I quit my job! Going into business for myself

[Felix The Assassin]

WOW! Good for you!

[Memnoch]

I'm planning on limiting my search to Boston/MA at this point but am keeping all options open. I'm so psyched about getting into my own business and being my own boss. I know it will be so much hard work, but I'll be working for my own benefit, and not so that someone else can have a bonus. I was in corporate for 10 years and the main reason I got tired of the whole corporate rat race is 2 reasons:

1. the endless politicking, particularly if you work in a Corporate HQ

2. doing long hours of work that you know is a waste of time and that does not advance the business's interests but advances someone's political interests

I am tired, worn out and burned out from doing that. I've been in the workforce for 10 years, I spent 3 years at J&J doing supply chain, 5 years at Unilever doing marketing and 2 years at Boston Scientific doing finance and strategic sourcing and I've decided I'm sick of it. It's not as simple as: you do a good job -> you reap the rewards. You have to keep politicking to deal with the backstabbers and people who use you to get ahead, and do the same to them so YOU can get ahead. You have to screw people who work for the same company as you because otherwise they cut you off at the knees in turn. Some people don't mind doing that - my dad was a corporate person his whole life, he worked for the same company (Procter & Gamble) for 30 years and fought and climbed his way up to Director of Finance for P&G's Asia-Pacific operations and he enjoyed it. He enjoyed the politics and all that, thrived on it.

That's not the kind of person I am. Maybe I had the misfortune to be in companies where politics are so deeply ingrained, but I think all big corporate environments are like that, because people are ambitious. Those kinds of issues I find very stressful. I don't like doing a good job, shining because you are seen as successful, then having other people either a ) use you because you can benefit their own political advancement; or b ) try and diminish your contributions because you are perceived as a threat to their own well-being. This is all in the SAME COMPANY that you are all supposed to be working for.

[John D Harris]

I know what you mean Mem, when I left the last job I was employeed by someone else, whit in 6 months my boss's boss was fired, then 6 months later my boss was fired. They were taking the credit for my work. And when I was no longer there to produce they couldn't keep up so they were out of there.

here's three things to remember, you won't find them said in any business class, or at least not in these words.
1)Take care of your customers
2)Take care of your employees
3)If you do 1 and 2 you will be taken care of

[Memnoch]

Thanks guys! Now I want to go into business for myself - not sure exactly what, but I know that it will be something that I'm in charge of. I was thinking of buying a gas station as a starting point. A gas station (or a drycleaner, or laundromat) seems like an easy enough way to start and learn how to do it. Longer term I'd love to do something like a petsitting business, or a doggy daycare centre, or a cattery.

The downside of my situation is i have lots of CORPORATE experience but none yet in running a small business in its entirety. I know this will become an issue when it comes to taking up a franchise/getting financing as running your own business no matter how small is different from working in corporate. I have total 10 years work experience, 8 years pre-MBA work experience with J&J (marketing/sales and supply chain) and Unilever (brand management), 2 years fulltime MBA, 2 years post MBA work experience with Boston Scientific (finance/analytics and sourcing). The working was mainly to a ) get experience in different functions (which is why I've been in marketing, supply chain and finance to get exposure to different areas) and b ) to build some capital. If I had to do it over again I would have saved more earlier in my career but I was too busy partying (as people here will know if they search for my posts around the 2001 time frame ).

Here's an entrepreneurial story I would like to follow. One of my father's friends owns a number of businesses in California in the $50-$150M revenue range. He used to be a product manager at Procter & Gamble, quit his job and started out buying a gas station, which he then increased to a number of gas stations, doing a roll-up to leverage economies of scale and improve efficiencies. When he got to 9 gas stations he sold them and started a business importing computer equipment from Taiwan to make clone/bare bones computers. From making LCD monitors he diversified into making LCD screens for aircraft (the ones you have on the backs of seats). Then he started making security cameras for airplane cockpits. He managed to parlay this experience into making security cameras for police cars, ambulances, school buses etc. Then he got into the security business with the cameras, response systems etc. And while on the security/aviation angle he bought a business that made the x-ray systems and the security "doorframes" at airports, and that was developing those security systems that can detect liquid explosives (the ones that look like phone booths where when you walk in they spray you with chemical puffs). On that theme, he started to get into x-ray systems for cargo (for screening cargo shipments that go into ports as this became a big deal post 9/11 as most inbound cargo to the US doesn't get scanned - the port authorities tend to let the shippers certify and screen the cargo.

So you can see the chain of expansion to the point where he has a number of small/midsize businesses that are all semi-related to each other. And it all started with a gas station. I'm hoping to be able to do the same thing. I'm in the process of researching the whole gas station thing so I don't know a HUGE deal about it yet - anyone who knows anything about it, I would love to hear from you!

Anyone here own/run their own business?

