful businesses that provide a service or product that they don't even care that much about, but they may love the business side itself.
There are also PLENTY of people who love the service/product they provide who absolutely HATE the business side of it.
It's absolutely NOT a given that everyone needs to love their business subject matter to love owning a business. It all depends on your priorities. For some, yes, it's critical, for others, not so much.
-
I wouldn't mind managing other peoples money for a cut. That sounds like one of the better businesses.
-
I just did the math and realize now that if I had just stuck with my job/general field instead of starting a business almost 10 years ago, I could be FIRE'd now. I also would have likely saved myself a lot of stress and sleepless nights.
Despite that, I don't regret it. I've learned so much more than I could have ever imagined and I absolutely love being "the boss". At least now when I make mistakes, they're my own fault and I don't feel completely powerless like I did in my old job.
-
I've always wanted to own my own business and finally started last year. We've around the same age. I'm doing well in my career, but not everything I'm specialized in is something I get to use in my day job, so I've started a side hustle (basically sort of consulting) where I can use all the skills I have. I'm just starting so I have no idea if this will work out or not, but even if it's never going to bring in a serious income, I can imagine it will still look well on my resume in the future: it shows I've kept my skills up to date, that I'm a self-starter with an entrepreneurial streak (to use the current buzzwords).
My ultimate dream is to quit my day job in a decade or so, when I'm around 40 and hopefully barebones-FI, and supplementing my investment income with my business income until I can or want to retire. I like what I do so I can imagine I don't want to completely quit working in this field for a long time. A day job just takes up too much of my time.
I can't imagine regretting starting this business, because start-up costs were low. I'm not against taking risks, but if you start the type of business that you need to invest a lot of cash in, you really need to make sure you are aware of all the potential consequences and make sure you never invest everything you have in a business.
-
I just recently went the route of buying an existing business with an SBA loan. It's only been 3 months but so far absolutely no regrets. I would caution about buying a business that you couldn't run if all of your employees quit on you on the same day. Either buy something you can run on your own in an emergency, or if you buy that HVAC business, learn HVAC ASAP.
Be smart about it and remember that cash is king in the beginning.
I'd love to hear more details about how you found the opportunity, evaluated it, and pulled the trigger. What was your experience with the SBA? Did you have technical expertise in the biz you bought? Kind of a thread hijack, but you're doing exactly what OP is contemplating.
-
I just recently went the route of buying an existing business with an SBA loan. It's only been 3 months but so far absolutely no regrets. I would caution about buying a business that you couldn't run if all of your employees quit on you on the same day. Either buy something you can run on your own in an emergency, or if you buy that HVAC business, learn HVAC ASAP.
Be smart about it and remember that cash is king in the beginning.
I'd love to hear more details about how you found the opportunity, evaluated it, and pulled the trigger. What was your experience with the SBA? Did you have technical expertise in the biz you bought? Kind of a thread hijack, but you're doing exactly what OP is contemplating.
Sure. The original decision to buy a business started after working for a couple of similar businesses. After managing these companies for several years I realized that I was really good at it. Seeing how much money I was making someone else, and then watching them blow though it, made me finally decide to take the plunge. Constantly busting my ass for clueless owners who drive up in brand new sports cars just wasn't working for me anymore.
I looked at several, and in the end didn't go with the one that had the best numbers, but the one that I believe has the most potential. It's still early, but so far so good.
The SBA was.......exhausting. Between the SBA, and the bank, and the attorney, and the broker it was crazy. I REALLY started to second guess things. Honestly there were a couple times that I wanted to back out but I kept thinking that if those clueless fools in their shiny infinitys can do it, damn it so can I.
-
I think jumping ship and starting/buying a business is generally terrible advice. It's highly risky and most businesses will fail. Do I regret taking the risk? No. Because I didn't really take a risk. I worked on my business in the evenings and weekends. I failed at many ideas over 10+ years until finally developing enough experience to create something that works. It took me 6 months after getting it rolling to quit my job and work full time on the business.
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
Management is nuanced, of course. Some owners really are dumb. The business was a hand me down, etc. I think my advice, however, would be this is a VERY incorrect way of looking at things when you want to go out on your own and start a business. The best thing you can do is learn from those who are already doing it successfully. Maybe they don't know HR that well, so who cares... focus on what they DO know that helped get the business to where it is. This "owners an idiot, I'm doing it myself" is so counter productive. I sometimes disagreed with the owner when I was working, but that was never my focus. That was minor. I acted more like a sous chef and soaked up every little thing I could. When I was finally out on my own, I also realized the owner was smarter than I gave him credit for. Anyways. If someone wants to go out on their own, then assuming the owners already successfully doing it are all idiots is about the worst approach I can think of. I can assure you that my staff think I make stupid decisions all the time. It comes with the territory. My bank account and the huge success of my business suggests otherwise. And I learned from another person who the staff thought made dumb ass decisions all the time... my view has been that of a student and having respect for those who are more successful than I am. It's a much more productive state of mind.
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
Management is nuanced, of course. Some owners really are dumb. The business was a hand me down, etc. I think my advice, however, would be this is a VERY incorrect way of looking at things when you want to go out on your own and start a business. The best thing you can do is learn from those who are already doing it successfully. Maybe they don't know HR that well, so who cares... focus on what they DO know that helped get the business to where it is. This "owners an idiot, I'm doing it myself" is so counter productive. I sometimes disagreed with the owner when I was working, but that was never my focus. That was minor. I acted more like a sous chef and soaked up every little thing I could. When I was finally out on my own, I also realized the owner was smarter than I gave him credit for. Anyways. If someone wants to go out on their own, then assuming the owners already successfully doing it are all idiots is about the worst approach I can think of. I can assure you that my staff think I make stupid decisions all the time. It comes with the territory. My bank account and the huge success of my business suggests otherwise. And I learned from another person who the staff thought made dumb ass decisions all the time... my view has been that of a student and having respect for those who are more successful than I am. It's a much more productive state of mind.
On the whole, I completely agree. I run do any changes past people expected to enact those changes, however. I've been schooled on things I haven't thought of SOOOOO many times by doing this. The fact is that I might know the theory but I'm not doing their job. They can see much further around the corners in that regard than I can. Just taking the time has saved me so many issues down the track, as well as showing respect for my employee's jobs and experience. Of course, there's a certain resistance to change that's normal. The point is that owners and staff are doing different roles and have different priorities, and both can learn from the other.
