How many business owners do we have here? What's the cost to be a boss...

[Vtec?lol]

lol at the title,
In all seriousness, I'm in love with finance. Turf is to credit for sparking a small flame after chatting with him about credit. So far I've got it down to -you should only have your mortgage and student loans on your credit report-.
I've been working on my credit tough as hell. Keeping small loans that automatically pay themselves from my savings and paying debts in full.

I'm studying finance and would like to study marketing as well. A dealers license and a tow rig is in my head right now as I would like to do repos and flip cars to afford my own shop space. I've got experience in the medical feild such as DME and hydraulic and pneumatic parts manufacturing (hoses, rams, jacks, couplings). There's so much out there and I want to get a grip on something.

Back to the point, I would like for actual business owners to shed light on expenses and the discipline necessary to start, afford, and run a successful business. What all did it take to become a businessman and what were some of the toughest sacrifices made? how long did it take? did things ever go as planned?

From the guys that have a business, to the ones that tried....
Please share.

[MC Hammered]

Toughest sacrifice? Giving up massive amounts of personal life in order to keep the heartbeat of the business alive.

I have recently tasted this bittersweet moment again and it does have serious impact on the people around you.

and is your poll how much one makes or how much the business sells?

[Rsully70sev]

Every business has different expenditures. I've been instrumental in starting three clothing lines in the form of a LLC, managed finances and operations (duties of a CFOO) for my parent's antique shop, I'm a licensed broker for medicinal marijuana dispensaries throughout California, and I'm now working on an LLC partnership for a small computer tech/repair company.

Differences:

Starting out, the clothing lines did not have venues. No rent is a major plus, but a major problem as far as marketing goes. Only investment was a screening machine (which was expensive) the actual shirts, and some advertising.

My parents have owned the Antique store for years. On this end, there is wayy more investment, rent is a major factor, and actually having the tangible items for sale cost bookoo bucks. This isn't a pawn shop or "consignment" shop, so everything for sale was purchased out of pocket to begin with. Major investment for a retail store with a brick & mortar set up.

Getting licensed to be a broker was CHEAP. I have the golden line these dispensaries need to operate, so I'm basically a middle man. No rent, no expenditures other than gas, and major profits to be had. (Before the DA's recently got involved and shut 2/3 of the dispensaries down)

Computer business- expenditures consist of insurance, filing fees, and advertising. Maybe purchasing a few computers here and there to fix, update and flip, but major money is not needed.

The biggest thing is getting a business license, a sellers permit if you're selling tangible items, filing your DBA, and advertising. Sounds like you're on the right track of thinking small, then moving up. You don't want to dump thousands into it and come up empty handed.

If you're thinking about a towing company, you're going to need to be licensed, have insurance incase you dent someone's Ferrari while you're repossessing it, and major money in advertising since its a competitive business. Especially with AAA which is the Wal Mart of towing coverage.

Create a business plan, review it, edit it, review it, edit it, and don't plan on things going accordingly. Shit always happens. Oh and watch your employees if you have any, they don't give a fuck about your business, so don't let them mess it up.

[Vtec?lol]

Great responses so far.

Sorry about the undetailed poll, it's how much your company makes a year.

Would it be too much to ask for a more detailed description of sacrifices needed to be made? did anyone have to lose their wife, house, cars?


edit* I've also wanted to make tee shirts. I have a few awesome designs in my head

[Massimo]

Well I don't run a business though I have thought about it often probably fixing and building PC's on the side, so interested to see the responses.

It seems a good old fashion C&B always gets the customs flocking in. :up:

[Rsully70sev]

In an LLC the company is GENERALLY (not always) a completely separate entity so you're not liable in several instances. It generally protects your assets in the case of bankruptcy or a lawsuit.

The definition of business is other peoples money. If you start a company with high start up cost, your putting yourself and your assets at risk (including your credit) in the case that it tanks. Insurance is a big thing also, people LOVE to sue, myself included. So if you fuck up, be prepared to either have an OG insurance policy or money out of pocket to compensate.

^ this includes fucking up someone's bumper while towing it, to frying someone's motherboard on their custom Alienware PC. You need back up incase of an accident, beware-this is a huge issue. People can sue for actual replacement value, sentimental value, losing irreplaceable data, ETC.

[Vtec?lol]

From my research, insurance on any towing setup is pretty high!

[kennyvb]

Sorry about the undetailed poll, it's how much your company makes a year.

Yeah, $500+ a year is not very specific and you probably meant $500k.

[Keith M]

Tons of money and time. It took years to get where I am now and I finally feel comfortable with it. I have a good clientele and a two year back up of work.
Vintage (pre-war) European auto restoration if it matters.

[JTDay]

Are you a minority? Perhaps look into some government grants if you haven't considered that. There are grants for non-minorities too.

[MonkeyMadness]

Working Hard at it, one day at a time...

[5Toes]

If it counts, my buddy and I are about to become a licensed small detailing business.

[Fusion]

Prioritize spending, like 100x more than in a household.
Learn which investments have the quickest ROI (usually stocked goods). Use the surplus to buy things with less ROI, but higher profits (usually machines for additional services), but only when you're very confident you can spend. Always be prepared for sluggish periods. One way to do that is to diversify. Learn what people want during the summer when regular sales are down.
And my rule: Never borrow money. It's easier said than done, but I did it. I sold my first car to buy my first batch of goods. Very motivating, minus the horrible burden of paying something off on a certain day every month.
7 years in, I'm no millionaire, but very proud of what I've accomplished so far.

[CrusherCurtis]

The toughest part working from the time I wake up until about 9pm. There are a bunch of ups and downs. Sometimes I get down right disgusted. Hopefully things will only be this way for another year though.

[Vtec?lol]

Valid points.

As fusion said, borrowing money is always a big no-no. I usually don't have a problem with that.

Being diverse. Big key and keeping sales up year round, also having back up work and saving.

I'm getting some good stuff here guys. Please keep it coming.