If you had $50k to start a business, what would it be?

[TargaDave]

Hey fed,

Only one thing for me to add to fine advice here. Anytime you hit a low point in your next venture (we all do) and you need some cheering up just log on here and read a few of the mega-corp/civil-servant prisoner posts (current and ex prisoners included). You'll know you made the right decision. Good luck.

[No need to do a search, the prisoner theme is always current here.]

 

[SteveR]

any ballpark idea of what it cost you? ive heard answers ranging from 100 to 1000

I looked for the receipt last night and cannot find it. I am not sure how relevant it would be without a breakdown by duct length or number of some other factor to compare it with other quotes. In my case, I have two furnaces, (basement has it's own) and a separate air conditioner system (upstairs), so the number of ducts is more than your average house. The unit was undersized for the house and when a previous owner finished the basement they installed a whole system just to heat the basement and later a system for the second floor because it gets so hot up there in the summer.

Sorry, but that is about all I can tell you. I did like the camera and fiber optic evaluation system to show before and after...even have a VHS tape of it. Nice touch I thought and was included in the price.

 

[thefed]

I like the video imaging option too.

I've researched this industry a lot, and that's one thing that strikes me in ads....free imaging (instead of having 2 pay for it). The systems usually run about 2000.00.

Considering the minumal start-up costs of this business (12k or so,including ads), it may be a good option. Then again, it may be worthwhile to wait on a 2k system until it's a little more establised.

Marketing is what I'm researching now. Yellow pages is a must. I just cant decide on a size of an ad. I'm calling around tomorrow to talk to businesses to see how the YP worked for them. Costs range from 400/yr for a simple listing to 2k/yr for a 1" b&w ad, to 5k/yr for a 2x2" b&w ad, to a LOT more. I like the idea of hooking up with a carpet cleaning guy, and even some HVAC guys who DONT clean ducts. That'd be free advertising, except for the cut you'd give them for the jobs. Direct mail or one of those "Dollar Saver" magazines is anoher option. I'm torn on those....not sure if they'd work or not.

Any input on these marketing options?

 

[brewer12345]

I like the video imaging option too.

I've researched this industry a lot, and that's one thing that strikes me in ads....free imaging (instead of having 2 pay for it). The systems usually run about 2000.00. 

Considering the minumal start-up costs of this business (12k or so,including ads), it may be a good option.  Then again, it may be worthwhile to wait on a 2k system until it's a little more establised.

Marketing is what I'm researching now.  Yellow pages is a must.  I just cant decide on a size of an ad.  I'm calling around tomorrow to talk to businesses to see how the YP worked for them.  Costs range from 400/yr for a simple listing to 2k/yr for a 1" b&w ad, to 5k/yr for a 2x2" b&w ad, to a LOT more.  I like the idea of hooking up with a carpet cleaning guy, and even some HVAC guys who DONT clean ducts.  That'd be free advertising, except for the cut you'd give them for the jobs.  Direct mail or one of those "Dollar Saver" magazines is anoher option.  I'm torn on those....not sure if they'd work or not.

Any input on these marketing options?

It is entirely possible that I am just old-fashioned, but when I need to buy services for my home (chimney sweep, gutter cleaning, etc.) I usually look to three sources, assumng I don't already deal with someone or have a friend or neighbor to ask for a recommendation:

- yellow pages
- a local newspaper that is distributed for free (not pennysaver, which seems to be just ads; this one has local news coverage)
- direct mail, specifically the envelopes of small (3X5?) ads for many local businesses that often include coupons.

 

[SteveR]

- yellow pages
- a local newspaper that is distributed for free (not pennysaver, which seems to be just ads; this one has local news coverage)
- direct mail, specifically the envelopes of small (3X5?) ads for many local businesses that often include coupons.

I agree with Brewer. I find and use most of the contractors I use for stuff I don't want to do, don't have time to do, or cannot do from the local newpaper and those direct mail cards. I have had good experience with most of them and continue to use them as needed.

 

[brewer12345]

FWIW, I have also noticed that several local businesseshave continued to advertise in the little slips direct mail thingy for years, so it must be effective.

 

[thefed]

Yes the paper is a viable option. But I for some reason dont see people looking up DUICT CLEANING in a newspaper. If I could run a BIG ad in one of those free oens thoguh, it may help....like a 1/4 or 1/2 page ad with coupons. I'l l look into it for sure.

 

[Goat55]

You may wish to check out Home Instead (www.homeinstead.com). they provide non-medical care, assistance and companionship to the elderly. I know of a couple of people who work at the home office and others with franchises. Seems like this biz is positioned in a growth sector.

 

[kz]

In ref. to the duct cleaning idea. I recently priced having the work done but didn't want to spend the $900 (2-story 2300 sq ft).

Hubby has been talking about starting our own lawn mower service. Yes there are lots of guys who do this but many are getting out of the business all the time. Since we're both mostly retired we'd have the time to do it. We also have the machinery for 1 acre lots and under which are plentiful in our area. Matter of fact the new next door neighbor approached us last night and wants to be our first customer. That one will be easy.

