Small business owner? What advice do you have?

[Twin_Cam_Turbo]

After losing my job this week I’m on the hunt for my next job and I’m considering either starting or buying an entry level business. Essentially right now I need $2000-2500 a month to survive and cover my own bills to start with, and of course I’d have to plan to earn more than that personally within say a year. I’m not really sure what kind of business I’d be looking at buying yet, but likely not something automotive related like my current job. I’ve got about $85k I can start with and I’d be looking to earn $100k gross personal income within the next X number of years. I’ve got plenty of time and the willingness to learn just about anything, as well as “some” prior experience in managing a business through various jobs and also working as a contractor myself.

Anyone have any words of wisdom? Would you do it if you were in my situation?

I already know I’m not interested in owning anything food related like a restaurant/eatery. I’ve been looking at small businesses like convenience stores, liquor stores, emroidery, glass installation and sign making enterprises. Something with a store front would need a good location and lots of traffic. I’m my opinion I think I’d want to start with something that I would either be the sole employee to start with or work 50%+ or the operating hours if it was a store front operation, as this would likely be least risk financially but also the quickest learning curve.

Other options include find another job in the industry (not my favourite idea right now) or find another job in the industry and try and buy a small business that doesn’t require me present during standard business hours to work on, which also seems complex and unlikely.

[Buster]

Start a niche service business that you can market online. Avoid capital costs, or ongoing employee costs (so no B+M).

[ercchry]

Not the best time of year… but buying a backhoe seems like a pretty sure thing, start as operator, build up some clients and maybe an ongoing contract or two then expand (equipment financing is usually pretty straightforward) and move into quoting/coordinating

[pheoxs]

Main advice I can give is having employees suck. Twice I've tried and regretted it both times. Going back to a solo venture was the best thing for my mental health and my wallet. I have an ecommerce / small manufacturing business and it makes good money for the effort but I will say Canada fucking sucks for anything that involves shipping. 95% of customers are in the US as they pay way more and it's cheaper to ship to. I don't even market to Canada anymore as I'd rather not ship things domestically.

If I were to start over today I think I'd look at some kind of home services based business so I'm not tied into a long term lease. Any commercial leasing right now is brutal for costs and it's a huge multi-year commitment. I'd much sooner get a truck/trailer and some tools and then keep a smaller overhead cost.

Landscaping, home automation, those exterior led lights, home energy audits, etc. Something in the space of booking appointments then showing up and doing the work. Using the LED light thing as an example you can likely find a supplier or two and then order entire kits from them and just do the installation. Relatively low capital investments but can charge decent price to profit from your work. Lots of these businesses don't have any industry accreditation so you more or less just need your insurance / liability and then take the time to adequately learn how to install things properly which coming from the automotive realm should be easy to pick up. Even basic snow removal it's laughable what guys charge for 10-15 minutes of work and if you can sign up a few people on the same streets your laughing.

That kind of business also sets you up if you eventually want to take on a worker. You can either outsource your receptionist / book-keeper or you can train up an install monkey to be an extra set of hands to speed up work at a minimal cost.

[suntan]

#1: Everything is your fault.

#2: Employees will rob you blind. Whether in cash or time.

#3: You have to lead everybody, because no one will do anything otherwise.

#4: Never trust anything a potential employee says. Have them show you every skill they claim to have. If they can't do it, don't hire them.

[killramos]

Don’t stand up the corp until the new year to avoid having to file a 2023 return.

[suntan]

Make your year end july 31 or august 31. Also way easier to get an accountant this way too.

[killramos]

TBH I think you would be surprised how much most small businesses are worth at face value. Namely buying yourself a job is pretty expensive.

[Tik-Tok]

Spend the $85g on a Glencoe membership, and become a realtor.

[killramos]

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marry into a glencoe membership, and become a realtor.

ftfy

[max_boost]

whatever industry you want to get into, go work it for a bit and see how it goes before dumping $$$ into starting that biz
that's just what i think
good luck man
running your own biz is good but man does it come with lots of shit lol

[ShermanEF9]

I'm not sure I would start a new industry by owning my own business in it. I would look into a space you're familiar with.

[Team_Mclaren]

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I'm not sure I would start a new industry by owning my own business in it. I would look into a space you're familiar with.

This, I fail to see how going into a new business you know nothing about is a great idea.

[you&me]

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I'm not sure I would start a new industry by owning my own business in it. I would look into a space you're familiar with.

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This, I fail to see how going into a new business you know nothing about is a great idea.

+ a bazillion.

Maybe I misunderstood, but what about sticking with what you were just doing, except freelancing vehicle wholesale / exporting? Surely you know the product, market trends and have the connections...

[bjstare]

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This, I fail to see how going into a new business you know nothing about is a great idea.

Yes. Or buying a business in a new field, same same. That’s a great way to set fire to a bunch of money and time.

[killramos]

Take the holidays and relax. don't do anything rash or burn any bridges.

if you want to get out, make that the long game and take steps to get there. But there is no sense bankrupting yourself today rushing this transition.

[suntan]

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TBH I think you would be surprised how much most small businesses are worth at face value. Namely buying yourself a job is pretty expensive.

It's hell sometimes. It's why I give myself large bonuses and give employees hardly anything.

[msommers]

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Take the holidays and relax. don't do anything rash or burn any bridges.

if you want to get out, make that the long game and take steps to get there. But there is no sense bankrupting yourself today rushing this transition.

Woah, genuine advice.

Outta left field!

[max_boost]

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Woah, genuine advice.

Outta left field!

He has a soul, sometimes lol

[killramos]

I’m just a big ol softie