How to start your own technology business?
Midnight Poet
Maybe I'm suffering from naive enthusiasm, maybe because I'm bored, maybe I
don't know what I'm in for...
The current job, whilst paying the bills, really isn't providing me the
satisfaction, or career path, I'd like. In part it's because my broad skill
set doesn't place me neatly in any particular box - wherever I seem to be
working, I'm feeling much of my ability goes wasted.
I've no lack of chutzpah, so how hard is it to start your own technology
business? I'm thinking along the lines of a communications / IT / PC / AV /
technical consultancy / installation / development kind of thing. :-)
Having always been a PAYE employee, what kind of "business" things do I need
to learn about? What's the process to start your own company? Legal
requirements? Hell, where do I find an honest accountant? Where do I
start???
This is an idea that both thrills and terrifies simultaneously. Once you
start, where the hell do you then find business opportunities? With a wage,
at least you know the money is coming...
Any advice / shared experiences greatly appreciated.
Kind regards,
JASON
Barry Bonobo
to starting up a business in an unspecified area just because you
think that might be better than earning a wage.
Maybe it might be best if you just thought about using your abilities
in a consulting capacity until you work out what sort of business you
are actually thinking of opening.
To get you started thinking about things you could read:
"Becoming a consultant: how to start and run a profitable consulting
business" by Nash, Susan
If you have some particular business in mind then you will need to
look up some books on running small businesses in Australia. Search
under 'small business' at your local library or ask your librarian.
I have a number of tips for you before you leave your present job:
1/ Do not be married
2/ Do not have children
3/ Do not have a mortgage
4/ Forget about having a life outside your business for the first
couple of years
Good Luck.
Kwyjibo
"Barry Bonobo" <bobo...@hotmail.com> wrote in message
news:3d93cd4d...@News.CIS.DFN.DE...
<snip>
> 1/ Do not be married
> 2/ Do not have children
> 3/ Do not have a mortgage
> 4/ Forget about having a life outside your business for the first
> couple of years
Or
1/ Be married to someone who doesn't really like you all that much and
wouldn't miss your company for a couple of years
2/ Be married to someone who earns enough money to pay the mortgage,
bills etc for the first couple of years.
;-)
Kwyj
PierreC
Might add: don't mind if the kids look half like the milkman.
>;-)
>
>Kwyj
Rudolf Ladyzhenskii
> 1/ Do not be married
> 2/ Do not have children
> 3/ Do not have a mortgage
> 4/ Forget about having a life outside your business for the first
> couple of years
>
Another ideas is what I did/do.
Try to do business part/time from home. Yes, it puts much more pressure on
you as your working hours increase dramatically and there is luck of sleep,
but this will allow you to do a smoother migration from PAYE to own
business.
Rudolf
Warwick Anderson
Have a look at this site, its quite good. also your local gov will have some
sort of small biz department
"Midnight Poet" <poe...@bigpond.net.au> wrote in message
news:CsPk9.25667$6g7....@news-server.bigpond.net.au...
Kwyjibo
"Rudolf Ladyzhenskii" <rudolf.la...@REMOVETOREPLYadcomtech.net>
wrote in message news:3d93eab3$1...@news.iprimus.com.au...
Not always legally possible depending on the business intended. Most
employment contracts state that you are not to perform any work in that
could be deemed to be in competition with your employer, so if you are
planning on starting a business in a field related to what you are
currently doing you must first resign.
Kwyj.
davidjudy
I've been in an electronics business now for 21 years. I could probably
write a book about the Don't's. I'm still working on the Do's!
First thing is you need a clear vision, a goal and a focus. It took me about
14 years to discover and realise that, and only since then have things
started to happen ... ever so slowly. Once you have your goals keep on
asking yourself if what you are doing NOW is taking you any closer to that
goal. It is terribly easy to loose focus, loose sight of the goals and find
yourself wandering around in circles.
The very best single bit of advice I can give is to go out and buy a copy of
"E-Myth revisited" by Michael Gerber. It'll be the best $26 you ever spend
(Don't buy his later work, he lost the plot!). Oh, and read it, no *absorb*
it!
