Business idea help

[Shaun @ Tru6]

Let me give you a little worst case scenario:

Everything I had done for 20 years worked nicely or turned to gold. In 2004 I left a great 6-figure job to start a company that had major potential. In 2.5 years I put about $145K of hard $ into G9Girl, cashed out my 401K, cashed out the equity built in my life insurance policy and lost a bare minimum of $450K in wages when I finally gave up.

In that time I worked like a dog, had little to no social life, and learned too much too slowly and was completely underfunded the entire time.

From the ashes of G9Girl, I created Little Traveler in 2007, a company that has potential, but will be 2009 before I can take a salary or hire a helper, and I'd rather hire a helper.

The only thing I have left from my previous life is my 69E which would have been sold had it not been in 1000 pieces. I live in my offices, have a microwave and fridge as a kitchen and shower at the gym.

is that something you want to chance?

My best advice BTW is do something you already know and never go into a manufacturing company unless you are an expert.

[wcc]

Lots of good advice from both sides of the coin here. Thanks! It sounds like I need to keep saving to have more cash up front. But either way it will involve some sort of financing eventually. My biggest problem is having to keep the job while the business is started. There HAS to be success stories doing exactly what I'm thinking of doing. Sure it'll be way harder and it'll take longer to turn a profit but surely it has to have been done before.

Shaun 84 Targa - Yeah, that doesn't sound like fun. Now if I was single with no kids then I could do it. But I have a wife and a couple young kids to think about as well.

[Christien]

Originally Posted by wcc

Christen - NO OFFENSE, but it doesn't seem like you've had to really sacrifice to make it. I appreciate your post and it's helpful, but, not to re-live the past, but when I turned 18 I was basically told have a nice life. I took off into the world with basically nothing. I joined the military and got used to saying f-u and buck the system to get to where I'm at today (BSCE) with the GI bill. Of course the wife has a nice job and that helps! It's nice your dad and his partner started something you could take over. I wish I had that because I wouldn't be in the predicament I'm in today. Not trying to be mean, I just wish I had that opportunity. Thanks for your input...

No offense taken. You're right, I've never had to sacrifice a ridiculous amount. I had nothing to sacrifice when I took over the company. I was fresh out of university with applications to teacher's college on my desk.

What I have had to sacrifice is the ability to turn off at 5pm, crack a beer and watch tv. I've also had to swallow my pride in my own abilities and continue to learn lessons the hard way, take advice from my father, etc. I also had to get over the attitude that because I worked hard and went to school (undergrad and master's) the world owed me a living. I watched many friends more or less coast through school and get decent 9-5 jobs and settle into a comfortable, easy, middle class life. I chose a different, albeit more difficult route.

I guess what I'm saying is that what my dad gave to me wasn't a ticket to a free ride or a handout, but more an opportunity wrapped in a challenge, which is ultimately maybe the greatest gift a parent could give a kid. I'll be very happy to pass it on to my kids.

[Chuck Moreland]

There is an old saying - "the reason you start your first company is so your second will be successful"

Shaun, you're ready.

[Christien]

Shaun, I've followed your stories about G9 Girl and everything, but I didn't realize you had struggled this much! Good on you for keeping at it.

[scottmandue]

I'm a complete moron when it comes to money however...
My dad started his own HVAC business and was very successful.
One friend still has his own very successful court reporter business.
Another friend loves trucks and opened his own spray on bed liner company.

My dad worked for a commercial HVAC equipment supplier, made lots of contacts, started his business working out of our house, worked long hours, made a lot of money, invested in real estate back in the 70's and 80's, he is retired and very well off.

Friend with court reporter business, was working as a software engineer for Northrop and hated it, wife was a court reporter, she tells him the guy I work for is an idiot and a makes a boat load of money, he starts a court reporting business with his wifes contacts, he started working out of his house long hours and weekends, he now has a nice leased office, three or four employees, twenty or thirty reporters, is very well off but he hates it.

Friend with bed lining business, bought into the hype, leased a big commercial space, borrowed money from family, no one showed up, filled for bankruptcy and divorce.

[Jim727]

wcc - it would be hard to miss your distaste for your cubicle. If you dislike it as much as it appears, then my thought is that you are wise to be looking for an out but need to be careful about idealizing any busiiness to make the escape happen. Currently you are starting with biz ideas/opportunities and, has been pointed out, whatever you start you will have to put heart, soul, and family into it. If there's no enthusiasm for the actual business activity it may turn out to be a cubicle of another stripe.

Perhaps try turning the thought process around a bit. Last night I had a conversation with a friend and his wife. She loves dogs and decided to bake her own dog biscuits. Just for fun, she created a couple of very unique dog biscuits. Her neighbor saw them and asked for some too. Neighbor took a couple to a pet store and now said friend has the wind at her back because her product is unique and appeals to like-minded enthusiasts. It became a business demanding to be born.

That doesn't happen to lots of people and it isn't something that can be forced, but I think Chuck and Shaun have accurately mapped out the course of events should you latch on to the type of businesses you described. There are opportunities, however, for creative enthusiasts. My own business evolved from personal talents and interests; it isn't huge, but it is satisfying, pays the bills, and probably affects everyone on this board.

Instead of starting with a list of businesses, consider starting with a list of your interests, product ideas, innovations, etc. Are there any that could be developed or tested within your resource limits? What niche can you carve out that would make customers want to find you? Are there any that would be fun enough to keep you compensated during the low income times? What would you do if you were choosing a career/business instead of trying to escape from a cubicle?

[911Rob]

never owned one, but thought about it; how about a carwash?

I built one in Calgary for a guy who made good money at it.
A couple years later his accountant came to me asking all kinds of questions about building one for him; he said the guy was making a ton of dough..... intrigued me, but to no avail.

A local architect owns one of the carwashes where I live now and says he does well with it too.

Seems to go along with your vein of thought?

[the]

Carwashes are very profitable in most cities/areas.

The problem with them is they are known to be profitable, and are priced high. A biz that is profitable for the current owner isn't going to be nearly as profitable if you pay too much for the biz and have a huge loan to carry on it. (The successful ones are in the $millions).

[911Rob]

I'd agree; that's why I'd buy the land and build my own.