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10 Things We Learned Starting Our New Business

December 2, 2012 · 34 comments

in Work

In case you have been wondering when I have been (or if you haven’t), I can now share what has been going on.

Early in the summer, funding was cut where I worked, and I found myself laid off.  At around the same time, my husband found himself disgruntled with his job.

So, since I was in the position of having a clean slate, and my husband had been contemplating a change for awhile, we decided to embark on creating our own consulting and employee placement company.  (We are up to 6 employees now!)

10 Things I Have Learned About Creating A Company

  1. It is a LOT of work.
  2. Possibilities can be overwhelming.  For example, finding office space can take awhile.  There is so much available office space where we live, which means there are a lot of choices.  Finding the ‘best’ option is difficult. Also, what is best at start up may be totally different than what is best 6 months down the road!
  3. Finding the right health/dental insurance can be a daunting task.  (Especially when finding the right plan for a whole company.)
  4. Networking is incredibly important!  In addition, it has proven that maintaining relationships throughout your career can be one of the best ways to invest your time.  You just never know when a person you worked with 10 years ago might need your help down the road.  It can be a very small world in some industries.
  5. ALWAYS consult professionals for things outside your area of expertise.  We have had to hire a  lawyer and a CPA, as one uninformed decision can have huge consequences.  (Especially when it comes to taxes!)
  6. Details matter, and can really take up your time.  (See point 4.)
  7. Each decision has a personal impact.  I have always been a conscientious employee, but I never felt like I had a direct impact on financials.  When it is your own equity though, it is totally different.
  8. I spend a lot of time researching.  Trying to locate the correct software, laptops and more at a great price takes time.
  9. You have to listen to the people that use the tools.  Functionality can matter a lot more than price!
  10. It is a lot more fun than working for someone else!
Since our company is still new, I know there will be a lot more learning along the way.  However, it is a fascinating experience, and invigorating.  The one point I cannot emphasize enough when starting your own business is to focus on what you know, and consult others for what you don’t know.  It is time consuming enough to get the ball rolling, it just doesn’t make sense to waste a lot of time trying to figure things out when others have the answers readily available.  Sure, hiring outside help will cost money, but if you can’t afford to do it right, it might be best to wait  a little while then to become self employed.
Got any lessons you would like to add?

 

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{ 32 comments… read them below or add one }

Financial Samurai December 2, 2012 at 3:18 pm

Welcome back Kris!

I feel u 100%! I wrote a post called “A Day Job Is So Much Easier Than Entreprenership” a couple months ago that was pretty well received.

Rewarding but difficult! Good luck!

Sam
Financial Samurai recently posted..Who Should Get A Black Card? Probably Not You!

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Kris December 2, 2012 at 3:41 pm

Thanks Sam! Don’t I owe you some money for an election bet I lost??

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Financial Samurai December 2, 2012 at 3:43 pm

Thanks for remembering! I’m not one to hound the otherside after a win, and I actually forgot the amount. If u can’t find the amount, ill have a look!

So what is the business exactly now?

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Kris December 2, 2012 at 3:54 pm

I remember the amount, should I just send it to your paypal account?

The company does multiple things. Basically, we are a people solutions company, focused on accounting, finance, and IT. We help clients with 1 of 3 things: Permanent placements, temporary assignments, and project teams. Per chance I need to add that to the post? :)

Things going great with your venture??

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Financial Samurai December 2, 2012 at 3:57 pm

Sure, PP would be great!

Sounds like an intense business due to the need for human capital and match making.

My business is doing OK. Upgraded from ramen noodles to the occasional beef teriyaki bowl!

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101 Centavos December 3, 2012 at 7:22 am

Welcome back, Kris.
At first blush, I can definitely see a niche for your business model. IT departments at large companies seem to be hidebound by procedures and security and turf protection, that they forget their primary goal: serve the customer.

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Kris December 3, 2012 at 2:24 pm

Hi 101! I think many companies have definitely lost the customer, and the employees too now that I think about it.

Thanks for coming back! I hope things are great with you.

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101 Centavos December 3, 2012 at 5:38 pm

Record profits and 2% (or no) yearly increases, that’s the way to lose employees. Things are going swimmingly, if only crazy busy.
101 Centavos recently posted..Be A Modern Magician

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The Biz of Life December 4, 2012 at 9:18 am

Congrats on your new business, and best of luck.
The Biz of Life recently posted..My Experience with Windows 8

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Don December 4, 2012 at 12:21 pm

Exciting, yet stressful times!

Here’s wishing you the best! I can’t wait to read about your new adventures in entrepreneurship on your blog!
Don recently posted..Using Paypal As A Simplified Bookkeeping System

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Little House December 5, 2012 at 9:52 am

It’s great to hear about your new endeavor. I wondered where you had gone! Best of luck as your business grows. Keep us posted!
Little House recently posted..Who Said Paying Bills Isn’t Fun?

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Len Penzo December 5, 2012 at 8:33 pm

Welcome back, Kris! And congrats on the new business too. I wish nothing but the best!

