Charlie_brown

Has anyone ever written up a business plan? Any pointers would be greatly appreciated.

Olds64

I've heard that small business owners usually fail in the first 5 years because they don't make enough profit soon enough. It would be difficult work owning a small business. I've often thought it would be fun, but paying the mortgage is my priority.

Charlie_brown

Olds you nailed my biggest worry on the head i'm 23 and i don't even have a mortgage yet. But i seriously can't see my self working for corporate america for too much longer. I was talking with my best friends uncle the other day and he was telling me about a business he started not to long ago where he basically bought a couple of tractor trailors and hires drivers and finds his own loads for the drivers. Of course its more involved but the figures he was giving me it would take me months to make. And he has an everyday job still.

Danny Boy

Do what you love and always keep networking.

If you are going to start your own business, here is my advice...Customer service in America is **** poor (think of all the transactions you have done that were not satifactory). Don't be one of those people that thinks they are entitled to a pay check just because they show up. Your customers are the reason you put food on the table.

lshlsh2

As a small business owner I would think long and hard before starting a business right now. The biggest problem with starting a business is capital. It is not the start up costs that get you. It is the costs 6-12 months out. Generally you won't see a profit for 2 years that is where business fail. They think that as soon as you open the doors money will flow with no problems. I do a business plan in general every year. Last year I planned for a 15 to 18% decline in revenue(ended at 22%). This year I am planning for flat to down 5%. I have already cut some things and will see how it goes. Last 2 years have been in the red(not badly only about 2% of gross). The business is 4th generation and 81 years old, so we can take some hits. If you want to talk send a pm. I will help in any way I can.
Larry

Eric Anderson

As a business owner I would agree with Larry, getting started is tough in a good economy. If you are going to get into something with low startup costs that you could manage on your own without employees mabey, but something like a trucking co. with huge cash oultlay just to get rolling coupled with HUGE overhead and a shrinking market, sounds scary to me. Also employees will suck you dry if you don't have the work to keep them busy. As for a business plan, write one up and stick to it, take your expected pay, put any unexpected windfall away for the lean times, and good luck with it if you decide to jump in.

stlbluesbrother

The internet is a tremendous resource - fully utilize it. I pinged a search engine for "business plan" and came up with good information. Here are a couple links to review:

http://www.sba.gov/smallbusinessplan...ESSENTIAL.html

http://www.bplans.com/sample_business_plans.cfm

You may want to go to a local library for free information on this topic, as well. And, keep in mind software programs at stores such as Best Buy that offer business plan formats and advice. Lastly, speak with other business owners (as you did with your friend's uncle).

Destructor

If your business succeeds, even if it remains a small business, you may fall under the category of "rich" and get punished by being taxed to death.

cutlassjoe

Not to throw more water on this, but if you are looking for a loan to start this, it will be very tough if not impossible. I work for a large commercial bank in the midwest, and we are being very tight with loans, even to existing clients. Good luck, keep us posted.

Olds64

You also need to think about how the business you are starting is regulated by local, state, and federal government. I've always thought it would be cool to open a cigar and tobacco shop; however, in today's world I wouldn't even dream of getting into it. If you want to have a small restaraunt then you will have to get a food handlers license. If you want to sell beer and liquor then you will have to get a liquor license. IF you want to sell firearms then you have to get a license from the federal government. The list goes on and on...

70 cutlass s

Couple of years back I wanted to start my own internet business. I looked into it by the time I'd pay for a reseller license and got a tax number and pay for a lawyer to fill paperwork. The place that I was going to deal, with wanted me to buy into them and I had to keep so much stock on hand.
I didn't have the money so it didn't happen.

Dan Wirth

A 5 year business plan should show a profit beyond the first couple of years. There are many software programs for business plans that can be purchased or like in a previous post, help from the SBA is also an avenue - but tight if funds are tight.

I would try to show a profit for at least 3 of the 5 year plan and would have at least 50% of the initial investment in your personal savings, before submitting the plan to a bank for a loan. If you can land an SBA loan, all the better, but money is limited and budgeted year to year - so make sure your plan is strong and competitive. Don't dwell on any down-sides, but be optimistic and show that profit and incoming cash flow as early-on as possible. Be prepared to defend the plan on interviews for a loan. Go to a reputable bank or lending institution (e.g., credit union); a solid well grounded presentation is half the battle.

