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Starting a Business ?'s

Discussion in 'The Lounge' started by BurbLover, Sep 24, 2003.

  1. BurbLover

    BurbLover 1/2 ton status

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    Starting a Business ?\'s

    Okay, my co-worker and I are thinking of starting our own safety managment company. We currently are working for one. The bigest concern is starting capital.

    Does anyone know how to get grants for this sort of thing. The business would be in our wives names, so maybe being women owned could help too.

    ANy ideas or advice? Thanks.
     
  2. shane74

    shane74 1/2 ton status

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    Re: Starting a Business ?\'s

    Research it BIG TIME!!

    Perform the due diligence to deermine if it's a viable business opportunity and the "need" is there. If you are going to be a consulting firm only, the start-up capital is minimal. The bad part is that you might have a hard time getting loans and/or financial help because there is little to no collateral for the banks to fall back on. If you plan on supplying equipment and products that is a whole new ball game.

    Take the time to research the REAL needs and opportunities. Write up a mission statement and business plan. Find out about insurances and liabilites. Most of all, when you get serious, have everything writtnen up by a GOOD business attorney. The money you front now can save you tons more later. Just remember..it TAKES money to MAKE money. Very rarely do people start out with little or no money and make it. Also, most businesses do not see a true profit for at least 3 years from start up. Expect to live like paupers for the next few years.

    Go into it with as much research and information as you can and make your decisions based on REALITY, not "wow wouldn't it be cool if!". The two rarely meet up in life /forums/images/graemlins/frown.gif.

    I'm not trying to discourage you from owning your own business. I am trying to encourage you to do the front work and start the right way. It will save you a lot of headache and heartache later.
     
  3. BurbLover

    BurbLover 1/2 ton status

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    Re: Starting a Business ?\'s

    Basically, what is driving this is me and one other guy do tons of work and the boss gets all the $$. We also do not like the decisions he makes regarding the company. He uses it as him personal bank account and does alot of shady things. Several of our current clients have expressed interest in moving along if me or the other guy started on our own. The only start up cost we see is two vehicles (need 4x4 due to contsruction sites & weather) and insurance. The rest is to just get by while we get going.
     
  4. shane74

    shane74 1/2 ton status

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    Re: Starting a Business ?\'s

    I totally identify with your reasoning. If you think you can do it, I say GO FOR IT! Nothing ventured..nothing gained. I am a firm believer that you rely on yourself in life. There is no one else out there looking to make you a ton o' $$ but you. I have more respect for those who gamble and lose and those who sit idly by and whine. /forums/images/graemlins/angryfire.gif If you got the huevos take the chance! /forums/images/graemlins/thumb.gif
     
  5. MudNurI

    MudNurI 1/2 ton status

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    Re: Starting a Business ?\'s

    The biggest situation you have to look at is supply and demand....how much work is out there, and how many companies are doing right now- or could be doing in a short time frame the work you want.....

    This is a motto that John buys businesses with....He's never worked for anyone other than himself, and hasn't ever sold a company for a loss.

    I agree to get a good lawyer...also the other thing your going to need is a EXCELLENT business plan....don't skimp on drawing this up. Banks look at it for financing.

    Also- I'm not sure what you need for products, but what are these products going to be costing you and where are you going to get them? You can't pay MSRP and then jack up the price to make a profit. Most companies require you to make minimum orders, usually a few $2-3K at a time. Also- if you use a middle man, or a distributor you'll lose money once again.

    One of our distributors, I just found out is making 62% of retail, while we're making 38%.....we're currently working with the manufacturer to become our own distributor, but again, with $4K minimum orders....well, that's a lot of product to sell, or a lot of capital to tie up in orders.

    The other thing you'll need is an accountant...don't let anyone tell you that you can do your own books....if the IRS ever comes knocking down your door- it's much better to have Joe Accountant to back you....We do our own A/R A/P's but run weekly reports for our accountant.....they should also be able to hook you up with write offs and where to categorize them in your book keeping system. It's amazing what catagory will trigger the IRS and what ones wont.

    Most of these people will set up initial meeting with you at no cost....meet them, make sure your happy 100% with them..if you have any doubt, look further....our accoutant is excellent, and never gives us any hint of "feeling bothered" when I call 3 times in 1 day wondering where to code something in the system....

    Oh- I forgot- get a payroll company......taxes SUCK! We only have 1 employee on payroll and it's $14.00 per week.....(Owners of businesses don't take paychecks if they are smart!! they take a check without taxes, because then you pay taxes personally instead of the company and you paying them.....also.......just about everything you do is a business expense )

    HOMEWORK now pays off later!

