Small buisness owners- who has thrown it all in and gone out on there own?

Cookie-XR8 · 02-11-2009, 03:15 PM

hey guys im in the middle of starting my own business and giving my job the flick, im nervous but i know it should it succeed,

has anyone done this? share your success stories or fail

V3RSAC3 · 02-11-2009, 03:20 PM

This is all my parent's do!. They start a business, build it up, and then sell it for a profit and start again!. ... I went out on my own in Dec last year doing window cleaning for myself. Just recently sold off my jobs because I've been studying but I did pretty well for a first time solo business owner.

Just be out there, and put all your energy into it and believe that you can make it work! ...

What have you gone into if you don't mind my asking?

deanp100 · 02-11-2009, 04:56 PM

I went from a long term Govt worker to a overseas travelling consultant before biting the bullet and trying self employment. I bought an existing but privately owned commercial cleaning business that was very shoddily run and have doubled it's profits every year at least for the last 6 years. It is now seriuosly paying me off for the hard work that was needed at the beginning. It has been said before but it is customer service alone that made a good product. The whole self employment thing has a lot of benefits, and I mean a lot and I couldn't ever go back to working as an employee for anyone for any amount of money. However there is the downside. To succeed you have to be totally dedicated to providing to the customer. Think of all the things a tradesman has ever done to you to you off. Late for quotes, late for jobs, forgetting them altogether, finishing early because you can, giving inflated prices so you don't get jobs, going fishing when you could be working etc etc. All those things you must never ever do. You will set yourself apart from the majority of competing businesses by being honest and ultra reliable. When you stuff up, don't make excuses, just fix it. You will have to learn the tricks of the tax system and be prepared to get a good accountant with a little bit of mongrel in him. Not too much , just a quarter mongrel is good. And try to avoid anything to do with franchising. It is just about always ugly unless you name is "Jim" and you started the whole thing. I don't know what business you are aiming at but they usually follow the same rules.

BIGJB · 02-11-2009, 05:15 PM

Well said deanp100.

What business are you starting up?

When we moved to NZ we went out on our own after a few years of working
for someone else. It is pretty tuff in the beginning but if you persevere with it
and as has already been said look after your cliental all the hard work (and I mean hard)
will eventually pay off. We started out with a car valet service and have now opened
a commercial cleaning business as well. The car valet has its ups and downs depending
on the weather and the economic climate isn't real flash ast the moment and lets
face it getting ya car washed is a luxury expence.

On the other side of things the cleaning business is growing bigger and better by the week.
The biggest word of advice I can really offer is get yourself out there.
We did letter box drops, walked the streets handing out flyers, every business in town
had a pile of our flyers on it's counter. You couldn't walk into a shop here with out
seeing our name. All that got our starting client base and well word of mouth has just gone off tap since.

The other side to keep in mind is that when you first start up you will
have zero life at all, and I mean zero, and that will be the case for a few years.
Remember most businesses fail in the first 5 years. In alot of cases this is simply due
to over spending, people tend to have a few good months and say yeah this is going
great I'm making a fortune and don't bother to think what next week may or may not bring.
Try not to pay yaself to much in wages in the beginning and instead build up a holy crap fund
so if something f's up you have the cash to be able to combate it instead of it sending you broke.

Hope some of that helps.
John

V3RSAC3 · 02-11-2009, 07:20 PM

My parent's own a cleaning company ATM both domestic and comercial. Started it 4 years ago with just them doing a few houses a week and an office here and there with my and my brother helping out now and then. Now we're absolutly flat out, have 11 people working for us (only family friends, it's hard to get others that you can trust).

Thats the thing that you have to watch when your business has grown and you start to look at other people to employ to help you. You have to make sure you trust them and that they have your company's best interest in heart otherwise your business quality will fall and you will lose everything.

The first few years as said is absolutly back breaking work! And you don't have a life, everything is put into the business. BUT give it 5-6 years and you will start to appreciate it and it once it has grown it will ease up on you once you have people to help you with it!

I'd recomomend (whether your budget covers for it or not) is to get an accountant to set up your accounts and books. It will cost you alittle bit but you will be putting money into accounts that need it!.

Goodluck

deanp100 · 02-11-2009, 07:34 PM

There is a lot of cleaners on this forum. Boosted. I forgot to mention you have no life, at least for a while. What 99ghia said about a holy crap fund is correct. You will be on the bones of your a'''se many times. Guaranteed.