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
Management is nuanced, of course. Some owners really are dumb. The business was a hand me down, etc. I think my advice, however, would be this is a VERY incorrect way of looking at things when you want to go out on your own and start a business. The best thing you can do is learn from those who are already doing it successfully. Maybe they don't know HR that well, so who cares... focus on what they DO know that helped get the business to where it is. This "owners an idiot, I'm doing it myself" is so counter productive. I sometimes disagreed with the owner when I was working, but that was never my focus. That was minor. I acted more like a sous chef and soaked up every little thing I could. When I was finally out on my own, I also realized the owner was smarter than I gave him credit for. Anyways. If someone wants to go out on their own, then assuming the owners already successfully doing it are all idiots is about the worst approach I can think of. I can assure you that my staff think I make stupid decisions all the time. It comes with the territory. My bank account and the huge success of my business suggests otherwise. And I learned from another person who the staff thought made dumb ass decisions all the time... my view has been that of a student and having respect for those who are more successful than I am. It's a much more productive state of mind.
On the whole, I completely agree. I run do any changes past people expected to enact those changes, however. I've been schooled on things I haven't thought of SOOOOO many times by doing this. The fact is that I might know the theory but I'm not doing their job. They can see much further around the corners in that regard than I can. Just taking the time has saved me so many issues down the track, as well as showing respect for my employee's jobs and experience. Of course, there's a certain resistance to change that's normal. The point is that owners and staff are doing different roles and have different priorities, and both can learn from the other.
Employee feedback can be very helpful. I agree with that! My experience though is that the feedback is more often about making their jobs easier with very little concern for the effect it has on the business and rarely something that actually has to do with making the business more successful. Every business is different, however, so obviously there are different circumstances where front line feedback is crucial.
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
Management is nuanced, of course. Some owners really are dumb. The business was a hand me down, etc. I think my advice, however, would be this is a VERY incorrect way of looking at things when you want to go out on your own and start a business. The best thing you can do is learn from those who are already doing it successfully. Maybe they don't know HR that well, so who cares... focus on what they DO know that helped get the business to where it is. This "owners an idiot, I'm doing it myself" is so counter productive. I sometimes disagreed with the owner when I was working, but that was never my focus. That was minor. I acted more like a sous chef and soaked up every little thing I could. When I was finally out on my own, I also realized the owner was smarter than I gave him credit for. Anyways. If someone wants to go out on their own, then assuming the owners already successfully doing it are all idiots is about the worst approach I can think of. I can assure you that my staff think I make stupid decisions all the time. It comes with the territory. My bank account and the huge success of my business suggests otherwise. And I learned from another person who the staff thought made dumb ass decisions all the time... my view has been that of a student and having respect for those who are more successful than I am. It's a much more productive state of mind.
On the whole, I completely agree. I run do any changes past people expected to enact those changes, however. I've been schooled on things I haven't thought of SOOOOO many times by doing this. The fact is that I might know the theory but I'm not doing their job. They can see much further around the corners in that regard than I can. Just taking the time has saved me so many issues down the track, as well as showing respect for my employee's jobs and experience. Of course, there's a certain resistance to change that's normal. The point is that owners and staff are doing different roles and have different priorities, and both can learn from the other.
Employee feedback can be very helpful. I agree with that! My experience though is that the feedback is more often about making their jobs easier with very little concern for the effect it has on the business and rarely something that actually has to do with making the business more successful. Every business is different, however, so obviously there are different circumstances where front line feedback is crucial.
Again, this is true. People also tend to react against any change, good or bad. I see it as a balancing act. These are my frontline staff, my primary contact with customers. If they're not involved in decision making about things that directly impact their day to day tasks, then I open the door to resentment and the potential to lose customers rapidly. Not to mention lose staff rapidly. Explaining why and taking onto account feedback, and generally keeping staff members involved in the business is the path I choose to take. I think I've had more good ideas from staff than self-interested ideas, honestly. And you have to remember that often what makes an employee's job easier also makes the customer experience smoother. The amount of timesome little pointless tasks I've removed because of employee feedback is astounding. It's less BS for them and less time and BS for the customer.
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
Management is nuanced, of course. Some owners really are dumb. The business was a hand me down, etc. I think my advice, however, would be this is a VERY incorrect way of looking at things when you want to go out on your own and start a business. The best thing you can do is learn from those who are already doing it successfully. Maybe they don't know HR that well, so who cares... focus on what they DO know that helped get the business to where it is. This "owners an idiot, I'm doing it myself" is so counter productive. I sometimes disagreed with the owner when I was working, but that was never my focus. That was minor. I acted more like a sous chef and soaked up every little thing I could. When I was finally out on my own, I also realized the owner was smarter than I gave him credit for. Anyways. If someone wants to go out on their own, then assuming the owners already successfully doing it are all idiots is about the worst approach I can think of. I can assure you that my staff think I make stupid decisions all the time. It comes with the territory. My bank account and the huge success of my business suggests otherwise. And I learned from another person who the staff thought made dumb ass decisions all the time... my view has been that of a student and having respect for those who are more successful than I am. It's a much more productive state of mind.
On the whole, I completely agree. I run do any changes past people expected to enact those changes, however. I've been schooled on things I haven't thought of SOOOOO many times by doing this. The fact is that I might know the theory but I'm not doing their job. They can see much further around the corners in that regard than I can. Just taking the time has saved me so many issues down the track, as well as showing respect for my employee's jobs and experience. Of course, there's a certain resistance to change that's normal. The point is that owners and staff are doing different roles and have different priorities, and both can learn from the other.
Employee feedback can be very helpful. I agree with that! My experience though is that the feedback is more often about making their jobs easier with very little concern for the effect it has on the business and rarely something that actually has to do with making the business more successful. Every business is different, however, so obviously there are different circumstances where front line feedback is crucial.
