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Business Ideas...how to start?

Discussion in 'Off Topic [BG]' started by Rumzini, Mar 12, 2006.

  1. Rumzini


    Feb 14, 2004
    Jackson, MI
    Mind you I am but a lowly pee-on working for the man and a big corporation, and I'm quite tired of it. I have now come to realize that I'm one of those types of people that would rather work for himself, making his own bread so to speak. Some may look at it as being lazy...I think not. The business ideas that I have would require ALOT of time and effort not to mention much, much,much cash!

    With that said, and not mentioning what the idea are themselves. What does one have to do to get something started as far a a business goes? I'm sure the first step is the bank, but...the capital that would be needed to get one of the ideas off the ground would be huge...very substantial. First of all, a certain large amount of property would have to be purchased. Probably prior to that a check with local government would have to made to see if it is even possible.

    I have spoken with certain individuals that hold some weight in the community, and they believe that it is certaily a viable business venture if only one had the means and...that word again, cash. I've had several people tell me that it would probably be quite succesfull and that I would profit from it greatly. I believe the one idea would be like the Field of Dreams...if I build it, they will come.

    Just how do you begin? Investors, bank, government loans, etc. ????

    Can anybody point me somewhere, besides away?
  2. Tsal


    Jan 28, 2000
    Finland, EU
    I'm no businessman, but here's what I've been thinking lately: start small. First run your business as a side-job, if possible, so you can afford to experiment a bit with different ways of doing stuff. And figure out what's the absolute minimum in products/services and machinery you need, and if possible rent that equipment - do minimal investments in everything.

    This way you won't end up with tens of thousands of debt if you fail. A good business is where you can make a quick buck with pennies - after you make it larger, all kinds of expenses start to come up and you'll see your profit margin grow thinner and thinner.
  3. simpy1


    Mar 31, 2005
    New Zealand
    I disagree. I think a business is likely to fail unless you give it 100%. If you want to be successful, you can't just make a half-baked attempt at it, you have to give it complete importance, until you've got everything up and running. A business isn't a hobby!
  4. Rumzini


    Feb 14, 2004
    Jackson, MI
    The one idea I have wouldn't be as much as an investment as the other. If I was to open up in a coulpe of locations and it failed, I would be out a couple to a few grand tops. However the other idea...we're talking big, big, big money. A few hundred thousand!!! Where do you get that kinda bread????
  5. Bassic83


    Jul 26, 2004
    Texas, USSA
    The very first thing I'd do in opening a business is to retain a lawyer.
  6. Whats the idea?
  7. Paddy


    Apr 19, 2005
    Kent England
    Don't think he's going to tell you what his idea is :)

    I think the first thing your going to have to do is put together a full and proper business plan. No bank/investor is going to even talk to you without one of those.

    Only my opinion.
  8. Diggler


    Mar 3, 2005
    Western PA
    Land is rarely a bad investment. They quit making it a long time ago.
  9. Rumzini


    Feb 14, 2004
    Jackson, MI
    To funny! :D
  10. bill h

    bill h

    Aug 31, 2002
    small town MN
    Takes money to make money, sounds like you need an investor, someone who thinks your idea is so great, he would be a fool not to put money into it.
  11. Rumzini


    Feb 14, 2004
    Jackson, MI
    I figured I would need some sort of plan. I know a few people in the construction business. Would you suggest to start with them and see if they may be able to give me some rough estimates on certain things, buildings, etc.?

    The land at hand is actually owned by a friend of mine's father. I've run it by the son a few times about the idea. The son has told me that several people have gone to his father about buying the land in the past with differing ideas on how to develope it. However nobody has come up with the idea that I have. He feels that it would go over well... basically many many people in the are that I live have complained about how there is nothing to do in this town. Actually we have two movie theatres, golfcourses everywher, a few mini golf, Michigan International Speedway in the summer, Hot Air Baloon event with an air show. There really is no lack of events...but the thing I wanna do would be open for the better part of the summer, and provide entertainment for family...something for the kids.
  12. Paddy


    Apr 19, 2005
    Kent England
    With these hints you tease us :)

    A business plan is a involved, detailed and formal document that you present to bankers/investors which details all aspects of your proposed business.