Racecraft · 02-11-2009, 08:00 PM

Pro:-

financial rewards
self assurance and satisfaction in your ideals and work ethic
independence and self monitored time management

Cons;-
financial rewards :P :-you lay everything on the line (depending on the capital investment to be viable)
self assurance and satisfaction in your ideals and work ethic :P:- Sacrifice family, friends and yourself in the Utopian dream that you WILL make it.
independence and self monitored time management :P:- you bust your buns pulling long hours. Have less free time than you hoped because you never switch off. Every minute of every day there is an idea to make an extra buck (or more-so not too waste a dollar)

To summarise, yes I own my own business, I went into ALOT of debt backing myself. I am recently debt free now and suddenly the hours and hours of procrastination was worth every cent...I would not change a thing. I still don't go home @ 5, I still work weekends, but I can't leave the beast alone...

Depending on your business model, competition and financial situation has a huge bearing on your outcome.
Sometimes the devil you know can be better but you are a young man Boosted, I'd give it a shot now instead of later of never.

Cookie-XR8 · 03-11-2009, 07:28 AM

im starting my own cleaning business lol, carpet cleaning and pest control,

ive it before, i managed the local business but the owners sold up and are traveling around,

ive spoken to few people and they say once you figre out the tax system and your books your set, i plan to do alot of marketing and slowly cut down my hours at my job now,

thanks for all the replys guys, hopefully this business can buy me a gt in 12 months and im happy as a pig in shi....

Racecraft · 03-11-2009, 08:02 PM

Quote:

Originally Posted by BOOSTED-AU

im starting my own cleaning business lol, carpet cleaning and pest control,

ive it before, i managed the local business but the owners sold up and are traveling around,

ive spoken to few people and they say once you figre out the tax system and your books your set, i plan to do alot of marketing and slowly cut down my hours at my job now,

thanks for all the replys guys, hopefully this business can buy me a gt in 12 months and im happy as a pig in shi....

considering those circumstances:-

your capital outlay will be 9 tenths of f/a.

you have to budget for not being paid upon completion. Most commercial account work will be 30 days at best.

You have to throw your money on the table and wait (read haggle & hassle sometimes) to be paid.

You should sit down and work out a cash flow based on worst case scenario, to be 100% confident that your can 'carry' your debtors.

rodderz · 03-11-2009, 08:34 PM

Make sure you work out a payment form/contract also. When doing larger jobs that may take a few weeks, you need cash to keep the job going foreward, plus you need cashflow to keep yourself living properly and your workers paid.

I've found cashflow is the hardest thing, while you make money out of jobs you need the cash coming in regularly to pay the bills along the way.

**buggerlugs** · 03-11-2009, 07:44 AM

Been self employed for 16 years now. They say 8 out of 10 small businesses fail in the first 5 years. The other 2 succeed and succeed well. Could never work for anyone again. Still quite a lot of good little perks to had and as has been said, your best friend is a good accountant with the bit of mongrel in him..........

rodderz · 03-11-2009, 07:16 PM

It's certainly a big step, and one you need to think carefully about and have some sort of backing, savings or backup plan should anything go pear shaped.

I'm into my 4th year of business now, did 12 months on my own doing all the work, then as each year went bought a machine, hired an apprentice, 2 more workers and next week a truck. Every year should get better if you play your cards right.

Keep in mind however that the first few years (and possibly 5 or more) you may not make a considerable profit nor get any of your own time. I work 40-50 hrs a week at work on the tools, but would easily do another 40hrs a week after hours doing quotes, paperwork and other work related things. It eats up your life, your sleep and your sanity but if you work hard at it while also realising not to push too hard long term it will pay off. Next year I should be at the point where the guys at work are trustworthy enough to leave me take some time to get paperwork done during the day.

Before you leave your job make sure you have some financial accounts to fall back on if work is quiet. I sold my XR8 ute which was my pride and joy but it got my business started. You could also build you workload up while still working for your boss, work weekends and when the workload builds up too much, think about working for yourself full time. Make sure you have all your business insurances, ABN, GST applications etc all sorted as well, better to run your business by the book and not be caught out for anything.

grandpa_spec_F6 · 03-11-2009, 11:03 PM

I also have been thinking of doing a small business, been doing a lot of building computers / fixing them on the side while at uni, but I have NO idea where to begin if I take the plunge. This thread has given me some idea's at least. Cheers people and thanks boosted-au for starting it

MR.BA.GT.332 · 04-11-2009, 12:28 AM

since im currently looking for work now im back from my travels and recently moving to QLD, i too have been thinking of starting up my own small business to become self employed.

