TOP 3 guidelines for business starters

[Progear]

Talking about owning business a lot these days. This is a thread that invites all PM members that own a business to share their TOP 3 principles, guidelines that lead them to a successful business. For sure your experience sharing will make a difference for the others. Thanks you.

 

[Performance Based]

1) Having a great relationship with a bank that can necessitate your needs. This is extremely important during start up and transitional stages.

2) Having a competent CPA for business based domestically. God the nightmares we had a bit ago before we left the states.

3) Being realistic with your expectations. Have your first year budget accounted for? Add 30%... Your expectations for output the first year? Cut that in half.

 

[SL1CED]

Enough capital to support the first year.

 

[gogotren]

1. pig head discipline. If things aren`t working try again... till you get it done. Colonel sanders, the founder of KFC lost his successful restaurant at 60 y/o and went on the road sleeping in his car visiting asking for a royalty on his "awesome chicken recipe". He got over 900 "NO`S" before he got a yes. How many "no`s" would you take and keep going?

2. Find a mentor. Find the most successful person that does what you want to do and study them. If they were any good, somebody has written about them. Success leaves clues.

3. Think big. Everything you have in life right now, at one time was just a thought. If you want that business, picture it, envision it every fucking day, tell every person you know/see what your going to do so maybe one of them will hold you accountable and ask, "hey how`s that thing going"?

Banks are not loaning shit these days as they are all waiting for the ax to fall on them. CPA... worry about that AFTER you make some money. IRS is so far behind, you could file 3 yrs late before they even send you a letter.

What type of business? I`m launching a new product right now that will be in a major retailer before years end... they just don`t know it yet

 

[Performance Based]

1. pig head discipline. If things aren`t working try again... till you get it done. Colonel sanders, the founder of KFC lost his successful restaurant at 60 y/o and went on the road sleeping in his car visiting asking for a royalty on his "awesome chicken recipe". He got over 900 "NO`S" before he got a yes. How many "no`s" would you take and keep going?

2. Find a mentor. Find the most successful person that does what you want to do and study them. If they were any good, somebody has written about them. Success leaves clues.

3. Think big. Everything you have in life right now, at one time was just a thought. If you want that business, picture it, envision it every fucking day, tell every person you know/see what your going to do so maybe one of them will hold you accountable and ask, "hey how`s that thing going"?

Banks are not loaning shit these days as they are all waiting for the ax to fall on them. CPA... worry about that AFTER you make some money. IRS is so far behind, you could file 3 yrs late before they even send you a letter.

What type of business? I`m launching a new product right now that will be in a major retailer before years end... they just don`t know it yet

Banks are quite literally pumping money out right now, no offense but this is a common misconception. If you have a proven track record and great relationship, getting a 10,20,100 MM line of credit with a phone call shouldn't be an issue.

Let me re-iterate... CPA is an absolute must, you don't want to get into the pain in the ass hassle I got into... And thats NOT being a US citizen.

 

[Pheedno]

1. expect to work double the hours for half the pay in the first couple of years(if it climbs faster than that, consider yourself more fortunate than most)

2. I'll echo the CPA comment. I learned the hard way.

3. think of yourself as a service provider...to your customers, to your employees. The "boss" mentality lends itself to delusion.

 

[gogotren]

If you have a proven track record and great relationship, getting a 10,20,100 MM line of credit with a phone call shouldn't be an issue.

Let me re-iterate... CPA is an absolute must, you don't want to get into the pain in the ass hassle I got into... And thats NOT being a US citizen.

It sounds like progear is gonna be more of a startup, which get NOTHING from banks these days. 99% of businesses NEVER make it to 1M in sales, so they are not gonna get 10, 20, 100M ON A PHONE CALL! What bank are you with? Banks are not loaning crap here in the US, not sure where your from PMCCHRIS.

Again CPA does not make you any money, they do can keep you in line, but will not make you successful, only out of trouble. As a start up, with limited budget, it is necessary to pay a CPA tell you what to do with money, revenue, sales, tax receipts you don`t have yet. Follow me?

 

[Performance Based]

It sounds like progear is gonna be more of a startup, which get NOTHING from banks these days. 99% of businesses NEVER make it to 1M in sales, so they are not gonna get 10, 20, 100M ON A PHONE CALL! What bank are you with? Banks are not loaning crap here in the US, not sure where your from PMCCHRIS.

Again CPA does not make you any money, they do can keep you in line, but will not make you successful, only out of trouble. As a start up, with limited budget, it is necessary to pay a CPA tell you what to do with money, revenue, sales, tax receipts you don`t have yet. Follow me?

Progear? Might be missing something in the conversation?

I personally bank with Chase for all needs domestically, and a private firm out of Bahrain for all work related needs.

If you are a start up, you have a proven track record and impressive resume there is no reason why you should have issue obtaining financing with no personal liability.

