Running your own wee business

[jonbuoy]

Anyone here who runs there own small/sole trader business? How do you find it compared to working for a salary? I know there are a few tax perks - do you have your own acountant or do you fill out your own tax forms? - any advise appreciated.

Cheers.

[bungbung]

People will pay for my urine?

I'm in!

[WRT]

People will pay for my urine?

I'm in!

Jeez, I've heard of taking the piss before, but that's ridiculous.

[kickingzebra]

Used to, You don't have to be a university qualified accountant to take care of your own tax etc, but where (good) accountants come in useful is claiming back operating expenses, and all those little laws that look after the little guy.
To be honest I always earned more self employed anyway. Go for it!

[Big Dave]

Yep - Sole Trader - sent it all to the accountant and sign the cheques.
They look after the rest and I can concentrate on being a loose unit.

[Brian d marge]

Me , I am just starting, I use Quicken , record EVEYTHING i spend ( keep all receipts lia folder, and as was suggested by another kiwibiker ,,take SMALL baby steps , dont rush

So I have a day job , this allows ne to sit on Kb all day ,,errr pretend I am working ,,

No I am slowly getting things up and running , the premisis is up and running , though I managed to poke a whole in the new wall.

The product is nearly there, though selling is quite hard

The thing I noticed if you are trying to sell stuff , the mark up and price you have to sell it at in order to keep the doors open

So I am struggling to hit upon that magic product ,,,which I can get for nothing and sell for millions

Even Air , costs 350 yen to buy

Stephen

[Finn]

Anyone here who runs there own small/sole trader business? How do you find it compared to working for a salary?

Cheers.

There's no easy or logical answer. It depends on the business.

If you can kick it off and day one make money then great. If not you either have to rely on savings while you grow it or start it on the side and grow it while you have other income.

Nothing happens over night. It takes time, vision, passion and hard work. The rewards can be great. If it's big enough an accountant is a must, so to is undestand basic business practices like cashflow, planing, marketing and finding new and interestings ways to avoid tax.

Good luck!

P.S. There's heaps of resource on the web for small business start ups.

[oldrider]

I have done everything that I really wanted to do on this earth and feel completely satisfied with my life, so I will not go to my grave with any regrets that I never did this, or never did that!

That is a good feeling, especially when you are getting closer to the end of your innings.

However, there are one or two little things that I think would have been "interesting" to have done.

Setting up and running my "own" business successfully is one of these, probably top of the list!

I think it is the measure of a person's ability to demonstrate self sufficiency, IE: The measure of the man!

Congratulations to all of you who have successfully done this, I salute you.

If you are one who is wondering about having a go, seize the day, do your homework and just do it. John.

[Jack the Ripper]

How do you find it compared to working for a salary?
Exceptionally better financially and lifestyle wise.


I know there are a few tax perks - do you have your own acountant or do you fill out your own tax forms? - any advise appreciated.
I have my own accountant, however learning your tax responsibilities and the core accounting processes is not a complicated exercise.

[jonbuoy]

Cheers everyone, needs some serious thinking. Wonder if I can class the bike as a work vehicle if I put a top box on it and a company logo - P/T

[Animal]

Anyone here who runs there own small/sole trader business? How do you find it compared to working for a salary? I know there are a few tax perks - do you have your own acountant or do you fill out your own tax forms? - any advise appreciated.

Cheers.
G'day Jonbuoy,

Hell, yes! I've been running my CAD business for several years now, and the fun doesn't stop. However, neither does the stress. Self-employment is not the ideal choice for everyone. For me, the biggest drive is the complete and absolute autonomy which structured employment doesn't offer. I'm by no means particularly clever or talented, and I'm not overly ambitious or dynamic. I am prepared to work bloody hard and put in some very long hours, but the freedom and autonomy gives me the kind of job satisfaction I crave.

Having the understanding and support of your partner is vital to running a small business. My ex-wife never could cope with this inherent instability, and she really struggled with the stress. Some women just can't cope with the loneliness and the stress.

