Starting a business

[CM1995]

I have a business degree so I understand big business and the money aspect. I just don't understand the small details that go into starting SMALL business.

Small details that you don't learn in college that go into starting, maintaining and hopefully making a profit in a small business:

1- Forget you ever even knew what free time was, your time will be consumed by the business. If you are not physically working in the business, then you will either be doing estimating, marketing, accounting, maintenance, repairs, etc, etc..

2- Your small business will consume more money than you ever thought, period. Overhead will creep and add up even if it's just the two of you. Adding an employee takes you to another level.

3 - At the end of the year any money you have in the company account will be consumed by the tax man and the insurance man. Happens every time, every year.

4 - In order for your business to be successful you must absolutely love what you do, if you don't you will get burned out and not put the time and care the business needs to be successful.

5- Most importantly is having a spouse that understands the 4 things above.

 

[wosama931b]

Hi Khancart, I have been working for myself for many years, now almost 65, the experence of working for owner developers help me a lot. They had the capital
and i had the shovel in hand. What i started was labor contracting, i did anything that they wanted done, and ended up with 10 guys working for me.
What i think you shoud do is go to the court house and register your bis. name, then go get revenue stamp and fed tax no, go to your bank and open a bis. acc.,
Deposit every dollar you make into that account, your banker will look at your record of deposits when you ask for a loan. Look around for older bus. people that
may be thinking of a project to do, they will want a good deal on the work from you, say yes, but try to put a small bonus in if the work is finished in a timely manor. When you find work do not mess around or get there late, the money guy will be watching. A good work ethic and record of deposits will be your ticket.
Over the years i have hired and fired a lot of people for smoking, being late, or just plain lazy. Look sucessful and dress sharp, no slopy crap, go to the job even if
its raining cats and dogs, because the money guy will. sam.

 

[JDOFMEMI]

Sam

That is some of the best advice right there.

Khancart

Before you get to a point of getting a loan, you have to have a track record. You may be able to do small jobs on weekends or whatever free time you used to have, and like posted above, put all the money into your business. Put it in the bank, and start making contacts at the bank, pointing out what you are doing, and setting the groundwork for when you come back to them asking for a loan.

As CM said above, if you are going to make it, you will have no life but for the business until you get established, and even then it is hard. It is a great business if you love what you do though. In tough times, the ones that make it are the ones that work harder and smarter that the rest.

This business is built largely on a combination of who you know, as well as what you know. being young and trying to sound like you know it all is a fools errand. Spend time developing relationships with people in positions to help you aquire work. Getting leads on work will be the one of the important things you do. You can't just run an ad in the paper of yellow pages and then sit waiting for the phone to ring.

Nothing about what you are going to do is easy, but if it is truly what you want, then it can be very satisfying. It will also be hard, and there will be days you just want to quit. Getting past the hard days separates the men from the boys.

Another important piece of advice I have is to pay attention to the details of managing the business. You can and will make mistakes in the field regarding the work you do. You can overcome any of those, but the mistakes made in the office on the management side of things are usually what cause companies in this field to fail.

Best of luck to you.

 

[philjackson]

Don't make same mistakes again and again that would question your talent,If you different mistake every time then you can learn so many thing from those mistakes.
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I would love to have rachael ruddick cuff,That is really a stylish one....

 

[rossaroni]

I spend A LOT of time driving around (240k on a 2006 p/u), and most of that time is spent listening to someone like Zig Ziglar, John Maxwell, or Dave Ramsey on CD. I offer so many people the opportunity to listen to Dave's "Entre Leadership" CD set. It covers so many things that I never, ever thought about, and really, put me in the mindset that I didn't have to go into debt to start up a company and earn a living, and that sometimes, simple is better. Those CD's might be the best $30 I ever spent in my life.

 

[theironoracle]

khancart , so whats happening with your business? I don't know why I didn't jump in here a when you first started but here I am. first I want to say there is a ton to learn on this forum for nothing but your time. two self employment is the ultimate when done right. three there is no bad time to start a business I started in 2008 there couldn't have been a worse (or best) year since the great depression................update..............TIO

 

[AA Equip Rents]

Banks are funny. They give money to those that don't need it (good credit and lots of assets) and none to those that dont. Shenandoah said it great. Their going to look at you like your going to throw their money down the hole.

Everything Shenandoah said is spot on. Some possibilities might be:
-Start a partnership with someone with a ton of cash and experience
-Start a S-corp. Their like a corporation but less paper work. Their easier to raise money because you have alot of people on a board. You can also issue bonds and what nots to people. It's alot of work but may be needed if you want to hit it big.

Use a backhoe to dig for buried gold.

I really wish you the best. We need more go getters like you

http://allaccessequipmentrentals.com/

 

[PeytonM]

Dont mean to bring up an old thread but I see a lot of good advice in here. I personally went to school for welding. I worked for a larger trucking outfit stretching semi's and building things, then I went to work for a stainless shop I left there hoping to start doing mobile welding focused on logging equp. and docks ( Northern WI) Insurance shot me down I have the welder and do small jobs for local farmers. I do as much as the work I can at my place or in the open where I wouldn't start anything on fire. I also watch for things that would start on fire very closely. my full time job now is running a loader feeding a wash plant in a frac sand mine and I'm thinking with in the next two years I'll be moving north because of my relationship. I really enjoy playing in the dirt, I wish I would have went to this mine many years ago. I bought a 2007 PJ dually dump trailer, I got it for a few reasons one it can do it all. its 20ft long and has ramps, the sides remove and it dumps. almost anything and everything I could or would ever want to haul I can haul. I got this on my own. I did it so that way in a few years when it comes time to get a mini hoe or something I don't have to ask for as much money.

I know it takes a lot to start up something but I think the biggest thing it takes is know to make due with what you got and when to up grade. and knowing what size is the right size....