You say you are multi-skilled. That is a HUGE asset in the early days. It
means you save on brochure design, book-keeping, all the technical aspects
of your business, etc etc. Later, it can be a liability: You get so used to
doing everything yourself you have trouble delegating. (That's the stage I'm
at, learning to let go of things. I'm Product Manager, Advertising Manager,
website designer, Marketing Manager, CEO, CFO, and Director of Software
Engineeering).
You will hear a lot about business plans. A BP can be a very useful tool. It
can also be a load of garbage. Don't fall for one of those Instant Business
Plan software packages, they are merely templates for non-thinking. IMHO the
essense of a business plan is that you think through yourself what you wish
to achiev, what you intend to do, why it makes sense, what your likely
numbers are etc etc. It doesn't even have to be in writing ... it's the
thinking that's important, not the document. One school of thought is that a
written BP should be no more than 1 page, a sort of fleshed out mission
statement - where I want to go, how I intend to get there, and here are my
estimated numbers.
Be aware that your business will go through phases of development, all the
way from a desk in the spare room (where I started, actually in the laundry)
to a major corporation (still working on that!). At each phase different
methods, philosophies, systems and procedures are appropriate. If you are
concious of the phases, and have a fix on which one you are in, you will be
better able to manage your enterprise. More importantly, be conscious of
likely phase transitions. By that I mean: You are rolling along at maybe
$250K turnover and see an opportunity for a $1M contract. Great! Only, if
you get that contract you will have to quickly shift to a new phase, a new
way of operating. The structures that handle $250K probably won't be able to
cope with 4x as much business, so you'll have to design new structures (hire
people, create paperwork systems, worry about finance etc etc.).
Finally, I am still earning about 1/3 or less of what I would be getting as
a senior engineer/manager in large company. One day I may get rich, and it
will be well deserved. It's a huge gamble, and you need the tenacity to hang
in there day in, year out. So above all, you need PASSION.
DJ
"Midnight Poet" <poe...@bigpond.net.au> wrote in message
news:CsPk9.25667$6g7....@news-server.bigpond.net.au...
>
David L. Jones
> >
Yes indeed, this is the best and safest way to go.
Keep your overheads low or next to nothing, and if the part time
business takes off only then consider taking it full time. If it
doesn't work then you haven't lost anything.
A big percentage of new small businesses fail in the first few years,
I think it's something very high like 80+%?, there a many reasons for
this. If you have no experience then don't take the risk, odds are
you'll loose.
Dave :)
andy
getting fucked from all directions these days so I guess it really
doesn't matter.
Kwyjibo
"andy" <ihat...@freemail.com.au> wrote in message
news:30571888.02092...@posting.google.com...
> i'm kinda used to
> getting fucked from all directions these days
Bisexual ???
Kwyj.
andy
Your not that lucky...
Kwyjibo
"andy" <ihat...@freemail.com.au> wrote in message
news:30571888.02092...@posting.google.com...
> "Kwyjibo" <dogspeltbackwar...@hotmail.com> wrote in
message news:<an8er4$h84$1...@arachne.labyrinth.net.au>...
> > "andy" <ihat...@freemail.com.au> wrote in message
> > news:30571888.02092...@posting.google.com...
> > > i'm kinda used to
> > > getting fucked from all directions these days
> >
> > Bisexual ???
>
> Your not that lucky...
I was asking for Rods benefit ;-)
Kwyj.
wayne
of fun doing it, also made and blown a lot of money.
The previous poster was correct, but you need more than just passion, though
it is very important. The one thing that people dont realise when starting a
business is that there has to be demand first.
People start a business based on wat they can do and then look for demand
that might not be there. You have to ask "why will people come to me, why am
i different to anyone else doing the same thing?
You need discipline, tenacity, a hide like a rhino, patience, perseverance
communicating skills (very important) and a lot more.And a $10k buffer in
the bank (separate to your business funds) to protect your family and allow
you time to get a job should things go wrong.
Dont listen to the negative posters on here, they are scared to have a go
themselves and therefore dump on other people trying.
Do lots of research first and try finding a mentor...that can be a great
help.
It will be the journey of your lifetime, Go for it
Good Luck
Wayne
"davidjudy" <NOSPAMd...@optusnet.com.au> wrote in message
news:3d941cbd$0$30828$afc3...@news.optusnet.com.au...
Jack McCaw
: Ive built a company with turnover currently at $1.4 million, and had a lot
: of fun doing it, also made and blown a lot of money.