Now, this is important... if you're going to start your own business, don't leave it too late. You have to hope that the business doesn't fail, but you do have to be young enough to still be employable if you need to fall back on structured employment. This is a frightening fact, but most new start-up businesses fail within 2 years, so you do need to be prepared to have to find a job - and then try again. Never burn your bridges because you might have to return to the company you just left - either as a client if things go well - or if things go wrong, as an employee.

Self-employment can be defines as working twice as hard for half the money. That's not bullshit. If you're prepared to give up your nights, weekends, stat holidays, lifestyle - and that includes riding - but be comitted to putting in months of 120-hour weeks, it will eventually become self-sustaining. Don't let anyone tell you it's an easy life, and that the money falls into your lap. It's exactly the opposite to that!

Pm me. I'm more than happy to expand on this dialogue, and give you the good and the bad without any bias.

[Holy Roller]

Cheers everyone, needs some serious thinking. Wonder if I can class the bike as a work vehicle if I put a top box on it and a company logo - P/T

One can claim mileage on a private vechicle for work related stuff but a log book needs to be kept to prove this. We have had company vechicles but due to the nature of our bookshop store we wern't doing enough mileage to warrant this. Now we claim the mileage and this works out better for us. Your accountant will best advise on what option one should take.

CADanimal is right on with his comments, reality is no holiday. We are in our 4th year of starting a business from scratch. We have out grown one building and are doing very well now but the business is still not producing a full wage for the Mrs though the workers get their share. cashflow is the killer in our type of business as it is with many others one needs to keep on top of it to survive long term. if I was not shift working we might not have got to where we are today. We brought the business when I was to be made redundant from a saw mill. The business had just closed the door so we brougfht the stock and fittings and started over.

[Mom]

Having been self employed for most of my working life I say go for it!

Planning for your business and reviewing your progress regularly is essential.
A few years ago I did a stint mentoring for "Business in the Community" which is a free service for small businesses starting out, where you ask for help and a mentor that has experience in that area is appointed to help you out.

Self employment gives you a vested interest in suceeding, you will find you will work hard but be able hopefully to plan for times to have fun!

Get some advice from a good accountant, IRD has some useful resources too. Put good financial management strategies in place, and stick to them. Never hesitate to ask for help. Have fun...feel the fear and do it anyway!!!

[Finn]

Cheers everyone, needs some serious thinking. Wonder if I can class the bike as a work vehicle if I put a top box on it and a company logo - P/T

Couier vehicle.

[Big Dave]

No PT - my buell is my company vehicle. Fully deductable. Tbird is for private use.

[Mom]

No PT - my buell is my company vehicle. Fully deductable. Tbird is for private use.

Seems you have had some good advice :yes:

[Finn]

No PT - my buell is my company vehicle. Fully deductable. Tbird is for private use.

Yeah, my business has 3 courier motorbikes and nothing to deliver. Helen paid the GST back and pays for insurance, gas, tires & servicing. She's good like that.

[Motu]

DT - Diagnostic Tester.....

[Beemer]

Been self-employed for four years now and I love it. The lifestyle benefits are great - if it's sunny and I feel like going for a ride, I do! If it's in the middle of winter and pouring with rain I don't have to go out to work, I just wander into the study in my possum fur slippers and warmest (but not necessarily fashionable!) clothes. No travelling time and I can have a cup of tea/snack/pee any time I like without anyone commenting on how long I am away from my desk! I can work the hours I want - as long as the work gets done (with regards to editing rather than going out to interview someone at an event for instance), my clients don't give a stuff when I do it - 9am or 9pm makes no difference when you're on an hourly rate.

I got an accountant for the first year, cost me $600-odd and I got $87 back. Now I do my own tax returns because mine are pretty straightforward. I am thinking of getting a new accountant for the next tax year though as I've heard good things about a woman a friend pays to do her tax.

