Free Indeed Posted February 15, 2011 Share Posted February 15, 2011 My husband is considering stepping out of the workforce and going into business for himself. He is learning what it takes, and doing some research himself, but I also want to be knowledgeable. So tell me some of the things you have learned over the years of running your own business, maybe things you were not prepared for too. Did you do something that made the transition easier- or wish you had? Any thing you wish you had or had not done? Thanks for any help or insight you can give. :D Quote Link to comment Share on other sites More sharing options...
Sophia Posted February 15, 2011 Share Posted February 15, 2011 Network. Dh has had more returns from networking than advertising. His involvement in BNI has saved our business many times. Quote Link to comment Share on other sites More sharing options...
Gooblink Posted February 15, 2011 Share Posted February 15, 2011 I agree networking is key. We were members of BNI for a long time, too, and still have a number of clients through those relationships. Hire the best people you can afford. Be prepared to work harder than you ever thought you could. Know your product and service and be prepared to market yourself. Treat everybody like a client. Be prepared for a long period of slow, low or no income. Persevere. Persevere. Persevere. Keep meticulous financials. Have an exit strategy if you decide self-employment is not your bag. Did I mention persevere? We've been at it for almost 10 years and I'm still not sure we know what we're doing. :) Quote Link to comment Share on other sites More sharing options...
Aggie Posted February 15, 2011 Share Posted February 15, 2011 I applaud you and your dh for thinking about this! Part of our homeschooling is teaching our dc how to run their own business if they ever decide that's what they want to do. My parents opened a store when I was in college. I saw a large part of what went on for 20+ years. It was very difficult on their marriage. Not that they were the best communicators to begin with:glare:, but the store was such an added stress to their relationship. They couldn't (or didn't) leave business at the store. It all came home with them. They couldn't find good help. Employees, who were paid and treated well, would steal, not show up for work, not do the jobs they were paid to do. Not all employees were like that, but a large majority were. Dad had people come in, ask Dad to sign a paper saying that person had applied for a job so they could get unemployment. Of course, Dad offered jobs, but some people didn't want to work. My parents couldn't take a vacation for years. In the beginning, there wasn't enough income. When there was enough income, there wasn't anyone they could trust to run the store for more than 2-3 days. When they came to see us, Dad was on the phone 2-3 times/day with the store. He worked 6 days a week, 12 hours a day for years. The biggest lesson, I think, is that you have to plan way ahead for periods of low income. If you have a year's worth of savings, what will you do if the business doesn't take off in a year? Is there a back-up plan? Will he be able to return to the work force if he wants/needs to or will his ties have been severed? Are you willing to contribute your time and talents to the business or will he be able to hire extra help? Will he work from home or have an office? If from home, will he have his own quiet space with no interruptions? Is he motivated and disciplined? :) Will his business have normal business hours or will he be working nights/weekends/holidays? How will those hours work for your family? Is this a field with which he is familiar? Will there be a learning curve? Will he have a mentor if he needs one? Do you have to take out a loan to get the business off the ground? *Incredible* stress if you're both not prepared for it. When you want to retire, what will happen to the business? Will you plan on selling it or just dissolving it? Huge factor for retirement income. When my parents wanted to sell the store and retire, they couldn't find a buyer for years. I hope this works well for both of you! I love people who do this and can make it work! Quote Link to comment Share on other sites More sharing options...
Lolly Posted February 15, 2011 Share Posted February 15, 2011 Know that he will have to devote himself to his business in order for it to make it. He will literally be on call 24 hours 7 days a week. If something is not working right/goes wrong, he will have to be there to take care of it. Be prepared for years of not making a profit. The stress is tremendous. The benefits are too. It is a much harder thing to do than I ever imagined it would be. Like Gooblink said, treat everyone as a potential client. Things like publicly supporting a political candidate are not a good idea. You might offend a client who supports the other candidate. There is no such thing as a vacation. His phone will ring with a crisis the entire time. He has to answer it and deal with the problems. Good help? Good luck. Dh has found one employee in the past 14 years that he truly trusts and has confidence in. I honestly don't know what we would do without her. Quote Link to comment Share on other sites More sharing options...
HistoryMom Posted February 15, 2011 Share Posted February 15, 2011 (edited) Great advice so far. Be conservative in how you invest your start-up funds. Don't buy a fancy desk, or anything else for that matter, when a hand-me-down will do. Invest in what matters: communication with clients, doing the job well, and marketing. Edited February 15, 2011 by HistoryMom Quote Link to comment Share on other sites More sharing options...
