Fear of failure - starting a new business?
Discussion
I currently work a 9-5:30 but want to do more with my life. I have run a business before but never fully committed, so ultimately I ended up closing it.
I am now at the age of 40 looking at restarting it from a fresh, this time putting more effort and commitment in. I do have some concerns, obviously given the title, and these concerns could stop me taking the plunge.
I am very concerned about it failing. I have a mortgage and a guaranteed decent income. These both stop me from quitting my job and going at the company full time because I don't think the earnings will be there, at least in the short term. As a result it'll mean that if I do go ahead with it, that it will be part time, until earnings allow me to go full time.
Without beating around the bush, the business I want to start is a performance car parts company, which come with its own challenges, specifically a lot of competition. This also gives me a concern around longevity. With the 2030 changes coming it could impact how long my business would be around for, especially as people ditch ICE for EV.
I realise that it isn't going to be like a switch and that come 2030 all ICE cars will be off the road, but they will start disappearing gradually.
My current job has some potential opportunities to earn more money coming up, plus options to move company to earn more as I gain more experience in my role. This could see me earn 25 to 50% more in the next 12 to 24 months.
Am I worrying over little things, or am I right to have these worries? Should I stick where I am and not even consider going back into a business?
Advice and opinions gratefully welcomed.
I am now at the age of 40 looking at restarting it from a fresh, this time putting more effort and commitment in. I do have some concerns, obviously given the title, and these concerns could stop me taking the plunge.
I am very concerned about it failing. I have a mortgage and a guaranteed decent income. These both stop me from quitting my job and going at the company full time because I don't think the earnings will be there, at least in the short term. As a result it'll mean that if I do go ahead with it, that it will be part time, until earnings allow me to go full time.
Without beating around the bush, the business I want to start is a performance car parts company, which come with its own challenges, specifically a lot of competition. This also gives me a concern around longevity. With the 2030 changes coming it could impact how long my business would be around for, especially as people ditch ICE for EV.
I realise that it isn't going to be like a switch and that come 2030 all ICE cars will be off the road, but they will start disappearing gradually.
My current job has some potential opportunities to earn more money coming up, plus options to move company to earn more as I gain more experience in my role. This could see me earn 25 to 50% more in the next 12 to 24 months.
Am I worrying over little things, or am I right to have these worries? Should I stick where I am and not even consider going back into a business?
Advice and opinions gratefully welcomed.
Sell your house and use the money to start the business, at least that’s what I did when I started mine. I moved into rented and used the cash as start up capital, and to pay me a ‘salary’ for the first year until the business could afford to pay some sort of wages.
Unless you fully commit to a business then it will fail, if you’re not prepared to do that then stay where you are.
Unless you fully commit to a business then it will fail, if you’re not prepared to do that then stay where you are.
sjc said:
How about sticking with it a while, but doing a shed load of research in the meanwhile into future performance parts/options etc for electric cars? You might just get yourself a little bit ahead of the game if you find the right niche?
Then go for it.
Absolutely, it’s definitely worth trying to work out what the market is going to need in the future. Then go for it.
If you started with a one stop sales/service/modifications centre for EV’s, you’ll be ahead of the curve.
Consider how much you’d need for first year of business for stock/costs/salary and save as much of that as you can over the next year or two.
Having said that, there’s nothing wrong with starting small by developing a niche product and breaking your balls every evening/weekend to see it through, but the business will die off if you’re not feeding it.
The EV market is waiting to be captured, if the right person started up now, they could have a nationwide multi million business within 10 years.
TheAngryDog said:
I am very concerned about it failing.
Why? Not the ramifications of failure, but why would it fail? Have you.calculated the reasons for and the risk of such a scenario?What sort of figures are we talking about in terms of start up capital and expected turnover and profit? How do you plan to operate? How will you be financed initially?
How much do you earn currently? How much will you earn from the business if it goes well? If it goes not so well?
Do you have any savings that could tie you over for the first 12 months or even to cover set up costs/stock etc? If not, can you sell any assets or remortgage to create a pot?
