Starting your own business

Hekotat

FoH nuclear response team
9,075
6,017
95d 2h 35m
Absolutely not. I doubt many local shops can deal with Amazon honestly, I'd have to leverage the convenience of getting it real time over amazon. I doubt i'd sell any of it mail order since most people can get it cheaper online.
I agree, but I do make sure to support my local bird shop even though I can get it cheaper on Amazon, I like that I can take my pet to place that actually gives a shit about my pet. I think most people will have this same mentality as long as you have good customer service. I'm just saying make sure you can still churn a profit on animal sales, boarding and services alone (Not sure what the equivalent for nail and wing clippings you could offer).
 

B-Biscuit

Bronze Knight of the Realm
101
101
4h 25m
I'm very interested in potentially opening a print shop. I want to make shirts, buttons, stickers, print envelopes, business cards, photos (from digital), amongst other print shop things.

I'm trying to figure out a number of things. I don't know how many different tools I'm going to need. I try searching online and i have to sign up for quotes on printers and have people calling me. I just want to start figuring out a budget/space.

Also, while I intend to save money for this venture a small business loan is a likely option. I've never taken out a loan other than my student loan so I feel like someone could pull one over on me if I'm not careful.
 
  • 1Solidarity
Reactions: pharmakos

Control

Lord Nagafen Raider
313
381
93d 8h 9m
I'm very interested in potentially opening a print shop. I want to make shirts, buttons, stickers, print envelopes, business cards, photos (from digital), amongst other print shop things.

Not to sound discouraging, but have you thought through the business aspects of this type of business? Do you think you're going to be able to be cheaper and/or better than the dozens of online companies already doing this? Do you know how many buttons and business cards you'll need to sell to cover your overhead and equipment? How are you going to generate those sales?

I know you're in the research stage, but you're going to need to know all your numbers cold before anyone will give you a loan, and even so, you'll have to personally guarantee it. If you really want to go this route, pick one of those things, buy the cheapest piece of equipment that will get the job done (you can order a lot of low-end print stuff from amazon pretty cheaply), and then try to make and sell your one thing. That should give you a taste of the business without putting too much at risk.

Or on the other hand, you could sell stuff that you get printed somewhere else basically being the middleman who outsources the actual work. Then you're at basically zero risk and you get to see if you'll actually be able to generate the sales that your business would need to survive anyway. Hell, do it for zero markup for a while just to see if it's viable before you go diving headfirst into debt to do this. If you can't sell your competition's work, you probably won't be able to sell your own either.
 
  • 1Like
Reactions: pharmakos

Big_w_powah

Trakanon Raider
1,872
732
8d 22h 39m
Alrighty guys. On this; How does on secure financing? What can you generally expect as far as terms, loan limits, etc? Can you include a reasonable salary in your loan for yourself? Or do you need enough to live off of while you earn nothing?

And how does one find out what the climate in an area is for a specific business?

I've thought about brancing out into my own IT services firm a lil closer to home, but fucking terrified of making the leap.
 

B-Biscuit

Bronze Knight of the Realm
101
101
4h 25m
Not to sound discouraging, but have you thought through the business aspects of this type of business? Do you think you're going to be able to be cheaper and/or better than the dozens of online companies already doing this? Do you know how many buttons and business cards you'll need to sell to cover your overhead and equipment? How are you going to generate those sales?

I know you're in the research stage, but you're going to need to know all your numbers cold before anyone will give you a loan, and even so, you'll have to personally guarantee it. If you really want to go this route, pick one of those things, buy the cheapest piece of equipment that will get the job done (you can order a lot of low-end print stuff from amazon pretty cheaply), and then try to make and sell your one thing. That should give you a taste of the business without putting too much at risk.

Or on the other hand, you could sell stuff that you get printed somewhere else basically being the middleman who outsources the actual work. Then you're at basically zero risk and you get to see if you'll actually be able to generate the sales that your business would need to survive anyway. Hell, do it for zero markup for a while just to see if it's viable before you go diving headfirst into debt to do this. If you can't sell your competition's work, you probably won't be able to sell your own either.

I intend on researching cost of all supplies needed versus what I'd need to charge to make a profit, along with how long before equipment has actually paid for itself and into the profit zone. I've got a vinyl cutter (Cricket brand) to start getting some feel for the whole concept. I'm currently dabbling with selling hand crafted items at craft shows a little which does somewhat help put a perspective on things though an incredibly far leap.

I have no real interest in just being a middle man in the industry but am not a closed minded person. My hope is to eventually be that cheap place to order from. I also live in kind of a tourist area and there's money to be made off of "Michigan" stuff in the summer.

I do think starting very small is a good idea though, just stick my toes in first.
 

calhoonjugganaut

Trakanon Raider
1,415
1,365
2d 8h 25m
I passed my independent insurance adjuster exam last week and have since filed for an LLC in my home state. I want to keep all of my business spending separate from my checking and it would be nice to pay my taxes quarterly so I don't screw up and end up owing a lot. I should get the LLC tomorrow or Friday, just wondering if anyone has any pointers when I go to the bank to open a business account. I still need to buy a few things, so was hoping to get a business credit card or at least a small business loan.

I've spent $550 or so thus far, and got out of the military in November, so kind of cutting it close as far as other bills coming up soon. The program I have to use for work costs $250 a month and already have worn myself pretty thin just trying to get into the industry. Thankfully I have a job opportunity and a friend that will train me, but still worried about funds. Already had to buy some roofing shoes, digital camera, toolbelt, ladder, and some new clothes. I need to get a ladder rack next and a memory card for my camera. The ladder rack can be expensive. I'm also kind of borrowing the ladder, and have seen some ladders that break down to like 3-4 ft. and you can pop them up to 24-32 ft. (one of the two). I've got all of my receipts, but just seems easier if all of my transactions were to happen with a credit card. Especially when I have to start getting hotel rooms, gas, and food.