The first few years were hard, until I got established and enough work came in, but I just did some temping work to make some extra money. Last year I earned more than I had done in my last couple of jobs - and considering I usually only work one or two days a week, that's not bad! Sometimes I can be quite stressed out when I have a lot of work on, but I have always managed to get it all done by the deadline - when it's a matter of not finishing it and not getting paid, somehow it all fits into place.

This year I am studying almost fulltime but still working as well - and I am managing to fit it all in. I rarely work weekends (except for photography jobs) or evenings unless it's a rush job and the only downside is not getting much work over Christmas and New Year - but we survive!

I always said I wouldn't work on my birthday either, but 2004 and 2006 I had to work as I was doing short-term contracts on that date, but last year I did manage to have the day off - and next year it's on a Saturday so I'm definitely not working!

I find it incredibly rewarding and I am far more relaxed than I was when I had a boss. I do the work, I get paid, I get more work from the same people - very satisfying. I sometimes miss having workmates but email is great and that's what friends are for! I met one for lunch today and it was nice not to have to watch the clock.

I'd say go for it, you'll more than likely enjoy it a great deal and wish you'd done it years ago!

[trumpy]

Had my own business now for 19 years and despite the ups and downs I would never go back (....realistically I am probably unemployable anyway thanks to what I have learned and the habits, good and bad, that I have picked up on the way).

Go to www.yourbiz.co.nz - lots of help available there.
Once your business picks up a bit invest in MYOB (small business accounting package). We use it for everything: quotes, jobs, invoices, inventory, profit and loss etc, etc. Really easy to use and you you don't have to use it as a full accrual accounting program, works equally well as a cashbook only. It leaves very little for our accountants to do and saves us a great deal of money each year. More importantly, you can track the progress of your business virtually on a moment to moment basis which allows you react to things IMMEDIATELY rather than at the end of the financial year when your accountant tells you you HAD a problem and you are now in deep shit! Very important ability for a new business (and old ones too!)

If you have a passion for what you want to do, go for it and good luck.

[DingDong]

I've been running a signwritting business for a year now... work a day job 55hrs a week, do signs at night and on weekends, it's hard work.

I dont actively go looking for jobs, I try to build relationships with businesses that have a higher need for sign writting... house sales, car clubs etc... I make their signs and charge a minimal labour fee... they love me and I love them back... my theory is that when I think the business can support me finacially I'll kick it into another gear already having a large and loyal (if theres such a thing) customer base.

Most of my work comes by "word of mouth" and thats enough... for now.:yes: the longer I wait, the better my chance...

[jonbuoy]

Hey thanks everyone for your inputs. I've been working for a small company for a while now which has been good training. Just gotta grow some balls and take the jump!

[Winston001]

Running your own business isn't for the faint hearted. Expect that some people simply won't pay you. It hurts but you learn. Expect to spend a fair bit of time fending off advertisers, salesmen, and all sorts of other timewasters.

Apart from that you'll need to spend time keeping your books straight. The easiest way is something like MYOB but there are other, even free accounting packages. I think Cashmanager is free for personal use. The most common problem for small business is bad records. Lots of guys love their work but forget to bill it.

Using an accountant costs money but you get the benefit of business advice. You also get an aura of legitimacy if an accountant files your annual accounts. IRD don't tend to look quite so hard as compared with folk who do their own accounts and thus are more likely to have dodgy returns.

Self-employment is wonderful despite the risks. My advice is to start out slowly - don't give up your day job. Dingdongs example is a very good way to start. Do a good job and rely on word of mouth and build up loyalty.

[JimO]

i have been a self employed tradesman for over 20 years and like some of the others i couldnt go back to working for someone else (at least not in my trade) the up sides are you can please yourself regarding hours and what jobs you take on, i dont miss any of my boys sporting things during work time i knock off early or plan my day around things. The downside is that you are depending on the clients paying to survive so it pays to be selective dont work for people who give you the gut feeling or that you know are slow payers. i have a good accountant and have stuck with him since i started,. i know guys who change accountants every couple of years and their always in a mess regarding getting books done and tax issues. Remember that the profit that the tax man knows about doesnt have to be high why work your arse off and owe the ird 40k when you can take it easy and owe them 10k and have a healthy cash flow , if you know what i mean

[Edbear]

Started my own business from scratch when I was unemployed, back in '92,. We were so broke at the time my wife and I argued whether we could afford the $7, yes, $7! to fill up the CNG tank of our Morris Marina and trip around with a boot full of borrowed stock from a Hamilton shop.

