I really want to start a business...

[poet_x]

I'm tired of working for someone above me. if I'm going to work for someone, I'd like it to be my customers, not my managers. I've run businesses before, just never owned one. I've been in sales, and don't much care for the pressure of commissions. I felt most comfortable when I was behind the reins. I want to be back there, but I want to be the business owner.



The problem I have is two-fold. First, and most important at this stage, is I have no capital to invest in a business right now. Student loans, bills, and being out of work for a couple months due to my car accident have totally drained my cash supply, and I just left my sales job for one that my doctor said I can work at (to the tune of about $8.00 an hour). I believe I can obtain funding if I have a proper business plan and idea. That's my second problem. I don't even know what I want to do. Highline cars are a passion of mine, but there is no market for those cars here. It is very rare I see any highline sports cars here (2 NSX's in 15 years, and I'll bet it was the same NSX both times). I would consider opening a watch boutique, but I fear the start-up costs would be way too high. I need something in the $50,000.00 range. Maybe higher, maybe lower. I feel confident in my skills as manager and owner, and have a degree (pending final credit review) in management and organizational development.


I don't know what to move forwards at. I don't want a franchise (and probably couldn't get one anyway-net worth is too small). I'd rather open a business unique to me. the watch boutique intrigues me, and I haven't looked too deeply into it, but it just seems like stocking display cases with the watches alone would be VERY expensive.



Help.

 

[CokerRat]

I wrote up a reply talking about coming up with a business plan and running through all the considerations that go into that (in a lot of detail actually).... and then reread your message and saw that you're already educated about business management so you're way ahead of me (my only credentials are helping my wife startup her small business).

So am I clear that what you're asking for is an idea for a suitable business that could be started with $50,000? I guess that's where I got running on about the business plan was that it wasn't clear whether you'd done the math and business plan #'s to see if a watch store was feasible. Maybe it is? $50,000 seems low for anything but a home-based business but might work for something with low overhead such as a kiosk rather than a conventional store. You will need money to keep you rolling through the first year or so as it usually take some time for sales to ramp up.

I'll toss you one idea: the best margin businesses I ever heard of was selling ice cream down at a recreational area in the summertime. Overhead is dead low (a shack and a freezer) and there is a ridiculous amount of money to be made. Of course it is seasonal. Perhaps you can find other seasonal things that would work for the winter months? Good luck.

 

[NSX_Dreamer]

If you have investors, then they become your boss, even more so than your customers. I'd try to start a business without outside investors. Do you have knowledge capital that can be used to start a business?

 

[JChoice]

I don't know if "I'm tired of having a boss" is good motivation to start a business. You'll have many "bosses" as a business owner: employees, customers, partners, etc.

Have you read the E-Myth? It dispells many of the romantic ideas that people have about owning their own business.

-Justin

 

[RP-Motorsports]

I started a business as a hobby, with no sales experience 4 years ago with only $10,000. It was retail sales of performance parts for sport compact cars. We also did some installation of parts as well (thats where the $$ is at). We were open only 4 hours a day, and sold about $200,000 a year!!! I have currently ended that business due to it taking up too much free time. I am currently looking into selling sports cars (imports only) I will use my parts experience, to add IHE, wheels etc and sell them as mildly modified. I want to do this because of say 1 sale a month as a hobby making $4000 minimum profit is much less stressful than thousands of small retail sales, like the parts business was. I will be starting this in 04 in WI. I also am currently full time employed by the same employer since 1989 as a national warrenty tech. I would try something part-time first, then after a year evaluate and decide if you are ready to quit your other job.

Good luck!

 

[G8 nsX]

I went into business 2 years ago with 2 guys... We had a starting capital of $1,000... The business we decided to go into was import/export/OEM business of computer peripherals... Something the three of us knew very well. So we traveled to Asia with a presentation on a laptop looking for "investors"... We went from investors to investors but nobody took us seriously... So instead, we headed out to China and went from factories to factories looking for support. Again, nobody took us seriously. 3 kids with a dream, who would? So to make a long story short, we jumped the gun and decided that if we can go back to some of these factories with PO's then they'd take us seriously... and that we did. So we came back here, sub-leased a small office, printed some business cards, made a website, did another company presentation and headed for potential customers. We basically told everyone that we were from XXX company and we have a factory in China that can do production for your XXX product for alot less... Yes, I know, talk about business ethics... After about a dozen companies or so, one respectable company decided to give us a shot and gave us a $150K P.O. trial order... We took this PO back to China and approached this one random factory with all European and Asia channels and no presence in the U.S... and we struck a deal by convincing them that we can give them access into the U.S. market starting with that PO, giving that they gave us a 60 days term... and of course, we told our customer that it's COD on the first order... So there we have it, $150K to play with for 60 days and that's where we started... First year alone we did about 3 mil in business...

Even with no capital we were able to find a solution... It took us quite a few months to get off our feet... And even though it probably wasn't the most ethical way of doing things... it worked and got us started...

