Have I Got What It Takes?
Discussion
Afternoon chaps,
I was directed to the forums by a friend of mine who said there were some very knowledgeable people on here. Hopefully, he was right.
I'm young (16) and i'm about to start College, which surprisingly i'm actually quite looking forward too, it has been a nice 10 weeks off though. I've chosen to study Business and Economics, my two favourite subjects of which i feel i perform best in (results day will tell all though!) I'm hoping to walk away from the courses with good results but not to help me get a good job as such...
It's always been a passion of mine to learn about the world of business, ever since i was little i dreamt of the big business deals you hear about, even little things like wearing a suit! I love to fully engage in long conversations to do with business and also like to listen to people talk about their personal experiences. I'm a fan of the TV show Dragon's Den but do feel it's becoming a bit much of a muchness, same old, same old etc. Over the past year or so i've started buying and selling on eBay, following the golden rule 'Buy low, sell high' and it's going alright, it's providing a steady income for me which means i don't have to go out and get a job just yet to cover all my spending. It may sound weird, but i do genuinely believe i was born with some kind of business brain haha. I'll come up with new ideas everyday, some good some bad. Anyway i can make money (legally of course) I'm willing to give it a try!
Last year when doing my coursework for business studies we were asked to come up with a business for the local area which we thought would be successful. A lot of people chose the usual stuff, nightclub, retail shop and gym's. However, i went against the grain, stuck my neck out a bit and went for something different (Not something i'm willing to disclose right now) But i kid you not, a week after my coursework was handing in, one popped up in my local area and has been a roaring success. I got a good grade so i guess that makes up for it a little bit?
I'm now focused on completing my A levels then moving straight into my first business adventure, brave or foolish, you decide! I've not finalised in my head exactly what the business will be, or exactly where i want to be based but i have got two years to figure that out and get it down on paper. All i do know is, that i'm going to make it. I don't mean to sound arrogant and i hope i don't come across that way. I just believe that self believe is important.
The only trouble that i feel will be most hard to overcome will be raising initial capital to start up. Hopefully though, if i can present myself well, have a good business plan and the economy picks up again i'll be able to get a loan. If not, i might just have to take my idea overseas before tackling the UK market. I'll just have to wait and see.
A lot of people doubt me, say it'll never happen, i'll never do it, i don't have what it takes.
I believe i do.
Do you?
Just looking for honest opinions and any advice which will help me out is greatly appreciated.
Regards
TheBossMan.
I was directed to the forums by a friend of mine who said there were some very knowledgeable people on here. Hopefully, he was right.
I'm young (16) and i'm about to start College, which surprisingly i'm actually quite looking forward too, it has been a nice 10 weeks off though. I've chosen to study Business and Economics, my two favourite subjects of which i feel i perform best in (results day will tell all though!) I'm hoping to walk away from the courses with good results but not to help me get a good job as such...
It's always been a passion of mine to learn about the world of business, ever since i was little i dreamt of the big business deals you hear about, even little things like wearing a suit! I love to fully engage in long conversations to do with business and also like to listen to people talk about their personal experiences. I'm a fan of the TV show Dragon's Den but do feel it's becoming a bit much of a muchness, same old, same old etc. Over the past year or so i've started buying and selling on eBay, following the golden rule 'Buy low, sell high' and it's going alright, it's providing a steady income for me which means i don't have to go out and get a job just yet to cover all my spending. It may sound weird, but i do genuinely believe i was born with some kind of business brain haha. I'll come up with new ideas everyday, some good some bad. Anyway i can make money (legally of course) I'm willing to give it a try!
Last year when doing my coursework for business studies we were asked to come up with a business for the local area which we thought would be successful. A lot of people chose the usual stuff, nightclub, retail shop and gym's. However, i went against the grain, stuck my neck out a bit and went for something different (Not something i'm willing to disclose right now) But i kid you not, a week after my coursework was handing in, one popped up in my local area and has been a roaring success. I got a good grade so i guess that makes up for it a little bit?
I'm now focused on completing my A levels then moving straight into my first business adventure, brave or foolish, you decide! I've not finalised in my head exactly what the business will be, or exactly where i want to be based but i have got two years to figure that out and get it down on paper. All i do know is, that i'm going to make it. I don't mean to sound arrogant and i hope i don't come across that way. I just believe that self believe is important.
The only trouble that i feel will be most hard to overcome will be raising initial capital to start up. Hopefully though, if i can present myself well, have a good business plan and the economy picks up again i'll be able to get a loan. If not, i might just have to take my idea overseas before tackling the UK market. I'll just have to wait and see.
A lot of people doubt me, say it'll never happen, i'll never do it, i don't have what it takes.
I believe i do.
Do you?
Just looking for honest opinions and any advice which will help me out is greatly appreciated.
Regards
TheBossMan.
I think there have been similar postings before.. You'd be wise to do a quick search / scan in here...
