**OFFICIAL** Small Business Startup Thread

[XAU]

Starting a thread here! smart, ambitions and motivated miscers can ask questions, share experiences and give opinions and suggestions about starting your own business. New ideas, Internet business, home business, existing franchise and business plan can be discussed here...

Working for someone else is nothing like being an entrepreneur and
the boss of your own business. To become an entrepreneur requires
a different plan or map. You’ll be taking a different road, to a different
destination.
Noel Peebles,



Resources:

Websites:
http://www.forbes.com/entrepreneurs/
http://www.smallbusinessforum.ie/web...ort_webopt.pdf
http://www.entrepreneur.com
http://www.nytimes.com/pages/busines...siness_startup

Books:
Franchise Opportunities Handbook
The Small Business Owner's Manual: Everything You Need To Know To Start Up And Run Your Business

Magazines:
Entrepreneur
Fortune Small Business

[T-Wrecks]

First.

will add questions / advice later!

[johno_66]

Repped

[XAU]

I think as an example we have to look at the very site the we post in, the story of Ryan Deluca and how he started bodybuilding.com:


Ten years ago he was graduating from Capital High School, and now Boise?s Ryan Deluca is considered one the nation's top entrepreneurs.


Ryan Deluca of Boise has built Bodybuilding.com into a very successful, multi-million company. He was recently listed as one of the top 30 entrepeneurs in America by INC Magazine.

"So far, we've shipped out about two-million orders since we started to every country around the world," said Ryan Deluca, Bodybuilding.com CEO.

Ryan Deluca may not look like you'd expect him to. He's the man behind Bodybuilding.com, the world's largest bodybuilding and fitness Web site.

"Yea, people expect some big body builder to walk in the door, but I can still take 'em down,? said Deluca.

This 28-year-old Boise native has certainly muscled his way into a niche market, creating a $46 million company that sells virtually everything related to bodybuilding - shipping about 2,500 orders of supplements and supplies every day.

It?s such a success story that INC Magazine named it one of the fastest growing private companies in America last year, and then this month featured Deluca again on its list of the top 30 entrepreneurs under 30.

"Seeing my picture there at number five as the top 30 under 30 that's just amazing. That's something I can talk about the rest of my life, that's something no one can take away kind of thing, so it's pretty exciting," said Deluca.

While the company clearly does big business it's still relatively small with 100 workers spread between the Boise headquarters and a second warehouse located in Florida. The employee roster includes Deluca's brother, Jeremy as vice president and their father, Russ as the company treasurer, with each monitoring and marketing the distribution of more than 5,000 products.


It?s a long way from Deluca's modest, but ambitious beginnings six years ago.

?When we started it was in our garage, so we had a normal two car garage and we had all these products, and had them lined up on my jet ski and we'd try to make sure the dogs didn't get out, so we'd line up the boxes on the front. That only lasted a few months until we had to get a real warehouse,? said Deluca.

With this space already bursting at the seams, Deluca plans to move again next year to an even larger warehouse currently under construction.

"I know what I?ve done is unique. I?ve definitely grown fast and there's not a lot of people my age that have done that. So I know I?ve been lucky, but I definitely know I?ve worked hard and stayed focused and I feel like this is just the beginning," said Deluca.

Deluca plans to keep flexing his business muscle, aiming to be a $150 million company in the next few years.

While Bodybuilding.com sells worldwide, its top three markets are in California, Florida and New York


http://www.ktvb.com/news/business/st...y.6c497ed.html

[RMV]

bump.

[LUKEDEICHER]

Outside of cash is king, one of the most important business lessons to be learned if you are new to business is......................

Never overestimate what your business will do with sales. Many, many and often times over half of small businesses fail with too much hope, speculation, and optimism and no hard, proven, measurable facts.

Always plan for the worst case scenerio. That way when the goal is achieved, rewards and profit will follow.

With my first business in 1998, I expected to make 20K my first year with the loan I took out. I made alot more than expected and was very happy. I grew cocky.

two years later I bought 3 more of the same business and figured wouldn't be a problem with my abilities even though the businesses were struggling. I spent many years learning the hard way to never overestimate demand for your business, or invisible hopes and sales that are never guaranteed.

The sooner you realize this, the more successful and profitable you will become as a business operator.

[Pay_Me]

Book - E-Myth Revisited: Why Most Small Businesses Fail, and What to Do About It. By Michael Gerber

[Edudbor]

My side-business, lol : http://forum.bodybuilding.com/showthread.php?t=6385071

I close on Friday....