    Brandy
     
  6. loudnowlouder

    loudnowlouder 1/2 ton status

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    Re: Starting a Business ?\'s

    first things first, you and your buddy should come up with a company name, and incorporate yourselves. its like 150 bucks to incorporate, and its real simple. Once this is done start doing all the homework that has previously been mentioned. Basically if you decide in a year that you can make a living on your own, banks will look at the fact that you've been incorporated for a year and it does help!! if you've only been incorporated for a month it doesnt give them warm fuzzy feelings.

    If you've never written a business plan and dont have an MBA I can email you a copy of my business plan to help out. Granted I started a manufacturing company so it's a good bit differernt, but you'll see the level that banks will expect to see. Its a TON of work, but the idea is to do the work now before you quit your and potentially screw yourself.

    Insurance is a big one, if you're pure consulting it might not be that bad, but i know for business insurance the best rate i've gotten for my company was way over 20k a year....granted we're considered very high risk due to the products we sell...

    also start calling around and see if you can find any small business development groups in your county, state, etc....if you were in maryland i could give 50 people to call to look for funding and/or investors.....

    although i'm young, i've devoted the past year into my business, i declined a $60k a year job when i graduated, living off of pennys now, but my partner and I are right on the verge of becoming a successful company.

    theres nothing like waking up and knowing you have a dream job where the more you work, the more the company grows, and you directly profit from it!! /forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif
     
  7. MudNurI

    MudNurI 1/2 ton status

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    Re: Starting a Business ?\'s

    [ QUOTE ]
    first things first, you and your buddy should come up with a company name, and incorporate yourselves. its like 150 bucks to incorporate, and its real simple

    [/ QUOTE ]

    WOOOOOOOWWWWWW......not the best move........and INC....your 100% liable.....you can go with a LLC and be released from this.....again- an ACCOUNTANT can explain this all to you.....

    For instance, we have an LLC which holds part of our company, the real estate, then we have an LLC that holds our business, the assets etc...

    be 100% sure you pick the right type of company!

    Be sure you set up whose who in your company, are you both 50/50 partners? This will be a biggie....if one of you has more capital to put up- etc....

    Starting a business that will be successful requires more than just "doing the work"....if your not complete before you start, you'll more than likely fail......

    Keep up on everything.....all the time...and I mean EVERYTHING.....

    It's very time consuming now, but if you set EVERYTHING that could POSSIBLY pertain to you up now, you'll be golden soon.

    Let me know if you need more info, I'd be glad to help.

    Brandy
     
  8. loudnowlouder

    loudnowlouder 1/2 ton status

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    Re: Starting a Business ?\'s

    [ QUOTE ]
    WOOOOOOOWWWWWW......not the best move........and INC....your 100% liable.....you can go with a LLC and be released from this.....again- an ACCOUNTANT can explain this all to you.....

    [/ QUOTE ]

    very true, i wasnt thinking about what kind of business he was thinking of starting, sometimes inc is best, in my case (oem manufacturing) it was best possible move. cant agree more with discussing it with an accountant first. thanks for pointing out my not so great (bad) advise to this situation, i'd hate to point a fellow ck5er in the wrong direction, thanks /forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif
     
  9. MudNurI

    MudNurI 1/2 ton status

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    Re: Starting a Business ?\'s

    Not a problem, I know our last business was Incorporated, however sometimes it's not the best move.....I can't believe all the different ways of "running" a company. LLC INC CORP etc.. holy moly no wonder it's easy to make a mistake!

    Brandy
     
  10. BurbLover

    BurbLover 1/2 ton status

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    Re: Starting a Business ?\'s

    Everyone, great comments!! I appreciate them. I'm still trying to work out some technical stuff details. My partner & I are also looking into buying our existing company from the owner. That way we'd start with a clientelle and have a 6 year company history.

    DECISIONS, DECISIONS!!!
     
  11. Polaris

    Polaris 1/2 ton status

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    Re: Starting a Business ?\'s

    Pardon my brain fog here but I'm dealing with being sick /forums/images/graemlins/crazy.gif. However, I've been in business for 6 years. One of the most helpful things was getting in touch with the local University Extension office. They have free small business sessions. They go over all the Corp/LLC/Inc stuff, business plans, funding, etc. It was extremely informative.

    I went the LLC route, so as to protect myself & my family in this sue-happy world. A good business plan helps immensely and will be required for if you need a business loan.
     

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