Ran the business for 6 years until I got really sick - would up in a wheelchair and thought I was dying, which I probably was at the time according to the Docs. (Long story I'd be happy to bore anyone to tears with).

Increased turnover 4-fold in 5 years and was expanding way faster than I could keep up with. Fortunately was a cash business dealing with mainly Dairy farmers who could afford to buy whatever they liked despite their moaning about money all the time... so had no or very few debtors. Used an Accountant and I wish I'd listened to him more! He said I needed a 33% GP or I wasn't viable. I wound up with a 47% GP and increasing.

Gradually bypassed wholesaler's getting stock direct ex-factory or NZ importer and was doing very well. Miss the perks but not the stress! Would do it differently now!

Currently I am employed on a Salary+commission and we're encouraged to run it like it's our own business. I think it's the best of both worlds, but having said that I now have a couple of opportunities to start businesses that will grow for future income.

[Big Dave]

Seems you have had some good advice :yes:

Aye - always been good to my mum.

[Brian d marge]

its been good reading other people experiences about running a business , am of the start slowly camp , getting everything in place building up sales , etc ..I work in the evenings at a job which isnt very stressful,

The day job is interesting , and is why I actually get out of bed ! ..it can be busy or completely slackarsed like today ...Spent 5 hours in the hardware super store and bought 4 6mm studs . now I am going to watch a bit of telly and carry on with this clutch

Money , we would like a little more comming in , but not much more .. We dont own a house , but everything else is paid for ...

I doubt I will ever work in a big company again , doing the 9 to 5 thing ,,As I doubt they would put up with me disappearing to Test the bike ,,,,,for the 3rd time in a week !!

Stephen

plan , give it a go , dont burn the money bridge and see how it goes ...

[degrom]

I've been running a signwritting business for a year now... work a day job 55hrs a week, do signs at night and on weekends, it's hard work.

I dont actively go looking for jobs, I try to build relationships with businesses that have a higher need for sign writting... house sales, car clubs etc... I make their signs and charge a minimal labour fee... they love me and I love them back... my theory is that when I think the business can support me finacially I'll kick it into another gear already having a large and loyal (if theres such a thing) customer base.

Most of my work comes by "word of mouth" and thats enough... for now.:yes: the longer I wait, the better my chance...

Sounds like you are heading for success!!! I have a few things that I would like to do as a business but I am still finding it hard to get into the market. Do you think it's wise to do a few "FREE" jobs to generate contacts and getting the word out that you are good at what you do?

[trumpy]

Do you think it's wise to do a few "FREE" jobs to generate contacts and getting the word out that you are good at what you do?

No. Value yourself or other people won't.

In some circumstances we have had more sales by increasing the cost/value of our service than lowering it. Discounting has been nothing but a pain in the ar@se and has not increased sales one bit. Once you start doing things for "free" getting the price up to where it should be to deliver you an acceptable profit will be a huge uphill battle and most of those you provided a "free" service to will never be seen again. They will just move to the next person trying to use the same strategy. Been there, done that. "Loss leaders" are a myth (at least for small businesses). They are simply a loss that you will have to recover somewhere else in your business.

Give good value at a fair price, promise less and deliver more and the customers will come.

