Anyone here ever do it?
starting your own company...
- Thread starter Data Holmes
- Start date
I have a store on CafePress and deviantArt, and I've published a couple of books, but that's not quite the same thing as starting a business; what business are you looking to get into?
Check with a lawyer about drawing up LLC paperwork. Anyone who tells you to Incorporate is an idiot. Also, it would benefit you greatly to take classes in Microeconomics, Business Math, and Financial Accounting.
Yes.
Ten years or so ago a buddy and I started a computer business. Went pretty good, built a couple good systems and even did a network in a $1.5m home for one of his co-workers. Ultimately though we just lost interest in doing it.
I have a software consulting business, specializing in manufacturing systems, mostly automotive.
First thing, ask other business owners in your area about their lawyers and accountants. You'll need one good one of each.
Those are the folks to speak to about incorporation, LLC options. Depending on the situation there are advantages/disadvantages to each structure. Read and learn everything you can about this.
Consider the business ownership carefully, if it's a business that will bid a women/minority owned business has distinct advantages.
Speak to the business support person at your bank. You'll need accounts, payroll and a line of credit at some point.
Last and first, have a plan. Be prepared to throw the plan away and change course when opportunity arises, but be aware of the changes.
There's much more to it, but that's a start.
First thing, ask other business owners in your area about their lawyers and accountants. You'll need one good one of each.
Those are the folks to speak to about incorporation, LLC options. Depending on the situation there are advantages/disadvantages to each structure. Read and learn everything you can about this.
Consider the business ownership carefully, if it's a business that will bid a women/minority owned business has distinct advantages.
Speak to the business support person at your bank. You'll need accounts, payroll and a line of credit at some point.
Last and first, have a plan. Be prepared to throw the plan away and change course when opportunity arises, but be aware of the changes.
There's much more to it, but that's a start.
In the summer of 2003, I started a sole-proprietorship, specializing in digital media design and production. I funded it with a loan against my car and some credit cards. Overhead was minimal, as I was running it out of my dorm room and later my apartment. Thanks to some solid networking connections, I was able to pummel my debt into non-existence within a few months, as business was solid.
In September 2005, I sold my company into my current firm, in which I am a partner.
In September 2005, I sold my company into my current firm, in which I am a partner.
Sure, I have a couple of businesses. One is pretty small and informal at present (though with prospects for growth down the line), the other is a fully-fledged, limited, company that's been around a few years now and still growing nicely. I run them in my spare time, though the second one I only own 50%, running it jointly with a friend.
I aim to resign my current full-time job in between 6-18 months (depending on some other variables), partly to devote a little more time to those two ventures, plus starting a third business.
I really like the concept of the portfolio career with multiple income streams generating revenue, and running your own businesses is probably the most cost-effective (if potentially risky) way of achieving this.
When you guys did it, did you go Sole Prop, Partnership, LLC, or full blown incorporation?
Did you trademark your company name?
Did you guys set up the company first or did you have an idea what you wanted to do then set up the company?
How did you know you wanted to start your own company? Any negative experiences?
Did you trademark your company name?
Did you guys set up the company first or did you have an idea what you wanted to do then set up the company?
How did you know you wanted to start your own company? Any negative experiences?
LLC licenses are a very attractive option. My dad's current business operates as one.
I don't think I have to be an owner myself to be qualified to say it would be a pretty good idea to know what the product/service will be prior to forming a business.
As for the motivations, I think it often stems from a desire to be your own boss. You set your own hours and enjoy a lot of other freedoms (more or less) but there is exponentially more responsibility.
I don't think I have to be an owner myself to be qualified to say it would be a pretty good idea to know what the product/service will be prior to forming a business.
As for the motivations, I think it often stems from a desire to be your own boss. You set your own hours and enjoy a lot of other freedoms (more or less) but there is exponentially more responsibility.
Does anyone know about sole proprietorship as opposed to incorporation?
I'm in the process of becoming somewhat offical something due to pressure from some of my larger clients... it's a bit much to absorb. I need something that brings with it the least amount of responsibility.
I'm in the process of becoming somewhat offical something due to pressure from some of my larger clients... it's a bit much to absorb. I need something that brings with it the least amount of responsibility.
Partnership
Yes, as well as our logo.
Yes.
It just sort-of came to us. No notable negative experiences occured.
For some things I've done Sole Proprietor, for others LLC or Partnership. It all depends on the scope of your work and the liability involved. Remember, LLCs aren't a complete insulation from liability -- just in certain circumstances. Full incorporation is the most "safe" but it's not cheap and carries a lot of legal overhead.
But if you do think you'll end up forming an S-Corp, it might be useful to do it sooner rather than later, however. Changing mid-stream is a pain in the ass.
One of my businesses is trademarked, yes. The others are not. It all depends on the size of your business, the likelihood of competition seeking to leverage your brand conventions in order to unfairly compete, and etc.
The company must have a focus when its setup in order for you to properly determine whether you'll be collecting taxes, at what rates, and etc. To the best of my knowledge, you can't just set up a company that does nothing in particular.
I intend to be very wealthy some day. And I know that'll never happen working for somebody else who will use my talents to line his own pockets. Not to sound too Machiavellian about it, but I much prefer using other people's talents to line my pockets.
As for negative experiences -- some.
Firing people sucks, on a human level and on legal level.