Again, this is true. People also tend to react against any change, good or bad. I see it as a balancing act. These are my frontline staff, my primary contact with customers. If they're not involved in decision making about things that directly impact their day to day tasks, then I open the door to resentment and the potential to lose customers rapidly. Not to mention lose staff rapidly. Explaining why and taking onto account feedback, and generally keeping staff members involved in the business is the path I choose to take. I think I've had more good ideas from staff than self-interested ideas, honestly. And you have to remember that often what makes an employee's job easier also makes the customer experience smoother. The amount of timesome little pointless tasks I've removed because of employee feedback is astounding. It's less BS for them and less time and BS for the customer.
I could only wish it worked this way at my business! The staff just aren't this way at all.
-
Your comments about "clueless owners" is kind of funny. They MAY be clueless owners, but I'm yet to meet an employee who doesn't think they know more than the owner....
This is true. However, ALL owners think they know better than employees. In fact many owners think that the mere fact of running a business also makes them experts in advertising, database design, HR, anything really. A lot of owners would hugely benefit from talking to front line staff, who very often do know more about the way the company is ACTUALLY being run than the owner. As front line staff, I've seen owners introduce some seriously dumbass processes, products and services that every employee there could have told them would fail. In some cases it has cost them hundreds of thousands of dollars. As owner, I always get the opinion of front line staff.
Management is nuanced, of course. Some owners really are dumb. The business was a hand me down, etc. I think my advice, however, would be this is a VERY incorrect way of looking at things when you want to go out on your own and start a business. The best thing you can do is learn from those who are already doing it successfully. Maybe they don't know HR that well, so who cares... focus on what they DO know that helped get the business to where it is. This "owners an idiot, I'm doing it myself" is so counter productive. I sometimes disagreed with the owner when I was working, but that was never my focus. That was minor. I acted more like a sous chef and soaked up every little thing I could. When I was finally out on my own, I also realized the owner was smarter than I gave him credit for. Anyways. If someone wants to go out on their own, then assuming the owners already successfully doing it are all idiots is about the worst approach I can think of. I can assure you that my staff think I make stupid decisions all the time. It comes with the territory. My bank account and the huge success of my business suggests otherwise. And I learned from another person who the staff thought made dumb ass decisions all the time... my view has been that of a student and having respect for those who are more successful than I am. It's a much more productive state of mind.
On the whole, I completely agree. I run do any changes past people expected to enact those changes, however. I've been schooled on things I haven't thought of SOOOOO many times by doing this. The fact is that I might know the theory but I'm not doing their job. They can see much further around the corners in that regard than I can. Just taking the time has saved me so many issues down the track, as well as showing respect for my employee's jobs and experience. Of course, there's a certain resistance to change that's normal. The point is that owners and staff are doing different roles and have different priorities, and both can learn from the other.
Employee feedback can be very helpful. I agree with that! My experience though is that the feedback is more often about making their jobs easier with very little concern for the effect it has on the business and rarely something that actually has to do with making the business more successful. Every business is different, however, so obviously there are different circumstances where front line feedback is crucial.
Again, this is true. People also tend to react against any change, good or bad. I see it as a balancing act. These are my frontline staff, my primary contact with customers. If they're not involved in decision making about things that directly impact their day to day tasks, then I open the door to resentment and the potential to lose customers rapidly. Not to mention lose staff rapidly. Explaining why and taking onto account feedback, and generally keeping staff members involved in the business is the path I choose to take. I think I've had more good ideas from staff than self-interested ideas, honestly. And you have to remember that often what makes an employee's job easier also makes the customer experience smoother. The amount of timesome little pointless tasks I've removed because of employee feedback is astounding. It's less BS for them and less time and BS for the customer.
I could only wish it worked this way at my business! The staff just aren't this way at all.
They weren't at first. It was very much management is the enemy!
-
I didn't lose everything and don't actually regret starting my former business. What I regret is holding on too long. When it became clear (actually when it confirmed) that I didn't want to be a business owner, I wish I had wrapped it up. Instead I dragged it out for years and am still feeling the effects, personally and professionally.
Now I am extremely pleased to be an employee and get paid for my work without the weight of the whole.business.
So...why not try it? But be aware it may not be a huge financial boon. Even MMM had a financially unsuccessful business. Your net worth might be better off with several years of steady paychecks but you also have your self worth to consider.
agree totally... I'm coming out of a ~20k hiccup right now and think this is spot on. a semi expensive learning opportunity.
-
I have one business that I started with a friend that didn't work out, and I do regret it. Mostly for the loss of time that I wish I had invested in something else. Fortunately the financial loss was minimal. I have another business that is more of a side gig that has worked out really well.
Plan the best you can. Keep your costs as low as possible.
-
Look up what the Popup Business School has to say. They have their own website plus there are various interviews with them on youtube.
-
I have one business that I started with a friend that didn't work out, and I do regret it. Mostly for the loss of time that I wish I had invested in something else. Fortunately the financial loss was minimal. I have another business that is more of a side gig that has worked out really well.
Plan the best you can. Keep your costs as low as possible.
Don't ever regret something that was a learning experience. Be happy you did it and failed. Maybe your side gig wouldn't be what it is now if it weren't for lessons you learned along the way.
-
I didn't lose everything and don't actually regret starting my former business. What I regret is holding on too long. When it became clear (actually when it confirmed) that I didn't want to be a business owner, I wish I had wrapped it up. Instead I dragged it out for years and am still feeling the effects, personally and professionally.
Now I am extremely pleased to be an employee and get paid for my work without the weight of the whole.business.
So...why not try it? But be aware it may not be a huge financial boon. Even MMM had a financially unsuccessful business. Your net worth might be better off with several years of steady paychecks but you also have your self worth to consider.
This!!! Everyone assumes that the only downside to entrepreneurship are the financial risks. My husband and I have been FT self-employed for 8 years. The business is thriving and revenue (not always profits) goes up every year. However, the business is a complete strain on our freedom and mental health. While our employees can up and quit whenever they choose, it is VERY hard to wrap up a business...there are leases you are legally bound to fulfill, employees' livelihoods to consider, and responsibility towards clients, etc. which makes it hard to put your personal needs first.
My employees can leave and not think about work at the end of the day. They can take a vacation and never think about work. For me, my work day never ends and there are many sleepless nights (i.e. entrepreneur insomnia). We have to carefully plan any vacations around our employee's schedules to make sure we will be overstaffed during our time away and we have to be accessible daily in case there is a major issue. There is no more freedom in turning off work. Ever.
