I’m sure there are many of you like me who are fed up of being employees. I’m intelligent, love to learn, hard working, and dedicated to my work. Why should I work for someone else?!! I’m deciding to start something of my own (I’m not quitting my job just yet). But What?!!! I’m an engineer, I can do anything. (although sometimes I wish I were a salesman that can SELL anything) I believe the key to a successful business is to find something that you’re very good at or find something that you’re “average” at and work very very hard to be successful. My problem is that I tend to like things that I’m not very good at. For example I love programming microcontrollers but after my initial blinking-light project, I found out that I was not a programmer. – (but I’m still hoping (and working) on finding an innovative mass-consumer application some day). I could also start working on developing products related to the field I specialize in. This is probably the right way to go. But I need to find something I start from home and with limited funds. I'd like to hear of anyone that has gone through what I am about to. Any advice?
I left the corporate world over a year ago, and am currently starting my own project up. Follow your heart, stick with what you know (to begin with), start small, always be pragmatic, write each and every idea you have down, and choose partners carefully. good luck.
Developing products related to the field in which you specialize is a good bet. Unless you like the idea of running a business (leases, taxes, forms, hiring & firing, etc.), you might want to be a 1-person engineering-only shop. That might mean that you focus on a product that another company can sell and pay you a royalty. If the product can be made by 2 people then chances are that 1 person can do it faster since there’s no discussion. I suggest that you study your target market in advance and ask potential customers what problems they have that you might solve with a product, or, if you have a product in mind to build, whether that is something they want. Check Google to make sure others have not already solved the problem. If not, expect competition if your idea is good. Make sure your target market is big enough to support you & the competition. I once spent 2 years of my spare time on a software product. My customers loved it! The problem was that I had only 50 customers. I made less than minimum wage all things considered. I’ve since spent 5 years of my spare time on another software product that I have yet to sell, but the market is a thousand times larger than it was for the first product. I suggest you be ultra frugal. The first business I started I bought forms-creation software for $100. I thought my business would surely need forms. The software never got opened. Nowadays I hold off on purchases until I have an imminent need. Within the realm of frugality is keeping your day job until it is obvious that you are better off quitting.
I learned plumbing and carpentry eons ago and started my own plumbing company. I have now retired after 25 years of working for myself. I have a masters plumbing and carpentry and a BBA degree in business. I am satisfied with doing what I did for a reasonable rate and never ripping off anyone for all those years. Working for yourself requires much dedication and intestinal fortitude. I really never had a true "vacation" only at times taking a day or two off to regroup. It is very hard and over 80 percent of new businesses fail during the first year but then it gets a little better every year thereafter. Whatever you try good luck and know your business or don't do it.
Forming a business can be very hard (it doesn't necessarily have to be, but there is a great potential for it) because "conflicting interests" For example, I like computers. I might want to step up my own shop and sell computers... however I might go brankrupt as a result. My philosophy might could be about selling systems suitable for games. However... if you look at profit reports from different companies, you might find that out alot more people buy brand name PCs (which are generally horrible at running games), than the few out there are that looking to customize a game machine You might want to step up your own business making action figures. However, action figures might not always been in style. Food on the other hand, people will always buy food no matter what the circumstances. A grocery store might be alot more likely to succeed than a company like Matel that makes Barbie dolls So you see, you have a conflict of interest. You might like action figures and want to make them, but you might take in alot more money setting up a food chain. So you have to say to yourself "I know I don't particularly care for doing food work - but am I concerned enough about not having my business plans fail, that I am willing to take a route I don't like?" You could have your own business and become rich, but may not enjoy what you are doing. On the other hand, you could set things up just to your liking, but all of your hard efforts might fall right through the floor. In order to make money you have to think strategic marketing. You may not know it, but managers and CEO's are generally ruthless sharks. Once I saw Dateline, and they were doing an investigation about which grocery chains carry the highest quality food. One of the reporters was going down an isle and picked up this can of, something, I don't remember what, and it was like 4 years past its expiration date. When she brought this to the attention of the store manager, he said "Oh my, this needs to be thrown out" He took the can and the Dateline team left. But they had secretly written "Dateline NBC" in invisible ink on the bottom of this can, and some other