 

[thefed]

In ref. to the duct cleaning idea. I recently priced having the work done but didn't want to spend the $900 (2-story 2300 sq ft).

Hubby has been talking about starting our own lawn mower service. Yes there are lots of guys who do this but many are getting out of the business all the time. Since we're both mostly retired we'd have the time to do it. We also have the machinery for 1 acre lots and under which are plentiful in our area. Matter of fact the new next door neighbor approached us last night and wants to be our first customer. That one will be easy.

900 is pretty steep for a 2300 sf house. Although location is a major factor. An "average" house around here would run 300 dollars....based on my market analysis. Look at it this way:your 2300 sf hosue MIGHT take 4 or 5 hours...and about 50 in chemicals if it was to be fogged with a biocide. Thus, they're charging about $175.00/hr. I'd plan on charging about 100/hr ...but never giving estimates liek that. Estimates would be determined by # of ducts and such, but would average 100/hr.

I'm putting together a business plan to pitch this idea to my old man. he's a painting contractor and is slow int he winter. I'm going to see if he wants in and will lend some labor if need be.

 

[spike]

It's very rewarding to own your own business. I have had several in the past 35 years. Mostly very modest in size, one real good one.

Borrowing money to start a business is very risky!!!!!!!!!
Yes I've done it, but at that time in my life I was desparate. You should have cash.

It's very difficult to be an instant success and most small businesses fail.

Looking back in retro spect I wish I would of gotten a job, with big retirement benefits. Now I am short on retirement money and working and saving to make up the difference. I have so many benefits and great insurance, sick leave, paid holidays, paid vacation, long term disability etc. If I would of started this job when I was 18 years old, when I retired I would receive 80% of my wages for life. To earn that amount each year I would need 1 and a half mill in the bank.

I had none of these benefits when self employeed except health insurance. But I had kids in private shools, then college, and then weddings. So once everyone was on there own I got a hughe increase in wages.

I work regular hours and don't have to worry about money, going broke, law suits etc.

Many people think you start up a business and the customers just poor in. They don't and it takes often times many years to build up a reputation.

It often times takes lots of money to get into a business that generates the big money.

 

[justin]

Spike,

Thanks for presenting your first hand experience with the "other side" of owning your own business. Some here are quick to talk about how grand owning your own business is. But you have shown that there are negative aspects to it as well.

 

[Michael Moore]

"Many people think you start up a business and the customers just poor in."

Yes, that's exactly how it often works.

Unfortunately.

Building a better widget has about a zero likelihood of the world beating a path to your door, since if you can't get the word out no one will know about it. And even if they do know about it, the guy down the street with a junk product who happens to be a marketing wiz will still bury you.

cheers,
Michael

 

[thefed]

"Many people think you start up a business and the customers just poor in."

Yes, that's exactly how it often works.    

Unfortunately.

Building a better widget has about a zero likelihood of the world beating a path to your door, since if you can't get the word out no one will know about it.  And even if they do know about it, the guy down the street with a junk product who happens to be a marketing wiz will still bury you.

cheers,
Michael

and thus, you must out-market the competition. bottom line is that every industry has room for one more company, if that company can out-market and provide superior services. And that is my plan.

I began my market analysis today. I made about 100 calls since 9am. Soem to local competitors, but most to other companies in search of mutual referral program. I hope to partner up with at least 10 companies that can market and reccommend duct cleaning in return for a percentage of the job and mutual reccommendations. For example, I've already forged a relationship with a man who does mold clean up jobs, some of which are residential (i'm targeting residential). He refers them out to their local HVAC company for a duct cleaning, but none in specific. He's agreed to turn that steady stream of customers to me if/when I set up shop in return for a % and my referral of commercial jobs. I also plan on contacting local carpet companies and home inspectors as well.

It's looking to be an okay business if I really forge good relationships. Otherwise, I don't think it would fly.

 

[thefed]

Funny to read this post a few years later. i ended up starting the air duct business, and it's exploding. I put put about 13k in startup costs, re-couped that within a few months,and havent looked back. I exceeded my income target in year one, and am exceeding expectations in year 2.

Some of you were really harsh on me! geez! Im glad i can look back and see that i wasnt discouraged. my poor typing skills (or not really caring about it) hasnt translated into business failure yet. and my borroweed money did its job and has been paid back in full.

Brewer's suggestion for a business plan really opened my eyes....I made one, follow it, revise it, and refer to it regularly. Thanks Brewer!

 

[old woman]

I have the money but don't really want to start a business, it is like work.
I have considered a fishing tackle/bait shop with rod and reel repair maybe motor repair. I wouldn't need a big profit 10K a year would be enough but I would only do it if my boyfriend wanted to repair things, I don't want to repair things.
I would like to talk to the fishermen and sell them lures. It would be more of a social outlet so I wasn't sitting home all day after retirement.
Maybe a shop on a lake with some boat rentals only open 6 months a year and a few RV spaces and a little store.
If I wanted profits I would open a CPA firm or something with accounting, I have been a CPA and I could renew my license with 40 hours continuing education and under $100. It would be easy to start and I could keep it small but I don't want to think when I am retired.
Maybe just buy my land in the country and put about 6 mobile home pads on the front edge and rent them out to people who want to live in 5th wheels or RV's or single wide mobiles. Then I would know people and collect rent and they could come eat the fruit from my fruit trees or extra zucchini from my garden. They could keep an eye on the place when I am on vacation.