[geoffm]

Watch the cashflow - it is what kills small businesses dead. For that reason, be tough on overdue accounts - they are costing you money, which is why they are stringing you out and not paying. Big companies are some of the worst. Make sure you have any account holders on a watertight contract that lets you charge recovery costs, and make it clear that at 45 days or whatever, it is off to the debt collectors. Talk to them - our ones had contract terms that they had us use with our accunt holders, and they had a discount collection fee for debts less than 60 days old. Collecting anything over 60 days is hard, and 90 days impossible usually. Bad debt ratios depend on the industry - 2.5% is common. Typically half pay on time, 45% are a month late, 2.5% longer than that and 2.5% won't pay at all. You have to allow for this.
My next business is going to be a cahs business I reckon. No wonder there are so many bakeries around - cash up front, good margins, and th etaxman cannot be exactly sure how much actually makes it into the till...
Geoff

[Animal]

Sounds like you are heading for success!!! I have a few things that I would like to do as a business but I am still finding it hard to get into the market. Do you think it's wise to do a few "FREE" jobs to generate contacts and getting the word out that you are good at what you do?
Hell no, absolutely not! If the job you're doing is not worth charging for, it's not worth doing at all. Remember... no free lunches.

Here's a known fact that I'm sure every other self-employed member would confirm: Customers never take the cheapest quote. There is a kind of psychological taboo about going to the guy with the cheapest price, as you have to wonder WHY he has the cheapest price? Shit workmanship, shit service, shit quality, another unspecified reason? The guy might very well be completely legitimate and has possibly undervalued his services. The fact remains, customers avoid the cheapest price because of the perceived risk of it all turning to shit. Remember the expression "goedkoop is duurkoop"? (Rough translation: Penny wise, pound foolish.)

When i started my CAD business, I actually used to feel guilty about what I perceived as a high hourly rate, and basically accepted whatever my clients were prepared to pay me. Experience and confidence soon taught me that it's okay to insist on what you're worth, and it's okay to walk away from someone who want's you to work for less than you're worth.

Trumpy has said, discounting is a pain in the arse and entirely pointless. I had quite a number of unsold hours in my diary, and was on the point of discounting my rate to try to attract new business. On the advice of a veteran businessman, I doubled my prices instead - and more than trebled my business! Nowadays, I don't apologise for my prices, and I don't discount or negotiate. The quality of my work and the satisfaction of my clients justifies my price.

So, working for free? Absolutely never!

[KATWYN]

If you're prepared to give up your nights, weekends, stat holidays, lifestyle - and that includes riding - but be comitted to putting in months of 120-hour weeks, it will eventually become self-sustaining. Don't let anyone tell you it's an easy life, and that the money falls into your lap. It's exactly the opposite to that!

.

Yep aint that the truth. My husband and I did 7 day weeks for approx 10-12
months (NOT recommended if you want to remain sane! ) thereafter 5 years of 24 hours per day 5 days per week actually living on the job. Now very normal hours (for us personally).

Business so far has taken ten years to establish and we feel pretty comfortable
with where we are at. But never assume you are sweet in a business and that nothing can "take you out" even with I's dotted and T's crossed there are some very unethical customers (businesses) out there; and laws in this country don't protect our businesses from "theft" - do your research and cover your backside in everything you do and everybody you deal with (if they are credit customers that is).

What kinda business are you looking at ? can I ask ?

[Street Gerbil]

I used to run a one man CNC shop in USA. Wouldn't survive on profits but they made a nice addition to the day job salary. Like someone already suggested, take baby steps. It takes approx three years for an average business to become viable.

[DingDong]

Sounds like you are heading for success!!! I have a few things that I would like to do as a business but I am still finding it hard to get into the market. Do you think it's wise to do a few "FREE" jobs to generate contacts and getting the word out that you are good at what you do?

Give competitive quotes to new customers, build a genuine relationship... not a desperate to sell relationship... when you feel, give them a unbeatable deal... (not free tho.) create loyalty through friendship.

[BarBender]

What kinda business are you looking at ? can I ask ?

Thats a bloody good question.

Some great comments. All I would add is that you find yourself a good bank or leverage your current banking relationship as much as you can if its a good one. Find a good branch manager or business realtionship manager, ideally someone who knows their products and services and can find the best business solution to fit your needs. Dont assume that your banks know much about small business. They dont.
I'd also spend some time building your financial acumen. Being able to understand basic cashflow, reading P&L's and Balance Sheets etc... will help you in the long run.