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The College Investor December 7, 2012 at 12:54 pm

Congrats on your new business. All the best! Starting a business can be quite stressful and I’m glad to know that you are doing well and learning things as you go along.
The College Investor recently posted..How To Discuss Stocks on Social Media

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Kevin @ Invest It Wisely December 8, 2012 at 10:51 pm

Good to see you back, Krys! Building a business is a lot of work, but it’s very rewarding at the same time too. :) Things are a bit different around here in that office space is quite limited, but the good thing is that I can mostly work virtually with my colleagues so it works out. So cool to see you guys on this new adventure. :)
Kevin @ Invest It Wisely recently posted..3 Low Cost Ways to Grow Your Small Business

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MyTurnQuips December 9, 2012 at 5:34 pm

Good luck in your business venture. I admire your courage. I enjoyed the wide range of variety that you cover in your blog. It’s a challenge to run such a gamut of topics and I’m constantly looking for ideas of how to pull it off.
MyTurnQuips recently posted..2 Essential Tech foundations for your kids

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euromillions December 17, 2012 at 12:17 pm

Congratulations for starting your business!
About that networking and connections thing: why didn’t you take the opportunity to link to your company website from this article? Who knows, some of your readers might be looking for the services you provide…

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Alex Dumpfree December 18, 2012 at 6:25 am

 thanks for your good service all over the person.I have always been a conscientious employee, but I never felt like I had a direct impact on financials. I know want When it is your own equity though, it is totally different?

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Financial Independence December 27, 2012 at 8:46 am

Glad to see that you finding time to share your findings with us Kris!

I think you do learn a lot and the earlier you start the better. It is an exciting journey and experience does count!

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Financial Independence December 27, 2012 at 8:48 am

What I also found is important to take notes as you go. A few months down the road they are not as sharp. So thanks again and a happy new 2013 year!
Financial Independence recently posted..End of 2012 year update ($224,500 +$61,000 or +37%)

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Allan Wang December 30, 2012 at 5:03 am

I have to say i am very impressed with the way you efficiently blog and your posts are so informative. You have really have managed to catch the attention of many it seems keep it up!
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louboutin January 4, 2013 at 1:11 pm

There are a number of companies in competition to get their attention and especially now with the latest trend of louboutin. They are providing the most updated design and models of wedges, to seek the attention of the women and offering various discounts to their customers
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Chris@The Credit Cat January 22, 2013 at 3:55 am

A lot of work is an understatement, it’s hard not to put in 70hour+ weeks when you are getting started!

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Nunzio Bruno January 23, 2013 at 1:06 pm

I think I have an extra point to add to the Top 10 – Nothing is ever going to be perfect. There’s not a perfect deal, product, or service. Especially when you are trying to launch your own. The best thing you can do is get what you are offering functional and consumable then, start adapting as you go. You might not be able to predict all of the needs of your clients or customers but you sure can lean on them for feedback. Most of the time if they like you, your business, and the problem your solving they will like the idea of being part of a community. Just make sure that when you launch your product/service isn’t so rushed that it might hurt someone :)

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Jacq February 4, 2013 at 8:35 pm

Kris, I hope you come back and tell more about your experiences!! I’m getting to the point where I’m thinking I’m crazy to not work for myself again.

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STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION) February 16, 2013 at 11:52 am

Number 5 is near and dear to my heart. Just kidding, but as a tax, estate, business attorney, it is imperative to get good advice before doing anything. The choice of entity issue as to whether to operate as a C or S corporation or as an LLC or a partnership or limited partnership is a threshold issue that should be discussed with tax counsel. (I have a lot of articles at my website (not my blog) for readers who want to learn more) Various tax elections, cash versus accrual method of accounting, etc.
Finally, if you have co owners then a shareholder agreement would be imperative to avoid problems if things do not work out.
I could go on and on about other relevant issues, but these are some of the reasons why newly minted business owners need tax and or corporate counsel..

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Will February 17, 2013 at 4:49 pm

Great blog! I started up 12 months ago and my biggest piece of advice is to ensure you keep costs as low as possible. From stationery through to business landlines, make sure you shop around for the best deals.

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Amy @ JobCred CV Builder February 18, 2013 at 9:32 am

Great lead. Creating a company is hard but to maintain and realize its objective is another thing. The great challenge involves the idea of staying focused on business goals.

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Kris February 22, 2013 at 2:17 pm

Thank you to everyone for your well wishes! Life has been busy, but part of the reason I have not been back is my site got hacked by a spammer and I had issues getting it all straightened out. The business is going great. Jacq, you may indeed be crazy for not working for yourself again, but I think you will find success in anything you do. Nunzio, you are so right, nothing is perfect. This has definitely been a process of trial and error, and it has been fun along the way. Expect a new post soon.

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Craig Kingston March 18, 2013 at 2:12 pm

All your points are so right on! I agree wholeheartedly with your point about keeping in touch with colleagues throughout your career. It is so important to keep connections going. Social media makes this even easier than it used to be. Contacts help in many ways, not just sales. Getting advice about software choices, and a myriad of other topics when you’re just starting up can save tons of time spent researching soup to nuts.

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Pam@Pennysaverblog March 19, 2013 at 4:41 pm

That’s great that you started a business. My husband just recently started one as well and I’ve been doing some of the marketing and the bookkeeping for him. There is a lot that he had to learn and we’re still in the slow process of building a customer base. We know it will take a while to get established but we think (and hope) it will be worth his time and effort. Good luck with your endeavor!

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QUALITY STOCKS UNDER 5 DOLLARS March 28, 2013 at 8:40 pm

The problem with starting a business is that the odds are against you. I think one of the worst things you can do is starting a business that requires lots of money upfront. The problem with this is simple why start a business that requires lots of startup costs. Its not necessary theirs lots of service type businesses that can be started with very little money..Im not against starting a business its just unwise if it takes lots of money upfront to do it.

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Galen August 16, 2014 at 3:29 am

MA

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