Hen Posted February 15, 2011 Share Posted February 15, 2011 my husband's dad started a business, we were all involved and worked at least a few years with the company. I don't know what type of business you are talking about, but the biggest eye-opening thing for me were the taxes and fees. I'm not just talking about income/business tax, but also the city we were located in had a city business tax- that part made some sense, but then, every job we had, other cities wanted a fee also, because we worked in their city. It was insane, usually it was yearly, and it was a percentage of the amount of the job in the city. It was crazy. the other thing was the employees stealing and taking advantage, and the pretty common outlook many employees had that they were entitled or owed- whatever. Quote Link to comment Share on other sites More sharing options...
LizzyBee Posted February 15, 2011 Share Posted February 15, 2011 For some reason, I read the thread title as "Anyone here mind their own business??" :lol: Quote Link to comment Share on other sites More sharing options...
Hockey Mom Posted February 15, 2011 Share Posted February 15, 2011 We've been running our business for 11 years. Our current business is IT consulting and web design. Since that market is so saturated, we're slowly phasing that out, and going in a completely different direction. We're both very excited about it! :D Everyone has already mentioned some really great suggestions. I will add one more: INCORPORATE! We started as a Sole Proprietorship, and it was a HUGE mistake. Incorporation will not only protect your personal assets, but it will save you come tax time. We owed $10k in taxes our first year because we didn't incorporate. Having a good accountant is key. The good ones will advise you on how you should be spending your money, and tell you things like, "incorporate!" ;) Dh and I have a very good relationship, and part of that is because we make it a point to spend quality time together. Even if it's only for an hour, make sure to make that time about the two of you - not about the kids, the work that's being neglected at home, or the office. Make a point to hug, hold hands, or quick kiss to keep that bond strong. Physical affection helps to anchor you both. Good luck with your new adventure! It is hard, it is frustrating, and it is scary at times. But it is also liberating, satisfying, and fun at times. :) Quote Link to comment Share on other sites More sharing options...
kewb Posted February 15, 2011 Share Posted February 15, 2011 I am the daughter of a business owner and now married to one. The good years are good and the bad years can be really bad. During the good times, make sure you are putting all you can in savings. The savings help during the lean times. It has definitely added a huge level of stress to our marriage. You have to keep those lines of communication open. Be prepared to not see your spouse a lot. My dh says the difference between working for someone else and for yourself is that when you work for yourself you get to choose which 70 hours a week you work. Homeschooling has helped him stay connected with our kids. They can stay up late to see him. He can see them during the day when he is home. Sometimes, I wish he would just get a job so that the stress can go away. But, then I remember that before he started his own business we had stress. It was different but it was there and I think in some ways worse because my dh was not happy. Quote Link to comment Share on other sites More sharing options...
Free Indeed Posted February 16, 2011 Author Share Posted February 16, 2011 WOW! Thank you for all the replies. I appreciate it. I am reading and re reading these. Lizzy Bee- of course people do not mind their own business! ;) I knew that! :D I want to have a good idea of what we are getting into- although we really will have no idea until we are there! Scary and exciting! :D Quote Link to comment Share on other sites More sharing options...
Plink Posted February 16, 2011 Share Posted February 16, 2011 What kind of business is he interested in starting? Is it something you can throw yourself behind 100%? If you are only 99% sure, don't do it. Owning a business takes over your life. It is great, but only if you have an internal passion for what you are doing. There are lots of perceptions of what business ownership "grants" you which are false. You will not become a millionaire overnight. You will not be able to use your time any way you wish. You will not have wonderful relationships with all of your employees, and customers. You will not have perfectly decorated shop to ooh and aah over. You will not have people banging down your door to receive your services. You will not lead a stress free life. ... and probably most important to consider - You will not escape working to fulfill someone else's demands. I don't mean to sound negative. I love our company, but I just spent my entire morning doing tasks that I don't enjoy - and I "technically" don't even work for DH. He has many, many employees and our business is over 100 years old, but I still get roped into helping; grumpy kids in tow, baby on hip and for free. DH is often forced to work very long hours; sometimes at the store, but more often at home during his "time off." We have had several years in which payroll was made only because we didn't pay ourselves. We had a trusted friend steal from us. Our store was vandalized. We have had to fight the city (which means fighting our friends) to put up simple signs or move a dumpster. We have had to work on holidays, miss friends' weddings, and haul warm meals across town so that we could eat dinner as a family in our break-room just so that the kids will get to see their dad for a few minutes before going to bed. It isn't at all what I ever envisioned business ownership to mean. Freedom and security are not what you should think of when you picture owning a business. Stress and sacrifice are better descriptions. There are benefits, for sure, but they are wedged between the hard times. Be very very sure that your entire family is willing to make this sacrifice. The kids will have a lot less time with their dad. They will likely see him upset and struggling, and may internalize his fears. You will need to be a strong support for DH when he is frustrated or scared. You will need to be able to find friends to help support you with your own emotions when your DH isn't available. You will all need to be willing to live with less to support what is very often an expensive pipe dream. Think it through. Create a detailed business plan and weigh your reality versus your dreams. If you are ready for a roller-coaster ride, jump in. It is crazy good and crazy bad, but us-crazy-folk like it! Quote Link to comment Share on other sites More sharing options...