Good luck

[degrom]

Give competitive quotes to new customers, build a genuine relationship... not a desperate to sell relationship... when you feel, give them a unbeatable deal... (not free tho.) create loyalty through friendship.

Thanks all!!! We received a few really important tips...

Okay, so no free lunches and a bit of extra effort with jobs/contract will keep you on top. Keeping account also makes it easyer for you and your accountant!

Any strategies for getting into the market place? Would love to hear how you all started out....

Thanks all!! :rockon:

[SwanTiger]

Any strategies for getting into the market place? Would love to hear how you all started out.
I remember the first "business" I ever had was with my friend/neighbour (we were kids, about 8 or 9). We collected, chopped and sold boxes of fire wood for $3 each and my friends mum managed the money.

We use to ring places and annoy them until they gave in, always worked.

When I had an ISP I would go around to the local stores and annoy the owners (made 40% more from business customers than residential and businesses caused less problems).

Strategies: If you are at the bottom and offering a service, put it in peoples face, don't let them forget. Annoy the shit out of them. Its free and works. No different to hearing the Mad Butcher winging on a TV advert, just change the medium.

I like to read about serial killers and other predator type criminals, it is good to adapt their mindset for business. Opportunities are everywhere. A serial killer/predator is someone who is often methodical, intelligent and take the right opportunities when given to them. They do what many will not, they take huge risks and are rewarded (in their case, with sick pleasure, in business, you are rewarded with success) where others will not even dare. Like a rapist, they have a desire and the good serial rapist will follow those desires methodically and plan and learn from mistakes, sit back and study. While others might have the same desires to go and rape a woman for whatever reason, only the rapist will take the calculated risk.

That doesn't mean the customer is your victim, it is just a good way of looking at opportunities and dealing with the challenges that you will face.

I hope that makes sense.

Just my 10 cents.

[Virago]

There's been some great advice in this thread, but it is difficult to give you specific advice without knowing specifics of what you're planning.

I've been running my own small business for three years - no regrets. Started of with just myself, now three people employed.

Business structure needs to be considered. Sole trader is the easiest option, but offers little protection of your assets if things go wrong. Limited Liability Company involves more compliance paperwork, but gives better protection for you and your dependants. It also indicates to clients a degree of dependability and longevity.

Initial cashflow requirements may surprise you, but better be surprised now rather than when the shit hits the fan. A good rule of thumb - work out how much money you think you might need to get things up and running, then double it.

There is no shortage of people who can help you with advice and assistance. Talk to your bank first, they will put you in touch with other support people.

Do a business plan. It may seem hard, but a bank will need to see some projected figures.

If your planned business is in direct competition with your current employer, be very careful that you don't end up in hot water. Most employment agreements have Restraint of Trade clauses these days.

Whatever you do, have faith in yourself. Good luck.

[Brian d marge]

I go with the business plan, I cant count the number of times I have made a business plan , With computors you can get an idea , type something loose down , use a spreadsheet to nut out the first year, ( this will help understand things like contribution ratio /margins , mark up etc..all those business type words )
Then ONCE ( it costs NOTHING to run a business on paper!!) Once it looks good and feels right ,,,,, try it , see if there is any demand for your product at that price ..

For me , I have started a while back , BUT as I have a cruisey nite job ,,I am in no hurry or financial pressure ( apart from the wife) ....

Now I also have VERY Low overheads , but I was amazed at the amount I finally had to charge for the product, If I wanted to reduce the final cost I had to sell more ! catcha22 uzarian !