Your employees also view you as a money machine and will try to suck every penny they can out of you because they feel as if they are personally entitled to more profits of the business than they deserve or that the business can afford. They only see how much they are paid versus how much they bring in and don't consider that the entire business needs to run as a carefully constructed system with all kinds of expenses they are unaware of (i.e. our rent is $3k a month, worker's comp insurance is $1k a month, accounting and bookkeeper expenses is $500 a month, HR is $750 a month--just to give an idea).
Entrepreunership is a very romantic idea to an employee who thinks they are working just to make their Employer rich. But unless you are able to grow a very large scale business and get to the point where you can afford to hire out all aspects of your job and be an absentee owner AND still turn a nice profit--it is really just another job. And worse than a job because you are working 24/7 and can't give 2 weeks notice when you want to take a break or do something different.
Now being a solo entrepreneur (like an independent contractor) is a nice way to go. But once you have obligations like a lease and employees, it becomes more of a prison than anything. I estimate that the earliest I will be able to get out is a 1.6 years while I wish I could have left at least a year ago. Yes, I can make more money than working for someone else--but it is all weighed against the loss of freedom and the constant financial risk. I do regret it. I would have remained happier and a whole lot saner as a solo entrepreneur or as an employee of a job where I could put in my hours and then go home.
-
About 10 years ago I purchased an existing business from an owner was was retiring and moving to Hawaii with her husband. She'd had it for awhile and had some decent accounts but it seemed under marketed. It's probably humble bragging to report that in the intervening years I tripled revenue and added new menu options to the services offered. It was a good fit for me as a newly widowed single parent of three kids living in a new town where my job skills were not exactly in demand.
Three years ago, a nosy neighbor turned me in to the HOA for running a commercial enterprise from my home. What seemed disastrous at the moment turned into an opportunity to buy a small industrial space where I continue to run my business. I like what I do; it's most assuredly a nonessential product and service but brings a lot of joy to my clients. I've been able to run it around my children's school schedules and activities for the most part, which would have been difficult to do with a traditional day job. There are several nights and weekends each year where I work harder than usual, but that's rare and is baked into my family's life.I do feel that my kids have benefited by having witnessing me taking this on, and each of them has helped in the business in some capacity.
I'm good at most parts of the business and learned early on to outsource the things that professionals do better: accounting and web design, for example.
While it's true I don't have a boss per se, I do have 40+ clients who would fire me in a flash if they didn't feel satisfied by the products and services offered. My three part-time employees depend on me to provide them with a portion of their livelihood.
There will be a day when my children are grown and launched that I will decide to move on to something else, or hopefully FIRE. And there will be a tangible asset that I can sell, either with or without the real estate.
No regrets.
-
I have no horror story to share.
My most recent jobs had me so sick that I couldn't continue working.
Four years ago, I resigned and stepped out on my own.
That meant I had to figure it out.
I learned to craft, negotiate and close consulting deals. My largest was $50K.
I did all of this while trying to recuperate from some weird illnesses.
Over the years, I've tried a lot of approaches. Right now, I'm working 1-1 with clients while building a sales funnel.
I kept costs low and studied sales. Studied copywriting. I already understood marketing.
It worked in my favor that I didn't need office space, inventory, etc. I basically have an online business and work with clients around the world.
It's not always a peachy time. In fact, it can suck big time. Prospects ghost you. You have to be in charge of everything, etc. Learning everything seems to take forever, etc. Managing stress is a challenge but that was no different when working for others.
However, I'm in charge. I love that. I've automated most of the stuff I hate to do or hired it out. It's pretty great.
-
everyday , week after week, year after year I spend all my time making money for someone else at MEGA-corp instead of pursuing financial opportunities that interest me.
My general advice in any life change is that it's better to be running towards something than away from something. Your reasons for change should be less "I don't like it here," and more "I'll like it better over there."
I don't have a failure story to share, sorry, just a story of mediocrity. I worked in a globogym, and moved out into a double garage gym. I get slightly more money than I did, work less hours, and have zero commute. Financially the results are mediocre (they'd be better if I were willing to defraud the tax office - so many people pay me cash it'd be easy to do), but overall my life's better because I've more time with the family and can be a stay-at-home father, plus I hate driving.
Most new small businesses fail, and those which succeed, most do mediocre financially, earning the person much less or at best slightly more than they did working for someone else. For most people, they won't get more money, they might get other benefits though - like autonomy. I play the music I want, train the people I want, if something breaks I fix or replace it right away without hours of meetings and arguments discussing it, and so on. It's small stuff but it's important for our day-to-day happiness: autonomy.
However, most would-be small business owners just jump into things. We understand that if we want to be employed in job X we have to do degree Y or get experience Z, but for some reason when it comes to starting their own business people think they can just jump in with no research, experience or instruction. It's a three year degree just to be a bank teller these days - imagine if a person spent three years of 20-40 hours a week preparing to start their small business?
Decide where you'll be happier, and spend a year or two preparing for it.
-
I didn't lose everything and don't actually regret starting my former business. What I regret is holding on too long. When it became clear (actually when it confirmed) that I didn't want to be a business owner, I wish I had wrapped it up. Instead I dragged it out for years and am still feeling the effects, personally and professionally.
Now I am extremely pleased to be an employee and get paid for my work without the weight of the whole.business.
So...why not try it? But be aware it may not be a huge financial boon. Even MMM had a financially unsuccessful business. Your net worth might be better off with several years of steady paychecks but you also have your self worth to consider.
This!!! Everyone assumes that the only downside to entrepreneurship are the financial risks. My husband and I have been FT self-employed for 8 years. The business is thriving and revenue (not always profits) goes up every year. However, the business is a complete strain on our freedom and mental health. While our employees can up and quit whenever they choose, it is VERY hard to wrap up a business...there are leases you are legally bound to fulfill, employees' livelihoods to consider, and responsibility towards clients, etc. which makes it hard to put your personal needs first.
