When I was 19, I decided that me and a business associate from high school (we had a knack for making money together since we were both 15) decided to start an online comptuer company.
The idea came about when we noticed that there were no compaines that really let you FULLY customize a pc, and the ones that did to some extent made it so complex that only the true computer geeks could build a pc with it actually working.
So the backbone of our company and business model was a three pronged customization system that had a beginner, itermediate and advanced catgory of customization. When I was working at Best Buy as a comptuer Tech in my teens, you don't know how many times I had people come up to me say ing "I need a pc with a DVD Burner that's fast" or "I want to play games and I know I need this video card". Well, we had the ONLY system to date that can let you literarly start with the video card and build your computer from there. And the beauty of it was, that it was 100% foolproof (thanks to our friends from india
), the computer was guaranteed to work.
To make a long story short, we started with $800 dollars in 2002, and in late march, I sold my part of the company for well in the mid 6 figures, and it would have been more if I would have held out longer for another potential buyer. A large computer company, who I won't name, offered us, the two owners 4 Million a peice for our patten on our customization option around my B-Day last year... Of course I didn't, or better yet, we didn't accecpt it, not so much because we didn't like the money, but for our hatred of that company that grew while we learned more on how they did business.
We grossed well over $1,000,000 in revenue last year, and when I resigned in March, we were on pace to break 7 Million. And our profit margin after SG&A was 17.5%, we ran a tight ship, were extremely effiecent and always had cash.
The business aspect of business is suprisingly easy, if you are dealing with something you know about. There wasn't much I didn't know about computers or building them. I would say the hardest part of the whole thing is the disipline it takes to be successful. I mean, It's YOUR company. There isn't much you CAN'T do and not get away with.
But back to the disipline. When we first were getting rolling, I worked 7 days a week, 14-18 hours a day. Now, once we got on track, I cut back to 5 days a week... I had the key to the office so I had to open the building, so I had to be there no later than 7:45, and I usually got off work at 4:00. I didn't take a lunch break and I usually didn't take phone calls. (I hate people who pride themselves on working 12-14 hour days, but they piss most of it away by being unproductive). On Friday's, assuming nothing major was going on, and all of the payroll was done and we had no standing issues with our banks, I would be out the door at 1:30 and let my business partner lock up. I had saturdays off, and on Sunday morning, me and my business partner would get together for an hour or so and go over the goals for the next week.
The only day I had off in my entire tenure there was the day I turned 21. And I really didn't even have that day off, I went to work and my business partner gave me a B-day present, and the 5 minutes later I got a call from this apartment place I was tr ying to move into and they told me if I wanted the apartment I had to move in that day.. in the 100 degree heat. I had already known I would have to take off early because my mom wanted to take me out to eat.
Luckliey I didn't have much furniture so I didn't take longer than 3 hours to get in, but I had to call in that day, even though I was already at work.
It's hard, espically being 20, 21, seeing all your friends going to parties or whatnot and you have to "work" but something I learned is that I was investing my time, most people spend it. And When I started to actually have a life again, when I turned 21, you are talking about FUN... because you know that unlike most people there, you are doing somet hing with your life, this enviorment isn't your life.
A couple of things I learned at my young age:
* There is absolutley nothing you CAN'T DO. I don't care what anyone says, they don't know what you are capable of. I sold my company for 2 reasons... 1, I didn't particualy like my business partner and 2) I had another love, even stronger than computers, and it's horse racing, and has been my entire life. One night I was sitting down and decided I was going to follow my dreams and decided to quit and get in the horse racing business full time. To make a long story very short, I have made more money in the last 4 months then I did in the last 3 years doing what I was doing, and it's not even about the money, I am just happy becuase I have loved horse racing since i was 7. I recently bought a couple of yearlings and I want to get involved in that side of it as well.
* The japanese have a motto that served me well " What can be done tomorrow can be done today"... It's a good way to think about things. Don't put off what can be done today until tomorrow.
* Be careful who your business partner is. I was the CFO and Co Chairman (my decision because I am very comfortable with budgets, numbers and banks) but because my business partner was.....wired is the best way to describe it, I was pretty much the CEO as well... our business contacts didn't want to deal with him, employees came to me if they had a problem and to top it all off, he ahd a bad habit of spending the companies money, and he got paid around $100,000 a year, with perks (didn't have to pay rent or utilities, just buy his own food), iplus dividends, in one of the cheapest places to live in the entire US.
* Learn as much about other compaines in your sector as possible.
* Treat employees like you want to be treated and you will be suprised at how efficent your company can be.
* Most important is when you do start to see a little success, don't get greedy. Aesop's Fables says that Greed can make you loose everything, and that's so, so true.
If you want some more detailed advice, feel free to PM me, and i have some resourses and tips I will be happy to give.
