Could you build your business again today?
Discussion
Listening to Lord Sugar last week, banging on about how he started out in 1967 and how entrepreneurs these days don't know they're born, got me to wondering if I could build my current business again tomorrow if I had to.
The answer is I don't know. From zilch it would be very hard, or perhaps impossible. With some start-up money of about £50k, maybe a bit easier. But it would take years before it became a decent living.
So, is Lord Sugar right, is it as easy (easier?) today to start a successful business as it was in 1967 or harder?
Could you start your business again today and grow it as fast as you did?
The answer is I don't know. From zilch it would be very hard, or perhaps impossible. With some start-up money of about £50k, maybe a bit easier. But it would take years before it became a decent living.
So, is Lord Sugar right, is it as easy (easier?) today to start a successful business as it was in 1967 or harder?
Could you start your business again today and grow it as fast as you did?
We only started 6 years ago so it's not really a good comparison. For what it's worth if we knew what (and who) we know now then we would be able to grow it faster. Without that accrued knowledge it would be a bit harder now. The main reason is that there is more competition than when we started.
I hope so!
I started my construction company in 2008 following redundancy from a main contractor when the recession hit. We grew from £0 to turning over £200k a month and employing 8 lads and dozens of sub-contractors. Then, out of the blue, our biggest client went bust, owing the company just over £225k.
Starting again has been the single hardest thing I've ever had to do. Picking myself up, admitting to the mistakes I'd made and letting the lads go has been almost unbearable at times.
However, we never let a client down, the designs, projects and service we offered were all spot on. That is the thing that keeps me going, knowing that my commitment to delivering the project for the client will allow me to stand out and succeed.
(I hope!)
I started my construction company in 2008 following redundancy from a main contractor when the recession hit. We grew from £0 to turning over £200k a month and employing 8 lads and dozens of sub-contractors. Then, out of the blue, our biggest client went bust, owing the company just over £225k.
Starting again has been the single hardest thing I've ever had to do. Picking myself up, admitting to the mistakes I'd made and letting the lads go has been almost unbearable at times.
However, we never let a client down, the designs, projects and service we offered were all spot on. That is the thing that keeps me going, knowing that my commitment to delivering the project for the client will allow me to stand out and succeed.
(I hope!)
GuinnessMK said:
I hope so!
I started my construction company in 2008 following redundancy from a main contractor when the recession hit. We grew from £0 to turning over £200k a month and employing 8 lads and dozens of sub-contractors. Then, out of the blue, our biggest client went bust, owing the company just over £225k.
Starting again has been the single hardest thing I've ever had to do. Picking myself up, admitting to the mistakes I'd made and letting the lads go has been almost unbearable at times.
However, we never let a client down, the designs, projects and service we offered were all spot on. That is the thing that keeps me going, knowing that my commitment to delivering the project for the client will allow me to stand out and succeed.
(I hope!)
My hat goes off to you I started my construction company in 2008 following redundancy from a main contractor when the recession hit. We grew from £0 to turning over £200k a month and employing 8 lads and dozens of sub-contractors. Then, out of the blue, our biggest client went bust, owing the company just over £225k.
Starting again has been the single hardest thing I've ever had to do. Picking myself up, admitting to the mistakes I'd made and letting the lads go has been almost unbearable at times.
However, we never let a client down, the designs, projects and service we offered were all spot on. That is the thing that keeps me going, knowing that my commitment to delivering the project for the client will allow me to stand out and succeed.
(I hope!)
Tyre Smoke said:
As does mine, but I also wonder how, if you are turning £200k a month it all went wrong for £225k
Not that difficult to work out really Tyre Smoke. Youngish business that losses £200k out of working capital and operates in the high risk building sector Bet the banks were jumping to help
Redarress said:
Not that difficult to work out really Tyre Smoke. Youngish business that losses £200k out of working capital and operates in the high risk building sector
Bet the banks were jumping to help
I was wondering more about the cash flow. One month's turnover puts a business under? Bet the banks were jumping to help
Too big too quick perhaps?
Manks said:
Listening to Lord Sugar last week, banging on about how he started out in 1967 and how entrepreneurs these days don't know they're born, got me to wondering if I could build my current business again tomorrow if I had to.
I'd like to see him put his money where his mouth is and start a business from scratch, building it up without using his contacts, money or name but merely his acumen and experience.phil-sti said:
200k is turnover not profit, he may only make 10 grand a month in profit so a 225k loss could be 20 months profits.
i think
Err, I do know that.i think
Don't get me wrong, £200k loss is a huge hit to take, but it makes me wonder where the profit (if any) went. Growing too big too quick can be just as detrimental to a business as growing too slowly.