Not really any questions in there, just things you might be able to point me in the right direction on. I've seen I might need to save 34% of my income for taxes, but I know a lot of stuff I will be able to write off. Is that too high to set aside?
 
  • 1Like
Reactions: Fight

Unidin

Lord Nagafen Raider
612
199
19d 3h 49m
You'll need to have filed with your state for the LLC and federally for an EIN unless you're using your social security number for the business tax ID number. If you do decide to get an EIN, it's super easy and free on the IRS website. Once you have those things in hand, you can go to the bank and open the account. Having a separate savings account for setting aside taxes is a great idea. The taxes that you set aside will be higher because you'll be paying both half of the FICA taxes as a self employed person. If you have more questions, let me know. I'm a bank manager and can help direct you with the early stages of the bank stuff.
 

A5150Ylee

Vyemm Raider
1,202
3,465
52d 17h 2m
I passed my independent insurance adjuster exam last week and have since filed for an LLC in my home state. I want to keep all of my business spending separate from my checking and it would be nice to pay my taxes quarterly so I don't screw up and end up owing a lot. I should get the LLC tomorrow or Friday, just wondering if anyone has any pointers when I go to the bank to open a business account. I still need to buy a few things, so was hoping to get a business credit card or at least a small business loan.

I've spent $550 or so thus far, and got out of the military in November, so kind of cutting it close as far as other bills coming up soon. The program I have to use for work costs $250 a month and already have worn myself pretty thin just trying to get into the industry. Thankfully I have a job opportunity and a friend that will train me, but still worried about funds. Already had to buy some roofing shoes, digital camera, toolbelt, ladder, and some new clothes. I need to get a ladder rack next and a memory card for my camera. The ladder rack can be expensive. I'm also kind of borrowing the ladder, and have seen some ladders that break down to like 3-4 ft. and you can pop them up to 24-32 ft. (one of the two). I've got all of my receipts, but just seems easier if all of my transactions were to happen with a credit card. Especially when I have to start getting hotel rooms, gas, and food.

Not really any questions in there, just things you might be able to point me in the right direction on. I've seen I might need to save 34% of my income for taxes, but I know a lot of stuff I will be able to write off. Is that too high to set aside?

Disclaimer: I'm saying this as a dumbass and not as an attorney or accountant.

1. Get a vehicle mileage log and record all your mileage with contact and reason ASAP. You can deduct 54.5 cents every mile for business in 2018. Including travel for: bidding on jobs, buying supplies, travel to jobs, anything business related.
2. Get an EIN: you can apply for free and it takes 5 minutes online and get it immediately. Just google 'IRS EIN application' to get the page.
3. Take your LLC filing, EIN confirmation, and ID to your bank to open your business account. That should be all they need.
4. You can get a business account, just be aware that you will personally guarantee it and the limit will be based on your personal credit score.
5. Keep all your receipts and credit card bills. Everything you purchase on your personal credit card or with cash, can be considered as a capital investment to your business and reduce your withdraw by that amount for taxes.
6. Try to make every dinner or drinks with friends a business expense by talking about your business and how you can help them. Keep the receipt, note the party present and discussion on the back of the receipt, and deduct them from as a business expense.
7. Make business cards and pens with your info printed. Leave them everywhere. Take pens to the local pub's trivia night and leave them in the 'pen box'. Hand a business card to everyone.
8. Actually complete the 1040ES from the IRS to calculate your quarterly tax payments. Your payment probably needs to be closer to 20-25% and not 34%. 34% is the corporate tax rate and unless you decided to file as a C-Corp LLC, your business income will flow through to your personal taxes and be taxed at your personal income tax rate with the extra self employment taxes of 15.3%. This is after all your valid business expenses. Also, for 2018, Trump's new tax plan allows for 20% of your pass-through to be tax exempt. Again, actually do the worksheet on the 1040ES to calculate your estimated taxes.
9. Good luck. I hope you kill it as a business owner.
 

Urlithani

Blackwing Lair Raider
1,333
2,053
54d 4m
So if anyone needs anything, I'm an operations/business coach for a sizeable franchise company. My job is to help franchisees run their business, from managing employees, cash flow, revenue, profitability, production, organization, networking, marketing, social media, etc.

Been with the company over 12 years so I can help in certain areas, but some I can't (e.g. I am not an accountant, so what kind of LLC/S-Corp you should file, or how you should pay out owner's benefits is not my wheelhouse. I would just refer you to your accountant because legal reasons to protect the franchisor means I don't study/develop my skills in that direction).
 

Cukernaut

Sharpie Markers Aren't Pens
<Gold Donor>
1,252
2,012
24d 16h 9m
If your business idea isn’t generating recurring revenue in some way it’s probably a bad idea. Recurring revenue is the easiest / best way to generate wealth.

Get used to the fact that you will spend 90 percent of your time doing shit that has nothing to do with your core business (you think you’ll actually be taking care of fish owning a fish store? Try spending most of your time doing accounting sales marketing hr chasing fucks that broke into your store dealing with insurance and city permitting etc).

That other 10 percent is created non existent time that you find by making sacrifices in your personal life.

Build a business plan share it with people and try to fail early/ often and get feedback.

All this other shit about forming a Corp etc is just the tip of the shit iceberg that you deal with.

Best thing I did was went and worked for a start up and ate this shit sandwich twice, but the first time it want my ass and money on the line so I got to learn from their mistakes.
 
  • 1Like
Reactions: Urlithani