Few things i dont know are, if buying an existing business, are there bank loans that can help get things rolling using figures from the business books regarding profits etc?

I currently have a rental property which, if i decide what sort of business would be suitable to what id like to do, id be willing to sell off to help kick off a new business to go into it debt free, or, would it be worth using it possibly as colateral and getting a business loan? i assume things like interest repayments would be able to be claimed on tax?

what made some of you choose the business you went into... experience? something new? money involved etc etc... just curious..

dogfish · 20-11-2009, 10:20 AM

My Question is did any of you do a Business management course/diploma/degree before you went out on your own.
I want to get into my own mobile line boring business but worry about establishing a clientelle base.
Regards Dane.

**buggerlugs** · 20-11-2009, 02:21 PM

Best form of advertising...." Word of Mouth". I barely advertise at all. Run one small add in the Yellow Pages and use Business Stickers not cards. Give a bloke a card, he'll put it in his top pocket and it'll go thru the wash. Put the business sticker on his machine, ute or work vehicle and he'll never lose your number. Treat the customer as you would like to be treated..................

X000BOSS · 20-11-2009, 02:57 PM

im into my fourth year of running my own business. first 2 years were very very hard. made some good dollars early on but every cent went back into the business. some nights the mrs and myself would half the last few pieces of bread we had at home for dinner. no money for food and no food at home. the hard work has paid off. we sacraficed alot in the early days. i sold my 2 year old xr8 and some other toys. lived with no luxuries. its been a fun ride but also a lot of commitment and tonnes of hard work. we are very happy with the ways have turned out. cars are replaced and out luxuries are better than ever.
just remember, it wont be an easy ride. DO NOT line your pockets with money untill you are well established and have constant cash flow. work hard and keep sane and you will be fine.

Cookie-XR8 · 21-11-2009, 04:36 AM

Well it's all happening. Got all my equipment etc. Start on Monday. And have a job booked every day next week. And that's all work of mouth.

I've done no buisness studys before. I'm just winging it. But a few family friends/ parents( buisness owners) are gunna help me out with all the mumbo jumbo untill I get a hold of things.

jcxr · 21-11-2009, 10:06 AM

I have just gone out on my own. Started up company selling high temperature materials for boilers, furnaces and kilns, cremators, and even wood fired ovens. I have over 30 years of involvment in the industry so , after a retrenchment, decided to start on my own. Company is called REFRACTORY SUPPLIES P/L in Nunawading on 0451 470 371.

Buzz Box · 21-11-2009, 10:49 AM

I am currently doing a business degree since I injured my knee so here some of those lovely useless facts Ive remembered.

- WOM is by far the strongest and most effective influence on a consumers decision to purchase, but its near impossible to control and once bitten (see next fact)

- A happy customer will tell 3 people but an unhappy customer will tell 10! (On avg of course)

(From personal experience) - If you fail to plan, you plan to fail! - Work out where you want to be in 2-3 years then break it down into smaller goals.

Eg. Want to buy a new GT in 2 years - So you obviously need to have X amount of turnover and X amount of jobs per week. Then you obviously break it down into more manageable chunks so maybe 15 jobs by the end of the year, 25 by easter, 40 by 1st July etc

If you do that you stay on track and stay focused and its more psychologically satisfying because your constant achieving your own little goals and you can see the progress your making.

But most importantly NEVER leave a client unsatisfied and ALWAYS try to exceed their expectations.

P.S. Leaving a minty or fantales etc has suprising affects especially with office people who have nothing exciting in their lifes.

deanp100 · 21-11-2009, 10:21 PM

Boosted. Good work. I sub work out to carpet guys all the time and there are a lot of them. A lot of people seem to think it is a get rich quick scheme and there are a lot of franchises so you are competing against them. I assume you know how to clean carpets. Keep up with the latest ideas, equipment and chemicals and don't be afraid to go to courses run by suppliers because you never know when something new may change you business. If there is a machine you need to make your life easier, work on getting it. Good equipment always impresses the client. Make sure you are always well dressed and have well presented trucks and equipment. You have to make an impression somehow while you are building a reputation. Please don't have the mandatory white Hi-ace van with "Carpet Cleaning" written on the side. You have to stand out more than that. Be careful with pest control. Make sure you are not just doing a quick pressure pump spray around the skirtings and saying, "she'll be right"
You need to find a balance between the next 2 points. 1) Never knock back a job because you never know when it can lead to something big, or if you are just been tested on something small for a later massive job. 2) The customer is NOT always right. Some customers are just not worth having sometimes. If they are idiots, let your competitors have them. Some of the nuts can break you mentally.
Baffle the clients with knowledge. Explain what you are doing or why that stain keeps coming back, or how carpets attract dirt and how you system is better than dry cleaning. You have to sound like the greatest carpet cleaner to ever walk the earth.