dsmith Posted February 16, 2011 Share Posted February 16, 2011 I see so many people get caught up in silly stuff when starting a business. Spending too much money on fancy office furniture and equipment, thousands of imprinted pens, huge sets of printed business stationary, etc. It's possible to look big without spending big! No one knew we had our business in a room in our basement. Our new office was furnished for under $500. We use Vistaprint for our printing needs. If your husband is breaking into a specific industry that he is familiar with, writing articles for industry magazines is a great way to get good advertising. Dh knows his industry inside and out, and often writes articles and gives seminars at trade shows. A good portion of his business comes from that. Be prepared for bad times. We have gone up to six months without paying ourselves, while our employees go on thinking we are wealthy and living the easy life. We are lucky that we are able to do a lot of travelling with dh, but we may be in the middle of a zoo while dh is on the phone with a customer. He has had customers calling on Christmas, Easter, 4th of July, etc. He is never fully 'off' of work. Beware of partnerships!!! I can't stress that enough!!! Get solid accounting guidance. It's really important for the family to be 100% behind him. Dh started his business right after I gave birth to ds. It was a scary time, but I was behind him 100% and he knew it. We're in this together. Good luck! Quote Link to comment Share on other sites More sharing options...
G5052 Posted February 16, 2011 Share Posted February 16, 2011 It is indeed a very hard decision, and you should talk to as many people as possible before doing it. We've considered here and there, and events transpired that make us thankful that we kept the steady paycheck and benefits package. As hard as working for someone else can be, working for yourself is harder in most cases. I have a small side business that pays for extras and we may do something like that in retirement, but owning a business for our primary source of income is not for us. Quote Link to comment Share on other sites More sharing options...
LisaKinVA Posted February 16, 2011 Share Posted February 16, 2011 What kind of business is he interested in starting? Is it something you can throw yourself behind 100%? If you are only 99% sure, don't do it. Owning a business takes over your life. It is great, but only if you have an internal passion for what you are doing. There are lots of perceptions of what business ownership "grants" you which are false. You will not become a millionaire overnight. You will not be able to use your time any way you wish. You will not have wonderful relationships with all of your employees, and customers. You will not have perfectly decorated shop to ooh and aah over. You will not have people banging down your door to receive your services. You will not lead a stress free life. ... and probably most important to consider - You will not escape working to fulfill someone else's demands. I don't mean to sound negative. I love our company, but I just spent my entire morning doing tasks that I don't enjoy - and I "technically" don't even work for DH. He has many, many employees and our business is over 100 years old, but I still get roped into helping; grumpy kids in tow, baby on hip and for free. DH is often forced to work very long hours; sometimes at the store, but more often at home during his "time off." We have had several years in which payroll was made only because we didn't pay ourselves. We had a trusted friend steal from us. Our store was vandalized. We have had to fight the city (which means fighting our friends) to put up simple signs or move a dumpster. We have had to work on holidays, miss friends' weddings, and haul warm meals across town so that we could eat dinner as a family in our break-room just so that the kids will get to see their dad for a few minutes before going to bed. It isn't at all what I ever envisioned business ownership to mean. Freedom and security are not what you should think of when you picture owning a business. Stress and sacrifice are better descriptions. There are benefits, for sure, but they are wedged between the hard times. Be very very sure that your entire family is willing to make this sacrifice. The kids will have a lot less time with their dad. They will likely see him upset and struggling, and may internalize his fears. You will need to be a strong support for DH when he is frustrated or scared. You will need to be able to find friends to help support you with your own emotions when your DH isn't available. You will all need to be willing to live with less to support what is very often an expensive pipe dream. Think it through. Create a detailed business plan and weigh your reality versus your dreams. If you are ready for a roller-coaster ride, jump in. It is crazy good and crazy bad, but us-crazy-folk like it! :iagree: This has been our experience... and then there are all of the people who think that because you OWN the business, you are automatically wealthy and owe them something (usually free), when the truth is the 16yo cashier is actually taking home more money than you are...:glare: Quote Link to comment Share on other sites More sharing options...