products that were past the sell or use by date. They went back into the store a week later, and found the same products. When they got the expired products and put them under a special colored light (to see the invisible ink), they saw the Dateline NBC writing on them As you can see the manager didn't give a crap if a customer bought a highly spoiled product, his concern was about getting money. What I am trying to say about conflict of interests is... I might want to do things my own way since it is my business, and I might hit a brick wall in the process. If you want your business to succeed, you might have to do things you don't like, and even break the law in the process. If you want to do your business your own way, it will probably be very hard to resist your own preferences - and these such preferences might mean the doom of your business. If you set up something and don't like it, you might be wealthy but very stressed during working hours. I'd wager if you can come to a balance of equaling things out you will probably be more successful. One thing I would suggest if you are going to start this project is, spend a great deal of time laying things out and covering all areas. You can't just say "I'm heading to the bank tomorrow to take out a loan so I can rent a building for my new business" What if you get to the bank tomorrow and they reject your loan application? You've got to be prepared for everything and know exactly what you are getting into
Clarentavious, I have to disagree. Not to say that you are wrong, but what you said goes against everything I personally think about going into business for yourself. Running a successful business is (most times) long hours of hard work and quite often for less money than what you could make working for someone else (especially in the first 5 years or so). The only reason I can justify (for myself anyway) making that kind of sacrifice IS for something I really enjoy and am I passionate about. I never did understand why people would spend countless hours and many years building up a profitable business that provides a product or service that they have little to no interest in. I knew someone that owned an ice company. He worked 80+ hours a week... Had little time to spend with his family... Almost no personal time at all... Hadn't had a vacation in more than 10 years... And made just enough money to pay his mortgage and bills. I asked him, "Why an Ice company?" He said, "Because there aren't many around, so I have little competition." He was miserable. Why start a business of your own to be miserable? Simply to "stick it to the man" and not work for him anymore? My advice: Do something you love, or take advantage of the benefots of working for someone else offers. Health coverage. Paid vacation. Freedom to easily switch jobs. "Normal" working hours. Not having to starve when the market drops, or there was a fire, or a kid chokes on something your company made. etc. etc.
As a successful small business owner, here is my two cents worth. Work until you drop nearly every day - for at least 5 years. Never, never, never, never form a partnership. NEVER!!! Think like a salesman. As an entrepreneur, you must be one. No matter what you do, never think like an engineer. A rough lesson learned is to do all the right things, but to lose the business to someone who does all the wrong things, but who knows how to sell instead of problem solve. Spend as little as possible. A most common mistake is to spend without necessity. Spend what you must. Never short change your true business needs. For every month that you make good money, expect a bad month that will help to make up for the good one. You’re not a bank, a credit institution, or a finance company; do not act like one. Never spend money for the tax break. As a small business, the 30% return from tax break is nice, 70% is still money SPENT. There are customers worth losing. For the first five years, never turn down good work. For five years, your credit is shot. If you have any success, you will likely never work for anyone else again.
Sounds like there's a story behind that one. Did you have a nasty "divorce"? This has been the hardest one for me. As an engineer-type by nature, I have to force myself to sell. I've resisted the urge to form a partnership with a good salesperson and instead become expert at sales myself.
First, the 3 locations. Is there a big enough market for your product in your locality? How much competition does there exist in your locality? Are all your suppliers available in your locality? Second, is your product all ready known, or so original that you would have to pioneer it into market? The latter is much harder to achieve, but potentially much more rewarding. Third, You intend to sell nationally or globally through the Internet. How au fait are you with modern selling techniques? How effective can you be as a salesman? Would you feel intimidated trying to sell to high powered ceo's? Fourth, do you believe your product to be the best of its kind for the money? If not, why not? Fifth, is it the right time for the product you have in mind? Sixth, is there any other industry that you could be drawn to, which is perhaps more commercial and more straight forward to start up, eg a Pizza joint? Seventh, d'you want to get richenough? Are your ambitions high enough? If you answered positively to every question, you have a 2 in 10 chance of succeeding. I believe in niche marketing... find a hole in the market and plug it, specialise in what you do, stand out from the crowd and offer the best possible service and learn to market your product effectively. Now, you have a 3 in 10 chance of winningPlease Register or Log in to view the hidden image! Great luck and all forces with you.
