Ideas for a service-based startup business?

[yellowstang]

Lyn started her cleaning business last Sept. and it has really taken off. Startup was very cheap, like $3K, and she has more client requests than she can accept. Who'da thought there were so mnay lazy fuckers out there!

[midniteblue5.0]

Lyn started her cleaning business last Sept. and it has really taken off. Startup was very cheap, like $3K, and she has more client requests than she can accept. Who'da thought there were so mnay lazy fuckers out there!

YUUUUP!,nobody wants to clean their own house anymore...?

[black2002ls]

I'm taking the first major step to my own bakery/cake shop come the first of the year.

[yellowstang]

YUUUUP!,nobody wants to clean their own house anymore...?

Man, I bet %60 of her clients are stay at home wives/Mom's.

[midniteblue5.0]

Man, I bet %60 of her cleints are stay at home wives/Mom's.

the sad part is that most girls now these days are gna grow up to be the same way!!

[Sean88gt]

There are numerous things to consider when venturing into your own business. Frankly, there is more to consider and more pitfalls than you can imagine. Success is often a result of how fast you can make difficult and gut wrenching decisions.

You also need to look what you want to do from here on out. When I ventured into my business I didn't craft the idea, had no ties to the industry but saw the potential, so I went forward. When times were good, it was great. When times got lean, I developed a hatred for it because we were subject to things so far beyond our control that it was crippling. So you need to make a determination of whether you'll continue to enjoy the work and find it stimulating when you aren't getting paid or the economy is down.

Are you patient? If not, develop this first, because you will need it.
Do you deal well with subordinates? You'll need this as well.
Whatever capital you think you need, increase it by 5-10 fold.
Know the importance of cash flow, margin, cost, profit etc. Often times in small business, cash flow is immediately more important than profit, while in the long term profit is far more crucial. My business had fantastic cash flow and when we began to mature into profitability we became a casualty of a market that had evaporated.

Overnight, it seemed like we hit a wall. We had done everything we thought we could have in regards of transitioning from our (then) current customers to new markets. The ball was rolling but we dropped too fast, used up cash reserves and lacked the funds to prepare for the transition. After posting our first $500k month (07/08) we posted a $25k month the following month. We thought it was an anomaly and stayed the course. Sales rebounded some, but only to about 20% of peak which put us to a level that was 3 years prior to where we were. Immediately, I cut our staff by 50% right before thanksgiving (15 employees) and another 5 right before Christmas. A lot of these guys were hired by me and letting them go right before holidays was brutal, but survival dictated the timing.

So, for the last Q of 08, all of 2009 and up to April 2010 (when I left) it was a struggle. I hated it. It taught me a lot about myself, doing something you love, and chasing your dreams. In the end I spent nearly 8 years getting an education in life and preparing me for my future career.

Be prepared for nothing but curve balls and be flexible. It will take far more than you can realistically anticipate but you will also give far more than you could have ever dreamed of yourself.

[Tx Redneck]

...

Now I'm all depressed. I think I'll go jump off a bridge.

[Kyle]

.....

This man speaks the truth. Being self employed was the hardest thing I've ever done. When I started the business, I had more money in savings than I'd ever had at any point in my life. I burned through it at an amazing rate and at the end of 6 months it was basically gone. It was also by God's good graces that about the same time the business took hold and money started coming in. I could easily quit what I'm doing and go back to my old job and "make" way more money, but I couldn't see myself working for another corporation.

Being S/E has left me broke, my credit destroyed, and not having any freedom because I'm tied to the job... and in some sick twisted way I love it. If I had it to do all over again though, I probably wouldn't. It's the hardest thing you can ever do! Only being in business for about 21 months has been a struggle, but there appears to be a light at the end of the tunnel!

[Alex]

jasons deli for sure everytime i drive by one at lunch their a line out the door

I always see a line at Chic-Fil-A

[JFurst]

Lyn started her cleaning business last Sept. and it has really taken off. Startup was very cheap, like $3K, and she has more client requests than she can accept. Who'da thought there were so mnay lazy fuckers out there!

residential, commercial or both? How did she come up with how she does her estimates? Hired help or does it herself?

[JFurst]

This man speaks the truth. Being self employed was the hardest thing I've ever done. When I started the business, I had more money in savings than I'd ever had at any point in my life. I burned through it at an amazing rate and at the end of 6 months it was basically gone. It was also by God's good graces that about the same time the business took hold and money started coming in. I could easily quit what I'm doing and go back to my old job and "make" way more money, but I couldn't see myself working for another corporation.

Being S/E has left me broke, my credit destroyed, and not having any freedom because I'm tied to the job... and in some sick twisted way I love it. If I had it to do all over again though, I probably wouldn't. It's the hardest thing you can ever do! Only being in business for about 21 months has been a struggle, but there appears to be a light at the end of the tunnel!

you do towing correct? Are there ways to increase your business or are you tied to a certain market such as body shops?

[Sean88gt]

Now I'm all depressed. I think I'll go jump off a bridge.

Why? It was a tremendous learning experience. My only regret was not selling in 2007 when we had an offer on the table. Going to school with 7 figures in a savings account would have been far easier, but my perspective would have been very different. Things work out the way they do, so I've cut back and will rebuild later.

...

Yes to all. The last time I received 'salary' was in august of 2008. Anything resembling retirement, savings, investment is long gone. Credit will be a process of rebuilding, but I have 3.5 years before I'll be working fulltime. My wife has been amazing at picking up the slack and I've been selling assets on the side. But, I've been able to cut expenses from around $6500/mo to under $2k.

I'm sure at some point I'll end up with my own business again because it is a sickness, but for right now I'm focused on school.

[Kyle]

you do towing correct? Are there ways to increase your business or are you tied to a certain market such as body shops?

There are always different strategies to pull in more business. I'm only tied down geographically. The area that I can cover and offer quality service (and arrival times) is what really limits the business. Basically anywhere I can drive in 45 minutes and make money is what I do. I turn down business when I have to if I can't make money on a tow. We tow for "off the street" customers as well as shops, etc. I do the occasional repo when I have to or anything else to make money depending on how hungry I am that day!

I want to mention that when you are S/E, you always get paid last. I'm lucky if I can pay myself $200 a week. This is mostly just to give me a little money for stuff that wouldn't be otherwise covered by the business and is far from steady.

... My wife has been amazing at picking up the slack and I've been selling assets on the side. But, I've been able to cut expenses from around $6500/mo to under $2k.

I'm sure at some point I'll end up with my own business again because it is a sickness, but for right now I'm focused on school.

My gf will be out of school next September/October and I can't wait. For now she works for me part time so that she can concentrate on finishing up. I can't wait for the day that we have that additional income! She may start off slow at around $30k/yr, but could be as high as $50k. Either way I can't wait!

I know what you mean though, it's definitely a sickness!

[yellowstang]

residential, commercial or both? How did she come up with how she does her estimates? Hired help or does it herself?

Residential, commercial insurance coverage is very expensive. She is licensed, bonded and insured, so that helps put clients minds at ease when hiring a service. Her and an old HS friend started it, she (the friend) used to work for Merry Maids, so had an idea on pricing. She goes by sq feet and has a list of what a cleaning covers. She also offers blind cleaning and other things for extra $ that everyone seems to want.

It is just her and her neice now, we bought out the friend cuz she lived to far away and hated the drive

[big_tiger]

My Aunt has a landscaping business, and she doesn't have enough man power to keep up with all the work...

I should really get into this, because I could pick up some of the work she gets turned down.