Who here runs their own business?

WiresDreamDisasters

I know there are a few people here who run their own business. How did you get started? How did you get your head around the financial side of things? Are there any courses where I can learn the basics?

IE: How does a bellend like me who has completely torched his reputation online and who lives day-to-day feeling like he basically wants to jump in front of a bus ... rise above all of that and go out and start a business creating cool music stuff for guitarists?

Slightly tongue in cheek, but I think really that's what I wanna do. Just don't know how. I got some ideas... I see musicians, and specifically guitartists (typo intended), facing the same problems time after time... and I think I can help fix them.

mgaw

you would manage easily   make a plan   learn what you need to make it viable, if it is at all   do a proper business plan for your plan   then I would imagine marketing marketing marketing  be prepared to give it your all and be flexible in your approach and outlook...and for me most importantly offer value and service

Wazmeister

My advice is simple...

Scratch the itch.

Whatever you fancy doing, however dream-like or brilliant your ideas, DO THEM NOW.

Don't wait till you leave your job; do it now, learn, refine.

RiftAmps

To be successful? Do a decent job and don't rip people off. This is true of you're a Plumber or a Pickup Winder.

1. Don't borrow money

2. Don't borrow money

3. Don't borrow money

4. Don't borrow money

Sell stuff, work extra shifts, do whatever it takes to raise the cash to start your business EXCEPT borrow money. Then reinvest every penny back into the business. Allow 5 years to beat the system and to start being profitable.

mgaw

wise words from @RiftAmps there    amazing how a loan can drag folks down

underdog

Yes I do, have done for almost 9 years, me and the misses literally winged it on the financial side, have just last year got an accountant to take care of it, but before that we done ok just doing it ourselves.

We have never been as well off as we are now, I wouldn't say we are rich, but certainly better off than when I worked for someone else, it also hard work but really rewarding.

Just today was showing Pancho around the place and he was impressed what we had done with the place compared to how he remembered it during dirty Sanchez 

octatonic

RiftAmps said:

1. Don't borrow money

2. Don't borrow money

3. Don't borrow money

4. Don't borrow money

Just for some balance, when we started our property business we mortgaged ourselves up to the hilt and lived on credit cards for 2 years, then spent several years paying them off doing balance transfers to avoid as much interest as possible.

It was a calculated risk that paid off handsomely.
I'm not advising people necessarily do that but when borrowing is cheaper than any potential growth then you borrow.
You just have to be strategic.

TimmyO

WiresDreamDisasters said:

I know there are a few people here who run their own business. How did you get started? How did you get your head around the financial side of things? Are there any courses where I can learn the basics?

IE: How does a bellend like me who has completely torched his reputation online and who lives day-to-day feeling like he basically wants to jump in front of a bus ... rise above all of that and go out and start a business creating cool music stuff for guitarists?

Slightly tongue in cheek, but I think really that's what I wanna do. Just don't know how. I got some ideas... I see musicians, and specifically guitartists (typo intended), facing the same problems time after time... and I think I can help fix them.

Wanna do a chat later? Skype or similar? 

bluechargeboy

I left my previous job after 16 years and set up as a consultant/parasite engineer in June. I spoke to an accountant at the outset, who guided me into good practices and helped me set up my limited company. It's good if you can get an accountant recommended by someone for your particular niche (international business and being paid in dollars in my case).

I bloody love it so far. When I talk to the boys back in the old office, it makes me so pleased that I am free of the corporate nonsense (for now at least). I am making more money but I would still be happy if I was making the half the money (which could happen so we'll see....)

When my ex set up a business with a big loan, it nearly killed us paying it back when the business failed. I would try to get going by making do until you get established. Don't rent premises unless you have to.

WiresDreamDisasters

TimmyO said:

WiresDreamDisasters said:

I know there are a few people here who run their own business. How did you get started? How did you get your head around the financial side of things? Are there any courses where I can learn the basics?

IE: How does a bellend like me who has completely torched his reputation online and who lives day-to-day feeling like he basically wants to jump in front of a bus ... rise above all of that and go out and start a business creating cool music stuff for guitarists?

Slightly tongue in cheek, but I think really that's what I wanna do. Just don't know how. I got some ideas... I see musicians, and specifically guitartists (typo intended), facing the same problems time after time... and I think I can help fix them.

Wanna do a chat later? Skype or similar? 

Sure, I'll PM you my skype.

GoldenEraGuitars

I started SC Relics to pay off a few debts. Little did I know what was coming.

• I didn’t borrow any money
• I worked a full time job for 10 months while building the business
• I invested every penny from my takings into new stock 
• Work extra hours now and pour everything into your idea

If you really want it to happen, it will happen. But you’ll likely need a lifestyle adjustment/change to accommodate the extra work. You’ll have less time and money to do what you want and if you can get your head around that then you’ll be fine. 

To reiterate what Chris said, dont (or try not to) borrow money. Pay for goods and materials up front too. You don’t want any invoices arriving that you can’t pay for one reason or another. 

Happy to chat about everything I’ve been through in depth, you know where to find me.