Allowing a company to rack up £200k plus of debt is a lot of risk if it is unsecured.
This is exactly why I never posted anything about this before. There is always someone on here who could have done it bigger, better, faster, taller.
Yes, we did fantastically well. Yes, we grew too quickly. Yes, it was risky. I admitted to making some mistakes, which, no matter how much internet baiting, I'm not going to go into here.
Suffice to say, I won't make the same mistakes again (probably make a whole pile of new ones!).
The way it ended, I retained the support of about 80% of my sub-contractors and suppliers.
I'm back out there, knocking on doors, trying to get on tender lists.
Yes, we did fantastically well. Yes, we grew too quickly. Yes, it was risky. I admitted to making some mistakes, which, no matter how much internet baiting, I'm not going to go into here.
Suffice to say, I won't make the same mistakes again (probably make a whole pile of new ones!).
The way it ended, I retained the support of about 80% of my sub-contractors and suppliers.
I'm back out there, knocking on doors, trying to get on tender lists.
I'm not baiting you. I actually said twice that I take my hat off to you.
I was just commenting on how I perceived what might have gone wrong. This is an internet forum, usually discussion is what takes place.
If there is something you don't want discussed in the public domain don't post it in the first place.
Hope you get back on your feet soon and are more successful than last time.
I was just commenting on how I perceived what might have gone wrong. This is an internet forum, usually discussion is what takes place.
If there is something you don't want discussed in the public domain don't post it in the first place.
Hope you get back on your feet soon and are more successful than last time.
Pretty sure I couldn't or at least my Dad couldn't, as he founded the business. As a contractor to the NHS with profit margins dwindling and barriers to entry very expensive it would take a sole trader a huge amount of commitment and risk to do it. I certainly couldn't work my four day week and live as I do now. Having said that, if I was ten years younger I would love to give it a shot! There is a real thrill when you get it right and it is your own work!
Tyre Smoke said:
I'm not baiting you. I actually said twice that I take my hat off to you.
I was just commenting on how I perceived what might have gone wrong. This is an internet forum, usually discussion is what takes place.
If there is something you don't want discussed in the public domain don't post it in the first place.
Hope you get back on your feet soon and are more successful than last time.
Sorry, you're right, it's all still a bit raw.I was just commenting on how I perceived what might have gone wrong. This is an internet forum, usually discussion is what takes place.
If there is something you don't want discussed in the public domain don't post it in the first place.
Hope you get back on your feet soon and are more successful than last time.
Thanks
I did it once.
Started a business in 1998, and sold it in 2003. The buyer was based abroad, and quickly decided they didn't actually want to trade in the UK, so I struck a deal with them, they adjusted my anti-competition clause, and I started all over again (albeit with contacts and track record).
Sold that in 2009 (to another foreign buyer), and I don't plan on doing it a third time!
So for me, it was relatively easy, but only due to circumstance.
Started a business in 1998, and sold it in 2003. The buyer was based abroad, and quickly decided they didn't actually want to trade in the UK, so I struck a deal with them, they adjusted my anti-competition clause, and I started all over again (albeit with contacts and track record).
Sold that in 2009 (to another foreign buyer), and I don't plan on doing it a third time!
So for me, it was relatively easy, but only due to circumstance.
There has always been competition, just styled differently around the time everyone was starting out. What has changed is legislation, whether that be the ever complex tax laws, employment laws or competition laws. Legislation in this country, whilst well meaning at the time of a particular piece being introduced, when compounded makes being competitive in either just the UK or globally very, very difficult. Legislation in the end costs, and someone has to pay for it, either the customer through increased prices, or the manufacturer in reduced profits. That is the cost of living and operating in a 'developed' nation.
rog007 said:
There has always been competition, just styled differently around the time everyone was starting out. What has changed is legislation, whether that be the ever complex tax laws, employment laws or competition laws. Legislation in this country, whilst well meaning at the time of a particular piece being introduced, when compounded makes being competitive in either just the UK or globally very, very difficult. Legislation in the end costs, and someone has to pay for it, either the customer through increased prices, or the manufacturer in reduced profits. That is the cost of living and operating in a 'developed' nation.
+1I cannot agree with this more, There is no way we could start again as a manufacturer in this day and age with all the stupid legislation bloody bureaucracy and what seems higher taxation that is evident today. If we had to start again the investment required for plant and equipment alone would make it uneconomical as our return on investment would be pretty much nil due to the above plus other factors of course.
We are the only people (as far as i'm aware) manufacturing what we do in this country.
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