Calling small/medium business owners

[mi650]

...meanwhile small business owners are wishing they had become firemen...

Having been self-employed for about 10 years, there's a lot of truth in this.

But then, I'd really have it no other way. I don't think I could ever go back to punching a clock again.

 

[CoSwede]

Something I tell everyone these days is that the post COVID employee is a completely different animal from the pre-COVID employee. So much so that I signed a contract today to sell all four of my businesses that I've run successfully for over a dozen years. Yes there are still some core folks that are amazing but the percentage of people with poor work ethic has increased significantly to the point where it isn't worth it (to me) anymore. Point being, if you want to have your own business be sure you have the employee side of things figured out completely. Reward those that are your rock stars but it should go without saying that paying someone more money doesn't make them a better worker. The decline of work ethics is someting I've seen plenty of but rarely do I hear it talked about except among fellow business owners.

 

[woods89]

Something I tell everyone these days is that the post COVID employee is a completely different animal from the pre-COVID employee. So much so that I signed a contract today to sell all four of my businesses that I've run successfully for over a dozen years. Yes there are still some core folks that are amazing but the percentage of people with poor work ethic has increased significantly to the point where it isn't worth it (to me) anymore. Point being, if you want to have your own business be sure you have the employee side of things figured out completely. Reward those that are your rock stars but it should go without saying that paying someone more money doesn't make them a better worker. The decline of work ethics is someting I've seen plenty of but rarely do I hear it talked about except among fellow business owners.

This is true, and a great point.

 

[woods89]

Having been self-employed for about 10 years, there's a lot of truth in this.

But then, I'd really have it no other way. I don't think I could ever go back to punching a clock again.

Yeah, it has its days, but I don't think I'd make a very good W-2 employee anymore.

 

[mi650]

Something I tell everyone these days is that the post COVID employee is a completely different animal from the pre-COVID employee. So much so that I signed a contract today to sell all four of my businesses that I've run successfully for over a dozen years. Yes there are still some core folks that are amazing but the percentage of people with poor work ethic has increased significantly to the point where it isn't worth it (to me) anymore. Point being, if you want to have your own business be sure you have the employee side of things figured out completely. Reward those that are your rock stars but it should go without saying that paying someone more money doesn't make them a better worker. The decline of work ethics is someting I've seen plenty of but rarely do I hear it talked about except among fellow business owners.

It was near impossible to compete with the .gov paying people to stay home.

 

[Wrogers18]

My wife and I transitioned from our W2 jobs to owning a coffee shop in Colorado. It's been a fulfilling journey, even though we had no prior experience in the industry. The shift is a significant change, but the freedom and satisfaction are worth it.

We dove headfirst into learning everything about managing a coffee shop – from selecting the right beans and perfecting brew methods to creating a cozy ambiance and delivering top-notch customer service. We've even started hosting local music nights and art displays, turning our shop into a community hub.

We got the idea and moral support from a family friend who owns one of the top-rated Copper Mountain airport transportation providers. This friend shared invaluable insights about customer service, marketing strategies, and adapting to seasonal tourism flows – lessons that have been crucial in our coffee shop's growth.

 

[Yoder]

I don't know if anyone mentioned it but Jocko Willink has a book called Extreme Ownership that is all about leadership. I highly recommend it. His podcast is pretty awesome too.

 

[EZduzIT]

My wife and I transitioned from our W2 jobs to owning a coffee shop in Colorado. It's been a fulfilling journey, even though we had no prior experience in the industry. The shift is a significant change, but the freedom and satisfaction are worth it.

We dove headfirst into learning everything about managing a coffee shop – from selecting the right beans and perfecting brew methods to creating a cozy ambiance and delivering top-notch customer service. We've even started hosting local music nights and art displays, turning our shop into a community hub.

We got the idea and moral support from a family friend who owns one of the top-rated Copper Mountain airport transportation providers. This friend shared invaluable insights about customer service, marketing strategies, and adapting to seasonal tourism flows – lessons that have been crucial in our coffee shop's growth.

What a cool journey! Where is your coffee shop if you don’t mind me asking? Would love to stop in!

 

[EZduzIT]

I found an old fart that wanted to retire. He carried the note and so far haven't had to deal with the banks.

I should have done more digging on what the business was making, and what the general opinion of the business was. He pissed off a lot of people those last few years...

I went into it blind with zero experience. Threw away a ton of money that first year between screw ups, pricing, freight and emergency orders due to not keeping track of inventory.

You are going to pay for an education one way or the other. The good news is that you learn so much faster when its your money

You are going to be married to that business for a while. If you are out sick, hurt, or hunting, plan on it not making a dime.

You will look a the general public in a completely different way after owning a business

Great insights, thank you. Would love to hear more about how you got the owner to carry the note, was he apprehensive at first or was it his suggestion to not get banks involved?

 

[dusky]

My small moving business is for sale in the Boulder area for 150k, if you want to talk. I haven't heard of a need for 30% down on a loan. Mostly 10-20%. One prospective buyer said he may be able to get a loan with no down payment in exchange for a higher interest rate, and if he and my business can demonstrate sufficient income to pay bills, etc. As for work, I would consider it a bit reckless or naive to not expect to be very hands on for a year while the systems are learned and improved upon. Especially for a very small business. Even better established businesses with managers running the show are going to need a lot owner involvement at first. I believe the more you put in, the more you get out.

