Was just curious about all the diversity we have on the Org...

I have been self employed for a longgggg time ... and thinking about in 08 a few different business entities ....

One would just be an extension of what i do now - just working OUTSIDE my firm , etc ... being sole proprieter, etc ...

the other business might have to involve legal issues like incorporating, etc ... which i am seeking counsel from various sources (atty, local chamber , etc ...) IT would be in the service sector ...

So it was on my mind ... was curious if anyone on here owns-coowns, etc ... and would like to share thoughts on what to do .. what NOT to do ... etc ...

I have owned businesses and am about to start another one. Some have been successful; one was a stunning failure. Here's what I've learned:

1. Raise more money than you think you'll need. If you think you need $50K, raise $100K. You can set the extra aside and return it if it's not needed. But if you raise too little, you will probably find that it's almost impossible to raise more capital. And if you can raise some more capital in a desperate situation, it will probably cost you more in ownership than you would find reasonable.

2. Know your partners. And more importantly, have your agreement with your partners set down in clear writing. This is a hard part - write the agreement as if you don't know your partners. The biggest mistake I made was doing a very restrictive partnership agreement (for me). At the time, I got along great with my partner and had no reason to think any of the restrictions would be a problem. But we had a disagreement, and all of a sudden that partnership document was totally unreasonable to me. Too bad, though. There was nothing I could do about it. So treat your partners as new acquaintances when you draft your agreement. They will not be offended, and if they are seasoned businesspeople, they will actually respect your foresight.

3. Have an exit plan. If you take on partners, they are going to want to know how they get their money back. Do you plan to sell the business in X years? Do you plan to make dividends, and if so, how much and when? Do you have a buy-sell agreement? People will be much more likely to invest with you if they know you have a real plan for getting them paid off.

4. Have a buy-sell agreement. Invest the money with an attorney to draw up a good buy-sell agreement. If you don't know what this is, org note me and I'll fill you in. Make SURE the company buys an insurance policy to fund the buy-sell agreement in case you or one of the partners dies. This is the most important thing you can do to ensure the survivability of the company. And it might be the most loving thing you can do for your family, in case you are the one that passes away.

5. Aim high. Set aggressive sales/revenue goals. Write them down. Paste them on the wall. If you have to look at them every day, I bet that no matter what, you'll figure out ways to reach them.

6. As Warren Buffet says, "Be greedy when others are scared, and be scared when others are greedy". This means that in bad times, try to be aggressive. Your competitors will be in a retraction mode, so they will be vulnerable. Go after them. But when times get good, be cautious. Your competitors will tend to get too aggressive. Don't fall into their trap. Be aware that what goes up will come down. Try to cut costs in good times - you'll be glad you did.

fascinating rodeo ...

i would agree with you on alot of the comments you made ... the first one sounds EXACTLY like somethin i woulda said !

The one thing I have to say, is if your going the service route, a restaurant or retail, don't assume that you are the greatest taste/style maker for either the interior setting or the product you are selling.

Make sure you seek out the advice of someone who maybe over qualified in those areas to at least expose yourself to newer ideas or alternatives.

I see many new businesses flop because they have one idea stuck in their head and that idea often appeals to them because they think its cheap and trendy. When its likely it has been done a number of times and failed, or is a copy of someplace down the road or a couple blocks away.

Cheap and trendy often lacks in detail.
And attention to detail is what makes places feel special whether the clientele immediately realizes this or not.


.
[Edited 1/21/08 8:04am]

fascinating comment horatio ... i too - have found that the case in alot of business's i have seen ...

and i can relate to that also ! (with my own past , etc )

Built my own voice and data integration company from scratch. Ran it for 4 years then sold 66% to 2 business partners, i retained 34% and we have a shareholder agreement so 2-1 is the only way to make business choices.

When i sold out that share we were US $3 million t/o with a 42% GP. 1 Year later we are US $6.5 million with 48%GP and 11 employees.

I love running a company but the pressure can get heavy sometimes as the buck (and for buck read SHIT) stops with you. Vacations are not vacations and you NEVER switch off.
However with GOOD business partners it is possible to have a life. I am looking forward to 2 weeks honeymoon and NO phone.

The rewards for success are very worth it.

BTW the best advice i could give is "don't be a busy fool"

Turnover is flattery...profit pays the bills.

I have a wholesale business ,If you have a partner you need to go to a lawer
have papper drawed up to cover your self,I find it is a lot of work jest keep
the business going.If you live in the USA there Grants that will help you.But you have to have a buss.plan an what you gross for the year.Best of luck In your Business.

i had partners in my first business "venture" .... never would do it again ... that was 10 yrs ago ...

(not to say your advice is not good- just dont think i wanna do the partner thing THIS time ... lol )

ColAngus said:

It depends on what your goal for the business is.
In my experience alone will pretty much end up as a "lifestyle" business as in reality you only have one set of hands and 24 hrs in a day. If that is what you want then more power my friend.

Alternatively get the business to where you want it and then bring them in ON YOUR TERMS.

perfectly put ... mdiver.

i agree with ya .

I was co-owner of a candle business. We made and sold the candles. Wasn't my dream but the ex's vision. I rolled with it.


I'm currently developing an nonprofit org.

Good luck in your ventures.

I have been an independent contractor/business owner for 23 years.. Very satisfied to say 2 years ago with the yield. At this point I'm looking to hit the next level but still can't bash what has gotten me through as a single mum these last 7!