Starting a Business - What's Your Story?

I started a non-profit theatre company in 1993 and it was successful over the 10 years I ran it but it closed due to mismanagement 4 years after I left. I spent those four years freelance directing around the country and doing technical writing to bridge the salary gap. I started another non-profit theatre four years ago and it's worked out pretty well so far.

 

In 2005 I started a company with a coworker. In 2007 I bought him out and now have full control.

I have not had a day off since 2007. I mean xmas valentines day ..EVERYDAY..I work all day and all night and I NEVER do anything but work. I have made $13,000 in one month and I have made $400 in one month.

One of the things you don't realize when 'working for the man' is that you get a paycheck on XYZ date and you are not dealing with the cash flow issues that come with a business. When I say cash flow I am talking about day to day and orders in and orders out. You need to understand how you will be paid and how it will flow since you will no longer be receiving steady payments. Working for the man usually means when you are off work you are truly 'off work' whereas in a small business or any business if you are top dawg you have to be available 24/7 to your employees and the business itself. This notion that you will work 5 hours a week and collect 100k a year is unlikely.. unless you are just damn lucky or a trust fund baby.

2 misconceptions about owning your own business that people don't think about:
1) It may make money but it is making enough money? When I do my taxes I can tell you for certain that yes I am profitable but at the same time when you average it out is still CONSIDERABLY less than what I would be making working somewhere. So just because you are 'in business' doesn't mean you are making money or good money. Scraping by..
2) You need the money to get it setup but you also need to put aside for the 'ramp up period' Lots of folks assume the day you open up people will be going nuts and you will make tons of cash right away. For some that are lucky great good for them.. but many business will eventually make money but need a period of build up. I would say plan on not making much of anything in the 1st year so have rent,food etc covered and not expect the incoming money to be your life blood.

if you want to know about specific information ask away. I can at least give you my perspective.

 

i recommend reading Millionaire Fastlane. Ignore the title and the cover. It's not a get rich overnight book. It actually gets to the root of what it means to run a business and why one is successful or not. it was recommended by Sactown. i think its required reading for anyone opening a business.

http://www.amazon.com/Millionaire-F...sr_1_sc_1?ie=UTF8&qid=1325535624&sr=8-1-spell

 

I've had 3 small businesses. Actually should be 1 small business and 2 opportunities being self-employed.

1. (Louie Louie's) Had a bar for a couple of years in the 80's...almost killed myself. Lots of hours, and snow. Left everything, bar, friends, town to stay alive.

2. (Satori Shift) While working for Qwest in the early 90s, I built computers for local companies. Girlfriend took care of the software end. I then got a chance to work for Genigraphics so I dropped the hardware side of my computer life (and the business) and focused on software...graphics to be exact.

3. (Satori Designs) In 2000 I went self-employed again creating business identities, web sites and such. But like you I eventually found myself with one huge client and a bunch of smaller ones. Eventually my large client was tired of sharing me so they made me a couple of offers, of which the last one I took.

One thing I learned is if you're going to start your own business, be ready to fail and start another. DON'T give up! Your success will come from NOT GIVING UP.

 

Being self employed and owning your own business are completely two different things and its important to understand the differences.

If you can't sell the business and/or the business will fall apart if you're not around, then youre self employed. Your business will only last as long as you can tolerate the responsibility.

Have an endgame planned. Making money and getting rich is not an endgame. Do you want to sell the business in x amount of years? Do you want to hand the business to yor family one day? Sell it for a profit? Just give you income till you make enough to retire?

You can come up with a hundred great ideas, but w/out planning and objectives, they will never take off.

 

This is exactly right, there is a huge difference in building a business versus simply building yourself a job.

Planning an exit strategy is a must, when I get a little more time, I will post a bit more, but I have sold 3 business to date.

Cashing out is a pretty good thing, and can be huge, but there are some downfalls as well, like losing control etc.

DD

 

If anyone wants to buy my act I will make you a great deal. It will get you national and international travel, free drinks, 42-103 thousand dollars a decade and an autograph from time to time to impress the kids.

Years ago I thought of opening a mid- market comedy club, but now mortgages, college tuitions and modest lifestyle choices are sucking up the funds.

Good luck to the OP and the rest of you in your 2012 endeavors.