I currently work for a guy who started out running on a tiny budget, out
of his livingroom, but who had a plan. That plan has now lead to being
able to run a national Internet based business, with people who all also
share his enthusiasm.
It was a dream, that I watched turn into a nightmare, then mature
into reality. Your advice is sound, and it truly should be a requirement
that new small business owners have a basic understanding of what they are
getting themselves into!
A company started by a close friend of mine, easyflowers.com.au
was launched as the Internet bubble burst, and had no financial backing
from anyone. It started, and had a very quiet beginning, small steps along
the way. That plan I mentioned? He stuck to it.
Now it is one of the success stories of Australian Internet
companies, getting writeups in Choice magazine, etc etc.
: Do lots of research first and try finding a mentor...that can be a great
: help.
Possibly have a read of Richard Bransons biography to get some
idea of what IS possible?
Get some idea of what your potential customer base could be, and
what it needs to be etc. Basic budgetting is often enough to scare off a
lot of people! :-)
Jack@!
jg
previous jobs with goodwill and an armload of work, under very similar
circumstances. They were very successful, I have made a living perhaps no
better than if I had stayed on wages.
Most business starters I have known began in a similar way, and our reasons
for wanting our own business in ALL cases was not directly related to money
or ego. Any huge profits etc will be mostly just fortunate by-products of
the real reason for starting the business. Since most of the previous posts
re family, social life etc are true, make sure you have a good reason to do
it and at least some reliable income to start.
Dave
> 1/ Do not be married
Or be married to someone who will work on the business with you - which is
my case and does work. We're about five years into running a business now
and I doubt I'd have made it without my wife being involved.
> 2/ Do not have children
> 3/ Do not have a mortgage
Not so much don't have them but understand that it will make the task all
that much harder. Anything that creates additional debt is going to be hard
to handle in the first few years of business.
> 4/ Forget about having a life outside your business for the first
> couple of years
If you're serious about your business the first three or four years _NEED_
to be about little else. After that you will find that you start needing to
"socialise the business" to keep growing and at that point you'll find you
start to have a semblance of a life again.
As for business advice, check the state govt. in whatever state you're in.
In Queensland check out Dept. of State Development's web site
(www.sd.qld.gov.au I think it is) for heaps of information including a smart
licensing tool that will help you determing what licenses you need to run a
business. We only recently found this tool and even though we thought we
were pretty much covered it found a couple of other licenses that we needed
to be completely legal.
Oh, and read books - lots of them. One very good book for figuring things
out is "The E Myth", don't recall the author. It puts the "why" of being in
business in perspective pretty well.
CYA, Dave
wayne
your own business, it should be your plan, its not by accident that people
become rich. So many posters answering on this topic are
guessing or posting only from *their* own perspective, which could be
incredibly limited and narrow minded (and usually is).
Everyones situation is different, everyones goals are different, everyones
perspective is different, thats why i think books are of limited value,
ultimately,do your own thing.
And the poster suggesting start a business with your wife (or partner) ,
only do it if you think you can work together, sleep together and live
together, (thats 24/7) then do it, but it wouldnt work for everyone. (like
me)
I like an old saying i heard years ago "Instead of not biting of more than
you can chew, bite it off and chew like crazy"
Wayne
"jg" <j...@nospam.com.au> wrote in message
news:iDWm9.45395$g9.1...@newsfeeds.bigpond.com...
fredo
gadget.
Lets say the gadget does not involve any patents, and is apparently fairly
simple and some
might say frivolous....say you can target a RRP of $95, and the worst case is
you might
sell 1000 of em.
Is it worth doing ?
I mean the hurdles are:
1) manufacturing 'em, even if you use family members for the manufacturing,
what are your
lliabilities ? workers comp, superannuation, etc,etc..
I mean your not going to build 1000, let alone 100 all by yourself.
3) going the full hog - ie company and employees - gosh minimum setup cost
is $10s of thousands
4) can you do this as a Sole Trader ?
5) can one even assume one is allowed to have a manufacturing assembly line
in the suburban home ?
6) the target market is very apparent, but will they buy ?
7) costs must be low, because someone else could copy it, but start selling
high, if a copy goes on market
you got plenty of margin then to undercut the copier!