parias1126 Posted February 16, 2011 Share Posted February 16, 2011 What kind of business is he interested in starting? Is it something you can throw yourself behind 100%? If you are only 99% sure, don't do it. Owning a business takes over your life. It is great, but only if you have an internal passion for what you are doing. There are lots of perceptions of what business ownership "grants" you which are false. You will not become a millionaire overnight. You will not be able to use your time any way you wish. You will not have wonderful relationships with all of your employees, and customers. You will not have perfectly decorated shop to ooh and aah over. You will not have people banging down your door to receive your services. You will not lead a stress free life. ... and probably most important to consider - You will not escape working to fulfill someone else's demands. I don't mean to sound negative. I love our company, but I just spent my entire morning doing tasks that I don't enjoy - and I "technically" don't even work for DH. He has many, many employees and our business is over 100 years old, but I still get roped into helping; grumpy kids in tow, baby on hip and for free. DH is often forced to work very long hours; sometimes at the store, but more often at home during his "time off." We have had several years in which payroll was made only because we didn't pay ourselves. We had a trusted friend steal from us. Our store was vandalized. We have had to fight the city (which means fighting our friends) to put up simple signs or move a dumpster. We have had to work on holidays, miss friends' weddings, and haul warm meals across town so that we could eat dinner as a family in our break-room just so that the kids will get to see their dad for a few minutes before going to bed. It isn't at all what I ever envisioned business ownership to mean. Freedom and security are not what you should think of when you picture owning a business. Stress and sacrifice are better descriptions. There are benefits, for sure, but they are wedged between the hard times. Be very very sure that your entire family is willing to make this sacrifice. The kids will have a lot less time with their dad. They will likely see him upset and struggling, and may internalize his fears. You will need to be a strong support for DH when he is frustrated or scared. You will need to be able to find friends to help support you with your own emotions when your DH isn't available. You will all need to be willing to live with less to support what is very often an expensive pipe dream. Think it through. Create a detailed business plan and weigh your reality versus your dreams. If you are ready for a roller-coaster ride, jump in. It is crazy good and crazy bad, but us-crazy-folk like it! There is so much negativity in this post that I really just had to reply. It is not always this way. I think it depends on the type of business you are running. My DH is self employed now for 5 years. He does pretty well and we have always gotten by and then some. He actually gets more time with his children then he did working for someone else. I would say our biggest downfall is how hard it is for him to take a vacation. I'm leaving for Florida in a couple days and he had to change his plans and not go with me because time is money and we would had lost too much of it. Our life has been so much better financially since he woke up one morning and said, "I'm going to start my own business!" I was SCARED! Not because I don't have faith in DH, but because I was afraid of change. And it WILL change your life! Nit so much in a bad way, just different! And there is definitely stressful times. My DH has a service business where he is the only one (no employees). If he needs someone then he finds someone to hire as an independent contractor for the day or couple of days. He likes it this way. Maybe it's a control thing. But, his business runs much better when he is the only one coming in contact with his clients. I would say only do this if you are 100% positive you can do this. Make sure you or your DH know the business inside and out (whatever maybe that you are going to sell be it a product or service) I would say a bit more but on my way to an accountant appointment and running late. Another one of the fun business things you would have to deal with towing your children behind you. Lol Quote Link to comment Share on other sites More sharing options...
Paintedlady Posted February 16, 2011 Share Posted February 16, 2011 Dh runs his own business but also has a full time job in addition. He's hoping to make enough with the business to quit the other job within the next few years. It's tough b/c he's gone a lot, working all day and sometimes all night. BUT, he is doing something he loves and that truly makes it not seem like work. We're hoping the sacrifices pay off in the end. Tips we've learned: ~Be meticulous in your record keeping ~Get a good accountant ~Start small--borrow or do without anything that's not absolutely necessary. ~Always keep business cards on you--dh has run into people so many times that he didn't expect to need them, but did. Everyone seems to know someone who can connect you to someone else. Be sure you have the cards on hand for such occasions. ~Encourage each other a lot. It can be scary going it alone. Talk a lot about your dreams for the business and where you'd like to see it go. ~Look into health insurance options. This has been the hardest part for us. It can get costly and it's super scary to go it alone when you've always depended on an employer to provide it for you. Good luck!!! :grouphug: Quote Link to comment Share on other sites More sharing options...