Snags

Yup, essentially self-employed/running own business for 20 years now. Largely by accident because I'm fundamentally unemployable

I'd echo a lot of the core advice above:

• if at all possible do not borrow money
• whatever it is you're going to do, if you can moonlight, work in your own time, or blend it with a "proper" part-time/reduced hours job whilst you get going, it will help (it will be killing in terms of hours, but it takes some stress out)
• expect it to be bloody hard work and long hours (which you'll be used to) for a while
• have a plan, and DO sweat the small stuff - keep on top of invoicing, bills, balancing the books, the boring day to day shit because if that gets away from you. everything else will crush you
• work out what you want to do. Not just what the business is, but is your goal to build up a business that you can ultimately sell on and walk away from (entrepreneur, where you will run things but not do the work) or is it to be paid for doing something you enjoy, and make a living but without expansion and world domination (most small artisan businesses). Do not be confused and think you're one thing if you're the other, it will bugger you up

There have been resources out there to help you get started in the past - I used to work for a company that delivered funded training to small businesses and startups, covering everything at a basic level (finance, accounts, marketing, HR, time management etc.) - but I think a lot of that has been canned. For what it's worth, I started moonlighting (software development), built that up until I reached a point where I had enough on the order book to cover the basics (along with Mrs Snags income) and I was totally pissed off with my then employer and could walk without stressing for the next 6-9 months.

What I do has evolved massively over the years, not always in a good way, but you roll with it.

You do need to do at least a basic business plan; not for the bank, but for yourself. You need to know the difference between profit/loss and cash flow, and why they both matter. You need to be realistic, determined, and stupidly optimistic. And depending on what area you go into, be prepared for a feast/famine cycle - if it's project-based work you often find when you're working you have no time to "sell" and find the next project; when you're not working, you're not earning. So try to keep that balance. Again, FWIW, I've never had to actively market - word of mouth, relationships and recommendations have always given us more than we can handle.

If you're serious and want a really fucking boring conversation about dull stuff, I'd be more than happy to chip in.

Fuengi

I did it ten years ago, absolutely love working for myself but you are never really out of the office. 

I managed to get into a position where I could work for somebody whilst building my own client base, not sure how I would have done it without wangling that. 

The thing about being self employed is that it's a network / people thing. You need to be competent but you really need to be able to get on with people, work with others and be able to resolve problems without finger pointing.

Keep doing that long enough and people will come back to you. 

LastMantra

Don't know what it's like these days but when I was starting up the government were really keen to help people start new businesses so there was loads of help. Loads of courses and stuff.

LastMantra

Plenty of people with a lot less sense than yourself have managed it.

Zoolooter

If you’re not doing your business from home, the biggest financial issue that I have is paying for space for the business. Be it a workshop, office, commercial storage unit, etc. The price of renting space is high, and it’s a big factor if you already have a mortgage or other large outgoings. 

richh

End of November, I've been running my own business for 11 years.

To do it, you need to go 'all in' and really go for it, especially in the initial stages (years).

You need to keep costs down as much as possible initially, and have a lot of drive.

If you become reasonably successful, you may think you can relax.  Wrong!  That's when the pressure really ramps up!

As somebody else stated, a big problem is not ever really being able to be off duty.

Recently I've adopted a somewhat unusual way of working.  In a nutshell, I decline most clients and jobs.  Politely of course, but I've got a lot better at spotting the people who will drain your time, will to live and profits, and just nip that right in the bud.  But this is probably not something you can afford to do until you are well established.

I hope you go for it and make it work, but just don't under-estimate the amount of work involved.  I think you have a young family, so although it would be great if you do this and it works, it would be a shame if that was at the cost of missing your kids growing up.

Lastly, don't be too afraid of making mistakes, you've just got to go for it.  Good luck if you do go for it.  If you decide not to though, that's fine - it could be better to remained employed and to just enjoy your free time, without feeling so much work pressure?

dbphoto

Self employed since I was 18, I’m now 44 and work an average of 8 hours per week.

I wouldn’t have it any other way and if I’m honest I’m probably unemployable anyway.

First thing to consider is that you don’t really work for yourself when self employed, you work for your customers/clients.  You do have the power to choose the clients you work with though.

I had lots of help both financially and logistically when starting out from PSYBT and a few other organisations, but that was a long time ago and I was just a teenager.

I wouldn’t have a clue where the relevant place to go would be now but there must be help available for those thinking of making the jump?

Roysterdoyster

Self employment. The highs are higher, the lows are lower! 

EricTheWeary

Both my brothers did. I’d say it was incredibly important to them to do that rather than being employees although in the long run they’d have almost certainly been financially better off having stayed in their day jobs. Balancing trying to run businesses with family and personal and health issues was clearly hard at times.
I spent this morning with a woman who runs her own business. I can’t imagine she makes a lot of money out of it but she was very positive about it all. She spotted an opportunity that no one else had spotted and now runs a successful small business. I’d measure success in her case in that it’s well respected in it's field and she’s happy to be doing it all day. 

dbphoto

While this is often true, it doesn’t have to be:

Entrepreneurs happily work 80 hours per week for themselves so they don’t have to work 40 hours per week for someone else.