8) as I said this is an electronic gadget, do you realize just how hard it
is to come up with an enclosure such
that it won't look like some run-of-the-mill kit project? I mean you
can preclude going to some factory and
ordering 1000 custom injected mouldings or what-not, the costs/price
start getting dazzling.....
9) if I pay GST on components when i buy them, whats the GST liable on the
finished product ? -- GST gives me
the fucking shits,
10) if I use an accountant to consult on all the tax issues etc,etc, then
all the profit??? is used on paying the accountant,
and so this whole exercise is a waste of time, because there'll be
nothing in it for myself?
If a minimum setup cost is possible and it doesn't sell, the worst that can
happen is that i'm sitting
on a couple $100s maybe $1000s of components and parts, hell i've done worse
speculating on the
stock market, and there you only got some worthless paper to look at then.
Alan
On Thu, 10 Oct 2002 15:59:48 +1000, fredo <nos...@australia.com>
wrote:
>Has anyone had a business experience that involves manufacturing an electronic
>gadget.
Yes
>Lets say the gadget does not involve any patents, and is apparently fairly
>simple and some
>might say frivolous....say you can target a RRP of $95, and the worst case is
>you might
>sell 1000 of em.
>Is it worth doing ?
Maybe. You have to look at what it's going to cost you and what you
are going to get out of it, moneywise and otherwise.
> I mean the hurdles are:
> 1) manufacturing 'em, even if you use family members for the manufacturing,
>what are your
> lliabilities ? workers comp, superannuation, etc,etc..
> I mean your not going to build 1000, let alone 100 all by yourself.
Use a sub-assembly company. No hassles - just pay them for the work.
> 3) going the full hog - ie company and employees - gosh minimum setup cost
>is $10s of thousands
Probably not worth it initially - see how it goes and then perhaps set
up a company, etc., later on.
> 4) can you do this as a Sole Trader ?
Yes
> 5) can one even assume one is allowed to have a manufacturing assembly line
>in the suburban home ?
Not usually - check with your local council offices. You may be able
to and you will probably need a licence to operate from home.
> 6) the target market is very apparent, but will they buy ?
the $64,000 question! Try a small test run first in several market
areas and be prepared to jump into full production if it takes off.
> 7) costs must be low, because someone else could copy it, but start selling
>high, if a copy goes on market
> you got plenty of margin then to undercut the copier!
Don't forget the total selling price must include any profits made by
you, the retailer and any middlemen in the sales food line.
> 8) as I said this is an electronic gadget, do you realize just how hard it
>is to come up with an enclosure such
> that it won't look like some run-of-the-mill kit project? I mean you
>can preclude going to some factory and
> ordering 1000 custom injected mouldings or what-not, the costs/price
>start getting dazzling.....
There are some reasonable looking enclosures out there that can be
"improved" by using a suitably coloured plastice label. I use
PolyCarbonate labels myself - a bit more expensive but more durable.
Look at injection mouldings when you want to buy in lots of 10,000 or
so.
> 9) if I pay GST on components when i buy them, whats the GST liable on the
>finished product ? -- GST gives me
>the fucking shits,
You pay GST on all the parts you buy. If you are registered for GST
(if your sales are more than $50,000 per year) then you can claim back
the GST you paid on your parts but you also have to charge GST on the
units you sell to people. And I really love the GST too (not!) what a
stuffed up over complicated system that the ATO lumbered us with.
Don't forget also that you will have to pay "Pay As You Go" tax
probably on a quaterly basis. This is the tax the government didn't
tell us about which replaced the Provisional Tax system that they kept
telling us would no longer apply.
Talk to an accountant.
> 10) if I use an accountant to consult on all the tax issues etc,etc, then
>all the profit??? is used on paying the accountant,
> and so this whole exercise is a waste of time, because there'll be
>nothing in it for myself?
Choose you accountant carefully and do as much preperation work as you
can on the accounts, Expect to pay a lot if you give the guy a
"shoe-box" full of receipts, invoices, etc at the end of the year. If
you give him nice breakdowns of all your expenses, etc. then you will
save yourself money. Discuss what is needed with the accountant. You
should get away with lots of change from $1,000.