I would suggest importing and exporting... as there are many products "out there" that could be sold here for a whole lot more... I'm no business expert but I'd be happy to give u any tips if I can....

Good luck!

 

[poet_x]

I appreciate the input. To answer a few questions:


1) yes, I have business experience, and some of my business plans, I have been told by professionals and college professors, are outstanding. I wouldn't dream of starting a business w/o serious investigating into the market here and considering what my success rate might be or what may or may not happen.

2) I'm looking at a $50,000 startup out of my own pocket in a year or so. If I don't need investors, all the better. There is a good chance I'll be recieveing a substantial insurance settlement re: my car accident, and I would like to put as much as $50k into a business I feel confident will succeed.

3) I have no illusions about the glamour of owning a business. Some of my best friends and family friends have done startups or purchased existing business. Some succeeded, some failed. I know the time it takes to run a business (owning and running a business does not start and stop with your store hours). My family said they would support me in anything I do. Honestly, I just feel more comfortable being able to run a business, as I have worked at too many that I have seen run poorly, and that despite my best efforts I am unable to correct.

4) If the watch idea does not work, the other idea I have is a car audio (and perhaps performance to a small degree) dealer. There is only one major player in my area (Traverse City, MI), and there are a number of car audio companies out there that offer superior products for equal or lesser prices than the lines my competition here carries. Honestly, if I can sign a 1 year lease (and people here are really trying to move commercial locations, so i don't think that would be an issue) I could "try out the water" for a year or so. If it flies, great. If it dies, I'm better educated for the experience. I have a friend who would work for/with me, and he has national publication of some of the installs he works on. Also I'd like to take this beyond the local market. Stores like 310, West Coast Customs, and the like have a national market. If I can provide better service and better quality, I think I can expand this beyond the local area. Obviously this is all in early planning, but like I said, I may have a decent check coming i can use to try and better my life, and it looks like it will be about a year before I receive it.

5) Import/Export has always intrigued me, but I have NO idea how to do it. I don't know the regulations, or even where to start. At this point I think I'd like to start a business that I am familiar with (and I am quite familiar with car audio), and explore uncharted territory after I have established myself. However, I would love to learn more about importing and exporting.

 

[hlweyl]

I hate to sound like a negative nilly-nally, but for every success story out there, there are at least 9 other stories of failure. If you do chose to start a business, make sure it is something that you have skill, knowledge, and a passion for. Make sure that you like what you are doing because you WILL become a "slave" to your business.

If you have a passion for watches... great. Why not start small? Start up a website and run the business out of your home. Or heck, sell them on ebay. Meanwhile you can work somewhere else stable until your business is flowing. Then and only then should you consider actually setting up a store. Renting commercial space is very expensive.

Best of luck to you and if you do start a watch business, let me know. I'm gonna be needing to upgrade my Timex soon

 

[steveny]

I am no expert and I do not have a business degree but I did run my own business for 20 years (real-estate rentals). In today's current market here is how I see business. If you open a brick and mortar business and the items you sell can be shipped I see a lot of difficulty making a profit. The internet has opened up a whole new class of businesses that can under cut anyone that has overhead costs priced in to their products.

If you were going to retail watches from a store front you would need to rent a space, pay for heat, A/C., employees, benefits, shelving, display cases, electric, insurance, equipment, stock, etc... How can you sell the watch cheaper than the person who is selling them through Ebay without any of the above costs. If you were to buy your inventory in huge lots you may be able to sell them as cheap, but you will also be taking a huge chance by putting out that much money up front.

If I were going to start another business it would be based on service or items to large to be shipped inexpensively by at least the highest sales tax rate in the US. Being in business, as most have said here, is not glamorous it is a lot of work and time. So why not pick a less glamorous business that not a lot of people would choose, less competition. I have a family member that made a 100k a year picking up trash with a one ton dump truck, not a fun business but, he got up when he wanted to and is his own boss. He eventually grew the business into a multi million dollar a year business and just ran the office then. He started the business up with less than 10k. He just sold the business to Waste Management for Tens of millions and retired at 45.

When I was running my business it was all I did, thought about, prepared for everyday even on weekends and holidays. I look back on it now and sometimes think how much fun my friends were having throughout their 20s and 30s and how hard I worked. Sometimes I wish I had played a little more and worked a little less. Then I stop and take a long look and see all those friends have nothing more than they had when they were 18, still renting, driving junk, no money in the bank, some still living with their parents etc. Then I know I made the right decision, even more so as I get older and realize had I screwed off during my youth I know I would not have the energy now to start a business and run it as hard and long as I did when I was young. Don't spend your youth making your employer rich.

 

[Sig]

I am no expert and I do not have a business degree but I did run my own business for 20 years (real-estate rentals). In today's current market here is how I see business. If you open a brick and mortar business and the items you sell can be shipped I see a lot of difficulty making a profit. The internet has opened up a whole new class of businesses that can under cut anyone that has overhead costs priced in to their products.