My employees can leave and not think about work at the end of the day. They can take a vacation and never think about work. For me, my work day never ends and there are many sleepless nights (i.e. entrepreneur insomnia). We have to carefully plan any vacations around our employee's schedules to make sure we will be overstaffed during our time away and we have to be accessible daily in case there is a major issue. There is no more freedom in turning off work. Ever.
Your employees also view you as a money machine and will try to suck every penny they can out of you because they feel as if they are personally entitled to more profits of the business than they deserve or that the business can afford. They only see how much they are paid versus how much they bring in and don't consider that the entire business needs to run as a carefully constructed system with all kinds of expenses they are unaware of (i.e. our rent is $3k a month, worker's comp insurance is $1k a month, accounting and bookkeeper expenses is $500 a month, HR is $750 a month--just to give an idea).
Entrepreunership is a very romantic idea to an employee who thinks they are working just to make their Employer rich. But unless you are able to grow a very large scale business and get to the point where you can afford to hire out all aspects of your job and be an absentee owner AND still turn a nice profit--it is really just another job. And worse than a job because you are working 24/7 and can't give 2 weeks notice when you want to take a break or do something different.
Now being a solo entrepreneur (like an independent contractor) is a nice way to go. But once you have obligations like a lease and employees, it becomes more of a prison than anything. I estimate that the earliest I will be able to get out is a 1.6 years while I wish I could have left at least a year ago. Yes, I can make more money than working for someone else--but it is all weighed against the loss of freedom and the constant financial risk. I do regret it. I would have remained happier and a whole lot saner as a solo entrepreneur or as an employee of a job where I could put in my hours and then go home.
Exactly. Once there are employees and commitments it's difficult and it gets worse with more success - it is a prison, that is very true.
I was delighted when I merged my own company into a larger one and ecstatic when we sold out to a large corporation. I'm now just an employee again after an 18 year journey and it's great. The prize comes in a few months when the sale handcuffs are off; I'm completely free to retire, work part-time or do whatever I want to do - zero obligations.
-
I own 3 and can tell you if you don't do well with stress then look elsewhere. You never clock out when you own your own business.
-
Has anyone had experience starting an online store and creating a brand - like through dropshipping and Amazon's FBA program? Since it's all online, the start-up costs could be relatively low.
-
I didn't lose everything and don't actually regret starting my former business. What I regret is holding on too long. When it became clear (actually when it confirmed) that I didn't want to be a business owner, I wish I had wrapped it up. Instead I dragged it out for years and am still feeling the effects, personally and professionally.
Now I am extremely pleased to be an employee and get paid for my work without the weight of the whole.business.
So...why not try it? But be aware it may not be a huge financial boon. Even MMM had a financially unsuccessful business. Your net worth might be better off with several years of steady paychecks but you also have your self worth to consider.
This!!! Everyone assumes that the only downside to entrepreneurship are the financial risks. My husband and I have been FT self-employed for 8 years. The business is thriving and revenue (not always profits) goes up every year. However, the business is a complete strain on our freedom and mental health. While our employees can up and quit whenever they choose, it is VERY hard to wrap up a business...there are leases you are legally bound to fulfill, employees' livelihoods to consider, and responsibility towards clients, etc. which makes it hard to put your personal needs first.
My employees can leave and not think about work at the end of the day. They can take a vacation and never think about work. For me, my work day never ends and there are many sleepless nights (i.e. entrepreneur insomnia). We have to carefully plan any vacations around our employee's schedules to make sure we will be overstaffed during our time away and we have to be accessible daily in case there is a major issue. There is no more freedom in turning off work. Ever.
Your employees also view you as a money machine and will try to suck every penny they can out of you because they feel as if they are personally entitled to more profits of the business than they deserve or that the business can afford. They only see how much they are paid versus how much they bring in and don't consider that the entire business needs to run as a carefully constructed system with all kinds of expenses they are unaware of (i.e. our rent is $3k a month, worker's comp insurance is $1k a month, accounting and bookkeeper expenses is $500 a month, HR is $750 a month--just to give an idea).
Entrepreunership is a very romantic idea to an employee who thinks they are working just to make their Employer rich. But unless you are able to grow a very large scale business and get to the point where you can afford to hire out all aspects of your job and be an absentee owner AND still turn a nice profit--it is really just another job. And worse than a job because you are working 24/7 and can't give 2 weeks notice when you want to take a break or do something different.
Now being a solo entrepreneur (like an independent contractor) is a nice way to go. But once you have obligations like a lease and employees, it becomes more of a prison than anything. I estimate that the earliest I will be able to get out is a 1.6 years while I wish I could have left at least a year ago. Yes, I can make more money than working for someone else--but it is all weighed against the loss of freedom and the constant financial risk. I do regret it. I would have remained happier and a whole lot saner as a solo entrepreneur or as an employee of a job where I could put in my hours and then go home.
Exactly. Once there are employees and commitments it's difficult and it gets worse with more success - it is a prison, that is very true.
I was delighted when I merged my own company into a larger one and ecstatic when we sold out to a large corporation. I'm now just an employee again after an 18 year journey and it's great. The prize comes in a few months when the sale handcuffs are off; I'm completely free to retire, work part-time or do whatever I want to do - zero obligations.
A business owner (of a larger business than mine) said it can be very useful to show employees the expenses. It give them a bigger view of their contribution, what they earn and how everything ties to expenses.
Your employees may be more willing to think they are worth more because they have no idea of the larger picture of how the finances work. By doing this, you can reduce the chances certain types of employees leave to try to earn more on their own. Instead, they see that it's better to stay--and that can save you money with hiring/training.
-
My current opinion is that I'm pissing away life, too scared to take any big risk (Like leaving the same job Ive had since graduating college), with no justification for that fear.
Kroaler, have you made the leap yet? Let us know how it goes!
Leaving the same job you've had since graduating college is probably not a big risk, assuming there are other employers in your field. In fact, many/most employers would prefer to hire someone who has worked in multiple different roles and is "entrepreneurial" in the way they approach problems. If your company lays you off after 10-20 years you may realize it was actually more risky to stay there so long.