I mean no disrespect when I say I’m not sure your character is cut out for being self employed when you harbour concerns both of leaving the PAYE guaranteed monthly income club and also of how highly you deem failure likely. I appreciate these are somewhat natural but you can’t think like that if you truly want to create your own thing.
Before I got used to the peaks and troughs that naturally occur to many businesses, I had a few bad months a year or so in and knee jerk reaction caused me to liquidate some personal assets (including my mint Evora sob). Looking back now I overreacted and realise that a few lean months mean f all in the overall scheme of things, but only a year after having exited the monthly pay cheque it was alien still to see no income for two months in succession.
Many people seem to think the self employed are all tax dodging loaded directors who deserve f all in hard times (see thread on directors being denied any support in covid times on here). However, as your post highlights, many of these have had to take a big risk in going SE and I feel any financial (or freedom) benefits over PAYE should include a compensatory benefit to reflect that risk taken.
The other issue here is so you have any experience in the area of your new business. Is your career anything related or is this new venture something totally new with challenges you have never encountered?
Good luck either way. I’m similar age to you and didn’t start my own gig until mid 30’s. Wish I had far earlier now.
I mean no disrespect when I say I’m not sure your character is cut out for being self employed when you harbour concerns both of leaving the PAYE guaranteed monthly income club and also of how highly you deem failure likely. I appreciate these are somewhat natural but you can’t think like that if you truly want to create your own thing.
Before I got used to the peaks and troughs that naturally occur to many businesses, I had a few bad months a year or so in and knee jerk reaction caused me to liquidate some personal assets (including my mint Evora sob). Looking back now I overreacted and realise that a few lean months mean f all in the overall scheme of things, but only a year after having exited the monthly pay cheque it was alien still to see no income for two months in succession.
Many people seem to think the self employed are all tax dodging loaded directors who deserve f all in hard times (see thread on directors being denied any support in covid times on here). However, as your post highlights, many of these have had to take a big risk in going SE and I feel any financial (or freedom) benefits over PAYE should include a compensatory benefit to reflect that risk taken.
The other issue here is so you have any experience in the area of your new business. Is your career anything related or is this new venture something totally new with challenges you have never encountered?
Good luck either way. I’m similar age to you and didn’t start my own gig until mid 30’s. Wish I had far earlier now.
I remember vividly the night I quit my well-paid job to start my first business, sitting at home, holding a glass of champagne and not feeling celebratory at all. Instead I was looking at my young wife who I’d promised so much to, at my nice house I liked so much, and wondering if I’d just made the biggest mistake of my life.
It’s a really honest question you ask, OP, and I’d say anyone starting a business who doesn’t worry about failing is either deluded or lying. Business is risky, and you can’t go into it being sure of success. You have to go into it because it’s what you want to do and be, and that you’re sure you’ll always regret it if you don’t give it a go.
So the question I would ask yourself above all is whether this is something you really have to do, and even if it is a struggle, you’ll be glad you did. Or is it only because you want the prize at the end? If it’s the latter then it is high risk. If it’s the former, you can’t fail.
It’s a really honest question you ask, OP, and I’d say anyone starting a business who doesn’t worry about failing is either deluded or lying. Business is risky, and you can’t go into it being sure of success. You have to go into it because it’s what you want to do and be, and that you’re sure you’ll always regret it if you don’t give it a go.
So the question I would ask yourself above all is whether this is something you really have to do, and even if it is a struggle, you’ll be glad you did. Or is it only because you want the prize at the end? If it’s the latter then it is high risk. If it’s the former, you can’t fail.
Running your own business is hard. At 40 ask yourself about how hard you want to work. What would happen if you went on holiday? Who runs the business then? Or you're off sick?
I started around your age and its been the hardest thing I have ever done. It can be great but there are many times I've wondered about a nice salary and paid holidays etc. You'll have to sort out accounts, tax, cashflow, premises etc and be a real jack of all trades. And starting in a sector you don't work in now adds to the challenges.
A new job with another employer might be the best solution.
I started around your age and its been the hardest thing I have ever done. It can be great but there are many times I've wondered about a nice salary and paid holidays etc. You'll have to sort out accounts, tax, cashflow, premises etc and be a real jack of all trades. And starting in a sector you don't work in now adds to the challenges.
