Small businesses—your experiences?

[coda72]

Interesting idea, Monnie! That could be a business and side project in and of itself--buying and managing properties. I think you're right--it does take time to see returns on a business, if you see any at all, and of course lots of people dream of it and competition is fierce. You really do need a perfect recipe of right time, right place, right product, right drive, etc. all together to make something work. In terms of buying property--would you suggest buying undeveloped land, commercial property, or condos and apartments? Where do you start?

With real estate, as with anything else, take your time and research the market before diving in. Also, if you decide to become a landlord/property manager, make sure you have a good handyman or are handy yourself to fix the myriad of issues that can and will happen when you rent out apartments. I myself want to get out of the rental property business. My husband took care of the properties for many years, and now that he’s not capable of helping me out with them, it’s just too much responsibility for me. I will probably not make any money when I sell them either since we do not live in a high property value area.

 

[SandyinAnaheim]

I just wanted to note that I'm also a fellow dog lover and love that you have a mobile grooming business. In my area, doggy day hikes have really taken off and Wag is everywhere. Its really fun to listen to someone talk about their passion--even if its something you don't know a lot about--it becomes exciting simply in part because the person you're talking to is so engaged and knowledgeable, and I'm sure that's translate into the success of a business.

Thank you!

I will always pay extra for someone or a business that I like and trust over a cheaper alternative--the peace of mind is worth it.

This is smart on your part! I have had a few clients that didn't like my prices and went elsewhere, which is sad for me because I get VERY attached to my pet clients. A handful of them came back with horror stories of what happened to their pets at the cheaper alternative. It's an expensive and painful lesson to learn. I'm glad you know better than to subject your fur family to something like that!

 

[smitcompton]

Hi,

I accidentally found I enjoyed writing stories. I sent a niece some vintage clothing and wanted to make it extra special so I made up a short story of how these clothes came to be sent to her. I enjoyed it so much I began to write a few short stories on issues that interested me. When I finished them, I had to research who to send them to. I decided to send them to the New Yorker which publishes short story fiction, albeit from famous writers, and waited for my rejections. I told myself, hey, why not start at the top. I never heard back from them. I have a sister-in-law who knows about such things and she said that's a good sign. Normally it takes them about three weeks to send rejections. I waited eight months for my rejection letter which said they thought my 2 stories had MERIT, but they had decided not to publish them. I was so excited, I wrote more short stories and two novels, mysteries. I had so much fun and enjoyment writing them, figuring out the plot. This was a hobby now. I could get no one to publish anything I wrote, but I really don't think of it as a failure. I didn't need the money, but I guess I was a little disappointed as I stopped writing after my two novels. Try your hand at writing--no capital investment--let friends read it and comment and see where it goes. Do it for enjoyment. Good-luck.

Annette

 

[Indylady]

Hi,

I accidentally found I enjoyed writing stories. I sent a niece some vintage clothing and wanted to make it extra special so I made up a short story of how these clothes came to be sent to her. I enjoyed it so much I began to write a few short stories on issues that interested me. When I finished them, I had to research who to send them to. I decided to send them to the New Yorker which publishes short story fiction, albeit from famous writers, and waited for my rejections. I told myself, hey, why not start at the top. I never heard back from them. I have a sister-in-law who knows about such things and she said that's a good sign. Normally it takes them about three weeks to send rejections. I waited eight months for my rejection letter which said they thought my 2 stories had MERIT, but they had decided not to publish them. I was so excited, I wrote more short stories and two novels, mysteries. I had so much fun and enjoyment writing them, figuring out the plot. This was a hobby now. I could get no one to publish anything I wrote, but I really don't think of it as a failure. I didn't need the money, but I guess I was a little disappointed as I stopped writing after my two novels. Try your hand at writing--no capital investment--let friends read it and comment and see where it goes. Do it for enjoyment. Good-luck.

Annette

Annette, I had no idea, that's wonderful! Have you thought of self-publishing on Amazon? Getting published is very hard, and I'm sure there are many articles out there on the pros and cons self publishing, but it might be a nice avenue to try out. I am obviously no expert on the topic, but just thought I'd share the idea.

 

[jordyonbass]

My Opal business is my home business; it took countless hours honing my technique and to be honest I never got into it for the money and I still mostly am not in it for that. I do it for the passion, I simply love taking a rough Opal and revealing the gemstone inside.

That passion is essential in the early days of a home business when the sales are not necessarily enough to put food on the table.

 

[perry]

Hi friends! I’ve been thinking of starting a small business or getting serious about a side hobby like writing, but despite thinking and dreaming I haven’t been able to get going—a ‘failure to launch’ as another poster put it in a thread recently. I guess I’m scared of failure; and so many things that I could do from home (collecting antique jewelry, anything hand craft related—soaps, candles, beading etc.) have very saturated markets, and the more creative ventures like writing are also so competitive and challenging to ‘make it’. Any advice or ideas? Do you have a small business, and would you do it again? Did you ever fail, and did you keep trying?

Sorry I have not been following for a while (Mom went into hospital Dec 26, now I'm POA and dealing with issues and sorting things out).