If you are unsure about any of the tax issues ring the ATO and make them earn their money. They are currently going through a stage when they are occasionally trying to be helpful, just before the kill you.
Good luck.

4LT2B · 21-11-2009, 10:31 PM

I tried it a couple of years ago and i was doing very well for a few months was getting jobs by word of mouth from previous customers and i was enjoying every step of it, but as i went into it as a partnership, i made a very wrong decision of who i went into it with and lost everything, so yeah i lived and learned, so all i can say is it is great to get out there on your own, but if you do it with someone else be very careful as to who you do it with..

GOOD LUCK

Maggot · 21-11-2009, 10:48 PM

I went from `working for the main` to working for myself in IT as a accounting software support contractor and damn glad that I did.

Make sure you know the industry very well.. and work in it for someone else before you go out on your own.. If you end up steeling some clients then so be it.

Have some `bread and butter` work lined up (clients, regular work at reasonable rates` to ensure that your current expenses are maintained, the rest is fruit.

Word of mouth advertising is always the best value for money.. talk to everyone and have lots of business cards on standby.

Put some money away to pay your GST (nine years and I still dont do this prpoerly but I am still on accruals so my own fault)... and minimise outgoing expenses until for as long as possible.

AVOID partnerships altogether.. they normally end up costing you!.

Good luck!

Cookie-XR8 · 21-11-2009, 11:39 PM

Thanks for all the advice guys. There isn't a carpet cleaner in my town. As I said before they sold up and the gear endend up in Brisbane. I've got a small clintell already. The close small town comunity here is all about giving the small guy a go.

Word of mouth is defanitly the best adveristing. I'm booked out the first week before I done any adveristing. I haven't quit my job altogether I'll still do about 25 hours a week to start with.

As for the tax. My local bank has set me up a second up account with a good intrest rate for my gst to trasfer into everyweek.

And it's not a hiace it's a ford van.

Cookie-XR8 · 21-11-2009, 11:42 PM

And as for franchises. I looked into buying one and holy crap it's expencive and restrictive.

Would never buy one unless it's maccas or something like that

deanp100 · 22-11-2009, 05:22 PM

Boosted. Good stuff. Sign write the van with something stunning. Corner the market in your town, get a good reputation and you are most of the way there. If you are the only one there, make sure you don't clean every carpet in town in the first few weeks and have nothing for the rest of the year. Make your pricing attractive enough so carpet cleaning becomes affordable maintenance, not a high priced luxury in your area. Go to it!!!

Jmunger · 18-12-2009, 03:37 AM

Go for it mate!

I started my commercial cleaning business when I was 19, now I'm 25 with a team of 6 and I only work Monday-Thursday

PDIDDY · 18-12-2009, 08:51 AM

I am starting my new business at the end of Jan, doing mobile Soda Blasting. Won't quit my full time job until things get really rolling along, but have already had good feedback from panel beaters, insurance companies etc. It's a big step, but I figure that I am still young enough to recover if it all goes pear shaped. At least I can go back to selling cars if it does!

:
I can't wait, but the reality of doing this is slowly sinking in. The half sleepless nights have started, and the ideas for new business just keep coming. Will have to keep a pen & paper beside the bed soon.

ToxikXR6 · 20-12-2009, 02:26 AM

im only a yr12 business student. and will be doing Uni marketing/management courses.
there is alot involved with setting up a business. cover everything you can think of!
..do yourself a plan and stick to it, go overboard with costs etc so it leaves you room to move. just incase something comes up [always does]

good luck with it all.

BLKWDW · 20-12-2009, 10:23 AM

Ok in regards to starting your own business what is the possibility of making it your apprenticeship. Idea would be to start up a business say building as an example then hire a trade builder and put urself on as the apprentice in your own business? Would be alot of work with running the business and tafe but can it be possible?