Starting a new business

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strawboss

Member
Hello everyone
I am researching the option of starting a new business. I have bought a few books that were very generic to owning a small business in general.
Are there some books you recommend?
TIA

PS any advise, on things to look into before or after opening a shop would be appreciated
 
Nium

Nium

Senior Member
Location
Bethlehem, PA
480sparky

480sparky

Senior Member
Location
Iowegia
strawboss said:
...........PS any advise, on things to look into before or after opening a shop would be appreciated
Click to expand...


Do you have.........
1. A business plan?
2. An attorney?
3. An accountant?
4. Enough money saved up to live on for the next 6-12 months?
5. A current balance sheet?
 
480sparky

480sparky

Senior Member
Location
Iowegia
NewOnMyOwn said:
I don't have one, but I've only been on my own for a year.

What level are we talking? Having an attorney in mind if necessary, or actually paying retainers?
Click to expand...


If you've been in business for a year, you should have at least spent some time with a lawyer by now.
 
M

MikeS

Member
Location
Chapel Hill NC
New Business

New Business

Do you have a federal ID? Have you registered a business name with the sec of state? Have you opened business checking or savings accounts? Have you gotten all of your isurances in place? A good lawyer, accountant, or small business consultant can guide you through a lot of this stuff. Someone local who you can ask the Omigosh! questions to is invaluable to a new business that intends to be around for many years to come. Local Trade organizations can also provide lots of startup advice.
Start with Sparky's list and go on....
 
480sparky

480sparky

Senior Member
Location
Iowegia
NewOnMyOwn said:
I got my contracts from my Uncle who had all that legal stuff worked out. He helped me with a lot when I first set out.
Click to expand...

Unless your uncle is a lawyer, how would that look when in court? "Well, Your Honor, I had my contract language reviewed by my Uncle.........."

No offense to your uncle. I'm sure he's just trying to help you out, and that's fine. But when it comes to legal matters, hire a pro. It may seem trivial now, but it'll be worth a couple c-notes just to make sure your contract is up to snuff.
 
N844AA

N844AA

Member
Location
Los Angeles
I've run an electrical contracting business 30 years and never hired an attorney for any reason. You can buy excellent contracts from Nebs. I think you guys are being a little tough on the OP. Lawyers, Accountants, Business Consultants....

You guys make it sound like he's starting an airline or something. Granted he'll want to do everything in a proper manner, but essentially he's starting out on a shoestring.

Required reading:

Markup And Profit
The E-Myth Contractor
Mike Holt Estimating Book
 
S

strawboss

Member
Thanks for the list of must read books

480sparky I don't have all my ducks in a row just yet.
I do have: Savings (6 months)
An attorney in mind
A business plan in my head
I realize everyone and their dog think they have what it takes to open a shop, so these posts can get old.
IF I do this it wont be for another two years. I have a partner that has another 12 month tour to Afghanistan, we are talking about opening a shop when he gets back.

I am a little disappointed you didn't find my post worthy of the 2 page scare of business expenses. j/p
 
480sparky

480sparky

Senior Member
Location
Iowegia
strawboss said:
.............I am a little disappointed you didn't find my post worthy of the 2 page scare of business expenses. j/p
Click to expand...


OK, you asked for it.

Business Cost List
Building
Building
Warehouse Space
Trash Removal
Lawn Care
Snow removal
Upkeep & Repairs
Office Expenses
Computers
Stationary
Copy machine
Fax machine
Forms
Printing
Software
Office Equipment
Computer maintenance
Files
Postage
Office Supplies
IT
Internet service
Email accounts
Web site
-Initial creation
-Updating
-Maintenance
GPS services
Benefits
Vacation Pay
Holiday Pay
Uniforms
Uniform Maintenance
Unemployment
Bonuses
Incentives
Retirement Plan
Christmas Party
Taxes
Property Taxes
Tangible Taxes
Pay Roll Taxes
Income Taxes
Sales Tax
Training
Management Training
Office Training
In-House Training
Tech Training
Mfg. Training
Training Equipment
Safety Training
Update classes
License testing
Insurance
Building Insurance
Liability Insurance
Employee Insurance
Life Insurance
Business Insurance
Workers Comp.
Utilities
Gas
Electricity
Telephone / Fax lines
Internet Service
Toll Calls
Telephones
Pagers/Cell Phones
Radio Maintenance
Vehicles
Vehicle Maintenance
Ladder Racks
Interior bins
Fuel
Truck Signs / lettering / vinyl
Tires
Financial
Accounting
Loans
Tax Preparation
Interest
30+ Day Receivables
Bank Charges
Travel
Hotel
Meals
Airline / vehicle
Unique to the electrical trade
Permits
Licenses
Bonds
Inspections
Trade Association
Subscriptions
Memberships
Dues
Retainers
Safety PPE
-Lock-out/Tag-out kits
-Fall prevention harness
-Arc-flash clothing
-Hard hats
-Safety glasses
-Hearing protection
Tools
Company Tools
Safety Equipment
Ladders
2-way Radios
Test Equipment
Replacement Parts
Parts Storage
Damages
Tool Replacement
Job site storage
Misc.
Trips to Supply House
Theft
Uncollected Money
Collection fees
Unbillable Hours
Commissions
Call Backs / Warranty work
Shortages
Bad Checks
Delivery
Credit Card Sales
Drug Testing
Legal
Legal advice
Law Suits
Incorporation / LLC fees
Advertising
Marketing
Business cards
Signs
Radio / TV
Newspaper
Flyers / brochures
Material Purchases
Inventory
Labor
Wages
Salaries
Dispatcher
Answering Service

 
electricmanscott

electricmanscott

Senior Member
Location
Boston, MA
N844AA said:
I've run an electrical contracting business 30 years and never hired an attorney for any reason. You can buy excellent contracts from Nebs. I think you guys are being a little tough on the OP. Lawyers, Accountants, Business Consultants....