[HollywoodBody]

great thread. I want to become an entrepreneur some day, but all of my ideas so far require too much initial capital, which I don't have.

But some day, I WILL start my own business. I know that.

[RMail]

good thread

repped

[XAU]

Originally Posted by Edudbor

My side-business, lol : http://forum.bodybuilding.com/showthread.php?t=6385071

I close on Friday....

I don't know but real estate is tricky business now, unless you consider other potential market outside the US, mainly emerging markets

[XAU]

Originally Posted by HollywoodBody

great thread. I want to become an entrepreneur some day, but all of my ideas so far require too much initial capital, which I don't have.

But some day, I WILL start my own business. I know that.

You can start a franchise, and some of it you don't need that much cash to start!

http://www.entrepreneur.com/aol/fran...4/2007,-3.html

[LUKEDEICHER]

Originally Posted by HollywoodBody

great thread. I want to become an entrepreneur some day, but all of my ideas so far require too much initial capital, which I don't have.

But some day, I WILL start my own business. I know that.

When banks and others say Liquid capitol and cash is king, they are definately right in todays competitive business environment and society.

years ago you could actually work full time in your business and make it under almost any conditions. But with endless competition these days and higher fixed costs, it is much more difficult.

Expenses these days are high, but it is only going to get worse. Business insurance, rent, workers compensation, employee wages, and even universal health care you have to plan for.

Not saying these things to depress or not encourage others into starting or buying a business. But you MUST be aware of these scenerios or you could easily fail as an operator.

[HollywoodBody]

Originally Posted by LUKEDEICHER

When banks and others say Liquid capitol and cash is king, they are definately right in todays competitive business environment and society.

years ago you could actually work full time in your business and make it under almost any conditions. But with endless competition these days and higher fixed costs, it is much more difficult.

Expenses these days are high, but it is only going to get worse. Business insurance, rent, workers compensation, employee wages, and even universal health care you have to plan for.

Not saying these things to depress or not encourage others into starting or buying a business. But you MUST be aware of these scenerios or you could easily fail as an operator.

Thanks.

I plan on taking my time. I don't want to rush it, because I might only get one shot at starting a business. I'm not going to go forward with one of my ideas when I have barely enough cash to do it. I'm going to wait until I have twice as much cash as I think I need. I know unexpected problems will come up, or the first year or two might not produce the revenues I expected. But I'll have enough cash to at least give it 3-4 years, and give it a chance to succeed.

But yea, the fixed costs hurt in those first few years, when you're not selling much of your product/service.

[Pay_Me]

Also credit is king, it's all much easier if you have a good credit score.

And have a LOC for rainy days

Also get a good relationship with a local Credit Union

[Edudbor]

Originally Posted by XAU

I don't know but real estate is tricky business now, unless you consider other potential market outside the US, mainly emerging markets

Yeah - that's what everyone in the other thread told me. But see, I have this theory...

Basically, people are stupid. If you ask 10 random dudes on the net and they all say, 'Invest in stocks' DO NOT INVEST IN STOCKS. Those 10 dudes aren't rich. They don't know what they are talking about.

Right before the depression EVERYONE said to invest in stocks and buy on margin because it's free money. That turned out bad.

Right before the IT crash EVERYONE said to invest in IT stocks. The wave of the future and all....that turned out bad.

After that, EVERYONE said to invest in real estate. Free money! It's not a home, it is an investment.

I decided I want to invest in something everyone says is a bad idea. If my theory is correct; it should work out well for me.

[XAU]

Originally Posted by Edudbor

I decided I want to invest in something everyone says is a bad idea. If my theory is correct; it should work out well for me.

no, I do agree with your theory but in the long run, so if you are patient and have a fixed income that will help you live for a while, you will eventually succeeded. You heard the sayin early birds gets the worm, Since you will be one of few who is doing it now.

[bigdan]

I am running a small ebay "business" right now. just getting into it actually... I love the idea of making money and have always been involved in some sort of half cooked scheme or another. Nothing terribly successful yet but I like to think that I have a little of the "entrepreneurial spirit" in me.

[Edudbor]

Originally Posted by XAU

no, I do agree with your theory but in the long run, so if you are patient and have a fixed income that will help you live for a while, you will eventually succeeded. You heard the sayin early birds gets the worm, Since you will be one of few who is doing it now.

