Kagh't

i'm currently in the process of setting up my own little sole trader dealing in various aquatic bits and bobs, mainly matured filter media (if you keep fish, you should understand), and i'm wondering if anyone else has ever set up their own successful business?
if so, what kind of problems did you encounter after starting, and where you able to make any kind of living off it?

irseg

I run an advertising business and it does great. My advice would be:

-If sales/marketing isn't your thing, team up with someone who has ability in this field. Even after splitting the profits you'll likely still come out ahead. You could have the best products in the world and it wouldn't mean squat if people never find out about it.

-Be prepared to put a lot of time and/or money into it without seeing any money for a while. I spent about 30 hours a week on my busiess for a good 6 months before I ever saw a dime, but now it's paying more than double what I make at my day job.

-Register a corporation/LLC to reduce your personal liabilities. If someone claims your stuff destroyed their million dollar fish collection, sues you, and wins, they can only take the assets owned by the business--your personal assets are not at risk.

-Taxes suck ass. Get a good accountant and deduct everything you can.

Kagh't

hmm, well i can't register as an incorporated company at the mo, i just can't afford it, but as soon as i can i will, i can barely afford a new pen, let alone a law suit

numist

3 out of 4 new small businesses will not make it through their first year.

In the first few years, chances are very good you will put more money into it than it will give you.

Running a small business is not a get rich quick scheme, its a big gamble.

irseg's advice about finding a good salesperson, registering, and taxes are excellent points, read his post twice, or print it and put it on your wall.

If you cant afford to register as an LLC now, how will you afford the overhead that an actual store requires?

:::OshnSoul:::

I just started my own- waiting for the gool ol business liscence, but I sell incense, oils, and burners, and other gifts. Soon I will also carry aromatherapy items, too.
I am a person wanting to be my own boss, and doing something I enjoy. It's just an on-the-side thing for now, selling things on ebay, my own site, and at gigs once in a while.

Kagh't

the business is starting off as a small mail/online order system from home, where overheads and other things will be considerably reduced.
I've been doing accounts, and i expect to break even at 7 months, so i know all about no profits. i'm keeping my current day job to finance the whole thing, and provide cash flow, which is going to be my biggest problem until i can get my marketing plans underway.

http://hstrial-cduncombe.homestead.com/Index.html - the provisional website if anyone wants a look.

Cynthetiq

it's hard work, but depending on how much you devote to it will help determine just how much you'll reap from it.

it doesn't cost much to incorporate, as little as $9. If you say you don't have any starting capital, well you've got to have something to purchase goods in order to resell them, even if it's just float money.

I had my first business at 14 and it paid me very well when I was young, and when I was older it did again. I've not had a goods based business in years, now I'm doing strictly service based things.

good luck.

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Kagh't

to be honest, it's not the incorporation that costs the most money, it's just providing audited accounts and other paperwork to companies house that costs the most.
going sole trader means i don't have to inform the inland revenue for 3 months, so if everything goes pear shaped really quickly (which i damned well hope it doesn't ) it makes things simpler

arch13

A couple points:

If you can't become a corporation or LLC yet, wait until you can. the gamble you take with your personal assets otherwise is never worth the risk.

Register a real domain name and set up shop with a hosting company. if your not looking for automated selling online, use this web site as an initial means of contacting you via a form and as a listing site for examples of the products you sell. Make sure that it is obvious how to contact you and provide prices for a potential customer. nothing runs off a customer faster than not being able to find a price tag.

Utilize such things as Google AdWords as cost effective advertising.

Make sure you have enough fluid assets to survive for a few months while you establish yourself. having an SO that has a second income in the household can make all the difference here.

If money is at issue, consider partners.

Be square about taxes and never skimp on who you hire as an accountant.

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irseg

arch13 has good advice. I'd highly recommend selling directly online. Personally, I am far more likely to buy something online than bothering to make a phone call or send an e-mail to place an order. Look at things like PayPal, IBill, CCBill, etc. to accept payments without needing to open a merchant account. Make sure you list a phone number on the site though; it helps to reassure people that it's not a fly by night operation.

Adwords and Overture are our two major online advertising sources.. Overture doesn't bring in as much traffic but it is more cost-effective.

And if you bring in a partner, be very picky. I know a few business owners who had very bad experiences with partners who turned out to be dead weight, and once they're in it's hard to get rid of them.

:::OshnSoul:::

Whatever you do, incorporate your business as soon as possible. After both my brother and my parents did with their businesses, they are paying thousands less in taxes.

merkerguitars

I'm doing it too...selling computer work/parts and other stuff of related nature...I do pretty good...and hopefully within the next 2 years I should be doing great...yes get a good accountant he/she can save your ass...

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gar1976

Wife and I just started own our accounting/computer consulting biz from home. I, for one, will not work for anyone else ever again after doing this. It's as if a big light has been turned on. Wooo!

gilada

My wife runs her own business. Just remember, if you don't work, you don't get paid.

She had a bad bout here when her mom died and she just didn't want to work. I had to kick her back into gear, because we couldn't live off 1 salery.

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