So Again I made a spreadsheet, with all the info in it , and if I see a product I think would work ,,,pow , type it into the pda ,,,pop ,,it tells me what I need to charge ,,,and lets just say I havent found the perfect product

Thats where I am at now , I sell the odd bike or two, it pays for my racing , I am happy , the wife can eat ...so she is sorta happy...
but I get gaps ,,,like I need to sell this bike , to pay for the new Engine, I am building ..the bike isnt selling ..so Mongo ere aint racing :bye:


Also I need to reduce the clutch lever pressure to cope with the new tracks ...and while the design is coming along ...its getting to the point where I will need to get it made .... more money ....

Finally the three businesses I like

Hamburger carts
Prostitution
and Politics

All high cash turn over businesses , freefrom the tax man ,,,

trouble is my cooking is terrible :innocent:

Stephen

[APPLE]

me'n roosta are directors,of picasso.we hav a charted accountant who does the books,tax's and all that jazz,all we do,is ride our iron steeds''...... :rockon:

[degrom]

Does anyone have a few tips for doing market research? I am a bit sceptical about just jumping into a thing with out being prepared for it...

Any tips are welcome.
I understand that there are always risks involved in starting a business but I am sure that lots of start-up business fail because they have the "I like it,so you will also like it" attitude.

[Timber020]

I have been running my business for 4 years, I survived by paying myself 1/5 of what I got working for others and spending all the money on gear for the first 2 years. I have my bike as a business expence, but I legitimately put 150-200kms on it a week with work.

There are some real advantages to owning a business, you can buy lots of stuff and tell your GF "it wasnt me, my business brought it". Its getting a little tired after a fireblade, rf900, welder, tool cabinet, couple of gsxrs etc.
Your the boss, but if crap goes wrong, its all on you.
Im currently working 7 days a week and generally busting my ass so I can take a week off next month.
Sometimes theres not much work, things slow down, if you have employees you cant just say "sorry guys, im making no money right now, so you dont get any."
I did some study in accounting at uni, but found that it was just another PITA that I couldnt do as well. My accountant saves me several times what he costs me. I still do the PAYE but otherwise hes got it sorted.

I do free work, for plunkets, kindergartens etc, well I do ask they mention me in there next newsletter. Goes down well.

As a boss, the good times are better but the bad times are ALOT worse.

Know your market, access your risks, learn from others mistakes.

[Finn]

Here's a known fact that I'm sure every other self-employed member would confirm: Customers never take the cheapest quote.

Yes they do, especially when working with specialised products and services when not a lot is known about them. Happens all the time. Local Bodies are a classic example, exagerated by the fact that they are full of stupid people.

[jonbuoy]

Accountants and money men always seem to go for the cheapest quote. I don't always if its my money - depends though. - Pay peanuts get monkeys.

It will be just my labour and expenses I'm charging out to start with so I don't need big bank loans. I don't really want to be busting my ass off 24/7 for less than I'm on now - Ok doing that to get things moving for 18 months or so but not long term. I'm hoping if I'm busy I will be making money, If I'm not I'll be spending more time at home so should be a win win - or am I dreaming?

[KATWYN]

I don't really want to be busting my ass off 24/7 for less than I'm on now - Ok doing that to get things moving for 18 months or so but not long term. ?

I remember years ago an experienced businessman said to me "Own your own business and you are guaranteed at least a 20% return on your investment"

I never forgot that - it certainly made a lot of difference during those times when we really felt like giving up. (and believe me...theres a lot of THOSE times)

Obviously the time it takes for this sort of return would depend on what sort of business you are in and the outlay of plant etc (if any).

[Timber020]

Getting advice on running your business from people with different businesses is like asking what bike to buy. what works in some industries will bomb in others.

I got alot of advice from well meaning people in different industries, alot of it would have driven me broke. Be careful who you listen to and about what. Find someone in the same industry outside the area you intend to work in so that your not competition, and ask questions, see how they do things, although what works in one place may not work where you are.

[Big Dave]

Getting advice on running your business from people with different businesses is like asking what bike to buy. what works in some industries will bomb in others.

I got alot of advice from well meaning people in different industries, alot of it would have driven me broke. Be careful who you listen to and about what. Find someone in the same industry outside the area you intend to work in so that your not competition, and ask questions, see how they do things, although what works in one place may not work where you are.