This is very true in today's world. If you go the brick and mortar route, stay away from direct competition with the internet. I.E.... selling any product widely available on the internet with low shipping costs.

 

[Carguy!]

This is very true in today's world. If you go the brick and mortar route, stay away from direct competition with the internet. I.E.... selling any product widely available on the internet with low shipping costs.

Like watches!

I agree, just recently my wife and I were at the mall and she found a watch she liked that was "on sale" for about $800. We went home and I ordered the watch online for $600 shipped to our door the next day. We saved almost $250 dollars from the difference in price and the sales tax. I think watch stores are in big trouble and now would be the wrong time to get into that business.

Service business's are the best to get into with low capital outlay and high profit margins.

 

[JChoice]

Steveny,

I thought about the same thing as well. I've been in business for 6 years and spent so much time working that I sometimes thought I missed out on my mid 20's.

I had spurts where I'd party it up and just have a good time but those were few and far between. I have no regrets only because I just turned 28 so I have plenty of "youth left" and I'm more than making up for any time lost working and not playing - plus I have the success now to do things like travel, road race, etc and with the hard work, I got plenty of material things. Plus, I've learned so much about business, life, and people doing what I do.

But if I was still working as much as I was when I was 22 - 26, I don't think I would continue to do what I do.

My advice: be sure you plan a way to be able to make more and work less - not work more and make more. It might take a few years but without a plan - on your the path to self-enslavement.

 

[poet_x]

The more i think about it, the more I think the car audio route would be the way to go. I gave it a very weak attempt a few months ago, and was well received by all the companies I want to carry (many of which protect their dealers by enforcing a no-internet sale policy). I have about a year to really get all my ducks in a row. Retail space here, in decent locations, id about $100/sqft, give or take. There are quite a few vacancies, and people are motivated to fill them. Really, the car audio business is two businesses in one: sales and service. Almost all car audio products have a meaningless warranty if the pieces are not installed by an authorized dealer. And I know what the markup is on car audio products. Like I mentioned above, I'd like to offer a higher quality product and higher quality service than what is available now. I've seen the work that most shops here put out, and some of it is downright scary. Also I know I can provide a better atmosphere to purchase and wait while your purchase is being installed than is available anywhere around here. Ideally I'd like to make a move to a national market without alienating the local market that will sustain me.

In any case, I have a fair amount of time to think about this, and do all the proper planning. If I do get this ball rolling, I will be happy to pass on a "NSX Discount" to all members here...

 

[PoohBEAR]

$100 per sf? are you crazy? you will be broke by the time you open your door....

Retail space here, in decent locations, id about $100/sqft, give or take.

 

[poet_x]

$100 per sf? are you crazy? you will be broke by the time you open your door....

My bad. It's $1 a sqft. 2400sqft space is $2400/mo.








What the hell was I thinking when I typed that? I need to go to sleep...

 

[steveny]

Here in the town where I live many car audio shops have come and gone. One in particular has stayed in place for as long as I have been alive. The place is called HI-WAY HI-FI. Oddly enough they have always been and still are the highest priced place to have work done within 100 miles of here. But I have to say if I ever need work done I take my cars there. These guys do pristine perfect work EVERY TIME! It is not uncommon for people that live 100 or more miles away to bring their cars to this shop to have work done. The same people have also worked there for years as well the owner does many of the installs too. They do everything from simple installs, tint windows or custom builds. The last time I was in the shop the owner was stitching together a custom sub box for a Ferrari 512 that was so perfect it looked factory. He told me he had ordered the leather from the Ferrari factory for the job. The owner of the car brought the car over from Connecticut to have the work done. This attention to detail is the reason why I think he has stayed in business for so long, even with the high prices. But really, does perfection have a price?

 

[poet_x]

Here in the town where I live many car audio shops have come and gone. One in particular has stayed in place for as long as I have been alive. The place is called HI-WAY HI-FI. Oddly enough they have always been and still are the highest priced place to have work done within 100 miles of here. But I have to say if I ever need work done I take my cars there. These guys do pristine perfect work EVERY TIME! It is not uncommon for people that live 100 or more miles away to bring their cars to this shop to have work done. The same people have also worked there for years as well the owner does many of the installs too. They do everything from simple installs, tint windows or custom builds. The last time I was in the shop the owner was stitching together a custom sub box for a Ferrari 512 that was so perfect it looked factory. He told me he had ordered the leather from the Ferrari factory for the job. The owner of the car brought the car over from Connecticut to have the work done. This attention to detail is the reason why I think he has stayed in business for so long, even with the high prices. But really, does perfection have a price?

In the car audio world it does for sure. If it didn't EVERYONE would go to the "big boxes" (i.e. CC, BB, ABC Warehouse, etc.). Install quality is what can make or break an independant shop. That's why if I do start this business I really need my friend on board. He has the install background, and has been in the industry for years. In all honesty, he would basically run the store under my supervision. I know the market is there, and I know how to attack it and claim a share for myself, but I need his help in keeping that share.