Impin'

My advice is to make sure you take notes and capture names and titles of anyone you talk to at the city, county, state level. This is important when it comes to licensing, taxes, etc. and you may find that you'll need that information later. I know this from experience. Depending on what business you want to start, a down economy might be the best time. Just make sure you ask a lot of questions, utilize SBA, and any local organizations in the field. A wealth of knowledge can be gained by asking questions of the right people.
Good luck!!!!

Charlie_brown

Wow i didn't expect that much feed back but trust me every bit of it is greatly appreaciated. I'm in the process of going to school for auto mech and will hopefully emerge there cert master mech and deisel certs. Right now i'm just looking into things as i'm not actually going to dive into it until i graduate and have a year or two under my belt. I figured just looking into different fields and not typing up a business i wasn't considering everything that could arise. So my plan was to type up a couple of business plans while in school in order to rule out things that would be out of my reach or just wouldn't work. I found a couple of websites that provide an outline of a business plan but i guess i'm actually looking for something to compare against. I did however find a couple of sites (www.sbdc.org & www.score.org/index.html) who offer guidance on starting a business.

How do you know who to speak or who or where to even start with and if that one person is giving all the information as far as licensing an taxes are concerned. (i'm actually pulling up my cities website now to see if any of this i can answer my self)

Whats yalls take on Venture Capitalists. i was reading that some use them to start the business increase revenues and so on. I didn't fully grasp the concept though with them pitching money into the business do they own a portion of it and if so once you pay them back is the portion they own relinquished back to the owner or what. I was just reading in to it as this could be an option!
lshlsh2 i'll definetly be in touch with you thanks!

thanks Dante

yammiman

Charlie Brown - a whole lot of doom and gloom on here - my advise? - don't listen to a word of it!! - I started my business 20 years ago when I was living in a rented house with a one year old son - I flat out quit my job, took all of my life savings at that point, developed no business plan, secured no line of credit, and poured myself into my new adventure - desire is a powerful thing - I have no regrets and live a very comfortable life - I see guys on here with the courage to restore their own car - they believed they could do it - starting your own business is no different - it starts with one step - good luck and hope you succeed beyond your wildest dreams!!!

csstrux

I just shut down a trucking business. Unless you have the cash for equipment and operating expenses, I would not get tangled up in it. Freight tonnage is way down and profit margins in good times is roughly 5%. Not good odds. We just shut our operation down this summer. That said We (My wife and I) are working on another business idea right now... Which the trucking buis was supposed to bankroll.

greenslade

Go for it. you only live once! You must increase your failers to increase your sucesses

Olds64

Homer Simpson says trying is the first step to failure!

FWIW, I think it would be cool to own a small business, it would just be a very daunting task. If you want to start a business then go for it, just make sure you use the resources available to you.

lshlsh2

I Don't want to be doom and gloom. I just want him to realize what it takes so he has a better idea of what he needs to do and doesn't fail.

By the way my family started this business Feb. 19th 1929. Timing doesn't get much worse than that.
Larry

citcapp

I have been in business for myself since 1973, failed twice, now I have my own consulting and design firm plus I have a long term relationship with an extablished Electrical contractor for which I do estimating and design work. This gives me the best of both worlds, when I retire in two more years I will just do the consulting work part time to feed my car hobby and travel. Under funding a startup company along with poor management causes most business failures. It takes time to establish a loyal client base, then more time to maintain it, All the while you have to look for new customers because attrition of your current clients will occur. Don't grow to fast and be agressive about getting paid, don't become a loan business for your clients. It is rewarding and yes you can start a business in a down cycle.

Jamesbo

I would add

It will take twice as long as you plan for to get up a in the black and it will take twice the amount of money you have budgeted for.

That's just the way life is. Plan your work, work your plan and expect suprises.

jaunty75

How about getting yourself employed by a garage somewhere and then eventually buy out the owner and take over? You're working and earning a steady income while accumulating the money for the buyout, and when the transaction finally occurs, you're getting an established business with an established location, reputation, and clientele.