1GirlTwinBoys Posted February 16, 2011 Share Posted February 16, 2011 We own our own business (8 years). My DH contracts with plastic surgeons to do certain procedures. It can be feast or famine! DH LOVES what he does though.:) Quote Link to comment Share on other sites More sharing options...
kamom Posted February 16, 2011 Share Posted February 16, 2011 There is so much negativity in this post that I really just had to reply. It is not always this way. I think it depends on the type of business you are running. My DH is self employed now for 5 years. He does pretty well and we have always gotten by and then some. He actually gets more time with his children then he did working for someone else. I would say our biggest downfall is how hard it is for him to take a vacation. I'm leaving for Florida in a couple days and he had to change his plans and not go with me because time is money and we would had lost too much of it. Our life has been so much better financially since he woke up one morning and said, "I'm going to start my own business!" I was SCARED! Not because I don't have faith in DH, but because I was afraid of change. And it WILL change your life! Nit so much in a bad way, just different! And there is definitely stressful times. My DH has a service business where he is the only one (no employees). If he needs someone then he finds someone to hire as an independent contractor for the day or couple of days. He likes it this way. Maybe it's a control thing. But, his business runs much better when he is the only one coming in contact with his clients. I would say only do this if you are 100% positive you can do this. Make sure you or your DH know the business inside and out (whatever maybe that you are going to sell be it a product or service) I would say a bit more but on my way to an accountant appointment and running late. Another one of the fun business things you would have to deal with towing your children behind you. Lol My dh has been self employed for about 9 yrs. It has been a lot more freeing financially for us! Winters are always a stretch, since business is slow then. We had a very hard time making ends meet before he went on his own, and since then have gotten way furthur finacially. It can be a lot of stress though! Even though his business is doing great, he even has work for others, he decided last year he wants to try to start something else also.:tongue_smilie: So while keeping the one business running from the same place he started a tire shop last year. It is slowly growing. It would not have supported us and still wouldn't if we didn't have the other business going. It is keeping itself afloat now and dh is encouraged to keep going., because he believes it will be a steader income in the long run. We started out the second business with already owning a shop we could use and selling a rental house for profit that he reinvested into tires. All this to say, it can have a good outcome. We can pay our bilss and get away for vacations like we couldn't before! Depends on what the work is, you could be better off, or it could tie you down more. That said these are some of the principles that dh uses for a successful business: The costumers comes first! (I have keenly felt this! not on vacations though) It's all about making the client happy! He will even take a loss. Keep the overhead as low as possible! This was mentioned before, but I cannot stess this enough. Dh groaned at watching a close family member run a business to the ground with the way he spent on it! He saw it happening and knew it could be avoided. Stuff like laundry service for matching outfits!? Keep close tabs if others are allowed to spend on it. This is our largest problem now! It takes serious communication skills. We hire only trustworthy people that we know well. People that we know from our group of Christian friends. Dh has a great friend that he consults about the tire business. There is nothing like someone who has been, their done that. Quote Link to comment Share on other sites More sharing options...
Jan in SC Posted February 16, 2011 Share Posted February 16, 2011 Assume you will do very well and save for taxes from the beginning. You might not need that money for three or four years, but it will come in handy when you didn't realize how much your business "officially" made one year! You will be taxed at a much higher rate, and finding deductions is not as easy it used to be! Quote Link to comment Share on other sites More sharing options...
Free Indeed Posted February 16, 2011 Author Share Posted February 16, 2011 Just wanted to say thank you again! It is nice to learn from wives who have been there. My husband has contacts on his end, but I was just wanting to learn a little myself. Some things you don't think about till you are there. :D Quote Link to comment Share on other sites More sharing options...
Plink Posted February 16, 2011 Share Posted February 16, 2011 There is so much negativity in this post I am so sorry if I came across harshly. My intention was not to discourage you. As I said before, we love our family business and wouldn't change our choice - good times or bad. I truly do wish you the best. Quote Link to comment Share on other sites More sharing options...
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