>
> If a minimum setup cost is possible and it doesn't sell, the worst that can
>happen is that i'm sitting
> on a couple $100s maybe $1000s of components and parts, hell i've done worse
>speculating on the
> stock market, and there you only got some worthless paper to look at then.
>
But you can't play developing circuits with share certs.
Don't forget to talk to your local Small Business Delevopment Council,
or whatever, in you local town if there is one.
I'm sure you'll get other comments from the group.
HTH
Alan
++++++++++++++++++++++++++++++++++++++++++
Jenal Communications
Manufacturers and Suppliers of HF Selcall
P O Box 1108, Morley, WA, 6943
Tel: +61 8 9370 5533 Fax +61 8 9370 5106
Web Site: http://www.jenal.com
e-mail: http://www.jenal.com/contact.php
++++++++++++++++++++++++++++++++++++++++++
gra_f...@yahoo.com.__put.the.word
wrote:
> 8) as I said this is an electronic gadget, do you realize just how hard it
>is to come up with an enclosure such
> that it won't look like some run-of-the-mill kit project? I mean you
>can preclude going to some factory and
> ordering 1000 custom injected mouldings or what-not, the costs/price
>start getting dazzling.....
If you email me I can put you in touch with people who can do this -
the appearance design, plus they know people who can manufacture and
assemble. It's all done in 3D these days, which means you get pretty
pictures plus you know whether everything fits and how much plastic
you need etc.
Dave
"wayne" <wa...@wirenet.com.au> wrote in message
news:3da34...@news.iprimus.com.au...
> Making shit loads of money shouldnt be "a forunate by-product" of starting
> your own business, it should be your plan, its not by accident that people
> become rich.
If that is what you are starting your own business for then it should
definately be your plan from the start. Not everyone goes into business for
that reason. It is well known that some people go into business for the
sole reason of being their own boss and end up, essentially, buying
themselves a salary but with the, for them, important factor of being the
boss. There are many motivations for being in business and making "shit
loads" of money is only one of them, albeit a common one.
It is certainly true that it won't happen by accident - if that is your
intention then do your research and find out how to make it happen. It will
be hard work and it will be by design.
> So many posters answering on this topic are
> guessing or posting only from *their* own perspective, which could be
> incredibly limited and narrow minded (and usually is).
I guess that's fair comment. I never claimed to be an expert in all things
business. The original poster asked a question, I offered my perspective.
I didn't claim it to be anything more than my perspective.
> Everyones situation is different, everyones goals are different, everyones
> perspective is different, thats why i think books are of limited value,
> ultimately,do your own thing.
Sure, everyone's situation and goal is different but there are certain
things that will hold true no matter what. If you are going to employ staff
then there are legal considerations no matter what your personal philosophy
might be. If you are going to operate from a retail or commercial premises
then there are things that you have to do by law no matter what you might
otherwise want. There are also principals of business that apply almost
universally. This is where the value of books comes in. Books do not
provide you with blanket simple answers, they offer perspectives that you
might not have considered and advise that you may not have known you needed.
Certainly, don't just take whatever a book says and apply it - but do
consider it in relation to your situation and apply the bits that are
relevant to your situation and your goals.
> And the poster suggesting start a business with your wife (or partner) ,
> only do it if you think you can work together, sleep together and live
> together, (thats 24/7) then do it, but it wouldnt work for everyone. (like
> me)
That would be me. No, it's not for everyone and I don't believe I stated
that it was. But it can and does work for those who want it to. There are
no simple answers to a question of "how to run a business".
My original comment in relation to this was in response to someone posting a
list of pre-requisites to running a business that included being single and
having no life. That is certainly one perspective but it's not the only
one. I merely presented a different perspective.
I've been in business with my wife for five years now. For four of those
years we've operated from a retail premises. For three of those years we've
employed full-time staff. We've gone from a start that included an opening
bank balance under $500 to a million dollar turn-over. I think that gives
me the ability to comment on what it takes to run a business. What I've
done and the way I've done it may not work for someone else but it has
worked for me. How it applies to someone else is up to that someone else to
decide.
> I like an old saying i heard years ago "Instead of not biting of more than
> you can chew, bite it off and chew like crazy"
There are certainly elements of truth in that. Anyone who has grown a
business knows that the growth is not a steady curve and there are times
where everything looks great and other times where you are struggling to pay
for your latest business expansion.
CYA, Dave