[John D Harris]

Yeap I own a screenprint business, Ran it for 8 years before buying it. The owner told me after the first year he would sell it to me when I was ready to buy it, and gave me a price. My wife and I saved, borrowed, and bought it. You need to decide what you want out of your business ie: get rich, be self sufficant, do what you want to do...etc. In my case it was do what I wanted to do, draw and illustrate, I pull squeeges, clean screens, tote boxes, what ever to keep my business going so I can spend some time drawing, or as my daughters used to say when they were young "Daddy colors all day. It is of the utmost importance to decide what your goal is with your business.

I make enough to cover what we need and want, I could in less then a year double or triple what I make without breaking a sweat. But my goal isn't to become wealthy, my goal is to enjoy life and live it. I play golf when I want too, My wife and I go on vacation when we want too. I do business on a hand shake, all my customers do business on a handshake.

The old axiom is true about retail sales Location location location. If you get a gas station that has been closed find out why they couldn't make it where they were? I can't tell you how many times I have seen, gas station, restaurants, open and close in the same location that there was the same type of business there before. The old saying about insanity doing the same thing over and over again and expecting different results is true, not make the mistake and forget it.

If I were you I would open up a business doing what I wanted to do, in your case the petsitting, doggie day care, cattery. (I'm assuming you mean someplace to watch cats and not a cat house ) I got a friend who owns a gas station he tells me he's lucky if he makes a nickle a gallon. It's a tough row to hoe, owning your own business, but IMHO it's worth it, you couldn't pay me 10 times what I make now to work for somebody else. But that's me, I have to be able to look myself in the mirror every morning.

As for running a small business no differant then corporate, money in must exceed money out, no exceptions ever!

[Bungleau]

I'll second what John D says. While I haven't launched myself (yet!), I've been doing a lot of reading and preparing in advance. A couple of things stand out for me:

1. Make sure you enjoy "it", whatever "it" is. To paraphrase Michael Gerber, author of the E-Myth books (required reading, BTW, but start at the beginning), there's a difference between an entrepreneur and a technician with an entrepreneurial brain fart. Many companies started by the second group aren't companies; they're just jobs.

2. Figure out what it is that you enjoy. Could be playing with the numbers to turn loss into profit. Could be marketing and promoting to increase sales opportunities and drive new business. Could be meeting, greeting, and helping people out with what you have to offer. Could be drinking beers in a local pub. If what you enjoy isn't present in the business, you just might be in the wrong business.

3. Figure out what you *don't* enjoy, and figure out how to offset that. Source that to someone else, decide you're going to do it anyway, trade off services with someone who enjoys it.... know it, and don't be trapped by it. Because it *will* take all your time. Eventually.

4. Get educated. Formal organizations like SCORE (Service Corps of Retired Executives) are available. Check out podcasts on entrepreneurial and small business issues, and spend a lot of time at your local library in the business section. I've got a number of things that I listen to and have paid attention to... some worthwhile, and some not so much.

5. Do something about it. This is the spot where I'm stuck... I need to GOYA... get off your anatomy

ONWARD!!!!

[Memnoch]

Thanks John and Bung! Another general question to you self employed people out there. What legal entity did you use starting out? LLC, sole proprietorship/partnership or corporation? From what I've seen LLC seems to offer the most flexibility.

[John D Harris]

Originally Posted by Memnoch Thanks John and Bung! Another general question to you self employed people out there. What legal entity did you use starting out? LLC, sole proprietorship/partnership or corporation? From what I've seen LLC seems to offer the most flexibility.

When I first bought the business I started out as an LLC with partners, but bought them out after about 8 months. Now I'm a sole proprietorship, on advice from accountant. Since my goal isn't to be wealthy per say, but enjoy life and make enough to cover my needs and wants. There are some advantages to an LLC, especialy if you are planing to get big and build an empire.

[Memnoch]

Originally Posted by John D Harris When I first bought the business I started out as an LLC with partners, but bought them out after about 8 months. Now I'm a sole proprietorship, on advice from accountant. Since my goal isn't to be wealthy per say, but enjoy life and make enough to cover my needs and wants. There are some advantages to an LLC, especialy if you are planing to get big and build an empire.

You're not worried about your personal liability John? Or I suppose as your business is humming along nicely there's little risk of that?

I'm planning to set up an LCC in the next couple of weeks via www.legalzoom.com.

[John D Harris]

Originally Posted by Memnoch You're not worried about your personal liability John? Or I suppose as your business is humming along nicely there's little risk of that? I'm planning to set up an LCC in the next couple of weeks via www.legalzoom.com.

I print T-shirts, not much Liability there, I deal with my distributors on a COD basis, except for one which is on a hand shake basis, He knows the ups and downs of screen printing that there are slow times, he let's me slide if needed until things pick up. I've never failed to pay him. If I mess up on an order I replace it and reprint it right, my customers know I will make it right. For any of the other liabilities that might arise I have insurance.
There's not much liability in screen printing. But you are right an LLC will protect you, and it isn't a bad idea at all to go that route.