One thing I've noticed, if people say "I need to find the capital from somewhere, then I'd be big..." It usually means
that they haven't got "it". If you read about some of the bigger businessmen around, they literally started with nothing
or very little and have progressed at a rapid rate and sometimes at an age as young or younger than you!
Personally I feel that if you are prepared to graft, and I mean really graft - do all the jobs, the ones you'd also rather
give to someone else and work and work and not just 9-5 5 days a week, but outside those hours and on the weekends, then
you are heading in the right direction.. Of course you also need fiscal skills, i.e. is it really making money and am I
investing some for the next step?? Fiscal prudence is everything.. Also recognise those around you who can help or you
can include and delegate/work with.. You won't have all the skills, but the main skill is getting things started and
maintaining a steady rate..
Oh and be honest, to yourself at least. It's very easy to say "I run my own company and we do really well" - this can mean
a multitude of things, being busy isn't the same as being successful or making money at it either!! Lots of cheap work can
devalue what you do and mean you don't have time to dedicate to more lucrative jobs.
Where do you see yourself in 5 years?
Where do you see yourself in 10 years?
When do you want to retire?
How are you going to achieve the above?
Of course I'm still learning!!
...
Don't mean to be blunt btw, but think it's necessary.
One thing I've noticed, if people say "I need to find the capital from somewhere, then I'd be big..." It usually means
that they haven't got "it". If you read about some of the bigger businessmen around, they literally started with nothing
or very little and have progressed at a rapid rate and sometimes at an age as young or younger than you!
Personally I feel that if you are prepared to graft, and I mean really graft - do all the jobs, the ones you'd also rather
give to someone else and work and work and not just 9-5 5 days a week, but outside those hours and on the weekends, then
you are heading in the right direction.. Of course you also need fiscal skills, i.e. is it really making money and am I
investing some for the next step?? Fiscal prudence is everything.. Also recognise those around you who can help or you
can include and delegate/work with.. You won't have all the skills, but the main skill is getting things started and
maintaining a steady rate..
Oh and be honest, to yourself at least. It's very easy to say "I run my own company and we do really well" - this can mean
a multitude of things, being busy isn't the same as being successful or making money at it either!! Lots of cheap work can
devalue what you do and mean you don't have time to dedicate to more lucrative jobs.
Where do you see yourself in 5 years?
Where do you see yourself in 10 years?
When do you want to retire?
How are you going to achieve the above?
Of course I'm still learning!!
...
Don't mean to be blunt btw, but think it's necessary.
oh and "wait and see" - that's the wrong message!! Now is the time to strike, successful business people (really successful ones) are making the most of now. There are excellent opportunities to take advantage of and reap bigger rewards in the future. Of course there are also quite a few duds around... It's picking the good ones from the selection, not waiting until the economy booms, the duds are still in there and you might be more tempted and less choosy in that climate.. IMHO
TheBossMan said:
Last year when doing my coursework for business studies we were asked to come up with a business for the local area which we thought would be successful. A lot of people chose the usual stuff, nightclub, retail shop and gym's. However, i went against the grain, stuck my neck out a bit and went for something different (Not something i'm willing to disclose right now) But i kid you not, a week after my coursework was handing in, one popped up in my local area and has been a roaring success. I got a good grade so i guess that makes up for it a little bit?
Was it your teacher that set that business up?There's no point coming onto a forum telling every body how great you are and telling everybody that you have a great business idea but can't tell us what it is.
What's the point in that (apart from empty boasting)?
However, if you have genuine technical questions about business related matters, this is not a bad place to ask.
What's the point in that (apart from empty boasting)?
However, if you have genuine technical questions about business related matters, this is not a bad place to ask.
Eric Mc said:
Don't talk about it.
Don't ask about it.
Just do it.
This forum is at its best when people are asking about technical issues that affect their current business enterprises - tax, accounts, marketing, debt recovery - things like that.
^ There speaketh a wise man, read and learn.Don't ask about it.
Just do it.
This forum is at its best when people are asking about technical issues that affect their current business enterprises - tax, accounts, marketing, debt recovery - things like that.
One tiny tip from me: "Learn to hate overheads".
Sure you can make some money from ebay because you've got minimal (probably no) overheads.
If you're making, say, 40% GP on a product/service and you have overheads of, say, £500k then you have to have a turnover of about £1.2m just to cover your overheads. In order to get a turnover of £1.2m requires sales effort. And all this effort is to break even. However, for every Pound that goes on turnover above £1.2m (or whatever) 40p goes on the bottom line. As such, most company's profits are turnover driven and the lower the overheads the lower the turnover needs to be to make a profit. Pretty basic stuff I know, but you'd be amazed how many people overlook the bleedin' obvious!
Sure you can make some money from ebay because you've got minimal (probably no) overheads.
