OT starting my own business

[Fish]

I build custom homes.....Dukey.I prolly would'nt like too many other things,its all I've ever done,but not for everyone.

[Duke Spinner]

oooooohhh.........

I built a lotta homes...

'till 1991 came around

Gulf War, S&L scandal ...one day I had a 5 million backlog

next day, no-one could get a mortgage .......next week ... not a job in sight ....[]

[sputnik]

I started a small environmental engineering company 12 years ago.

Not for any financial gain, I just wanted to work with cool people and

take on projects of my own choosing. I own the company but it's

worthless without the people so I don't really feel like I own anything

- we just work in a cool place with no boss or assholes to contend

with. It was the best choice I ever made. It was good

advice to get a good tax accountant and lawyer and I'd also suggest

working on a good rep with a bank VP. They all have a selfish

interest in keeping your business afloat since you are now a source of

their business. Once you're a business, doors open up to

you.

I think a pitfall is really believing that you are a "businessman"

instead of a mechanic or engineer or whatever. You only make a

living as long as you are doing what you do best instead of "managing

the bottom line". I have a very good book-keeper/office manager that takes care

of most of the business stuff to free me up to do what I do best.

In my experience, the bottom line takes care of itself as long you are

busy doing whatever it is that brings in revenue. Your customers should always know that you're more interested in their car than their wallet. If you can work

with people that you respect and trust and also know that the tax

accountant, lawyer, and banker are on your side, you can relieve alot

of the stress, work the way you want to work, and not be a slave to the

business. I'm no business wiz, but this philosophy is what I've

learned works best for me. Good luck.

[Duke Spinner]

I I own the company but it's

worthless without the people so I don't really feel like I own anything

- .

I think a pitfall is really believing that you are a "businessman"

instead of a mechanic or engineer or whatever. You only make a

living as long as you are doing what you do best instead of "managing

the bottom line". I

nice thing about contrct work .....:"Your only as good as your Next job"

[Ray Garrison]

I worked as a saleman then trainer for ComputerLand back in the early

80's. Made a decent amount of money, hated working for managers /

franchise owners who couldn't care less about helping people spending

(relatively) huge amounts of money for (then brand new) complex,

difficult to use computer systems. I'd sell an Osborn (CP/M) or

Vector Graphics (S100 bus CP/M) or Apple III or IBM PC or Compaq

or Eagle or Hyperion or TI Pro or something to someone who was trying

to, like, run a carpet store, and when I spent time trying to show them

how to use SuperCalc to calculate their total inventory costs and

breakeven points I got yelled at for not being out on the sales floor.

Started my own business in 1984 (Micro Networks of America) with two

partners, one of whom had been the senior manager of the Coleco Adam

project. Company did fairly well, but I couldn't take the

attitude of one of my partners who's concept of business ethics was

"We'll do what we said we intended to do unless we can make more money

doing something we said we wouldn't", so I left.

Went to work for the local electrical utility here (The United

Illuminating Company, see http://www.uinet.com ) as the

Senior Computer Support Specialist. Made good money, drove me

nuts with the bureaucracy. Identified a cool opportunity for them

to start an unregulated subsidiary doing in-person payments, convinced

them to let me try a pilot program in 1990. Did all the

programming myself, worked with one other guy (cash manager).

Business model worked, things really took off. By 1998 we had

agents in 38 states processing $8 billion in payments on 88 million

transactions a year. (see http://www.apsnet.com

However, I was still just an employee, had no equity, no profit

sharing, no stock, no smidgeon of ownship of any sort. Very

frustrating.

Had the chance in 1999 to leave UI, partner up with this lunatic who

had an idea for creating an Internet-based virtual trading platform for

people selling seafood to the food service industry. Jumped at

the chance, became Chief Technology Officer for Freshnex.com. Had

fun for 3 years, then the dot com bubble burst, investors who didn't go

down pulled the plug, board of directors voted to shut down the

operation in November 2001.

Hummmm. No job, had spent all savings trying to help keep

Freshnex afloat for last 6 months of slow death, wife, daughter and new

son to support, difficult times.

Get a job, or start my own business again and try to do it right this time?

Decided to try again. Partnered up with ex-Freshnex CEO and VP of

Logistics, formed our own company. Opened our bank account with

the $25 we were able to scrape together between the three of us on

December 14th, 2001.

It's been 3 very, very tough years, but things are really starting to

look up now. Our client list is expanding rapidly, our billing

for the last quarter of 2005 was about 300% above last quarter 2004,

we've captured a little bit of margin extension as people come to

recognise our value, things are looking very bright for the

future. (see http://www.periship.com)

By the way, UI sold APS for $124,000,000 last year. NONE of the

employees who had worked so hard to build that business saw anything

other than a "Hey, guys, Thanks!" card for their efforts.

Moral of this story? Work for yourself. Be prepared for

everything to take a lot longer to happen and require a lot more effort

than you expected. Pick your partners wisely. Never align

yourself with investors or partners whose strategic interests are not

aligned with yours.

Difficult as the road has been to get here, I wouldn't want to be doing anything else.

[Colin]

As usual, great story Ray, thanks for keeping me posted,

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Trav, I would suggest that you do not have low introductory pricing in order to build business. In other words, dont charge xx price for xyz service, when it is worth xxx at established businesses. Instead, let your customers know that xxx is still the price for xyz service, BUT since you are new and need customers, you are giving x discount on their next service item for referrals. I would consider a huge 25-30% discount on their next service item (yeah, I know, all of the margin will be gone, and the next service will be something big, but that is the idea.) Imagine if each customer gave you one referral! How much is worth to double your business in a few months?

BTW, when I was a muni bond broker, all of my clients (36 and 39% tax brackets) made thier money in their own businesses!

Make sure you keep all business funds separate and receipts for every little thing, personal and business

get a good checking writing program

and start taking subscribing to Money magazine

meet with other successful auto shop owners to find out what tax breaks you can use

ask if they would recommend their accountant

[H]

[travisc]

thanks guys,

got my ein number today, registered my business name B&W auto service.(Iknow I know, my first name is wayne my middle is Travis, so until I get different partners named Paul and kevin, it will have to be B&W[])

I meet with one of the parts distributors tomorrow, I have know him for a long time and trust him to help me not get too far over my head. I am very worried about these first 6 months.

hopefully will have an inspection station license within the month, that'll get them in the door.

I am going to go talk to one of my old Bosses tomorrow as well. get some ideas.

thanks again

[Duke Spinner]

well, Trav ..

why be worried ..?? you'ved paid yer rent up for 3 mo. ....

the saving grace of the Auto biz ...is cars break All the time

you can get plenty of free advice right local..

here's mine ...

don't get in too deep with a "Partner" ..invariably, the two of you will want different things from taht biz ..

got some decent sizes businesses near your shop .??

offer free p'up, delivery .. to get them people in the door

you can't promote your shop enuff these first few months ..how .. is up to you

ok ... enuff sorry ......[]

[travisc]

no not enough.. I will take all advice I can get. I am concerned about the partner thing. I have to really work on being aware and communicating, my normal mo is to just walk away from such situations but that is not an option in this case.

Oh I shamelessly promoting, mostly just letting all my favorite customers know and since I am in a shop closer to town now it will be easier for them and everyone they know.

btw sorry to hear about the tools.