What are some good resources for learning about starting your own small business? | INFJ Forum

What are some good resources for learning about starting your own small business?

Korg

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Jul 8, 2009
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I have short term goals with this (getting small contracts) and possibly long term goals whereby I am my own, full-time boss. I am not entirely sure yet. Regardless, I know very little about what is involved in accomplishing this and need to begin somewhere.

As one avenue in my learning, I'd like to hear from others who have run their own business(es) - what books, resources, media, etc did you find particularly useful in your endeavors? Part of the reason I am asking here is because the majority of the posters are, like myself, INxx's which means they probably have similar learning styles and/or preferences for the types of educational material they like to use.
 
what does your business provide?
 
Audio design and implementation for video games.
thats your current job, you just want to get out of the company and on your own?
 
thats your current job, you just want to get out of the company and on your own?

Yes, that is what I do for my career. I'm very good at it and enjoy it a lot but I would like to expand.

Again, I'm not looking to leave my company right now. The short term goal is to secure additional contracts (read: side work). The long term goal may be to leave the fulltime employment of a company and work for myself - that's a decision I'll have to make later.
 
My main advice would be gain capital (ideally through saving) then set up the company outline and name. Secure clients interest before moving to becoming independent straight away as generating backing will be your primary target before cutting loose. Unlike regular, companies media based industries (in your case the whole sound jive) requires above all else is time in relationships, as cash flow is directed usually by larger sums of money.

Another suggestion would be to declare a sole trader business (this also mean you can still have the full time job) so that you can gain tax rebates which aid toward equipment, another step toward full independence. Setting up at home for the actual production, reduces costs and again gives tax deductions. With enough cash this can show information and cash forecasts if you wish to go to a bank for lending and if not that first down payment on a office. The beauty of this approach is that it reduces the risk of gamble and possible collapse.
 
I think you have a good plan of staying with your "day job" while you build your client base. A lot of small businesses grow by word of mouth. Your "day job" keeps income coming in and gives you a chance to learn about being self employed and get your client base built up. When I first went into business for myself I met a fellow small business owner. They said this to me, "welcome to working for yourself you get to pick your own hours - all 24 of them 7 days a week." You gotta really want to be self employed to make it work cause it is an unbelievable amount of work.

I'm not familiar with your particular industry but in the beginning I was producing the work, marketing and advertising it, selling it, installing it, ordering supplies, storing supplies, keeping track of inventory, shipping, bookkeeping. Then there's outsourcing if you take on a whole job but you only do a couple of the parts, then you have to hire other contractors to do what you don't do. This is just off the top of my head. I'm sure there are things I'm forgetting.

THEN, when you have really busy times that make up for the times you are scraping by you're not going to want to turn down work cause you'll need it. Then you have to think about hiring temporary employees to help get you through. Then it gets even more complicated cause you have to deal with things like payroll and paying workman's compensation insurance and social security deductions. There are also state resale licenses to consider if your business handles things like that. There are also county business licenses. Then there are times when the economy falls through the floor and you have to get creative about the services you provide to draw more customers in and even consider temporarily working for someone else to get you through. Small businesses open and close all the time.

A lot of counties offer small business help through county government programs. I'm not sure if the SBA is still around (small business association). Depending on the type of industry you're in there are often small non-profits that specialize in helping people get started with small businesses. I've used a couple of those to help me with things like accounting and times when I needed legal help, like when people don't pay you for your goods and/or services. I think quite a few community colleges offer adult ed courses for starting a small business and often these are at night and are short term. I think if I had to do it all over again I would start with one of those classes. I learned a lot of it through friends that were small business owners, people who took pity on me, and then trial and error, the trial and error way was a real drag and I wouldn't recommend it.

I would say some of the most important starting points are;

*Know your industry, a lot of successful small business owners come from families that were small business owners and/or they know what they do like they know the back of their hand.
*Understand what kind of market there is in your area for the services that you are wanting to provide. Are there umpteen amount of service providers offering the same services that you want to provide and you're all fighting over customers or is there a real need for the services that you are wanting to provide.
*Figure out what your start-up costs are going to be. Do you need specialized equipment, tools, etc. Can you work out of your own house? Can you use your personal car to get you to and from jobs or do you need a work truck?
*Decide on the best way to market your services. What, where, how, and who.
*Make sure you know what licenses you need to operate a business in your area.
*Find and build a solid client base for when/if you make that break from your day job. These are your loyal customers who will always send more customers your way.
*Last but not least KEEP REALLY ACCURATE BOOKKEEPING RECORDS. It is no fun to be audited as a small business owner and it is even less fun when your records are a mess.

It's financially scarey as hell and there is a ton to learn, plus it is really expensive to get health insurance as a small business owner. So if you have a family and kids this can be risky. If you've made it this far into this post and aren't completely overwhelmed and scared ****less - I would say go for it. If you like variety, being your own boss, can handle the financial ups and downs, and don't mind putting in the hours it can be very personally satisfying and hopefully financially satisfying too.

Good luck.
 
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Lol, it would seem none of us read anything before starting our businesses. I agree with the tax advice though I doubt this is what you are looking for. Keep all receipts, keep airtight records, and hire an accountant to help make sure you get the most Self Employment breaks. I wish you more success than I had. :)
 
[MENTION=5224]Sadie[/MENTION] is pretty spot on. It's hard to give a real accurate description of the way I made my main business work because it was pretty much akin to tripping headlong into it and just keeping on rolling the whole way through. One of the big things is learning to think about money differently, it's not like getting a paycheck from your employer, you will essentially have a lot more money to deal with than you actually "earn". Especially if you have a physical product. (I don't know if this is the case for your industry.) Basically I have to always have a surplus and have to keep those things in mind. If a tool of mine breaks today I might have to spend a couple thousand dollars, and I have to do it tomorrow or I'm losing revenue. I will eventually get some of that money back essentially, but not until next april. The easiest way to do it is to keep a business account at your bank and give yourself a monthly or bi-weekly wage that covers your living expenses, an IRA, insurance, etc. The rest never moves except for business expenses and taxes. It's really rough to get everything sorted out the first couple years, and all industries are different, but after you get into the groove of things it really is probably the most rewarding thing you'll ever do.

There's a lot more but Sadie covered the other points very well, just make sure it's a product or service you believe in and not just something you're doing for money, or it will fail. (I don't think that's the case in your instance, just something to keep in mind.)

As far as the less technical and pressing side of things, I think learning sales is very important. I read Napoleon Hill's Think and Grow Rich and Dale Carnage's How to win friends and Influence People about once a year. They are both books you can take something different from every time you read them depending on your knowledge base and where you are in your life. Obviously with anything you read you have to strip out the parts that are applicable to you and your business in particular and discard the rest. A few others I'm quite fond of are Brian Tracy, Dan Kennedy, and Tom Hopkins. I'm not too fond of Seth Godin and Robert Kiyosaki, they have ideas that are a lot of buzz and not much substance.

Anyway, good luck with everything. Knowing of your determination, self-motivation and confidence I'm sure you'll make it through.
 
Find clients, make sure it's easy for clients to find you, and once you have enough, you're pretty much set and inertia can carry you around a bit. Probably. Really, when you're just one guy doing freelance services, I don't think there's much you need to know. Jump in, get clients and quit your job when you're too busy freelancing.