 

[LFC911]

Keep your day job and start your side hustle on your days off. Most firemen i know, and i know a lot of them, work 9 days a month and then basically work a f/t job on the side. As said before, a FF is the perfect job to do this. Find a side hustle you enjoy doing; remodeling, concrete, heavy equipment operator, plumber, lawn care, landscaping, etc... Seasonally you can do snow removal if you have a H/D truck or you could do Christmas lights on houses. When you get busy enough you can decide whether to quit the FD and go all in or keep it small. Keep in mind you have the perfect job to take a month off and go hunting with PTO and trades. Once you get a few employees it gets much harder to do. I know one guy that when he goes hunting, he basically pays his employees to take the week off as well because the quality is that critical. Good luck!

 

[recurveman]

So you've decided you don't like to work much and would like to own a business so you can transition to playing most of the time and working as little as possible? Am I getting that correctly?

I see people that try to do this and as soon as they are semi absentee the business goes downhill. How are you at leadership? Do you have a leadership position right now? Would your leadership style be top down, if you are/were a leader? Because quite frankly, everyone that I see succeed at semi absentee is an effective leader. Those that fail want to think they are a leader, but in reality are not great at it.

What this guy said. Being successful is very difficult. Being adsentee and successful is very long odds. It would typically look like this. I have owned the business for 30 years and have a team of 50+ employees that have been involved for at least 10+ years. Then you can take time away for weeks at a time but maybe not months.

 

[recurveman]

Getting a loan is a horrible idea. Think of it this way. You are borrowing money at a percentage rate and betting that you can achieve better results than the percentage rate. If you don’t hit it out off the park you will file bankruptcy. If you would like to meet people that have tried this I can introduce you to them.

The ONLY option is to bootstrap it. CASH ONLY OR YOU CAN’T AFFORD IT!!! You start small and make small mistakes.(you will make a ton of mistakes…..we all do) Then when you can afford it (and acquire a skill set that you currently don’t have) you can make bigger mistakes with your own cash. You will be a better businessman with this approach. Borrowing money is the death of many businesses that didn’t need to die. All because the owner wants to grow really fast with leverage. Bad idea. Hope I was clear.

 

[EZduzIT]

Getting a loan is a horrible idea. Think of it this way. You are borrowing money at a percentage rate and betting that you can achieve better results than the percentage rate. If you don’t hit it out off the park you will file bankruptcy. If you would like to meet people that have tried this I can introduce you to them.

The ONLY option is to bootstrap it. CASH ONLY OR YOU CAN’T AFFORD IT!!! You start small and make small mistakes.(you will make a ton of mistakes…..we all do) Then when you can afford it (and acquire a skill set that you currently don’t have) you can make bigger mistakes with your own cash. You will be a better businessman with this approach. Borrowing money is the death of many businesses that didn’t need to die. All because the owner wants to grow really fast with leverage. Bad idea. Hope I was clear.

Would love to hear the stories of the folks who were not successful if they’d be comfortable doing so.

 

[Hnthrdr]

Co is turning into one of the least business friendly states and continues to head down an unfriendly path for small or medium businesses. Wife owns and operates a small business. 15 employees. Will be interesting to see how the new family leave will affect. Depending on the industry, really hard to find a decent/ reliable employee especially in the 20-27 dollar an hour range

 

[recurveman]

Would love to hear the stories of the folks who were not successful if they’d be comfortable doing so.

I had a buddy that did a 5 year retail
Space lease in 2007 in AZ. He opened a flooring business. He was in an area that was growing like crazy. He was doing pretty good right off the bat. Far from killing it but making a little money and paying all his bills. Come 2009 he can’t sell enough flooring to even come close to paying the bills. He took out an SBA loan and. 2nd mortgage to start the business in 2007. 3 years later he was declaring bankruptcy. After that he went to the Dave Ramsey principles and is doing well.

The reason he decided to start the business is because his friend across town had a flooring business that was doing pretty good. My buddy was his store manager for 5 years and knew the business inside and out. They both knew he would start his own business and it was very great relationship for both parties. The interesting part is his buddy is still in business today…….He had no debt and could make it through the tough time. If you borrow money everything has to go perfect or your result will be obtaining a lawyer that spcializes in bankruptcy. If you don’t have debt and hopefully a little cash your monthly nut will be much less and you will be able to make it through the tough times. Plus it’s better to screw up with thousands of dollars instead of hundred of thousands of dollars.

Bootstrapping is the best way to start a business!!!!! I know many current/former business owners that are worth tens of millions of dollars and all of them started from ground zero and bootstrapped it. They also don’t like debt, hoard cash and are very risk averse. This isn’t a get rich quick deal. It’s having more money than you can spend in 25 years!!!! Very doable.

 

[recurveman]

Lot of people got crushed in 2001 too. Oh and I think 2020 might have been tough on a few people also. Plan on unexpected downturns. They really aren’t all that unexpected.

 

[gbflyer]

Banks suck. Wait until you have a balloon you can’t pay but you’re current on payments. Or they call the note because you bought something on credit you need and your credit rating drops.

 

[mtnbiker208]

I have been self employed for over 20+ years. I have ran my business thru 3 recessions.
Don't take a loan, unless you can guarantee you can pay it back. Also, if you want to get into your own business, be aware of signature guarantees.