I felt similar to you, and knew I would regret it if I did not start a business, because I would always wonder "what if". It sounds like you're in the same boat. I quit my job almost 1 year ago, and so far none of my "business ideas" have succeeded. On the other hand, I have not had to dip into savings (I consult about 1/5 time, enough to cover expenses, and then work on my terrible business ideas the rest of the time!). I have open-sourced the failed business software, and that is attracting interest from companies who are hiring. So my current plan is to keep at it for the rest of 2019, and then may take another "regular job". If that happens, it won't be a failure to me - I have successfully "scratched the itch" of working on my own ideas, and I see how hard it is to make a business succeed, so I would (I hope) have a better attitude about "having a job" the next time around.
-
I don’t see running a business as a side gig as risky at all. I see it as the opposite: owning a business opens up opportunities, and even lower taxes at least in the US. It’s when you suddenly quit your day job and put all your money on on the roulette table when you see the risk.
-
In some industries, even doing the business as your day job can be less risky. Working in the fitness industry, I had more variable income while employed than self-employed. Managers are less reliable and predictable than are clients.
-
I don't regret starting a business. I'm going to be blunt. If you are a smart and efficient person, then the law of averages says that your colleagues are likely holding you back. E.g. if you work in a firm where everyone has a 50% base salary and 50% performance bonus, then the 50% base salary component is being used to subsidise weaker performers than you, because that part is shared equally rather than being wholly performance related.
At my old firm I used to bill 2x as much as some of the less capable players - but was I paid 2x? No, more like 1.4x. Because of course in a firm hierarchy, there's some level of lockstep. It's not all just thrown to the wolves.
The only way you'll ever get full bang for your back for your talents is to start your own business or to become partner of a firm in which you can then siphon off others' profits. Otherwise you are always subsidising your team members/colleagues who are less efficient than you.
-
I have never regretted starting our businesses.
My husband and I have started several small businesses over the years. All while still employed, with the exception of my husband's business. His department was closed down and we took the business model and opened it up in our basement. Over the past 19 years, we have rented office space, employed as many as 5 people. Now he is cruising into retirement at age 66. The business still brings in income and is not stressful to either of us.
We never borrowed any money for any of our businesses...ever. I do believe it is possible to start a business without doing that depending upon the type.
I have worked for my husband in his business, but finally went back to the cube job in 2012 mostly to pay off our son's college, pay off our farm in 8.5 years, and pay for health insurance. Now I am looking at an October 2020 fire date...maybe sooner.
We also have a small farm business, which took 7 years to cash flow. It is a lot of work, but work that we enjoy.
We are serial entrepreneurs, I guess. Always thinking of another gig. I find it very creative and freeing. There is stress, but I'm glad we were kinda forced into it. It worked out for us really well. Now our son is in business for himself in an unrelated field to our businesses. Said he saw the good life we had without the stress of a "boss". He's making it, but hustling!
What I will advise is to know your numbers. Crunch them. Your sales and expenses. And treat your business like a "business" not a hobby.
-
Bloop Bloop mentions money and of course that's a factor, but the real reason to start your own business is autonomy. You no longer have to do things someone else's bullshit way, you can do things your own bullshit way.
This does things for your spirit which are hard to quantify.
-
+1 for Kyle. I can create my own bs without being instructed on how to do it!
-
I have had a large number of side businesses in the past (selling collectibles, trading options, mining bitcoin, selling on amazon/ebay, etc). No regrets.
Most of them lost money in the end but they were some of the best times of my life (So far). There is nothing better in life than waking up and being excited for the day because you are doing something you love.
-
Most business owners regret it at some point.
What is the most important thing to succeed?
You have to make sales.
You do not need
A logo
A van
A website
Business cards
Etc
To make that happen.
You do have to make real connections with an offer people need to do well.
-
The mistake I see my friends make when they start their businesses is that they do things other than get customers. Until you have a customer it doesn't count. My buddy spent more time picking out which van he would buy for a handyman business that never got off the ground, than actually doing the uncomfortable work of finding customers and pitching his services.
This. So much This. If most entrepreneurs worried about finding paying customers half as much as they worried about the paint color, the logo, the business title, the business cards, how to write-off every penny of business expenses, the carpet color.... then they would either a) be fine, or b) realize they didn't have a viable business model. Sadly, I only know this through experience and occasionally forget it.
You'll see this in some Shark Tank interviews. The business owner says he's working more on the operational side, and the panel is like "dude, what's to operate if you don't have customers to pay you?"
-
Most business owners regret it at some point.
What is the most important thing to succeed?
You have to make sales.
You do not need
A logo
A van
A website
Business cards
Etc
To make that happen.
You do have to make real connections with an offer people need to do well.
Yes. The only thing you need is clients. Work hard till you have enough clients to fill up your X number of hours each week, then increase your rates to keep demand just about at that level.
It's dangerous as a business owner if you want to be "popular". That's how you end up working for demanding clients, or accepting invitations to provide freebie goods/services for no particular return. If each client gives you 5 hours of work and you want to work 40 hours a week, you only need 8 clients a week. If you have 12 clients each week, that just means you are screwing up your own supply/demand curve, i.e., you are setting your rates too low. One of the best things I ever did was to cull my clients down to only how many I want.
Flashy stuff like business cards/websites also don't necessarily work as well as networking and word of mouth. I don't have a business card and don't bother promoting myself in any medium, other than by doing good work and general networking.
-
Take a look at the acquisition entrepreneur book. If the point is to have a good investment and make money, I would encourage you to think about something boring like buying an HVAC company from a retiring boomer that does 2M in sales, while providing the owner with $400K/year. You could probably buy that with an SBA loan and 150K down. https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q
FYI - The kindle edition is currently $1.99 and there were a couple weird credits that brought it down to 38 cents (for me at least).
Haven't read it yet. Can't vouch for it. But the price is right and this kind of stuff has been on my mind lately. Good timing for this thread to be resurrected.
-
I just recently went the route of buying an existing business with an SBA loan. It's only been 3 months but so far absolutely no regrets. I would caution about buying a business that you couldn't run if all of your employees quit on you on the same day. Either buy something you can run on your own in an emergency, or if you buy that HVAC business, learn HVAC ASAP.
Be smart about it and remember that cash is king in the beginning.
I'd love to hear more details about how you found the opportunity, evaluated it, and pulled the trigger. What was your experience with the SBA? Did you have technical expertise in the biz you bought? Kind of a thread hijack, but you're doing exactly what OP is contemplating.
