starting a business?

[Russell]

Let me start a new thread so we don't hijack LivingAlmostLarge's thread.

[LivingAlmostLarge]

Good points. My DH and I discussed more this weekend and he will be applying for Small business grants. We'll see how it goes. We have to talk more and start grant writing. What a PIA.

[reptile411]

I opted agenst any borrowing of any kind. I dp charge stuff to my lowes card but pay it off every month. I used a friend as an example. He started a business with a small $10,000 loan, He now ows $10,000 and lives off his credit cards because right now is just not a good time for business, especially his which involves recreation, I mean comon so many Americans are having trouble keeping there homes, recreation is just not on there mind. I on the other hand thought "What is it everyone need but noone wants to do" then it hit me, YARD WORK. I rarely meet a person that looks forward to it but nearly everyone because of city ordinances or another reason has to have it done. I also am a rare case of someone having money to burn so I can afford to take on the capitol required if as I mentioned before I don't already have all the stuff I need. I do enjoy saving but a few hundred or thousand here and there for the better good of becoming a little more financially stable and being my own boss is worth it. Now I am well on my way but the difference is I have 0 debt in regards to business.

[EEinNJ]

I highly recommend you get in touch with your local Small Business Administration Office, and find out what courses they are offering, probably through a community college. Four years ago I took a state sponsored course, and learned a huge amount. I was working on an engineering consulting business, and met my partner there. We formed an LLC, made some money, but not enough to keep it going.

The most important thing is your Business Plan. It forces you to think about and plan for a lot of things you wouldn't have thought of before you jump in feet first. If you need financing, you need a business plan anyway.

[LivingAlmostLarge]

Thanks! I appreciate the feedback.

Reptile this is not a small business. It will be a minimum of $1 million to start.

EEinNJ, good I'll tell my DH. We have a business plan but are still revamping and working on it. Specifically switching the city location.

[mia27walla]

i have just set up new business, best thing i have ever done.

[LivingAlmostLarge]

why and how mia? Is it expensive?

[tripods68]

I always like to own my franchise like Chevron, Arco, McDonald Arco, sandwich shop. But it takes tremendous capital.

But for 1 million bucks I could open several UPS Box Stores, Togo's sandwich shops and still have left $$ lefover. This the quickest route to go IMO if you have start up cost.

[LivingAlmostLarge]

Do franchises really make a lot? I should add my DH is passionate about the business.

[tripods68]

When I was a banker with Wells Fargo, I had many clients who owned franchises. I think ratio is 80% success rate vs 80% failure rate of new business within 2 years of the business. They do everything from advertising/marketing/promoting to hiring personnel.

[LivingAlmostLarge]

Do you make a lot with the franchise? Or is a lot of the profit going back to the business?

[tripods68]

Originally Posted by LivingAlmostLarge

Do you make a lot with the franchise? Or is a lot of the profit going back to the business?

I don't know the answer to that. The best way is to interview owner(s) of your local Chevron or Arco gas station when you fill your car next time.

This is reminds me a friend of mine whom I used to workout in the gym with many years ago. He owned 3-4 Togo sandwich shops and couple of Chevron gas station around Sacramento area. I remember him saying its about the location location location. Corner shops on busy intersection.

You also have to own several 3 or 4 shops to make immediate profits because of the heavy capital requirement in entering the business. One franchise may take you 3-5 years to reach break-even point. But that will depends on the type of franchise you want to enter. A McDonald franchise requires over 1 million bucks capital requirement last time i checked. With today's economy, McDonal may have the faster breakeven point in the industry since their profit is up this year. But i could be wrong.

[lebaggblu]

The costs to start up an IT business today are by far the lowest they have ever been. One thing that seems to be holding back many people is the looming economic outlook in the united states. I guess the trick would be finding a way to view this as an advantage.

As large corporations begin to layoff people, they will need to outsource many jobs to contractors. This is where you could come in reptile. The real trick I think would be networking yourself as someone that provides valuable information. The best way to start up a business is by being known as a go to guy in your industry or niche. If you can market yourself, you can start a business.

Hope this helps, good luck in your endeavors.