Setting up own business - Thoughts

Glaucus · 16 May 2014 at 16:42

Your idea should be something you enjoy doing, or something you know about. Like the guy on here who brought the gasses equipment when the factory he worked in went bust.

Then are you wanting a living wage or to make loads of money. How about work life balance etc.
If you know what you want to do, set a business plan out, well business plan might not be correct thing. something that encompass everything.pm not just projected profits and costs, but what you want to earn, where you want to be in the future. Laws you need to obey, just everything and anything.

ttaskmaster · 16 May 2014 at 16:56

A friend and I had a solid business, centred around a decent professional approach. We got undercut by the slap-dash and run cowboys, who won the business because they were cheaper. Quality costs and people learned this the hard way, but by then we'd folded.

LOAM · 16 May 2014 at 17:08

My architectural practice is into its 4th year now, im not convinced a business can be founded on an idea though. An idea is one element, especially if your idea is a product, maybe it's because I'm in the service industry but to me a business is born from a desire to control where you want to go, an idea is formed from the business in my opinion and governed by the etos of the business, not vice versa.

233 · 16 May 2014 at 17:11

as above but no one is going to give you the golden goose

but the best business to be in is one where you have no physical stock and sell other peoples services at a increased rate taking a commission for doing nothing more than hosting a site/taking a phone call

daz · 16 May 2014 at 17:14

arknor said:
doing it wrong

That's harsh - it depends what type of business you have.

Back in university, the same business I run now was a lifestyle business. I would answer emails from customers on my phone, but essentially, I was able to fit the business around me and my normal life. Nowadays, we employ ~60 people and whilst the world doesn't fall apart when I'm not in the office I am always "on" and it is very difficult to switch off, and I still work 70-80 hours a week in the office. You also have that in-between stage where you're working 7 days a week, not making much money and don't have enough to hire people. Breaking through that can be difficult. A lot of it is perseverance.

Johnny20270 · 16 May 2014 at 17:35

233 said:
as above but no one is going to give you the golden goose

but the best business to be in is one where you have no physical stock and sell other peoples services at a increased rate taking a commission for doing nothing more than hosting a site/taking a phone call

Indeed, a sucessful way for creating a platform to connect buyers with sellers for something the genuinely want, like ebay. The golden ticket

Yamahahahahaha · 16 May 2014 at 18:03

I don't have any advice you can't get from someone else or from a book. I'll share a few important things which are true for any business:

People buy relationships.

You don't need to go 'above and beyond', you just need to do what you promise.

Keep your costs as low as possible.

Have a good understanding of accountancy and basic finance.

Duke · 16 May 2014 at 19:26

Depends entirely on what you will be doing. Sounds like you are thinking up a new idea or product? That is very risky so would want to get it started whilst still working for someone. If it is providing a service, then that is less risky, assuming you have the experience and some business sense.

arknor said:
doing it wrong

Yeah, should be living off the state instead.

Johnny20270 · 16 May 2014 at 22:49

Duke said:
Depends entirely on what you will be doing. Sounds like you are thinking up a new idea or product? That is very risky so would want to get it started whilst still working for someone. If it is providing a service, then that is less risky, assuming you have the experience and some business sense.

Yeah, should be living off the state instead.

yeah its providing a service. I am just mulling over it. Not giving up my day job but redundancy is looming where I work so might be an opportune time to at least have a solid crack at it. Overheads are pretty low, just more hard work and lack of salary, but I do that for a while. I know several people who tried many start-ups before and never really 'made it'. Just earned a basic living with a lot less security compared to the 9-5ver

Also, its related to Fuggan's thread, "I can't work in an office for the next 50 years... ". I know his feeling! I am 40 and being working for someone else all my life. I, like a lot of the population, am sick of it. I always think that one should take a chance, whether that is with life, travelling, careers, partners etc. By change I mean 'measured risk'

Efour · 16 May 2014 at 23:11

If its something that can be provided by another person for less like importing X and selling it for Y then i would avoid it like the plague or treat it very short term.

Do you have to do it full time ? Can you run it from Home on the side?
Can you run it along with a part time job to make ends meet? Does it require a huge advertising push? Do you already have poached clients from your current work place lined up ??? Is it Legal ???

Is it repairing peoples PCs? lol

Housey · 16 May 2014 at 23:14

Do you actually have an idea, sorry if I missed it?

Duke · 17 May 2014 at 08:17

Johnny20270 said:
yeah its providing a service. I am just mulling over it. Not giving up my day job but redundancy is looming where I work so might be an opportune time to at least have a solid crack at it. Overheads are pretty low, just more hard work and lack of salary, but I do that for a while. I know several people who tried many start-ups before and never really 'made it'. Just earned a basic living with a lot less security compared to the 9-5ver

Also, its related to Fuggan's thread, "I can't work in an office for the next 50 years... ". I know his feeling! I am 40 and being working for someone else all my life. I, like a lot of the population, am sick of it. I always think that one should take a chance, whether that is with life, travelling, careers, partners etc. By change I mean 'measured risk'

So what is it you'll be providing? I think we can help a bit more then

hargi · 17 May 2014 at 08:29

I have my own business has been going 3 years now. I'm in a service industry, I had to do it as I was made redundant from my old job. I am doing ok, nothing special I earn slightly less then I did in my old job but I'm only "in work" 2 and half days. This suits me as we have a little one so I look after her the rest of the time. I am starting to look at providing products as well, but there is little margin in this. Once the young un is at school full time I will be looking to up my hours.