Sure. The original decision to buy a business started after working for a couple of similar businesses. After managing these companies for several years I realized that I was really good at it. Seeing how much money I was making someone else, and then watching them blow though it, made me finally decide to take the plunge. Constantly busting my ass for clueless owners who drive up in brand new sports cars just wasn't working for me anymore.
I looked at several, and in the end didn't go with the one that had the best numbers, but the one that I believe has the most potential. It's still early, but so far so good.
The SBA was.......exhausting. Between the SBA, and the bank, and the attorney, and the broker it was crazy. I REALLY started to second guess things. Honestly there were a couple times that I wanted to back out but I kept thinking that if those clueless fools in their shiny infinitys can do it, damn it so can I.
Just found this thread and I'm curious what sort of business/industry you purchased in?
-
I would say it depends on what you personally value. If you are someone that prefers stability in their financial situation starting your own business can be a bit unnerving. However if you are excited by the idea of starting something for yourself and running your own thing it seems like a good choice. Whatever you do, don't start a business if you are not going to completely commit to it. Obviously if you are not into entrepreneurship but you are only doing it because you think you might be able to earn a little more don't do it. It rarely works out if you don't enjoy what you are doing.
One thing I noticed personally is that it's not for everyone. The moment you quit your job and start doing something for yourself it's like your are stepping into a spotlight. Your whole social network suddenly has an opinion and there are going to be people judging you. You are going to have to believe in your own idea because others won't. If that makes you very uncomfortable you might want to reconsider.
-
One thing I noticed personally is that it's not for everyone. The moment you quit your job and start doing something for yourself it's like your are stepping into a spotlight. Your whole social network suddenly has an opinion and there are going to be people judging you. You are going to have to believe in your own idea because others won't. If that makes you very uncomfortable you might want to reconsider.
THIS.
It's like everyone becomes an expert in how to run a business, even though it's a very specific skill. Ops manager in a company? No, you do not know how to run a small business! Accountant for a hospital? No, you do not know how to run a small business! Employed hairdresser in a salon owned by someone else?No, you do not know how to run a small business! Be careful who you take advice from.
-
Everyone is an expert with somebody else's money :)
-
I just recently went the route of buying an existing business with an SBA loan. It's only been 3 months but so far absolutely no regrets. I would caution about buying a business that you couldn't run if all of your employees quit on you on the same day. Either buy something you can run on your own in an emergency, or if you buy that HVAC business, learn HVAC ASAP.
Be smart about it and remember that cash is king in the beginning.
I'd love to hear more details about how you found the opportunity, evaluated it, and pulled the trigger. What was your experience with the SBA? Did you have technical expertise in the biz you bought? Kind of a thread hijack, but you're doing exactly what OP is contemplating.
Sure. The original decision to buy a business started after working for a couple of similar businesses. After managing these companies for several years I realized that I was really good at it. Seeing how much money I was making someone else, and then watching them blow though it, made me finally decide to take the plunge. Constantly busting my ass for clueless owners who drive up in brand new sports cars just wasn't working for me anymore.
I looked at several, and in the end didn't go with the one that had the best numbers, but the one that I believe has the most potential. It's still early, but so far so good.
The SBA was.......exhausting. Between the SBA, and the bank, and the attorney, and the broker it was crazy. I REALLY started to second guess things. Honestly there were a couple times that I wanted to back out but I kept thinking that if those clueless fools in their shiny infinitys can do it, damn it so can I.
Just found this thread and I'm curious what sort of business/industry you purchased in?
Without getting any more specific, the pet care industry. It's not as easy as everyone thinks either. No, we don't pet puppies all day. Sigh.
-
Running a business is an entirely different energy than working for megacorp. It's an entirely different mindset, an entirely different role as a human being. One way to look at making money for megacorp is you are paying them to hold the structure you are obviously at the current time either unable or unwilling to hold for yourself. If you leave before you address these reasons chances are you will be assaulted by unaddressed psychological winds haha and find your way back to megacorp, so leave on good terms if you must. One option to level up like this is to do it in your hours outside of work--make them parallel tracks and ease out of one into the other. :)
-
Really just start small. Don't bet the farm, bet 10% of the farm--that's enough to get your attention but not enough to take you completely down. Then it can be fun. Even large businesses that start businesses don't bet the farm--they allocate some of their capital and apply pessimistic economics and prepare to be in the red for a bit. No biggie really.
-
So its funny to read my post from a year ago. Clearly - I didnt account for a worldwide pandemic with my optimism.
-
So its funny to read my post from a year ago. Clearly - I didnt account for a worldwide pandemic with my optimism.
I got pushed into business like a bird pushed out of its nest and never regretted it. I've started 3 businesses. One flopped over way too long a time period, one made me enough to retire, the other I still run on a few hours a month and makes beer money.
Regret happens when you drag out failures. Fix the amount of money and time you have (e.g. 50k, 1 year).
The main personality traits you need are energy(work ethic, industriousness) and ruthlessness.
- If you can't start working on your biz in your off hours, you don't have the energy.
- If you aren't ruthless enough to focus on what your biz needs (not what you want), then it won't work (e.g. get customers at all costs, ditch your pretty stupid ideas if they are not working, fire employees fast).
What happened with your plan after all? If you're considering buying, if the CV lockdown continues and if the govt stops backstopping businesses (e.g. PPP), you might be able to get a good bargain.
-
This post popped back up on my feed and read my original post. Even though my business is down, we still exist. About 20 percent of clients have cancelled altogether, another 30 percent or so are on suspended service. And the other half is being serviced my my rockstar technician.
My second business has had numerous projects being put on hold for the foreseeable future.
Still, no regrets. Life is uncertain.Unexpected things (like a PANDEMIC) happen. We survive. @Kroaler, I read your other thread. While the timing on your new business could not be worse, you're going to survive this, you hear me? You're a hardworking, smart young guy. I predict great things for you. You're going to be OK. We're all going to be OK.
-
Bloop Bloop mentions money and of course that's a factor, but the real reason to start your own business is autonomy. You no longer have to do things someone else's bullshit way, you can do things your own bullshit way.
This does things for your spirit which are hard to quantify.