A new job with another employer might be the best solution.
It isn't either/or. Many people start up a business in evenings and weekends in order to test the market while maintaining their steady income.
As you say, the performance parts market is very crowded, so you'll need a significant budget for marketing and having an income from your main job will allow you to invest in building a brand, without worrying too much about burning through your start-up capital.
You do then risk facing the dilemma of when to quit your job and go full time in your business, but that's a nice problem to have.
As you say, the performance parts market is very crowded, so you'll need a significant budget for marketing and having an income from your main job will allow you to invest in building a brand, without worrying too much about burning through your start-up capital.
You do then risk facing the dilemma of when to quit your job and go full time in your business, but that's a nice problem to have.
savings ?
have you a decent amount ? if you quit a job and something needs doing you will struggle to get finance.
Realistically its not a binary decision, start up your business along side your job, the job you have just now is it working from home, can you shift that work to give you a few hours through the week to work on your new venture ?
Locally what options for help are availiable ?
with going out of furlough there will be loads of support as they try to get businesses up and running again... need to talk to your local business teams. network as well with other local business enterprises where you can.
people fear failure when failure might not be occur. you may have the right business and have identified a boyuant market for it.
have you a decent amount ? if you quit a job and something needs doing you will struggle to get finance.
Realistically its not a binary decision, start up your business along side your job, the job you have just now is it working from home, can you shift that work to give you a few hours through the week to work on your new venture ?
Locally what options for help are availiable ?
with going out of furlough there will be loads of support as they try to get businesses up and running again... need to talk to your local business teams. network as well with other local business enterprises where you can.
people fear failure when failure might not be occur. you may have the right business and have identified a boyuant market for it.
TheAngryDog said:
Without beating around the bush, the business I want to start is a performance car parts company, which come with its own challenges, specifically a lot of competition. This also gives me a concern around longevity. With the 2030 changes coming it could impact how long my business would be around for, especially as people ditch ICE for EV.
I realise that it isn't going to be like a switch and that come 2030 all ICE cars will be off the road, but they will start disappearing gradually.
What's your business plan?I realise that it isn't going to be like a switch and that come 2030 all ICE cars will be off the road, but they will start disappearing gradually.
You say you want to start a performance car parts company......why?
There must be a reason why you've chosen this business - i.e, you've identified a gap in the market or you have an opportunity with a good supplier or you are in the industry now working for someone else and want a bigger piece on your own.
If you have good reasons to start this business and your business plan is sound, including Plans B, C and D then trust your business plan. Have someone else look over it if you want to, for piece of mind (I would)
However, if you're starting a performance car parts business with no business plan because "it interests you" or you're just "into cars" and/or you're current employed in something completely unrelated to that field, like an IT developer,now.......stay in your PAYE job.
Some thoughts from experience, some mirror what others have said, others less so.
I'd say the 40 is a the ideal age to start a business. You're old enough to have acquired the maturity needed, experience in work and life yet young enough to possess the enthusiasm, ambition and energy that's needed. You're also young enough to be able to recover if it doesn't pan out which should give you the confidence to at least give it a go.
I've found that business plans and planning serve little purpose other than provide something to hide behind when it all goes base over apex. This goes against conventional wisdom, I know, and there are examples where it's absolutely needed but I've known quite a few highly successful entrepreneurs over the years and read of many others and the general approach they took on the first step was to just get on with it.
If you're married or with long term partner, you absolutely need them on board with the idea. They need to accept that there may be a year or two without fancy holidays, nights out and the like and they need to be fine with this. Work as a team.
Regarding the market you're looking at, you've correctly identified that ICE cars will not disappear after 2030 - in the same way horses didn't disappear when the car came along. I don't know this for certain but I'd guess that the amount an owner spends on a horse today is significantly greater, proportionally to that spent in 1850. The market's smaller but the per-head spend is higher and the same will apply to ICE cars post 2030.