My girlfriend's dad used to make very little money working for an engineering firm. Then he and a fellow employee saw a great opportunity- they developed a GPS tracking system for vehicles that is now internationally used by 911 services, oil companies, etc etc. They are both very very well off now. I'm sure it was part luck, but what started it all was simple; they were discussing a common problem that no one seemed to have taken the time to address yet. It's probably really hard to lock yourself in your room and say "I'm not coming out until I have a foolproof business plan." They just began experimenting, perhaps moreso out of interest than potential marketability, not realizing what they were getting into. I think that's how the real successful business get started. Just do what you love and when you have a half-baked idea, have the gonads to follow it through. Both of them love their jobs now. I think it'd be awesome to be totally repsonsible for a company's successes (and even failures), especially if it was you who built that company from the ground up.
Thanks for the advice everyone and keep the business start-ups stories coming. How much am I willing to give up (nights and weekends with my wife & kids, my friends, hobbies, etc..) for a 10% - 20% chance of survival at my own business? Well I thought about this and the answer is based on how happy one is currently is in his professional life. A personal story: For the past 8 years, I have given my heart and soul to the company I’m currently working for. It was my first engineering job, fresh out of school. I was the fourth employee (after the CEO, VP, and a manager) in this startup company. I had no kids or wife or girlfriend. My work was my life. I and a handful of other engineers and techs invented & developed a line of products which the company eventually commercialized. 3 years ago, the company went public. Today, the company employs 170+. While the company was growing, I (the naïve, bright-eyed, anxious kid straight out of school) thought all I had to do was work really hard and I would be rewarded with great things. So I dedicated myself to the company. Well in the past few years, I’ve learned a lot. I learned that it was a mistake to dedicate myself to the company. I should have thought of myself and never trusted the company which I made successful. I should have negotiated for a much better stock option plan when I was critical and indispensable employee of the start-up. I should have concentrated on playing golf with the CEO on Sundays instead going in and do some prototypes or testing. Some critical advice to everyone (especially engineers) starting out in the corporate world as an employee: PERCEPTION is everything. Your technical and engineering skills are useless unless you learn really quickly to kiss ass. SELL yourself anyway you can to your boss, and more importantly, to your boss’s boss. I can not overemphasize how important it is for you to learn and adapt to the bullshit corporate politics ASAP. Also, the longer you are with the company, the harder it is to change or improve the “perception” the organization has of you. For example 7 years ago, when my CEO used to ask me (the naïve engineer) a question I didn’t know the answer to, I simply answered “I don’t know”. WRONG! I learned the hard way that you never say these words to a CEO. You bullshit your way around his question. This is a handicap all good engineers have. They are straight forward and deal with facts: “I don’t know (yet)”, “the product is not ready yet”, “you don’t know what the fuck you’re talking about, that’s physically impossible!”, “You want to commercialize the product in 6 months? But the project isn’t planned yet.”.. etc. Anyway the perception of me the CEO and other executives developed during those early years is almost impossible to change. Another problem with an engineer staying too long with a company is that you have to try harder and harder to shake the false PERCEPTION that you are old-school. “You’re used to old methods” “you ran out of ideas”. You need to compete with new people who have the advantage of “fresh minds” – which is complete bullshit—companies (especially those with lots of chiefs- the one I work for) love changing just for the sake of change. One of the most important things I’ve learned –and I think this is especially true for startup companies- is that people to come in the future of the organization will benefit from your mistakes. An engineer who starts at t=0 of a company’s life will definitely encounter mistakes and failures during the development phases. This is normal for hi-tech start-ups. People are lucky enough to be hired (or come into the project) at the right time will benefit by the team’s ultimate success. The engineer who started at t=0 will be remembered as the one who had failed (or not met timelines) , etc. Anyway, sorry I got way sidetracked from the original subject. The point is that although I gained valuable experience and knowledge, I feel like I got screwed. Never again will I care for and work passionately for a company that is not mine. And I think I need to work passionately for me to be satisfied in life. So I will try to open my own business.
