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Not sure what business world you wish to enter - But I dare say some start up businesses will require different skill factors - ie a plumber or a guitar teacher
However a few key points is to know your market, your opposition but make sure you back up your own belief - Work at it and be proud of it - It is your baby and give it all it deserves with time and effort
I've started from fresh 3 businesses over the years - So zero takings on day one - All did okay and sold of them - Guitars4You is my 3rd and final business
Many other good comments above from FB members
Ref loans etc - I suppose how much and for how long - Some starts ups will flop without it, so I don't support the no loan option - But I will say a positive cash flow is priority to any business - For a while you can run a business without making a profit - But without cash, you can't ever run a business for more than a few days/weeks - So a loan is fine but make sure you are cash flow positive - Cock that up and you have big issues - As it happens I have an overdraft facility, but I hate going 1p overdrawn, but it is there for any potential rainy day - Before I opened up Guitars4You, I worked for a few years with a large corporate company as part of the senior management - I had issues with my boss at the end, but for all of that, the biggest lesson I learnt from him was about positive cash flow - He had around a £1 million overdraft facility and hated going 1p overdrawn - You can recover and learn from other issues and failings of a business, but no cash and you are buggered !!!!!!!!!!!!!!!!!!!!!!!
Final comments - Keep it fresh, exciting and fun - For you and the customers
I started my business for many reasons, it was/is a long time ambition to be my own boss.
However, I actually started it as I was going through extreme depression at the time, my life was absolutely all over the place. I'm highly educated (so my parents like to remind me), can speak French fluently, but really could not hold down a job for love or money simply due to the fact I hated being bossed around, and mentally, I was struggling.
Setting up and running a business, really, I mean really, focused my mind. I wouldn't say it cured the depression, but they do say finding a project/hobby or something to focus your mind on is a big help. I've never looked back.
I would echo everything mentioned above. Be patient and re-invest profits back into the business until it is really up and running.
Don't go to a bank for a loan. If you need money, invest it yourself or help from a family member (if you're fortunate enough to do so). Start small and grow organically.
Also, I wouldn't worry too much about a business plan. Do one by all means, but don't be afraid to rip it up and start again or make changes. My business plan changed 3 weeks after it was done. And then changed again a few weeks after that.
dbphoto said: This sums my attitude up perfectly
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Good luck !
But as it goes on I learn more and more about it and I can relate to alot of the comments about trying not to borrow money, and working as much as you can.
Be prepared for quiet periods depending on what trade you're in, as a tuition service summer and Christmas holidays are the worst.
But I don't miss working at a desk in an office, for 8 hours per day with people you don't share anything in common with.
Only advice id give as dont take too much notice of advice, everyones journey is different. have a clear idea of what you want to achieve but be prepared to change as opportunites arise, good luck
I'm making huge strides.
I have some coding chops, but certainly not enough to build the thing I am imagining, and I only have an inkling that it would sell. No hardcore proof.
Fundamentally I think getting my coding chops up to speed with C++ and something like JUCE would be a good idea for long-term career progression and entrepreneurship.
I spoke to Tim last night and he asked me what I wanted. Best I could come up with was "to make cool shit" - which is pretty much what I have wanted since I left uni at least, but probably even since I was a kid. I've not given up on that goal, but it's getting harder to know what it really means.
Someone asked what about the band. Fundamentally the band is a hobby that has had some low level success in the niche world of instrumental post-rock and metal. But it isn't going to pay the bills and I never thought it could. Again, make cool shit.
Selling cool shit is something I don't entirely "get" right now. But I'm getting older and have a family now. I need to really learn how to do that.
Remember, it's easier to criticise than create!
However, you obviously can't do that if you're working every hour available in your paid employment, then coming home to a family who also need your energy and attention. If you can re-jig work to give you more personal time, and agree as a family that between 8 and 10 every night (or whenever) you're locked away working on your own stuff, it gives you some structure and some space.
Be slightly wary of sneaking in dev time during your main employment (if possible) - I haven't had to care about this for years, but there certainly used to be some interesting stuff around IPR resting with the employer even if the project wasn't directly related to work if done on company time etc.
Now I run Dr Watson, selling my own unique bits of kit. If something annoys me and I come with a solution that works then I generally think that will sell and market it. Most of these products are band related so the research and testing is quite enjoyable.
I've never had a business plan, I know you should but everything has always gone in a linear fashion for me. I built one clone computer and sold it and with the profit built 2 more and sold them. After 6 months I was selling so many I had to get a unit and a partner to help me build them. Funny enough at that time I wrote a stupid little program in C++ called System Builder which was a simple little prog that spec'ed a PC build and wouldn't let you miss any component out. This saved us money because people were making mistakes and leaving off a NIC or a modem which at the time could be £40 or so. As a program it was the most uncool thing ever but it was surprising how many people in the trade wanted it. Again if you code or build something that you yourself find useful then it's odds on other people will. Some guys try to sell solutions looking for a problem and that's always doomed to failure. Business wise within 3 years we were turning over half a million and employed 5 people. No money was borrowed to start the business, I don't think anybody would have lent me money at the time, certainly not the bank with my credit rating at the time. Ironically years later the bank was constantly pushing large overdrafts our way and encouraging us to borrow money !
I'm not in a position to offer sound business advise as I've always got on with the practical side of things and paid other people to do the VAT and returns. But to start with I would echo all the other advise of Don't borrow money ...... also don't tie yourself into any leases on business premises. I doubt you would need to in a coding scenario but if things take off it's surprising how quickly you may need a proper business address before people will deal with you.
What I would say though is that running your own business developing your own products is a very enjoyable life .... I can't think of anything I would rather do instead.
Despite having developed software to help people do the first, a long time ago, I've always tended more towards the second. Anything other than the broadest forecast will turn out to be wrong, and you only need detailed financials if you're looking for a loan, which you want to avoid if you can. It does help, however, to have a rough idea as to exactly how much (or little) you can live on, and what the costs of generating that might be. Also to think through obstacles ahead of time.
That said, like @Danny1969 I've always been a line of least resistance person, so have never had any formal plan, done any formal marketing, and currently run my business all wrong - if I were consulting to myself, I'd have a fit
Had a business for a long time.
Advice and info - talk to a bank about business banking, they will likely have their own guide to setting a company up. We had a good one from Lloyds. Lots of useful info in it.
There are IMO a handful of make or break principles to keeping a business healthy.
Don't get complacent, about anything.
Don't get set in your ways.
Keep on top of the admin.
VAT and tax are not your money, never have been. Take that money out, and stick it in a separate tax bill account. That is a key discipline.
If you can, test the market for your ideas - don't plow forward into developing something that people won't pay for. Just cos you think something is a good idea doesn't mean it is a good idea, not til you test it.
Always ask how yourself if you could have done something better. If you could have, do it next time.
A plan is a good thing - if you don't have a plan, how do you know if you've got there? Doesn't have to be a tome, a topline set of stages is useful.
Be straight with your customers, even if it means telling them something they don't want to hear. Under promise, over deliver, not the other way round. If something is going to be late, tell them as soon as you have a whiff it's going to be late.
and if you can't do something, don't say you can. That leads to a lot of stress and ultimately an unhappy customer.