But once you've started a business, there's nothing to stop you doing something else to that you started. The largest Ad Agency in the world (WPP) started out as a company making paper clips. Citroen started out making bicycle wheels. Branson's the best example of this having started his business selling dodgy LPs from the back of a truck.
Hope that provides some thinking fodder. If you do go for it, keep in mind that there's no short cuts, borrow nothing if you can and money is only any good if it's cash in the bank.
Good luck.
I'd say the 40 is a the ideal age to start a business. You're old enough to have acquired the maturity needed, experience in work and life yet young enough to possess the enthusiasm, ambition and energy that's needed. You're also young enough to be able to recover if it doesn't pan out which should give you the confidence to at least give it a go.
I've found that business plans and planning serve little purpose other than provide something to hide behind when it all goes base over apex. This goes against conventional wisdom, I know, and there are examples where it's absolutely needed but I've known quite a few highly successful entrepreneurs over the years and read of many others and the general approach they took on the first step was to just get on with it.
If you're married or with long term partner, you absolutely need them on board with the idea. They need to accept that there may be a year or two without fancy holidays, nights out and the like and they need to be fine with this. Work as a team.
Regarding the market you're looking at, you've correctly identified that ICE cars will not disappear after 2030 - in the same way horses didn't disappear when the car came along. I don't know this for certain but I'd guess that the amount an owner spends on a horse today is significantly greater, proportionally to that spent in 1850. The market's smaller but the per-head spend is higher and the same will apply to ICE cars post 2030.
But once you've started a business, there's nothing to stop you doing something else to that you started. The largest Ad Agency in the world (WPP) started out as a company making paper clips. Citroen started out making bicycle wheels. Branson's the best example of this having started his business selling dodgy LPs from the back of a truck.
Hope that provides some thinking fodder. If you do go for it, keep in mind that there's no short cuts, borrow nothing if you can and money is only any good if it's cash in the bank.
Good luck.
67Dino said:
I remember vividly the night I quit my well-paid job to start my first business, sitting at home, holding a glass of champagne and not feeling celebratory at all. Instead I was looking at my young wife who I’d promised so much to, at my nice house I liked so much, and wondering if I’d just made the biggest mistake of my life.
It’s a really honest question you ask, OP, and I’d say anyone starting a business who doesn’t worry about failing is either deluded or lying. Business is risky, and you can’t go into it being sure of success. You have to go into it because it’s what you want to do and be, and that you’re sure you’ll always regret it if you don’t give it a go.
So the question I would ask yourself above all is whether this is something you really have to do, and even if it is a struggle, you’ll be glad you did. Or is it only because you want the prize at the end? If it’s the latter then it is high risk. If it’s the former, you can’t fail.
I remember this clearly.... I was also 40, and was earning very well. However, I had always wanted to do my own thing, so when there was the opportunity (it is never the right time, but it was the 'least worse' time) my options were either give it a go, or close the idea down forever more. It was my wife who kindly pointed out that I had no choice and it was something I had to do! It is a bit like the feeling just before you get on the biggest rollercoaster you have ever been on.It’s a really honest question you ask, OP, and I’d say anyone starting a business who doesn’t worry about failing is either deluded or lying. Business is risky, and you can’t go into it being sure of success. You have to go into it because it’s what you want to do and be, and that you’re sure you’ll always regret it if you don’t give it a go.
So the question I would ask yourself above all is whether this is something you really have to do, and even if it is a struggle, you’ll be glad you did. Or is it only because you want the prize at the end? If it’s the latter then it is high risk. If it’s the former, you can’t fail.
I went over the numbers in minute detail, and reconciled that the worst that could happen would be that I would loose all our savings (I promised to myself that for the sake of the family that if it went wrong, I would get out before I lost the house).
Handing in my notice felt like the point of no return.... As above, there was little appetite for champagne!
5 years later - I am still doing it. The rollercoaster ride continues, the highs are great, occasionally you feel sick and time travels so fast! But I can not imaging how I would feel now, had I walked back down the steps without getting on board!
Do you have any relevent experience of the Performace part Industry ?
As others have said you need to be 110% committed to the business.
Happy to start at 6am finsh at 10pm then be back in the seat at 6am when needs must ?
