Owning My Own Business

[WORKEROUTER]

Ever since I was around 15, I have had visions of starting something, of owning and running a business that was my own. I would see opportunities in my home city and want to capitalize on them, thinking to myself whether these ideas would really work. After actually being true to myself, I realize that this is a desire that I am passionate about.

Well, I've come to the conclusion that I have been putting it off too long now. Despite negative remarks from my parents and others about this, I've decided that I want to begin getting my feet wet and start investigating how I can start my own small business.

The idea that has caught my interest for the most time now is opening my own gym. Investigating fitness, dieting, and health has always interested me heavily, so this is an area that I would would be serious about.

Me and my friend, who is also interested in this, have been thinking about all aspects of how to successfully run the business, and all the barriers that would be in our way.

Any thoughts or ideas as to some directions we should go initially with this? I have started getting books and such on small business, and hope to gradually educate myself.

 

[STR8UP]

I've probably said the same things about a bajillion times on here already, but-

1. You have to KNOW and I do mean KNOW the difference between being self employed and being a businessman. There is a HUGE difference between the two. Not that one is bad and the other is good (although I personally would prefer the latter), but you need to understand that the fact that you are the boss doesn't necessarily mean that you are a businessman. I spent the better part of 8 years not understanding why I wasn't going anywhere with business.

You will start out being self employed, which means that the business will control YOU not the other way around. The trick is to turn the tables so that the business is generating a good positive cash flow without much effort on your behalf. It's not as easy as it sounds, but it can be done.

2. Be mindful of how much it costs you to set up the business in relation to the profit potential. If it costs you $200,000 to set up a business that has a profit potential of $100,000, you might be able to sell the business for $300,000 after a few years of running it, doesn't leave much for your trouble. The trick is to figure out how to profit $100k per year with only a $20k investment. I learned this lesson the hard way!

3. It is easy to start a business. The hard part is making it turn a profit.

4. You need to ask yourself why it is you want to be in business. Is it because you want to be rolling in money after a few months while you are sitting at home playing Xbox? If so you are going to have a real tough time.

The fact is you will most likely spend several years working harder than you have ever worked and making less money than you would have working for someone else. If you can manage to tough it out and get yourself out of the self employment rut (see #1) you have a shot at really being successful with business.

5. The key to making a fortune in business is the same as in real estate. It's all about LEVERAGE. A 3000 sq ft. restaurant can only seat so many people (hence, can only produce so much profit). Open one location, make it profitable, then replicate it. The power of building a brand should never be underestimated.

I could write all night, but these are some of the more important things to keep in mind.

 

[Page]

Originally posted by STR8UP

5. The key to making a fortune in business is the same as in real estate. It's all about LEVERAGE. A 3000 sq ft. restaurant can only seat so many people (hence, can only produce so much profit). Open one location, make it profitable, then replicate it. The power of building a brand should never be underestimated.

Yep, franchises kick a$$ as long as you're the one selling them. You get to make the rules, and you get a cut from every franchisee that buys into your idea. What's not to love?

Inversely, buying into someone else's franchise (like mcdonalds) is a good way to supplement your investments, but you won't learn much about business b/c you have to do everything the company's way or else. To learn you have to be able to experiment.

 

[STR8UP]

Oh yea, one more thing.

Employees will cause you to lose most of your hair (whatever doesn't fall out will turn grey prematurely), give you ulcers, send your blood pressure though the roof, and cause you to look like you haven't slept in days.

All kidding aside (actually it's pretty much the truth!), it takes a special kind of person to be able to deal with employees. Most employees nowadays feel that they are overworked and underpaid. Many of them won't hesitate to steal from you if given half a chance.

If you plan to get yourself into the role of businessman you will have to learn how to deal with employees and you better be good at it. You could have the best idea in the world and it won't mean squat unless you are effective in the people department.

 

[diplomatic_lies]

That's where freelancers come in, making your life inifinitely better

The extra cost per hour is far more than worth it.