I have started 4 formal businesses (with tax filings) and 2 of those were profitable (I closed one); and the one I am doing now has the potential to be very profitable. I've also mentored others on starting businesses or making their business better.

Many of the above posters have shared very good considerations and warnings. SanyinAnaheim's main post was in my opinion very good.

Starting a business can have many real rewards... The key is to figure out how to start it in a way that you can financially succeed. A key feature is that you must be willing to learn new things; and the more you can learn before you start your business the better off you will be.

A hobby is rarely a good business; but, it can be if it's what you truly love and have passion for.

Businesses with fixed locations tend to require a lot of up front capital, and usually don't make it. It has become popular in recent years to start businesses working from the home. Those are often more successful.

All businesses require a cost effective way to attract new clientele. That can range from commercial advertising (expensive); social media, to just personal contacts (I tend to grow my business mainly by people I meet in every day life. I've had to learn to get better at just talking to people - and need to get better yet).

Be careful of how you fund a business: While a home is usually protected by personal bankruptcy - it is not so protected if it is an asset for a business loan (at least in Wisconsin). I've known of at least a dozen people who have lost their home when their business failed. Also, every time I have talked to a financial institution they always wish for me to assign my home as an asset for any potential loan - usually as a 2nd mortgage (I have never done so).

There are multiple forms of business structure: Know what they are in advance and set yours up accordingly. My current business is a LLC. Prior to that my other businesses were just sole proprietorships with only Schedule C tax paperwork.

A couple books I recommend anyone interested in considering businesses:

1) The Compound Effect by: Darren Hardy This is really a book about how to be successful at most anything (not just business). I believe that you will just need to know most of what is in it to likely be successful in business

2) Cashflow Quadrant by: Robert Kiyosaki I find that few people really understand money, how it flows, and key differences in how people make it. Almost all of the later books by Robert Kiyosaki include this concept. Get it explained in full with this book.

3) The Business Of The 21ar Century by: Robert Kiyosaki This book explains the differences in business structures and the legal ways to make money. It's good basic information for that. I'll be honest with you up front that it suggest that a Multi-Level-Marketing business may be a good place to at least start (business education without bankrupting you); and it provides the caveats on how to chose which one may be right for you.

I will also provide my personal advice based on my personal lessons learned in the MLM arena. MLM is not right for everyone (and anyone claiming so...); but, is right for a few. There are legitimate companies, there are a lot of companies who are fraudulent and will disappear in less than 10 years (often less than 5). Even the legitimate companies do not guarantee you success - or even to break even. You have to have a truly honest sponsor and a good mentor and support program (that may be provided by the MLM company, or by a separate mentor organization). As with any other business - you have to be willing to treat it as a business (my experience - and a personal mistake of mine years ago - was to not consider it so seriously - and that was one of my business failures). Your chance of success without an honest sponsor, some kind of mentor organization support, and treating it as a real business is very low. However, if you think about it - the same is true of any other business: You need a honest supplier, someone to advise and guide you, and to treat it as a business.

I truly wish you and everyone the best who are interested in looking at alternate income streams. There are no one item fits all answers. Some people do very well at one thing; and others fail at it. There are ways to figure out up front what areas you are likely to be successful at (at least have a fighting chance).

A proper and good business plan is almost always a must. I so rarely see one of those. I must have looked at over 100 business plans which were nothing more than business concept papers. No concept of how to implement it, cost, time, etc. to make it work. Some of those business plans had "A" grades from a local business school.

Only 3 people put forth the effort to develop a full business plan that included all cost, timetables, effort levels, contingencies, % returns/non payment, etc to show a profit and payback investment point. They were the 3 people who started a business that I worked with (none of those businesses were related to what I do).

Hope this helps,

Perry

 

[missy]

Hi Indy! This is a great question, and I have a slightly different perspective. I'll give you a less-than-brief history, and I hope it helps you somehow. This is more about following your passion, rather than pursuing a hobby.

I am the first generation offspring of blue collar workers. My first memories are of our family dog laying by my crib, and I was attached to him like a sibling. I have always had a very deep connection with animals that I won't get into here. Ever since I can remember, I've wanted to be with and work with animals, but my parents wanted me to work in air conditioning in an office doing something with my brain, so I would be better than them. I ended up working in law firms because that was the most money I could make in a clerical environment. I pursued a degree in paralegal studies and accounting and worked my way up the ladder into management.

In the late 1990s, my parents started an online cigar business during the cigar boom and were able to sustain themselves from that business. They asked me to build them a website and consequently, I learned the business. I started buying and reselling exotic and impossible to get cigars in 2000 with $1k from a spare bedroom. By the end of the first year I had $150k in sales and was exploding out of my house. By year two, I quit the legal field and devoted myself to this business and had $500k in sales. I proceeded to open a B&M cigar shop and things went well...for a while. In 2005 I started to feel the effects of the upcoming crash. My wealthy clients were losing their jobs and nearly overnight, my sales went from $40k/mo to less than $5k/mo, and then to nothing. By 2008 I had lost my home trying to save my business, and then lost my business, and was literally <60 days away from being homeless. This was a devastating loss of epic proportions and I swore I would NEVER work for myself again. It was really hard getting back into the legal field with such a long hiatus, but I did at less than half of what I made before.