My business is what is what I trained in at uni to do....However my dream would be to open a dog training/ rescue centre or open a cafe that does proper coffee and nice sandwiches and cakes.

So even though I work for myself its a way of paying the bills and like Fuggan I hope to change to something I'd like to do in the future.

Vegeta · 17 May 2014 at 13:35

Is there any literature you guys would recommend to a complete novice who knows nothing? I am going into business with my dad next month as I have taken a voluntary redundancy package at my work I am footing half the costs for the investment of the business. I know it'll be a success simply because my dad has had many businesses like this but he has learned all his skills through experience (probably the best way) and he has failed before too however I would like to learn through experience and educate myself also hoping to improve upon his knowledge.

I have started reading Think & Grow Rich by Napolean Hill but i'd like as much literature as possible to help me in my goals.

sigma · 17 May 2014 at 13:41

Vegeta said:
Is there any literature you guys would recommend to a complete novice who knows nothing? I am going into business with my dad next month as I have taken a voluntary redundancy package at my work I am footing half the costs for the investment of the business. I know it'll be a success simply because my dad has had many businesses like this but he has learned all his skills through experience (probably the best way) and he has failed before too however I would like to learn through experience and educate myself also hoping to improve upon his knowledge.

I have started reading Think & Grow Rich by Napolean Hill but i'd like as much literature as possible to help me in my goals.

Why do you want a book when you have your business partner to learn from? :confused:

You can't put a price on the value of learning from you dad's experiences, just spend time trying to learn from his mistakes so that you don't repeat them.

You can't just learn "how to run a business" from a book, IMO.

Vegeta · 17 May 2014 at 13:44

sigma said:
Why do you want a book when you have your business partner to learn from? You can't put a price on the value of learning from you dad's experiences, just spend time trying to learn from his mistakes so that you don't repeat them.

You can't just learn "how to run a business" from a book, IMO.

You seemed to have completely misread my post... I will be learning from my father but I am not ignorant to assume I cannot learn things from other sources I want to be as knowledgeable and rounded as possible.

CREATIVE!11 · 17 May 2014 at 14:32

Read,

Read a lot.

Self help to motivate yourself and control ******** emotions / working hard + business books.

Inside books you find the knowledge it has taken someone their entire life to learn for the paltry sum of £10 they are sharing their entire wealth of knowledge they have got through trial and error and failing. Winners read, period.

randomshenans · 17 May 2014 at 15:02

I completely agree that you can't start a business from an idea, LOAM, that's how innovation is created and how we move forward?

I met with some initial funders this week, centred around an "idea" essentially. Software related, but I am starting a business from nothing. Not a sausage. I have an idea though, which I believe will yield reward, you just have to go through the same processes you would if you had an established business though.

Establish you business plan and your business model. Research each stage. Thoroughly. I cannot recommend the "Business Model Generation" book enough for flushing out your business model.
What your offering is,who you're targeting, what your channels are to deliver it to that market, who/what you rely on to do that, what are your key resources in getting that product (made, developed, to you) and what are those costs. All of that vs what your revenue stream looks like and make sure it adds up. SWOT on every aspect of that, assessing your risks. Research more.

Outlay as little as possible, so start as cheaply as possible, as long as it doesn't effect any of the above.

Amp34 · 17 May 2014 at 15:20

233 said:
as above but no one is going to give you the golden goose

but the best business to be in is one where you have no physical stock and sell other peoples services at a increased rate taking a commission for doing nothing more than hosting a site/taking a phone call

Which is why so many people are becoming independent recruitment "consultants", spoiling it for the good ones that actually know what they're doing...

Sounds like the OP should set up a consultancy company. Sell yourself and if you're good enough t it start hiring people to hire out in your name. Plenty of people have made a lot of money doing that.

Johnny20270 · 17 May 2014 at 16:34

hi guys, sorry I must enable email notifications for threads!

randomshenans: Actually I agree (or maybe disagree if I miss-understood your point) . I think many great business have start just from an idea. I have seem that a lot in my career. However I believe it is the proper execution of the idea that is crucial.

I am thinking of creating a website to facilitate a large group of people X to get a service form a large group of people Y. I apologies as I don't want to be too specific just yet

I have a few ideas but as I start to flesh them out they begin to fall apart mainly for 2 reasons

(1) someone else has done it successfully and its very hard to break into it because the first few in have it sown up (e.g. right move / zoopla), or market is just too competitive
, e.g. on-line selling

(2) sound business idea but working the numbers, I realistically won't make a living out of it. (For example building PC's which I am sure 1000's of people have thought about)

Also some aspects like, target market, realistic potential market, target profits, advertising costs need to be taken into account but problem with a software type of idea is that, anyone can just come in and copy your idea quick and fast.

There are other ideas which I think is more sound but the initial capital out lay is just too much of a risk. For example I regularly go to china and I see the Chinese are getting obsessed with European type goods and services. The really want for example German made kitchen appliances and while they can just buy these off a website, not many people are selling the equivalent of the 'John lewis expert service', by western people. There is definitely a market there but only for the big boys.