So I am just curious to see if anyone here has started their own small business, and what obstacles you encountered? I have always wanted to work for myself, and I have always envied those who took such a darning step. Any and all advise would be appreciated.
My dad has run his own business (painting, drywall, framing) for more than 30 years. I can share some of the things I have learned watching him. *Don't be afraid to collect your money. This might mean taking legal action. *Don't be afraid of government regulations. They usually aren't as bad as recent media reports (at least in my area) make them out to be. *Plan for periods of drought, that is, no income. You will still need to pay people if you want them around when the work resumes. *Plan to work harder and longer than you anticipated. *Perform quality work. *Have a plan. Start part time if you can (dad did). Determine if there is a need for your product/service before fully committing. I guess this is all obvious stuff.
As an addendum. One often hears that one should start a business following one's passion. I'm not so sure. My dad has said more than once that he really doesn't like construction, but he is good at it and he can make (has made, retiring soon) a decent living at it. I'm not suggesting one pursue something they can't stand, but recognize there is more to business success than passion. An uncle of mine, also self-employed but in a different field, had a sign that read, "Many people fail to recognize opportunity because it comes dressed in overalls and looks like work."
Awesome post and so true. I have started three small businesses in my career and have managed to sell two of them. I still operate the third off hours while I teach school at regular hours. perrymk has hit the nail on the head here. Many look at a small business and assume that because the owner is the boss, they make everyone else do the work. In my case, I have always had to do more work than anyone else. When you own a business, you no longer have 8-hour days when you can go home afterward and forget about your work. It's always with you because the buck stops with you and can't be passed to anyone. The positive aspects are the fact that you call the shots and can sometimes decide when you will and won't work, however, you are not the boss as much as you think; your customers become the boss. But I have always carved out a little time for my kid each week and I'm grateful for that opportunity that I would not have had.
My dad is the boss but ofen does the "punch-out" work, that is, if something wasn't right, he goes and fixes it. This may be cleaning a floor, patching a hole in the wall, smoothing a drip on a painted wall, etc. This is thought of as the lowest job and many people send the lowest person in the company to do it. Dad says he could do that too, but half the time he would have to go back and fix it anyway. Plus if the homeowner is present (often new contruction so not always sold yet) they like to see a company where the top guy takes care of the little stuff.
Your dad is very wise. As the old saying goes: "If you don't take care of your customers, someone else will." In a small business, you have to go the extra mile for your customers because you have competitors who will give them everything they want. It is very easy to lose customers and by continually giving less than 110% usually will destroy your small business. Therefore, in many cases, small business owners have much less freedom than others might assume. There are exceptions, especially with established and successful businesses, but usually it consumes your entire life. At least it has for me.
All of the above is good advice. My case: 1st business - Wifey and I picked up a distressed horticulture business. She was a horticulturist and I worked full-time as an engineer to fund the project. We later merged it into an existing franchise and cashed out. 2nd and so on – a major chemical corporation wanted my services and we agreed that it would not be as an employee. The corp paid all my setup expenses including hold-harmless insurance, business licenses, etc. until I picked up other clients. I then prorated all overhead expenses and tacked onto my normal hourly billing rate as a surcharge between multiple clients. Now – I took a very early retirement from an engineering & construction firm, and doing some new construction inspection ….. but at a very leisurely pace.