You're 23, which means you're just a baby. Stuff doesn't happen overnight. You might be 30 or 35 (or 40) before the owner is ready to retire. Or, while you're working, be on the lookout for an established business where the owner is looking to sell. No reason you have to do ALL the start-up. Buy something already started up.


Yeah, and I'd like to lose 20 pounds! Most of us work where we can get a job. Much of America works for corporate America, and much of it doesn't. What we want in life and what we get in life are sometimes two very different things.


Just my totally uneducated opinion.

jaunty75

It isn't?



If the car restoration goes badly, I

a) utter a few swear words,
b) sigh heavily,
c) put down my tools,
d) go in the house,
e) get a beer out of the fridge,
f) and settle down in front of the TV.



If the business goes badly, I

a) utter a few swear words,
b) sigh heavily,
c) and sleep on the street.

Charlie_brown

[quote=jaunty75;140001]How about getting yourself employed by a garage somewhere and then eventually buy out the owner and take over? You're working and earning a steady income while accumulating the money for the buyout, and when the transaction finally occurs, you're getting an established business with an established location, reputation, and clientele.

You're 23, which means you're just a baby. Stuff doesn't happen overnight. You might be 30 or 35 (or 40) before the owner is ready to retire. Or, while you're working, be on the lookout for an established business where the owner is looking to sell. No reason you have to do ALL the start-up. Buy something already started up. quote]

jaunty i did plan on working prior to starting my own and getting the experience under belt first but i never put much thought into purchasing an established business. I'll definetely keep that in mind. Good Idea though!

jaunty75

I'm nothing BUT good ideas. No brag, just fact. (Who used to say that?)

70 cutlass s

Yeah not a bad idea. You can find an older mechanic to work for that plans on retiring in few years. Buy him out have a nice little business.

71rocket

Do it because you love your work.

csstrux

I think I misread the initial plan. Are you planning on working on the trucks, or owning them. If you are planning on repairing them, I would be gung ho behind you all the way. You can start small with a truck and some tools doing minor repair at the local truck stop in your off hours, while working for someone else. Do the obvious and make arrangements with the owner, and the local parts store. there are tons of trucks on the road that need minor repair, but running too hot to stop and play the waiting game at the dealer, or trying to get home in the off time. Assuming you are efficient, and reasonable, you can quickly and efficiently build up clientel before you have to lay out any serious capitol. Cash flow is key. keep your debt to a minimum or nonexistent. If you treat the truckers and owners fairly and well, you will be remembered, and drivers talk (usually too much). Conversely, that trait can bite you if you screw one as well. There are ways to get started in the service end without getting buried right out of the box. According to information I have read ( but don't have at hand) Most successful businesses have been started without a real business plan, and the rest were blown out the window shortly after getting started. Things are not going to work the way you expect them to. That said have a clear vision of what you want, and a basic plan of what you expect you need to do and have to get there. Prepare for the unexpected and talk to people who have gone before you. Best to do this a distance from your intended area of operation. Once you have some clear goals and a fair idea of what you are committing to, discuss it with your significant other, best case/worst case scenario. You will need them onboard and fully committed because it will become your life. At least for a time. If you are not prepared to make a serious commitment you will not likely succeed. If you can manage your finances well and have the will, ability and commitment, success is yours for the taking. I wish you the best of luck.

yammiman

....If the business goes badly, I....

....would just go back to work for someone else!!!

Thomas Edison once wrote:

“I haven’t failed yet; I’ve just found 10,000 ways that don’t work”

The only person who fails is one that either does not try to begin with, or quits when the going gets tough - know your objective, love what you are doing, keep your debt low or zero, do good work, get paid, and be smart with your money once you start making it - I say go for it!!!

stevengerard

you can look at your age as a good thing too, you don't mention kids but my guess is you have very little dependents (i.e. responsibilities) so only you are at risk and at this point in your life it is little risk. Don't look at going on your own as risky, it is managing risk, lots of good suggestions listed above. I am a firm believer there is never a right time to start a business but never really a wrong time either, maybe just bad timing - in this terrible economy there are still real estate agents making a killing (they have changed their business model) and for every out of work person there is someone else getting rich. Don't get over your head too fast and don't fool yourself when things are great, on the other hand the bad times are never as bad as they seem - you just don't know it until you are through them.

A good plan, some reserve in funds and good contacts make for a great start.

Steven