Work life balance is harder... Do you have kids that you want to actively take part in their growing up and a supportive and understanding wife ?.
Runnng your own business can be really rewarding but it does come with a large financial and personal overhead.
As others have said you need to be 110% committed to the business.
Happy to start at 6am finsh at 10pm then be back in the seat at 6am when needs must ?
Work life balance is harder... Do you have kids that you want to actively take part in their growing up and a supportive and understanding wife ?.
Runnng your own business can be really rewarding but it does come with a large financial and personal overhead.
What capital would you have to commit to stock at least one of each item you expect to sell? (or 4 in the case of wheels 
) How quickly can you get stock, or will you need to buy large quantities of stock to get the lower price? All questions you need to be able to answer before starting. It's all very well being able to get sales (if you even can get them) but you'll need to make a profit as well. Unfortunately retail can sometimes be a 'race to the bottom' with the lowest price being more attractive than any other aspect,to the purchaser. As a person who maintains their own cars, I'd like to be able to buy good quality spares and consumables at a reasonable price ...... Take oil and filters as an example - I have a choice of local factors 'unknown brands only' or main dealer brands at high price! I have recently been buying parts from Germany, and even with carriage (and Brexit), they are cheaper than the main dealer. Oops - I've just shown that I'm in the race for the cheapest price!
) How quickly can you get stock, or will you need to buy large quantities of stock to get the lower price? All questions you need to be able to answer before starting. It's all very well being able to get sales (if you even can get them) but you'll need to make a profit as well. Unfortunately retail can sometimes be a 'race to the bottom' with the lowest price being more attractive than any other aspect,to the purchaser. As a person who maintains their own cars, I'd like to be able to buy good quality spares and consumables at a reasonable price ...... Take oil and filters as an example - I have a choice of local factors 'unknown brands only' or main dealer brands at high price! I have recently been buying parts from Germany, and even with carriage (and Brexit), they are cheaper than the main dealer. Oops - I've just shown that I'm in the race for the cheapest price!What type of performance part company?
What would set you aside from anyone else?
Being a new-starter you could not have the same offers and discounts available , because larger resellers would have them.
The performance part market is over run, with parts from Alibaba (95% of parts come from there) and the rest of the specialised stuff is already very very well catered for
Not to mention, what you touched on - the ban of ICE cars for sale in 8/9 years.
I know that the margin on parts are not amazing, a set of BC Coilovers for your normal type of car (Golf / Audi A3) used to cost around £450 with a fixed sale price of £650 or so (this was generally standardised although of course some shops sold them at a lower price quietly).
Unless you have a very proven and extensively researched niche I don't see how you can make a comfortable living
The plus side is if you are simply operating a drop-shipping or mail order company you can probably run this business along side your existing day-job (assuming you have some work from home / free time options).
Not to be a downer on your plan but I've seen many new performance part companies come and go simply because they wanted to try and make some extra money. Now I see many operating purely by reselling Alibaba parts - Not everyone is switched onto this but many are realising you can buy the parts directly and with a big saving from China.
What would set you aside from anyone else?
Being a new-starter you could not have the same offers and discounts available , because larger resellers would have them.
The performance part market is over run, with parts from Alibaba (95% of parts come from there) and the rest of the specialised stuff is already very very well catered for
Not to mention, what you touched on - the ban of ICE cars for sale in 8/9 years.
I know that the margin on parts are not amazing, a set of BC Coilovers for your normal type of car (Golf / Audi A3) used to cost around £450 with a fixed sale price of £650 or so (this was generally standardised although of course some shops sold them at a lower price quietly).
Unless you have a very proven and extensively researched niche I don't see how you can make a comfortable living
The plus side is if you are simply operating a drop-shipping or mail order company you can probably run this business along side your existing day-job (assuming you have some work from home / free time options).
Not to be a downer on your plan but I've seen many new performance part companies come and go simply because they wanted to try and make some extra money. Now I see many operating purely by reselling Alibaba parts - Not everyone is switched onto this but many are realising you can buy the parts directly and with a big saving from China.
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