[Jonny450R]

I've been thinking about starting up my own business for a while now. Lately how things have been going with my current situation have made me thinking about it more then ever. But it would be servicing critical power systems, pretty similar to what I am doing now(one thing for sure though, I would be based out of CO).

However I have no clue were to start as far as the business side of things goes? Do I just walk up to a bank and with a business proposal and ask for a loan or do I try to save some money for a year and start from there. Like I said I have a very vague idea of how to actually start a business works. Granted right now with the economy the way it is, I am probably nuts for seriously thinking about starting my own company but what would be the fun in playing it safe.

 

[05KawBoy700]

Good luck with the loan.... I dont know how things are going where you are at, but banks in MI are pretty much denying all commercial loans. My boss has had several people look at his commercial rental property with solid ideas, all have been denied $$$.

 

[rpm]

Not sure of all the requirements in CO, but you will want to start out by getting a Business License. If you try to approach a Bank for a business loan without a License, they are probably going to look at you funny.

As far as a Bank Loan goes, you are going to find them pretty tight in this day and age. Most of them are requiring that you have a percentage of your start up money in the bank already. So any money you can come up with ahead of time is going to be a plus. They will probably require a business plan as well as some type of documentation showing projected earnings.

Good Luck.

 

[Psi-820]

for my business i saved $20grand over 8 months then hit the bank for the rest with my purposal that was 23 months ago and my hydroponic shop is booming and i sold %30 of it to a family member for a nice profit and were all happy but im in aus not u.s

 

[hndlbarmonkey]

unless you know what you're doing and have a definite game plan I don't recommend going in to debt before you have made your first dollar. Start small with as small of a capital investment as possible. Learn your market, learn your customers, then grow

 

[NovaKaw650]

The bank will require a detailed business plan.
If you have no backround in business management, at least do some online studying. There are so many things that you don't expect that can trip you up. Make sure not to miss anything when planning this; cost of start-up, insurance, licenses, lease or rent, permits, tooling, any costs related to running the business.
Don't fall into the trap of "Company X charges too much money for a service; I can do it for much less". New companies usually find out the hard way that Company X was charging their "too high rate" for a good reason.

 

[Jonny450R]

Thanks for the info guys I have a feeling I am going to be either reading a lot in the next couple of months or I might be contacting one of my friends who has a masters in business to help me out as far as getting a business license (don't know if he'll be much help though)

unless you know what you're doing and have a definite game plan I don't recommend going in to debt before you have made your first dollar. Start small with as small of a capital investment as possible. Learn your market, learn your customers, then grow

Right now my game plan is to start out of my house and since I have some connections into the OEM's of the equipment I work on, pretty much I would be sub-contracting myself to them directly instead of through other people's companies.

 

[RAWDAWG700]

Good Luck

 

[NovaKaw650]

Starting out of your house is the best way to start.

 

[pony]

good luck........

 

[DonkeyKong]

So basically your an electrician?

 

[hndlbarmonkey]

Right now my game plan is to start out of my house and since I have some connections into the OEM's of the equipment I work on, pretty much I would be sub-contracting myself to them directly instead of through other people's companies.

Excellent idea, will allow you to see what kind of possibilities there are without a lot of expenses.

The only downside and it's really more of a personality trait of the person. Sometimes having to meet an obligation (expenses) is more of a driving force to make it work and bust your ass out there. What you get out of it, is directly related to what you put into it and I don't mean money. Your greatest asset is yourself

 

[Jim]

Some good advise these guys are giving and get the right clientel that pays and base your services off of what rates are in a geografical area,
Buy your inventory of what moves a lot at discount like at select equipment in kokomo Indiana.

You can start small and build the business, every one is looking at the bottom line my friend including Big Business,

Get that business license so you can hit industry trade shows so you can set up deals with the manufacters of products,
if you have to fly to these or whatever, be doing it.

You dont have to be MR.Big to be on the cutting
edge.
All industry have these shows and are a must in this business climate. Be looking at some of this small business tarp money getting ready to be distributed..Now is THE time to get in if you can hold on and maintain. JH @t
JH Machine

 

[greasemonkey]

If you are going to work out of your house check with your local laws because even though the actual work isn't done there ,if your office(where your phone is) is at home it might have to be zoned for commercial .Also take into concideration when working with big companies, alot of them pay at ninety days so you will be waiting for your money.

 

[Jonny450R]

So basically your an electrician?

Kind of except I don't need a license and I won't be installing any equipment, just servicing them, I go in after the electrician has made the final connection of the load and feeds.

Right now my game plan is to start out of my house and since I have some connections into the OEM's of the equipment I work on, pretty much I would be sub-contracting myself to them directly instead of through other people's companies.

Excellent idea, will allow you to see what kind of possibilities there are without a lot of expenses.

The only downside and it's really more of a personality trait of the person. Sometimes having to meet an obligation (expenses) is more of a driving force to make it work and bust your ass out there. What you get out of it, is directly related to what you put into it and I don't mean money. Your greatest asset is yourself

Some good advise these guys are giving and get the right clientel that pays and base your services off of what rates are in a geografical area,
Buy your inventory of what moves a lot at discount like at select equipment in kokomo Indiana.

You can start small and build the business, every one is looking at the bottom line my friend including Big Business,

Get that business license so you can hit industry trade shows so you can set up deals with the manufacters of products,
if you have to fly to these or whatever, be doing it.

You dont have to be MR.Big to be on the cutting
edge.
All industry have these shows and are a must in this business climate. Be looking at some of this small business tarp money getting ready to be distributed..Now is THE time to get in if you can hold on and maintain. JH @t
JH Machine

The way I am planning it now is, there are two big OEM's that I am planning sub-contracting my self to. Both are hurting for techs and companies that perform service. Since the corporate big boy won't hire any new guys(go figure).One of my advantages is with one of the OEM's, I already have a good reputation with and they know if they send me in it'll be done right the first time. So I would have to start with them and work my way up from there.

If you are going to work out of your house check with your local laws because even though the actual work isn't done there ,if your office(where your phone is) is at home it might have to be zoned for commercial .Also take into concideration when working with big companies, alot of them pay at ninety days so you will be waiting for your money.

Thanks I didn't think about that. I need to look into that for sure. I'll probably have a better idea once I go back to CO for Christmas and talk it over with my parents, since they said they would help me out. As well as call a couple of people at the OEM and see what they're billing cycle is setup as.