I have no experience running small companies, but I don't see how a well run business in a good area cannot clear 1MM a year. Now if were talking detroit or some po dunk town in TX understood completely. A million is a relatively small amount of money. Granted I said relatively.

No a CPA does not make you money, but it is something to have to avoid getting in the situation I was in. Looking at 8 figures in fines/fees and potentially ruining you fiscally for life.

 

[gogotren]

If you are a start up, you have a proven track record and impressive resume there is no reason why you should have issue obtaining financing with no personal liability.

No a CPA does not make you money, but it is something to have to avoid getting in the situation I was in. Looking at 8 figures in fines/fees and potentially ruining you fiscally for life.

How does a "start up" have a proven track record? Start up means, brand new, just starting.

So you run a company with NET income over 50M and THEN figured out you need a CPA? :banghead: At that point its called an accounting firm. Maybe if you weren`t posting at 12 noon your local time, you`d know this.

 

[Performance Based]

How does a "start up" have a proven track record? Start up means, brand new, just starting.

So you run a company with NET income over 50M and THEN figured out you need a CPA? :banghead: At that point its called an accounting firm. Maybe if you weren`t posting at 12 noon your local time, you`d know this.

I'm sorry, it just annoys the heck out of me this whole online thing. Granted most people on here have no business experience but when I get questioned I tend to get offensive.

The start up doesn't have a proven track record, the individual starting the new firm does or does not. If you run multiple companies rather successfully getting a small business loan in the MMs is not hard. Its a phone call, signing some paper, and a handshake.

Even if you don't have experience with a start up but YOUR resume is impressive... IE vice president of sales at Boeing etc, obtaining financing is without hiccups you could say.


I am active for the board of directors in regards to an international LTD that NETs far more than 50MM. I never thought I would need a CPA as I am no longer a US citizen.

I post 12 noon as we have created an absolutely amazing corporation and now I work 15-20 minutes a day tops.

 

[Performance Based]

Depends on the revenue you generate if your doing over 1 mm a year in sales a solid 7 if over 10mm a 9. 100mm+ a 10 but you should know that at that level.

 

[richiec]

Chris hits it pretty well here. As for a smaller business, a CPA is just as valuable. CPA's will help you find deductions that you would never think of and they study the tax code that is ever changing (this assuming you are starting a business in the US).

I have an insurance agency, and have a business partner who has been in the industry for 35+ years. I am currently "tied in" to his agency (located about 250-300 miles away) but we are making a split soon. He has been the financial backing that I have needed to start the agency. I took no loans and have been able to gain 4 yrs experience which will be of a major benefit when applying for appointments with other carriers. He has paid all of the bills and I've done all of the work, and we've both made a decent amount of money in the process. I honestly don't want to make millions, I would be more than happy making $100k/yr after taxes & expenses. Anything more requires more time at work and less time with my family, not interested in that (plus I'd have to hire an employee, no thanks).

My advice to the OP, you need to figure out how big you want to be, this is very important. I could, realistically, run a multi-million dollar insurance agency. BUT, I would need employees and a bigger office amongst other things. I'm not interested in that. Where I live, what I want to make goes a long way. Plus, I don't live extravagantly.

 

[Hush]

1. pig head discipline. If things aren`t working try again... till you get it done. Colonel sanders, the founder of KFC lost his successful restaurant at 60 y/o and went on the road sleeping in his car visiting asking for a royalty on his "awesome chicken recipe". He got over 900 "NO`S" before he got a yes. How many "no`s" would you take and keep going?

2. Find a mentor. Find the most successful person that does what you want to do and study them. If they were any good, somebody has written about them. Success leaves clues.

3. Think big. Everything you have in life right now, at one time was just a thought. If you want that business, picture it, envision it every fucking day, tell every person you know/see what your going to do so maybe one of them will hold you accountable and ask, "hey how`s that thing going"?

Banks are not loaning shit these days as they are all waiting for the ax to fall on them. CPA... worry about that AFTER you make some money. IRS is so far behind, you could file 3 yrs late before they even send you a letter.

What type of business? I`m launching a new product right now that will be in a major retailer before years end... they just don`t know it yet

I totally embrace your advice about mentoring and have big dreams. Well said, bump !

 

[Redz1]

My rule: invest in your passion, make your hobby your business, that's what will keep you motivated to go on.

 

[shredded21]

Redz1, that's actually the advice of Donald Trump I have just read in a book the other day. I thought about it and the idea is that your authenticity will make the difference, give you ideas to grow a business. If a job does not exist, make it.

 

[GreatWhale]

Well, if what you do is only for money, then motivation will soon fade. If it is about something that you like and you are good at, all obstacles are easier to deal with. You will find the energy in doing what you do daily.

 

[Crowler]

Find a need or a problem and meet that need or solve the problem.

Start a new category if you want to be the leader.

Make sure what you do has a fairly high barrier to entry or there will be a flood of copycats.

The world doesn't give a hoot about your passion/motivation unless it solves a problem or fills a need.