Yeah - but good governance is good governance too.

[nudemetalz]

Well, I've started my own wee business...as well as still working for WCC.
It's a lot of hard work setting it up, and a heap of government rules, ie IRD, GST etc.
However, governement-run outfits like Bizinfo and the like do offer support.

I'm trying to get it into a position where the busness can at least equal my salalry before I quit my mortgage-paying job and that is a lot of work.

BTW my business is called "Nudemetalz Ltd". Some of you may have seen my brake-disc clock I made for a client in an earlier thread.

[degrom]

Well, I've started my own wee business...as well as still working for WCC.
It's a lot of hard work setting it up, and a heap of government rules, ie IRD, GST etc.
However, governement-run outfits like Bizinfo and the like do offer support.

I'm trying to get it into a position where the busness can at least equal my salalry before I quit my mortgage-paying job and that is a lot of work.

BTW my business is called "Nudemetalz Ltd". Some of you may have seen my brake-disc clock I made for a client in an earlier thread.

Hey.. Love the stuff you build!!! love the table's....

But if you have a site,why don't you advertise it?

I believe this is your site??? http://www.nudemetalz.co.nz

[nudemetalz]

Yup, that's my site alright.

Getting there with it, take a lot of time and resource to advertise.

Thanks for the kind input.

[mikey]

once i find the companies office or where ever you go to register one ill have a business.

watch out for it

autistic autopsies - specialsts in unethical solutions

[SwanTiger]

http://www.companies.govt.nz/


once i find the companies office or where ever you go to register one ill have a business.

watch out for it

autistic autopsies - specialsts in unethical solutions

[degrom]

So,What's everyone's opinions about the new year?

Is it going to be a better / Worse year for business?

[nudemetalz]

Well my new year is going to produce some amazing and innovative designs for Nudemetalz which I'm going to prototype and showcase.

[peasea]

I ran my own business for nine years and am basically still self-employed freelancing but with one permanent part time job. The business was a double edged sword some days; you could call all the shots but if required you worked Sundays. I hope you have a good paper shuffler, I've seen the most talented people go belly up for want of good accounting and creative tax methodology. Don't do anything illegal but claim for everything. A lot depends on your field of work and where you're doing it.

[Brian d marge]

Well I just revied my business plan , and am content with it ,,penciled in a few changes , nothing major

Plans for this year . increase sales a bit more and invest in a bit of kit...

Lined up till june for work , thats cool ...as I am racing in 2 series next year and the wife WILL have a spaz if she sees the expenses ! ( why am I thinking of Caparossi on that DVD　Faster ..about the speed of the Ducati ,,,,its a good yeah??)

Sometimes I feel bummed about the money side of it ,,but othertimes I feel good that I am bang on track ,,Exactly what I planned for a year ago , has /is happening ..so that makes me feel better


Finally on the Marketing side... I tried that questionaire ,,all I got was err its ok ... crap answers ( to possibly crap questions ~)

My wife was PAID to test fridges the other day ,,,she was watching the answers that others gave ,,,, they were a whole lot better ,,,,

So me thinks ..... in return for your Opinion ,,, you get something ,,,now that might work...

Hey ho ..its all fun in the end !

Stephen

[scracha]

Just passed the magic "1 year in business" mark. Even made a small profit which REALLY surprised me as it's often felt like I've been running about like a headless chicken for nothing. Hopefully I can make it to 24 months.

Couple of mates back in the UK advised me not to try and grow things too quickly so my main areas to concentrate on will be keeping existing customers happy and finding cheaper (but still reliable) suppliers.

Hoping to push the ReadyNAS side of things more. Maybe looking at importing some other NAS devices land expanding to GPS units. Thought about selling computers this year but I think I'll just stick to repairing them.

Been using a FREE product called "Volutive" for my invoicing. It's worked well the first year. Agree with the accountant bit but you can save yourself a fair bit of money by sorting invoices by company/date and even just listing them in a spreadsheet.