In 2011 I moved to California to be with my husband, then fiance. I became employed in the legal field less than a week after arrival, but things are not the same here as in Florida. I held 5 different legal positions between 2011 and 2015 with each boss being worse and more corrupt than the last. In 2015, at the age of 49, I started seriously considering changing careers. I knew in my heart that I wanted to work with animals, but what could I possibly do that would sustain me and wouldn't require 5+ years of training? After about 8 months of research, I settled on pet grooming.

I quit my job and started grooming school. My husband had "pretended" to be on board with the idea until I actually did it. The pretense came to an abrupt end, no matter what I told him of the results of my research and that I would be nearly the only person serving North Orange County by going mobile. He predicted I would fail and lose all of my time and investment and that I would become dependent upon him. The complete and utter lack of support for my endeavor devastated our relationship and it hasn't been repaired. But I knew that if I wanted a change for MY LIFE, the only person who could do it for me, is me.

I decided to try having another business, a service business rather than buying and selling. I bought a brand new $100k grooming van and with not a single client, donated my time to local rescues and homeless people's pets - and no social media presence. Just by being out there and word of mouth, I was able to get enough business in the first month to make both the van and insurance payments. Within 6 months I was about 50% booked for the year, and within a year, I stopped taking new clients.

Animals are my passion, not my hobby. It is hard and dirty work, but I will tell you the most beautiful truth. I have never felt more appreciated by so many people than I have in the past few years. I am doing something every day that I LOVE beyond words, working with pets. Pet parents adore me, because their pets adore me. I work with pets because I GENUINELY LOVE them, and everyone can see and feel it. I have enough people begging me to service them to be running 3-4 vans, but I can't find anyone with my sensitivity and empathy for pets, and so it is just me.

That old adage of do what you love and you'll never work a day in your life has turned out to be true for me. That's not to say that it's easy even though you love what you are doing. My choice is still physical labor, and as such, can be tiring many days, especially when you can't say no to the sad stories people have of prior experiences. But I wouldn't trade my lowly dirty job for any other. It satisfies my soul in ways I cannot express, every day, and I will continue to do this past retirement until I can't hold shears anymore.

I have listened to MANY business related podcasts that talk about the benefits of having a side hustle. Once it is developed, if something were to happen to your "day job", you have something else to rely on till you figure out what to do next. Wayne Gretzky once said "You miss 100% of the shots you don't take." In other words, you can't succeed unless you try, and that means you have to take a chance. It is easier to do nothing and not risk failure because it is scary to start something. You put yourself, your money and your reputation in jeopardy. But if you don't try, you'll never start anything. As @lyra said, it's better to try and fail, than to never try. Failure, as hard as it may be, is also one of the greatest learning experiences. And doing things in spite of your fear, while you're actually fearing it, is called courage.

My suggestion to you is to dig deep and figure out what YOU really love, what "thing" you would be doing if you had the freedom and finance to pursue it without worrying about the future. Then you need to determine if there is a need for that "thing" in your community. This doesn't mean what would you be doing to make the most money. The money will come when you're passionate about what you are doing and others recognize it, it can't be faked. Lastly, you need to develop a plan to get that "thing" started. Start with baby steps and intention, and you will figure out how to achieve that which you desire. But if you don't put yourself out there to get it going, it won't fall from the sky into your lap - you have to go get it and believe that you can do it.

So to answer your questions, yes, I have tried and failed, and yes, I did it again. Was I afraid? You betcha. No support and outright contempt from my husband, and friends thinking I was crazy to give up a paycheck to strike out on my own. But I believed I could do it, and the more people said I couldn't, or shouldn't, the more determined I became to prove to them and myself that I very well could. Watch. Did it work? Let me put it this way, I could never afford the luxury of diamonds before, but I can now.

I apologize for the length of this essay, but this is one of the better questions I've seen on PS and thought my story might inspire you to try to follow YOUR OWN PASSION.

Wow @SandyinAnaheim, I am moved by your story and how brave you are. I am super impressed and in awe of all you went through and your strength and courage and persistence in the face of adversity. Thank you for sharing and thank you for all the wonderful things you do for the animals.This world is a better place because of you.

 

[SandyinAnaheim]

Wow @SandyinAnaheim, I am moved by your story and how brave you are. I am super impressed and in awe of all you went through and your strength and courage and persistence in the face of adversity. Thank you for sharing and thank you for all the wonderful things you do for the animals.This world is a better place because of you.

Thank you @missy, you are too kind.

 

[missy]

Thank you @missy, you are too kind.

I am not too kind Sandy. I am speaking from my heart and speaking the truth as I see it. You are a good person with a pure and good soul and heart and you make this world a better place by being here and doing what you do.

Sorry for the threadjack and now back to the topic at hand. Thanks for allowing me to share my thoughts.