You guys make it sound like he's starting an airline or something. Granted he'll want to do everything in a proper manner, but essentially he's starting out on a shoestring.

Required reading:

Markup And Profit
The E-Myth Contractor
Mike Holt Estimating Book
Click to expand...


Agreed 100%. In business for 16 years, the only lawyers I have ever spoken to are ones that hired me to work on their properties. The only accountant I speak to is my tax guy. The only business plan I have is get my ass out of bed every day and make it worthwhile.

Don't let one guys fear tactics be an obstacle in your desire to better yourself. :)

Don't waste your time reading the nonsensical list either. Much like the groundhog it appears every once in a while for enteratinment purposes but really it's just a bunch of silliness.
 
T

ty

Senior Member
Location
3rd Rock from the Sun
strawboss said:
Thanks for the list of must read books

480sparky I don't have all my ducks in a row just yet.
I do have: Savings (6 months)
An attorney in mind
A business plan in my head
I realize everyone and their dog think they have what it takes to open a shop, so these posts can get old.
IF I do this it wont be for another two years. I have a partner that has another 12 month tour to Afghanistan, we are talking about opening a shop when he gets back.

I am a little disappointed you didn't find my post worthy of the 2 page scare of business expenses. j/p
Click to expand...

Partner?
You might want to rethink that one.
I could list many reasons Not to have a partner. They outweigh the other.
There is a thought that '2 heads are better than one'.
I don't agree.
Business is serious. You need one clear Leader.
Do your own research, and do what is best for you.

Start small.
alot of Business Schools teach you to 'go all in'. Blah!
Most companies that start small, have a better chance to succeed.
Have a fallback. If the new venture fails, you have something else to keep you going.

edit:
And I wouldn't Retain anybody's services at this point.
Maybe someday, if and when you need it.
 
cadpoint

cadpoint

Senior Member
Location
Durham, NC
If it's like the last guy who I heard of, that "over their" look out! :grin:

The SBA.gov has a free Business Outline creater at their web site.

IF I do this it wont be for another two years. I have a partner that has another 12 month tour to Afghanistan, we are talking about opening a shop when he gets back.
Click to expand...

In two years your dynamic's or his could well change, such as in life...

Seems your could write both plans out, one with a parnter and one with out.
The SBA likes you to write them out, I wish you luck!

Enjoy
 
A

AV ELECTRIC

Senior Member
Be care full of partnerships Its like a marriage If it doesn't work out it can be very devastating to a successful business . I had a partnership in my first go around and it failed I would not do that again and most people i know had the same problem If you and him have wives they are technically partners to and if either one of you gets a divorce this could impact the business but it doesn't mean it cant work but it will take a lot of effort on both of you to make and keep this successful .you will need a lawyer to draw up a contract for a partnership an accountant on how to disperse salaries to both of you. From personal experience it was a lot easier as a sole proprietor .
 
M

macmikeman

Senior Member
Location
Planet macmikeman
AV ELECTRIC said:
Be care full of partnerships Its like a marriage If it doesn't work out it can be very devastating to a successful business . I had a partnership in my first go around and it failed I would not do that again and most people i know had the same problem If you and him have wives they are technically partners to and if either one of you gets a divorce this could impact the business but it doesn't mean it cant work but it will take a lot of effort on both of you to make and keep this successful .you will need a lawyer to draw up a contract for a partnership an accountant on how to disperse salaries to both of you. From personal experience it was a lot easier as a sole proprietor .
Click to expand...

AV just wrote my experience with an early partnership that lasted one year perfectly. Take heed.
 
George Stolz

George Stolz

Moderator
Staff member
Location
Windsor, CO NEC: 2017
Occupation
Service Manager
ty said:
Partner?
You might want to rethink that one.
I could list many reasons Not to have a partner. They outweigh the other.
There is a thought that '2 heads are better than one'.
I don't agree.
Business is serious. You need one clear Leader.
Click to expand...
Just like marriages, not all "partnerships" entail the same thing.

For example, in my case, my boss and I consider each other "partners" in the social sense in the direction the company takes on a given problem. He respects my input, and I respect his authority - he gave birth to the company, got the ball rolling, and invested his own capital to get it going. My only input is my limited experience and business sense that I have gleaned from the helpful folks here. He values my input enough to be sure that my interests are met.

Therefore, I call him boss, but we seldom undertake a serious course of action without discussing it and agreeing upon it before proceeding.

Kind of the old testament version of marriage. He has the last word, but I reserve the right to chase him around the truck with a rolling pin from time to time. :D
 
brantmacga

brantmacga

Señor Member
Location
Georgia
Occupation
Former Child
480sparky said:
Do you have.........

4. Enough money saved up to live on for the next 6-12 months?
Click to expand...

To be honest, I don't think that's enough right now. I wouldn't start a new business without enough cash to cover my living expenses for the next 12-18/mo, as well as all the business expenses for the next 12-18/mo.


As for the debate on a lawyer; it may not always be necessary, but it is nice to talk to a professional instead of pulling pages out of a book or website. they probably have some advice you haven't heard or read.


Lastly, to the OP, that business cost list is no joke. This stuff adds up in a hurry. If you're running this thing out of the back of your truck, it probably won't apply. but if you're trying to be a serious competitor in your market, this list should apply.
 
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