 

My pops have a business. He makes somestimes 20 gs to 40 gs a month. But I think we can make a lot more but he is stubborn with his oldschool ways. Its a mom and pop shop kind of, and I am pround of him for keeping it running for a long time, putting both my ungrateful brother and sister through college.

 

Seen some of your stuff on youtube, love it!

 

If you're an entertainer and she's a nurse, how about a hospital-bar? She's fixing them up while you're singing or something.

 

dude you have 82k posts. Sounds like you have plenty of time enlighten us please.

Umm there are millions of companies that have relied on one person to continue and were still a company. Some relied on one person..that person died and guess what? Some of them were able to get their sh&t together and become viable /work and some didnt.. some have plenty of workers and employees and simply go out of business.

Worrying about a title of self employed or owning your own business is drowning in a glass of water.

Sure plan but you also need to be able to adapt to the current marketplace and be nimble. Example sell umbrellas when it rains and sunglasses when its sunny.

Possible 'endgames' are fine but that's only a piece of a huger puzzle. Just because you don't have a prenup doesn't mean you can't 'end' the way you want to..
Do you have your burial arrangements set Space ghost? Everything mapped out all the way eh?

so people aren't in business to 'make money' right? Sure it's more than just money but come on please.

What are you going to eat 2 weeks from this thursday?
Have long term and short term plans but also be prepared for the unknown. A good contract here and a bad shift in market can play into it big time regardless of all the endgaming and planning, so over thinking it can work against you. Plan for all possibilities more so than the 'end'

If you do what you doctor tells you, and you do what your shrink tells you, and you do what you accountant tells you, and you do what your pastor tells you... you know what you end up doing? nothing!

have a plan but an endgame is kind of a joke considering there are so many things that can happen. I could have someone offer to buy my business tomorrow or I could slave the next thousand years and not get anywhere. I can endgame all I want but without substance and something behind it.. it's sh&t... there is some luck involved and 'better to be lucky than good'

never take off?

It's more about being realistic and choosing what ideas to act on and what not to. Then the next thing is to act. objectives are **** if you don't get off your ass and do it. Not all of it is fun and some of the implementing of ideas and bringing to fruition have nothing to do with what you may be good at or planning, and more to do with doing it.

Space ghost reminds me of the drunk at the end of the bar with all these great ideas and a bunch of woulda coulda shouldas.. it's easy to talk a good game but just like in basketball its about execution. You can have some of the greatest ideas and objectives and 0 motion to actually do anything. Have a plan sure but ACT on that plan. Action is as important as planning.
I know a guy that had a great business plan and great ideas but slept until noon everyday. He is not 'in business' anymore because he didnt get off his ass and act.

A business plan or endgame isnt going to pickup the phone and hustle, a business plan isnt going to fax your LLC paperwork to Austin but it sure does sound good when you are sitting in a bar planning to take over the world.

Have initiative and be a doer. No time like the present you, either have it or you are a dreamer speaking and talking in a vacuum like space ghost. Are you full of **** firecat or are you going to actually do it? If you are going to do it go full throttle and f-ing do it.

All businesses and markets are different so know your market. I think niche can be good if you approach it correctly.

Having lots of money helps any **** business. I know plenty of rich kids with family money all kinds of objective and endgames, and in the end a butt load of money resolves most of the 'issues'.. just because you have employees, have an endgame, doesnt mean ****..WAAAYY more to it.

 

Remember when everyone flamed me when I recommended that to you? I'm glad you read it. It's a game changer and MJ is a cool guy.

 

IMO, and this is what I do is own a few internet businesses. Ecommerce, internet marketing, SEO, etc.. This way you have no overhead, very few employees to worry about and you are free. You can work from anywhere as long as you have your laptop. I'm heading to Bali soon to work and play from there for a few months. My best months I'll make 10k, my worst months 3k so you can live fairly well of that.

 

I like your lifestyle

 

You can do it man, anyone can. I personally know hundreds of people who do.

 

Good read.

But an important message is being left out. I made a **** load of dough with the bar business but was terribly unhappy. Although I'm not making as much I'm enjoying life a lot more. (all of a sudden I feel like Jimmy Buffett)

 

What surprises me are the people who question their own abilities. I've actually had people come up to me saying they would not have the discipline to wake up every morning if they worked for themselves or from home. Makes me scratch my head....

 

I'd love to hear more about your businesses if you don't mind.