So does filing taxes and having the "curtain" pulled back regarding just how much we really pay. As your own employer, you'll be paying double into Social Security and Medicare, you'll be hit with a Self-Employment tax on top of that, and you'll be responsible for Payroll taxes if you employ anybody else. There is no end to taxes, fees, forced insurance participation, etc... Be sure to charge your clients appropriately.
Losing accounts sucks, and not every client has paid my company on time this year. As a result, my partners and I have faced some periods without income. Working 80-90 hour weeks with no income was a bitter pill to swallow.
In short, running your own show -- with or without partners -- isn't all it's cracked up to be. It's hard work. A shit load harder than working for somebody else. If you don't have a goal for it, if you don't have a real desire, then don't do it.
My thing is that I've always know I want to do something like start my own business, someday. It's just I've yet to figure exactly what I want to do with any certainty, so I've never really bothered looking into details of the process. I am, however, also one to pay attention to the little odd feelings and hunches that I get from time to time.
Of late, I've had an incredible focus on thoughts and ideas which tie into starting a company, but without any direct focus on what said company would actually do or specifically starting from a "this would be great for a company" thought at first. It is very odd lines of thought for me. I'm usually the one to make a plan after I have an idea, but everything coming to me of late seems to be interconnected or a part of a plan for a company for an idea I've not yet had.
It was bugging me at first, because my thoughts would drift off of important things toward things like ideas for a logo, name, "company structure" and other "what if" things which didn't make sense to think about when I was thinking about them. I probably would have written it all of as some side effect of a cold or subliminal idea placement from reading/watching something, but it was timed almost exactly with some other "events." It started with a series of odd and vivid dreams which had some specific details that, in the past have been in dreams that have preceded major events in my life. Then, after these ideas started knocking around, I had an interesting conversation out of the blue with a new coworker, who was moved to my store after her store closed, about how she had gotten a better job and that blockbuster was a job where her new job was a career. And now, while not unusual except for the timing, it seems like my current job is cutting down on my hours working and my paycheck is getting... disturbingly, to be honest, small.
I'm always weary of "jumping into the deep end." My father used to joke that the line in The Hunt for Red October about not taking a dump without a plan was about me, and used it to bust my balls on a few occasions.
But, everything seems to be pulling me toward this direction, my own thought process laying the ground work for something, my subconscious telling me something "big is on the horizon" to steal a line from ghostbusters, and outside influences supporting new angles of thought on the subject of "job" which I've not had before and making the prospect of "leaving the shell" of my current job seem more appealing.
I've also been thinking a lot about my Grandfather, who passed away a few months ago now. He was one of the architects of my understanding of money and business, and planning/working for the future. Now I'm wondering if his passing in some way is pushing this, or if what ever in my head is pushing this is tied to my memories of him.
I just don't know what to do. I feel like I'm sitting on a ledge blindfolded and I'm not sure if I want to jump off or turn back. I've never had this type of coin flip moment or this level of confused uncertainty before. I almost feel like I want to go on vacation, just go off and hide by myself for a while and try and figure it all out.
Of late, I've had an incredible focus on thoughts and ideas which tie into starting a company, but without any direct focus on what said company would actually do or specifically starting from a "this would be great for a company" thought at first. It is very odd lines of thought for me. I'm usually the one to make a plan after I have an idea, but everything coming to me of late seems to be interconnected or a part of a plan for a company for an idea I've not yet had.
It was bugging me at first, because my thoughts would drift off of important things toward things like ideas for a logo, name, "company structure" and other "what if" things which didn't make sense to think about when I was thinking about them. I probably would have written it all of as some side effect of a cold or subliminal idea placement from reading/watching something, but it was timed almost exactly with some other "events." It started with a series of odd and vivid dreams which had some specific details that, in the past have been in dreams that have preceded major events in my life. Then, after these ideas started knocking around, I had an interesting conversation out of the blue with a new coworker, who was moved to my store after her store closed, about how she had gotten a better job and that blockbuster was a job where her new job was a career. And now, while not unusual except for the timing, it seems like my current job is cutting down on my hours working and my paycheck is getting... disturbingly, to be honest, small.
I'm always weary of "jumping into the deep end." My father used to joke that the line in The Hunt for Red October about not taking a dump without a plan was about me, and used it to bust my balls on a few occasions.
But, everything seems to be pulling me toward this direction, my own thought process laying the ground work for something, my subconscious telling me something "big is on the horizon" to steal a line from ghostbusters, and outside influences supporting new angles of thought on the subject of "job" which I've not had before and making the prospect of "leaving the shell" of my current job seem more appealing.
I've also been thinking a lot about my Grandfather, who passed away a few months ago now. He was one of the architects of my understanding of money and business, and planning/working for the future. Now I'm wondering if his passing in some way is pushing this, or if what ever in my head is pushing this is tied to my memories of him.
I just don't know what to do. I feel like I'm sitting on a ledge blindfolded and I'm not sure if I want to jump off or turn back. I've never had this type of coin flip moment or this level of confused uncertainty before. I almost feel like I want to go on vacation, just go off and hide by myself for a while and try and figure it all out.
I would advise you to get a book on building a business plan. The process of developing a real plan will help to focus your thoughts and satisfy your need to explore every avenue. As an added benefit, having a real plan means you'll have an easier time explaining your concept to banks or other investors that may even opt to serve on your board (a great way to get advice from those with more experience than you)... And later it'll help with establishing your brand, and communicating your offering to the public.
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