If you're making, say, 40% GP on a product/service and you have overheads of, say, £500k then you have to have a turnover of about £1.2m just to cover your overheads. In order to get a turnover of £1.2m requires sales effort. And all this effort is to break even. However, for every Pound that goes on turnover above £1.2m (or whatever) 40p goes on the bottom line. As such, most company's profits are turnover driven and the lower the overheads the lower the turnover needs to be to make a profit. Pretty basic stuff I know, but you'd be amazed how many people overlook the bleedin' obvious!
Alex said:
okgo said:
Alex said:
Ah, the confidence of youth...
Those who have gained nothing, have nothing to loose..Yes, quite true. If you're going to try and make it on your own, do it young.
Read how to get rich for reasons why you should get out there and do it while your young. It certainly made me think twice about working and building up los of cash ect..
I started my business using self-generated capital - i.e. I worked for a big corporate for a few years to strengthen my finances after leaving university (secured a house, car, etc.) and saved up enough to start my business with a sound footing. My savings covered me until we started to make money, which took a while.
A previous poster emphasised the importance of, "fiscal prudence" and I agree entirely. Buy only what you must and if you can buy used then do so as long as it's still fit for purpose. A decent website, stationery (primarily business cards), smart appearance and knowledge will give you some credibility. Obviously a strong trading history, project portfolio and credit rating are much more important but take time to generate.
One of the things we struggled with initially (and what puts most firms out of business, even profitable ones) was cash flow. Cash really is king! Many clients expected us to supply goods and services on 30 day's credit. 30 days doesn't sound too bad, but in reality, we might purchase, say, a server and 5 workstations with associated software and accessories costing £5k. We typically had to pay our supplier immediately as we had no trading history or credit rating. Then, by the time we had done the installation, which could easily be a week or two after paying for everything depending on other commitments, we invoiced on 30 day's credit. The client might then actually pay on 40-60 days, or sometimes even more. That left us with a liability of £5k for 10 weeks or more. Multiply that by a few concurrent projects, add in a really late or non-payer and the challenge becomes obvious. Intelligent use of credit cards can help with this.
Again, repeating what has been said previously, any fool can sell, it's selling and make a profit that's hard. *Always* focus on profit and don't be afraid of terminating clients who take up lots of time and don't make you any money - there are always a few. We suffered from being afraid to do this a little in our early days as we were so keen to secure business, but eventually you have to realise that if they spend a lot of money with you but you don't make any profit, you're going to have to do something about it and if you can't find some way to turn a profit from them it's probably best to replace them with other clients. Basically, it comes down to the old cliché, "Turnover's vanity, profit's sanity!"
Overall, I wish you the best of luck. If you give it everything and keep going even when all is lost (including writing-off a failure and starting again in a different area if necessary) you'll get there eventually. Just don't try and 'flash the cash' too soon if you do have initial success - be patient.
HTH
roadie.
A previous poster emphasised the importance of, "fiscal prudence" and I agree entirely. Buy only what you must and if you can buy used then do so as long as it's still fit for purpose. A decent website, stationery (primarily business cards), smart appearance and knowledge will give you some credibility. Obviously a strong trading history, project portfolio and credit rating are much more important but take time to generate.
One of the things we struggled with initially (and what puts most firms out of business, even profitable ones) was cash flow. Cash really is king! Many clients expected us to supply goods and services on 30 day's credit. 30 days doesn't sound too bad, but in reality, we might purchase, say, a server and 5 workstations with associated software and accessories costing £5k. We typically had to pay our supplier immediately as we had no trading history or credit rating. Then, by the time we had done the installation, which could easily be a week or two after paying for everything depending on other commitments, we invoiced on 30 day's credit. The client might then actually pay on 40-60 days, or sometimes even more. That left us with a liability of £5k for 10 weeks or more. Multiply that by a few concurrent projects, add in a really late or non-payer and the challenge becomes obvious. Intelligent use of credit cards can help with this.
Again, repeating what has been said previously, any fool can sell, it's selling and make a profit that's hard. *Always* focus on profit and don't be afraid of terminating clients who take up lots of time and don't make you any money - there are always a few. We suffered from being afraid to do this a little in our early days as we were so keen to secure business, but eventually you have to realise that if they spend a lot of money with you but you don't make any profit, you're going to have to do something about it and if you can't find some way to turn a profit from them it's probably best to replace them with other clients. Basically, it comes down to the old cliché, "Turnover's vanity, profit's sanity!"
Overall, I wish you the best of luck. If you give it everything and keep going even when all is lost (including writing-off a failure and starting again in a different area if necessary) you'll get there eventually. Just don't try and 'flash the cash' too soon if you do have initial success - be patient.
HTH
roadie.
roadsweeper said:
any fool can sell
I would take some issue with that bit, clearly some people cannot (me for instance). The points about financial prudence are however utterly key, the only way we got by in the beginning was by being really tight on spending. We still are however we do have the odd luxury!Re the OP, make sure you have a life when you do all this, pointless earning loads and building a huge empire if you cannot enjoy it.
D
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