To All Business Owners

DeLarla · 05-02-2006, 05:58 PM

Who here started and runs their own business? I'm looking for any and all advice because my time is running out. When I was finishing college, I said I would be a paralegal for five years and then own my own business.

Slumber Parties is the smartest thing and best business decision I have ever made in my life, and I have NO intentions of ever giving it up. However, I am not the owner of Slumber Parties. I have my own dreams and goals and have started to put a business plan together but I have to admit that I have very little experience - other than what Slumber has taught me. I've discussed this with my husband and father and am now seeking information from all sources. I ordered a couple books from Amazon, but who out there is willing to share knowledge with me? I'd be willing to pay long distance bills because

I'm quitting my paralegal job in January. That just scared the pants off me actually writing it out loud, but I refuse to spend the rest of my life working for somebody else.

I love Slumber Parties - the sisterhood, the training, the income, the laughter, teaching women (ask any Slumber distributor how amazing the company is) which is why I'll be a distributor forever. There's nothing on Earth like the feeling I get when I read the comment cards party guests fill out after one of my Slumber demonstrations - it's empowering. But I still want something to call my own as well.

I already have a corporate name & dba, and I already know what kind of business it will be, however, I refuse to share any of that yet. Any and all information, books, websites, etc. are welcome and will be appreciated.

Lisa Bones, CEO

shanna · 05-02-2006, 09:15 PM

Hi, Lisa! I, too, am embarking on my own. I've been teaching at my MIL's private school for 11 years (kinder) and she is closing the school as of June 16 of THIS YEAR - YIKES!

I'm kinda stuck 'cause I do not have my teaching credentials so I can't go into public education and if I were to go to another private school they would not be able to pay me what I've come accustomed to (advange to working for MIL). So, long story getting longer, I've decided to start my own business. I'm going to be starting a greeting card mailing service for business' and professionals. I have a few clients already lined up and my DH is working on more (he is a bank manager so knows a lot of mortgage brokers, etc).

It's really scarey and exciting and I can't believe it's already May - YIKES again!

I really hope you're able to pull together your plan and thoughts and get the business help you need. Sorry I haven't been any help to you but I couldn't keep from sharing since we're kind of in the same boat. Good luck to you!

**Wheetsin** · 05-03-2006, 12:22 AM

I started and currently own my own business, and DH helps me with it. We create e-commerce sites and web presences for small & start-up businesses, and small specialty sites (union sites, membership sites, etc). We also do database creation/design, server/networking setup & config, build PCs to order, etc.

It isn't a full-time endeavor. I have a regular job (make too much & enjoy it too much to quit), and handle my own business outside of corporate hours. Actually we've been turning away business for the past year because with working on my master's, there just isn't time for everything. That's not a good business practice!

My business has been open for four years. We intend to remain small, so we do not advertise, it's pure word-of-mouth.

FunnyDuddies · 05-03-2006, 09:01 AM

DeLarla, one thing I can recommend...try not to borrow money. The less debt your company can have, the greater the chances of success.

Here are some stats that might scare ya, but will empower you once you make it past these marks. 92% of businesses fail in the first year. Of those that survive only 5% of them fail the second year. After three years you are looking at a miniscule number and failure is not likely.

So start slow. try not to get yourself into debt. Learn to write of EVERYTHING!! get yourself a REALLY good accountant that can help you walk through all of the money aspects, and the laws of your area. and don't jump into advertising without lots of planning. advertising eventually needs to make up a large part of your budget. but you want to make sure that you start slow and do not advertise more than you can afford.

TheWomanWithin · 05-03-2006, 09:28 AM

Im much like you Lisa, I was a paralegal then went into Real Estate and had to quit working (due to a pregnancy complication) it took awhile but I got used to working for myself - ups and downs are a bit hard to take when you are used to a steady income though.

My husband started a Pool Business 10 years ago, we do maintenance and repair, the family business is building pools but he didn't want to do that too.

DH has a BA in History and taught school while building the business up - at one time we had 5 FT employees 2 PT and ourselves.

If he could make the same amount of $$ as a teacher he would jump at it. He doesn't want to go back to school and finish to teach college he LIKES working in the 9000 degree weather lol

I started my Home Decor and Gifts Business last year, but I do sole proprietorship since it's so small.

Owning a business is great BUT over the past 8 years the things I have found are this:

1. The government is a pain about taxes - each month business owners pay W/H - double medicare and SS for each person who works for them.

For some small businesses such as ours - this can be astronomical. At one point we are paying over $7,000 just in Payroll taxes.

2. Health Insurance is a major pain to get for you if you have under 5 F.T. employees, then they sock you with almost double premiums.

3. Auto and Liability insurance - we have to maintain a $550,000 auto policy on EACH vehicle we own. We carry a $2 million liability policy for the business. Each month alone that is almost $2,000.

4. We pay an CPA every 3 months $250 to do our quarterlys - a must for Incorporations.

5. We pay that same @&%# CPA $1,000 just to file our 1120's - we do our employees on our own, that was an additional $250 (he's the best though high priced - he worked for the IRS hehehe)

6. Licenses are about $500 yearly with everything - Local business license like $40, INC license was $700 initially and $150 yearly, etc.

7. Loans when you are self-employed or even own your own business are a pain to get - and they jack up the rates for stated income if you don't do w 2's or run most of your bills through your business.

8. I forgot to add Sales Taxes - how I forgot that is beyond me - each state is diff and FL is a pain in the rear about it and how to handle it.

9. Unemployment & Workers Comp - I don't even want to get started here lol too long - check your local laws. There are so many forms and things we have to file each month for each of these I think they do it just to harass you and make you give up your business.