Until the bullshit way is the paying client's way and you need their money...
-
That's why if you want autonomy, you find a business approach which gives you many small clients rather than a few big ones. Many small clients - someone will be happy with whatever crazy shit you come up with. A few big clients, it's even worse than having a regular boss, since a regular boss has to follow some sort of procedure and is bound by various workplace agreements, whereas the big client can fuck you around at will.
If more than half your income comes from one client, you don't really have a business, you have a subdivision of someone else's business.
-
At one point in my life I took a risk and started trading full time. I had been doing it profitably on the side for a few years, so when I saved up enough after college I took the leap. Ultimately I wasn't successful, and ended up flat broke after burning through all the money I had set aside.
Do I regret it? Hell no. I learned so much and I'll carry that experience with me forever. It's something I had always wanted to try, and now I will never have to think, "what if?..." in my old age.
Do I ever imagine how things might have gone differently? Of course! After failing, I ended up in a very bad position financially and had to work my way back from scratch. I often think of where I would be now if I had instead saved my seed money and kept working and saving at a nice stable job. I'd have a lot more money now, yes. However, I would probably be very unhappy and inside would feel like a schmuck who was always to scared to reach for something bigger. Despite failing I can always hold my head high.
I've had a few other attempts at starting my own business, and will keep at it. I'm working on something now. One lesson I've learned, as others have mentioned, is to try not betting the entire farm on any one idea. Working on side projects while you have cash coming in from a day job can both scratch the itch to try a new idea and limit your downside if things don't work out as planned.
-
This post popped back up on my feed and read my original post. Even though my business is down, we still exist. About 20 percent of clients have cancelled altogether, another 30 percent or so are on suspended service. And the other half is being serviced my my rockstar technician.
My second business has had numerous projects being put on hold for the foreseeable future.
Still, no regrets. Life is uncertain.Unexpected things (like a PANDEMIC) happen. We survive. @Kroaler, I read your other thread. While the timing on your new business could not be worse, you're going to survive this, you hear me? You're a hardworking, smart young guy. I predict great things for you. You're going to be OK. We're all going to be OK.
Well things are in fact going good. I spent some covid time learning a little more about marketing. I have a 3 part plan. I've implimented 2/3 parts and that has lead to a 7x increase in sales.
I'm still working on the last part. It taking a little longer to nail the SEO but I work on it here and there based on analytics reports and Google trends. When I get this part complete how I want I expect another 2x - 3x increase in sales.
-
I purchased an online business and several years ago and was completely ripped off. Looking back I didn't perform the proper due diligence and it cost me $5k.
I started buying rental houses and then the money ran out to buy more. I was maxing out my 401k and really hating my job.
I decided to buy a real estate course and was really skeptical and sat on it for several months in my mind coming up with all kinds of reasons why it wouldn't work and didn't make sense and how the course was a really low quality production. Then I thought to myself that I should just try it and not focus on the course production but on the actual knowledge that was being conveyed. I did a deal and made some money and was hooked. That was over 5 years ago and now it's my full time job. I quit the job I hated and now I have a net worth of over 1 million and monthly income over 20k. I started small and have used no debt. Anyway my point is to find people that are doing what you want to do an learn from them how to do it properly. Don't start business you know nothing about and try to do it on your own. If you just want something you can live off of and don't have a particular passion, I highly recomment real estate. There are a lot of niches you can start in that don't take much money. Things like short term rental management, selling mobile homes in parks with owner financing, etc.
-
I had 2 passion projects.
Regrets? Absolutely not.
Did they fail? Of course they did, but that depends on what your definition of success is...
I had a bookstore and was vibing pretty good and learning about how to increase my profit margin (it’s not in books..it’s the other stuff in the bookstore) and then the FEDS showed up like something out of MIB and my landowner hadn’t paid his property taxes (asswipe) and now in the space where my bookstore was... sits a public park.
Silver lining? There is a little park that will live on and I got to read tons of books and my cat got to come to work with me.
I also had a little travel agency. No, not an MLM. The startup costs were minimal. I branded (which was fun) and used a host agency’s IATA number to book travel. First big mistake. The cut for the agent is exploitative and is not in the agent’s favor UNLESS you can somehow roundup large groups which is truly difficult. Lots of early joiners and then people flake out and never make the deposit. Competition is rough with the online agencies (Expedia) too. I got my startup money back, but it was a ton of work for little return.
Would I do it again? No! It’s too much headache being responsible for the travel hiccups that consistently take place while people are traveling. “Yeah, I lost my phone on the train between Rome and Pisa. Can you call and see if they can mail it back to me?” Uh, no. Consider that bitch lost.
Silver lining? I made some new friends and learned that co-branding with a huge corporation is not a good idea.
But the entrepreneurial spirit in me lives on and I now have an AirBnB in my house which is bringing in a consistent amount of cash flow. The startup costs are low and the administrative burden is minimal.
More often than not, people will go the safe route and not take the risk to be an entrepreneur for fear of failure or whatever, but I can’t imagine a life without it. I fail at most of the things I do and fuck what people think, even if I lose a little money...I gained valuable experience and the courage to step outside my self limiting fears. Right?
-
Most business owners regret it at some point.
What is the most important thing to succeed?
You have to make sales.
You do not need
A logo
A van
A website
Business cards
Etc
To make that happen.
You do have to make real connections with an offer people need to do well.
So true. DH quit his job on a Friday and began working his own service business, in a different field, on the following Monday. He did it for 15+ years and he never had a logo or business cards. He did have a well established and wide reputation in our neighborhood as a nice and reliable guy,so when they learned he was also competent, he never lacked for business.
He cleared somewhere between $25,000 to $40,000 depending on the year.
To most of you, that lowball amount isn’t acceptable. But it was enough money for us.
He did handyman work and light construction. We live in a neighborhood of 130 year old houses owned by yuppies who have no idea how to fix anything. His customer base was within a ten block area and he seldom went outside of it. During the boom real estate years leading up to 2007, he made bigger money. After the real estate crash, he had fewer jobs but was still busy when others in his trade were out of work.
DH can fix anything!
-
I imagine the trades will be safe for a while. Less people learning it and lots of people retiring.
I also don't think it can be automated or done remotely for another 25 years at least.