Awesome

I'll bump that thread each time something big happens. I close on Friday - Kitchen goes first, then bathrooms, then living areas, then bedrooms, paint the outside, do some landscaping and should be ready to sell.

The truth is, if the market is bad and I can't sell or what I want - we'll just live in it for however long it takes - so no big worries.

[cman1787]

Originally Posted by Edudbor

Awesome

I'll bump that thread each time something big happens. I close on Friday - Kitchen goes first, then bathrooms, then living areas, then bedrooms, paint the outside, do some landscaping and should be ready to sell.

The truth is, if the market is bad and I can't sell or what I want - we'll just live in it for however long it takes - so no big worries.

or u could rent it out also

[Roach]

I just finished listening to an audio book - Selling the Invisible. (Written by Harry Beckwith) It's geared towards service type businesses, but much of it can be applied no matter what business you are in.

One of the big questions it deals with is price and the dangers of being the "lowest price" with whatever you are doing. And it makes a lot of sense not to be the company with the lowest prices on their services/products. I've also read thoughts along those lines on many of the selling forums I follow.

Plus a lot of other suggestions on operating your business.


-R

[LadysMan]

I have a friend who started an IT company but ended up delivering Filipino maids to households with children. How this happened is beyond me ... I guess his business "evolved"

[LUKEDEICHER]

Originally Posted by Pay_Me

Also credit is king, it's all much easier if you have a good credit score.

And have a LOC for rainy days

Also get a good relationship with a local Credit Union

Without alot of cash or assets, very few banks these days are willing to "risk" money on you.

Especially in home lending, banks are getting hit hard left and right with foreclosures. This has led to even more caution with lending on their parts.

The sad truth is most people/businesses that banks like lending to do not need the funds, and vice versa. Often times the belief is you must have money to make money.

Creditors and banks want their return on investment as much as you do with time and hours invested working on your part.

[cupcakekid]

at colleges, the business school will often have programs that will pay for your statup costs to register your business. they guided me through alot of the legal issues in setting up a llc and working with the universities sports dept to help in getting my services running smoothly

[Spartan#x]

I run a successfull Lawn/Landscape biz. We service around 60 customers weekly during the growing season, along with major and minor landscape installs.

[njman]

my brother works for some building company and gets some items, i forget what kind, for wholesale and we would like to start a ebay business but we don't konw what taxes to pay, i'm just wondering if anyone knows anything about this?

[rude_rick1]

i am half way though my first year on a business managment degree course.. it seems fairly simple so far although i guess having learned about business in the past has worked to my advantage. Running your own business is the best it can get imo as a job, you can chose your profession and make all the decisions for the benifit of your business as well as yourself personally and professionally,

[Pay_Me]

Originally Posted by LUKEDEICHER

Without alot of cash or assets, very few banks these days are willing to "risk" money on you.

Especially in home lending, banks are getting hit hard left and right with foreclosures. This has led to even more caution with lending on their parts.

The sad truth is most people/businesses that banks like lending to do not need the funds, and vice versa. Often times the belief is you must have money to make money.

Creditors and banks want their return on investment as much as you do with time and hours invested working on your part.

Completely agreed especially in todays market. Housing is even harder, but what I meant was Personal LOCs for like 10k-25k.(But to get one anyway you need good credit for sig LOCs)

Officially shouldn't be used for the biz, but in reality can be a little bit of a safety net.

[muscle_worker]

Originally Posted by irishkid

at colleges, the business school will often have programs that will pay for your statup costs to register your business. they guided me through alot of the legal issues in setting up a llc and working with the universities sports dept to help in getting my services running smoothly

do tell more.

Im thinking about taking on a business venture but i need capital. It also doesn't help that i fear the idea of being under someone else's grip...

[BlackHermit]

Originally Posted by Roach

I just finished listening to an audio book - Selling the Invisible. (Written by Harry Beckwith) It's geared towards service type businesses, but much of it can be applied no matter what business you are in.

One of the big questions it deals with is price and the dangers of being the "lowest price" with whatever you are doing. And it makes a lot of sense not to be the company with the lowest prices on their services/products. I've also read thoughts along those lines on many of the selling forums I follow.

Plus a lot of other suggestions on operating your business.


-R

Discounting is a disease that must be avoided at all costs.
I have been managing/owning retail stores for 10 years. Discount to match prices and watch your profits disapear.
You'r point of difference should be so great that people are HAPPY to pay more to buy their products from you. There is obviously a limit on what people will pay.