Where to begin

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unlicensed

Original Poster:

7,585 posts

257 months

Friday 19th December 2003
quotequote all
For the past year i have been thinking about starting my own company/business. And lately ive seriusly considered doing it.

so my question to you is; how would i go about starting one. what are some of the fundemantals necessary to do this. I know its a pretty general question but anything can help get the deeper thought process started.

I know i may seem a bit "too young" but i am more than capable of doing this. And i dont mean for this to be some town wide lemonade stand, Ive figured this is probably my best shot at getting somewhere and why wait to pull the trigger. Any help is much appreciated.

PetrolTed

34,443 posts

310 months

Friday 19th December 2003
quotequote all
Get a mentor. i.e. someone who's run their own business who can give you advice on a regular basis.

eric mc

122,855 posts

272 months

Friday 19th December 2003
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In what area?

Have you thought of the activity you want to do?

If so, is it something you like doing or have experience of doing?

How well do you know the industry?

liszt

4,330 posts

277 months

Friday 19th December 2003
quotequote all
Also there is the legal stand point. are you old enought to own a company in the US? Will you have to put it in your parents name etc? Should be an interesting tax question.

The idea is to make money. You need to know how much it is going to cost to sell your product/ service. This not only includes variable costs ( the per unit expense) such as raw materials for the widgit or packaging but your fixed costs such as advertising, book keeping, legal fees etc.

Once you know how much it is going to cost then you can work out how much you can sell it for. If this is too high then no one is going to buy it and so it is not worth starting. If you get the marketing right, you make money.

If you can start small then build up you get a feel for if you like putting in hours to make the return.

What I would say is education and acheiving good results is important if you wish to be taken seriously in big business. Having an idea is great but will it feed you for the rest of your life?

Good luck with the enteprise and hope it sees you on your way to building your garage

simpo two

87,068 posts

272 months

Friday 19th December 2003
quotequote all
Market research. Know your market and make sure they want to buy your product/service and at that price. How will you compete against existing companies? - ie what can you offer they don't?

It's no good having the greatest offering in the world if you don't get it under people's noses - so how are you going to get the word out?

Get the right product under the right noses and make sure you get paid. You can build the infrastructure organically from there.

Ideally you will not need too much capital for start up - you want to run the show, not your bank. Keep your overheads low - at least until you have a reliable income.

Good luck! But only start when you're sure it all adds up. Create the business in your head, then try to shoot it down. Will it stay up?

Broccers

3,236 posts

260 months

Friday 19th December 2003
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My advice based on my own expereince is work for a couple of companies in your chosen industry. Bulid up contacts and experience and take away the plusses. Making your own mistakes will be costly and disheartening.

And as Ted says make sure you have someone to consult and guide you through - these may even be your suppliers.

singlecoil

34,251 posts

253 months

Friday 19th December 2003
quotequote all
The most important thing about a business is its cash flow, or rather, the direction of its net cash flow. If more money goes out than comes in then the business will fail regardless of its size and strength.
This may sound simple but it is amazing how many businesses are run with little or no regard to this basic principle.

steviebee

13,570 posts

262 months

Friday 19th December 2003
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Wouldn't worry too much about the age thing.

Although there's much to said for experience and all that, if the business fails, it's likely to do so within the first three years and if does, the loss to you is likely to be far less than when you're in your 30's with a family and big comittments.

Would also underline singlecoils' comments!

steviebee

13,570 posts

262 months

Friday 19th December 2003
quotequote all
Wouldn't worry too much about the age thing.

Although there's much to said for experience and all that, if the business fails, it's likely to do so within the first three years and if does, the loss to you is likely to be far less than when you're in your 30's with a family and big comittments.

Would also underline singlecoils' comments!

hobo

5,866 posts

253 months

Friday 19th December 2003
quotequote all
Go for it.

The advantage you have is that once you start work you'll find that no-one ever really lets you know how good you are at your job, they kind of pay you enough to stop you leaving. It is only when you realise yourself (even then 99% stay) that you can do it that you take the plunge by which time you've wasted years.

My advise, have a go, what have you got to lose. You can always take a staff job later.

If in 10 years time you do it instead of now and it takes off you'll be gutted you didn't do it earlier.

Best of luck to you.

>> Edited by hobo on Friday 19th December 19:14

>> Edited by hobo on Friday 19th December 19:14

unlicensed

Original Poster:

7,585 posts

257 months

Friday 19th December 2003
quotequote all
thanks for all the good comments, will help me get more of a view on where to start. Hopefully ill have something going before 2005, ill keep you posted.

jeff m

4,060 posts

265 months

Saturday 27th December 2003
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The requirements are not actually that daunting.
Decide on what form your business will take, Sole prop, C Corp, Corp or a form of Partnership.
Register for sales tax,get Federal Tax Id number if a corp.
Oh, get some liability cover! Check out the worker's Comp requirement for Maryland (insurance agent will know)
So what you gonna do?
Try to do something that you have an interest in.
It must also be something that will not interfere with your studies. That rules out most time consuming businesses, and pushes you towards the Service sector.
The US is such a large market that you do not have to worry about thinking of something new. Just copy someone.
Web Page Developement, start by setting some up for your friends on the free space given to them by their ISPs. Go back in there and update them, get all the free practice you can.
It can of course be anything, but whatever you do treat your customers as you would your parents and try to build whatever you do on referal not advertising.
It's cheaper and more efficient.
Good luck