 

[HobbyDave]

Heck, now that the thread is active again..

I think for anyone technically oriented, a web based business is an extremely cheap way to start up a business. The key is to be able to do the work yourself

Since I am a technically aware person, it would be hard for me to justify starting any business not web based. With maybe $15 per site and no risk (other than my time), I could theoretically start piles of businesses and see which pan out. Blog advertising based, drop shipping, selling something, etc.

The main problem with all of this is that I'm busy with my normal job, which pays me far in excess of what I could expect to earn from a startup business (unless I really hit the jackpot). I often try to encourage myself to start a business, but after a long day, I just don't have the motivation.

 

[Razor]

A friend of mine quit his job and started a limosine business. I would not recommend it unless you really like working weekends and washing cars. After 8 months he sold his cars and lost his butt.

 

[VaCollector]

I voted service industry as it seems harder and harder to find people who will perform their alloted service for an average market price, show up on time and WHEN they say they will......if you can do reasonable work at a reasonable price ON TIME ~ then you'll have more work than you can handle!!

 

[happy2bretired]

As a widow as well as not being a spring chic any longer, I sure would appreciate a business that caters to some sort of handyman service. Just for odd little things that I either don't know how to do or have no desire to do. Even moving furniture or changing lightbulbs or batteries in smoke detectors in 12 foot ceilings is something I can't do very easily without breaking my neck.

 

[citrine]

thefed:

That is great that you are doing well. If people never took risks, then there wouldn't be so many self-made millionaires. I would not be able to borrow money to put down for a business....if I wanted to start a business....I would have to allot a certain amount that I would not mind losing to go ahead and take a chance.
BTW....thanks Goat55 for that link for the CareGiver site....definitely a great thing to look into to do part-time.
I am doing a few things on the side to generate extra income as the huge layoffs at my megacorp looms above us.....I am selling my paintings, baby-sitting ($15/hr!!!), and I am thinking of becoming a recreational coordinator for some of these Adult Active communities...or an art instructor!

 

[thefed]

Well, here's an in-depth update 3 years later.

YEAR ONE: 86 jobs, 39k gross

YEAR TWO: 117 jobs, 57k gross

YEAR THREE (10 of 12 months completed so far) 155 jobs (worked 500 hrs), 70k gross


I am tickled every time I read this thread. THIS thread is where my random ideas coupled with a burning desire for change, independence, and profits resulted in my CAREER. I do own another business, but this is my bread and butter for now. I sure hope I can keep up this growth, but even plateauing where I am right now is acceptable.

For anyone out there with an idea that gets shot down for one reason or another...this thread PROVES beyond a reasonable doubt that you CAN do it. I could've taken the criticism differently...but instead I gleaned the good stuff from it all and made it work!!! Still, the best advice in the thread was from BREWER re: business plan. THAT is what really set it in motion....

Just thought I'd update y'all!

 

[old woman]

Even moving furniture or changing lightbulbs or batteries in smoke detectors in 12 foot ceilings is something I can't do very easily without breaking my neck.

I agree some us can't or don't want to do things like that and would be happy to pay a reasonable amount for a few minutes work. I have a boyfriend to do little things for me and he takes hits pretty good but somethings I don't want to ask him.

I think a service with a name like rent a spouse where you can have an average man or women come do something a spouse would do for you would be great. How many men would live to have a wife or mother to give the home a homey touch or women would want a man to climb on the roof to hang Christmas lights or other things she doesn't want to do.
You could send them to your elderly parents when your mom is afraid to have her husband on the roof or needs help turning a mattress.
Next week we are having mom moved from a company named Friends and Family. My youngest brother is 59 and has a bad back even a couple of years ago we would have done it ourselves. For $93 an hour we get two men and a truck, better than us older folks trying to move the heavy stuff.

 

[Hal3]

Nudist resort. No doubt.

 

[Hal3]

Seriously.

Do you want a business doing something that you enjoy doing every day or do you want to start a business doing SOMETHING in hopes of selling it and then doing what you enjoy doing every day?

If the former it depends entirely on what you enjoy doing.

If I were looking for a low tech business I think I would start a coffee / hang out / internet place.

There a few in Austin, Texas that are very pleasant. Sort of like *bucks but without the corporate glitz. One is just a`collection of old couches and garage sale sofa chairs and furniture in a funky old house. (Weak zoning laws in Austin) One even roasts their own coffee and sells fabulous bakery goods, ice cream, and chocolate deserts. People go there during the day to hang out and surf. People also go there at night after leaving a restaurant to have desert and visit without the check sitting on the table and the waiter constantly asking if you want anything else. You can subcontract the bakery and desert stuff. Ice cream is easy to serve. Professional coffee equipment is sold used on the internet like everything else. Of course, I love drinking coffee and eating desert.

Just a suggestion