I wouldn't have it any other way though. We are our own bosses, take whatever business we can and send people to another reputable company if we can't handle the extra business. We advertise periodically, but most of ours is through Pool Builders we know/have worked with or word of mouth.

Basically, whatever you put into that business is what you get out of it. It affords us to be able to work or not work when we want or to reschedule things if we need to or want to go on vacation :)

**Jack** · 05-03-2006, 09:56 AM

DeLarla:

I started my own business 27 years ago....with nothing but a DC degree and some notions of providing a service for those in need....PM me if there's any comments I might address specifically for your situation....

Marimaru · 05-03-2006, 12:45 PM

I work for the company my mom started 4 years ago. I don't know all of the specifics, but bascially she got a loan; she had to show her business plan, etc, rented a place and we started. We're not even doing what we originally set out to do, which was website hosting. I only have a handful of customers for that, but our main income comes from consulting; building websites/interfaces, etc for our client.

If you asked me some specific questions, I could probably get you the answers. I've handled the 'run the business' stuff for the last 2 years; payroll, bills, pretty much everything but actually doing the taxes.

I'm excited to hear what you are doing when you finally announce it :)

TheWomanWithin · 05-03-2006, 12:55 PM

My dream is to have enough captial in my Home Decor and Gifts business is to open a warehouse/store type of thing - waiting on kids to both be in school to do that...talk about jumping in with both feet... I have no clue how to do it!

Can't wait to hear what you're going to do and what other people have done.

cashley · 05-03-2006, 01:12 PM

I am a software consultant and resell (VAR) HR/Payroll software to mid-sized companies. I sell, train, support and customize their HR/Payroll software to work the way they want.

Five years ago I had the opportunity to go on my own or partner with another VAR... I was scared and choose to Partner with a company about 4 hours away. I brought with me approx. 100 clients and a large knowledgebase of the software I support. I am my own boss and control my own income but I'm not 100% a business owner.

I'm posting this really to tell you that I regret my fear and decision to partner with an existing company and not go on my own. I guess it wasn't really bad since I don't have to worry about insurance, employees, workers comp, marketing etc. but on the other hand I don't have as much control as I'd like.

I look back and know I would be further along with a bigger income if I'd gone on my own when I had the chance.

Also, I'm not sure what type of business you are contemplating but I just have to say is the corporate world are in desperate need of consultants. They don't understand technology and are willing to pay someone to guide them. I get asked every day to assist with things other then my 'trained profession' just because they can't find people they trust. I get asked to help with minor software like MSoffice and with their POS or Accounting systems. They are willing to pay me to learn those products (POS or Accounting) just so they can have someone they trust. I also charge between $150 – 200 per hour so if I was on my own… I’d be making pretty good money.

It's just weird and all I can say is there must be a shortage of good software people that can communicate with the "regular" people.

DeLarla · 05-03-2006, 01:30 PM

Wow, I just read through this and need to sit, meditate and put the pieces of my brain back in order. Thank you ALL so much. I'm at my (boring) paralegal job right now but I'll come back and re-read & print all this for reference material. I espeically appreciate the warnings. Maybe my new plan won't be a good one, but at least I'm giving it plenty of thought and gathering as much info as possible before taking a potentially deadly plunge. Thanks again!

vinesqueen · 05-04-2006, 06:48 PM

Call your local chapter of the Small Business Administration, as well as contacting your local uniersity's business college. The SBA is designed to help people start and be successfull with their small business. Your univeristy will typically have people who can provide you with help as well. In some cases, they choose small businesses to partner with to help the business owner, and the university students with real-world experinece.

Mvpo8961 · 05-04-2006, 07:31 PM

DeLarla VQ beat me to it but you can find out lots of info on the Small Business Administrations website. http://www.sba.gov/

They will walk you through everything from development of a business model to financing etc etc etc. You get the idea.

Another way to make your tax dollars work for you.

M

Dianechef · 05-04-2006, 07:49 PM

Delarla - you & I could seriously talk!!

I ran a thriving, successful business with The Pampered Chef for 10 years. As I'm sure you know, The Pampered Chef is a part of the Direct Sales business just like Slumber Parties. I quit my full-time job to do Pampered Chef full-time & it was the BEST decision I ever made. I moved up to a Senior Sales Director & my team led in Sales & Recruiting for a very long time. I had over 400 in my over-all downline. I was the area trainer & developed a total of 12 Directors under me & I taught them to train their teams. I had several consultants under me who were #1 in the company!! I earned the Top Performance Award several years in a row for Recruiting & Sales & got all the jewelry, prizes & all the fun stuff you told us about at your recent Conference. I've been on every trip you can imagine!! :)

I was making quite a good income too!! Direct Sales is a great way to go & I applaud you for deciding to leave your Paralegal job & take this on. There's lots of work a head of you but it is so worth it!! You'll take a drop in pay the first year, but if you really kick it in gear, you'll make it straight to the top!!!!

6 months ago I retired from The Pampered Chef & gave up my title, BIG pay-check & my large down-line. Everything moved up to my Up-line Director. It was a hard decision to make, & I still miss everything about it. But, I have 3 little kids who desperately needed a mother who was THERE for them. Several people thought I had lost my mind & I've been criticized for my decision, but I knew that no amount of money could take the place of my kids. :phanvan It was the right decision for me!! But boy, do I miss the MONEY!!!!

I have helped a lot of people in my area who want help in starting a Direct Sales business. I have lots of tips on managing a team & helping them RECRUIT!! If you are serious about wanting some help, I'd be happy to help you. We can talk about payment!! Maybe you could pay me in products!! WAHOO!! (My husband would love that!!) ;)

Marimaru · 05-05-2006, 12:40 PM

SBA, that's the loan my mom got. I couldn't remember exactly what type it was.