    It's not enough to tell an Investor what the business is about. Investors want to know how their money is going to be spent and when they can expect returns - after all THAT is why they would invest.

    After your plan you would still need to present your idea and that's when your research needs to show through - you really need in depth knowledge of the figures and your market as well as your competitors. An investor is as much investing in you as they are in your idea - investing is a gamble and they want reassurance that the person they are investing in is totally commited and going to give the business it's best opportunity for success. Having the answers is your best way to demonstrate this commitment.

    The more detailed, polished and professional the plan the more chance you have of gaining funding for your idea.

    You'll find some sample business plans here (don't know how good these really are though!) http://www.paloalto.com/ps/bp/samples.cfm. These should give an idea of the kind of thing an investor is looking for.

    Again, only my opinion
  13. bigtexashonk

    bigtexashonk Supporting Member

    Create a detailed business plan, then fund with OPM (Other People's Money).
  14. Rumzini


    Feb 14, 2004
    Jackson, MI
    Now that's what I'm talking about. I'll have to browse that site when I have more time. I'm at work at the moment. Thank you very much, Paddy.
  15. Paddy


    Apr 19, 2005
    Kent England
    Glad to help :)

    Just check out the sample plan on the site for ideas - don't get too hung up on the software they are trying to sell you.

    Also, don't forget to use other sources of information.

    Check out the banks - at the very least you should find some literature on how to build a business plan. You may even be able to make a free appointment with a business advisor who could point you in the right direction. Remember, as a business you would be a valuable customer to them so they will go out of their way to be nice (for once)!!

    In the UK I would also check out our local Chamber of Commerce for more suggestions. Also, some UK colleges run some night classes in business related subjects. Does the US have equivilent facilities?
  16. Diggler


    Mar 3, 2005
    Western PA
    We used to have music festivals at certain farms here in Western PA. Family oriented... well, these ones weren't, but you could police it pretty well if you wanted to.

    They built a big stage where acts could go up and play. Chain fence 10' in front to keep people somewhat away from it. They opened up the fields to campers on Friday, it went through Sunday, with bands Sat. and Sun. There were no hookups provided; those who wanted electricity brought generators and outhouses were the only amenities.

    There were vendors invited as well for food and music apparel (and other stuff as well).

    The place was a mess after the weekend, but at $20/person for the weekend pass, I'm sure they made some good money. And it was pretty minimalistic.
  17. Rumzini


    Feb 14, 2004
    Jackson, MI
    Oh yeah. We have three colleges in town...one of which is a "School of Business". Also in striking distance is the University of Michigan and Michigan State University. The company I currently work for will pay tuition reimbursement as well as long as I can justify the class will be benificial to work. So I have options there in gaining more knowledge.

    As said before I have a few friends int the comstruction business, contacts in local government, and a few friends that heave owned/operated their own business as well.

    It's just these ideas have been floating around in my head for years and I have never did anything with them. I just don't wanna be 75 years old one day and wonder what if. The position I'm in at work is not going to provide for my family in the way that I want. I don't have a clue as to how my children are going to college. Or to have a few nicer things in life. I just want to be able to launch them off with a good start. Just like everyone else I guess.

    I don't mind working hard...I'm just tired of someone else reaping the profits. time to make my own!
  18. MJ5150

    MJ5150 Moderator Staff Member Supporting Member

    Apr 12, 2001
    Olympia, WA
    Figure out how much money you will need to start your business. Save up that much, and then two times more.

  19. Rumzini


    Feb 14, 2004
    Jackson, MI
    OK here's some guestimates for prices on three ideas.

    Idea 1...maybe $5000.00 startup at most along with a monthly rental fee for space at a mall.

    Idea 2...maybe $25,000 startup, then the cost of maintenance, insurance I'm sure.

    Idea 2...her we go! This is the one that involves purchase of a certain peice of property. Property alone gonna be a few hundred thousand. Then the idea itself...seriously into a million. So really this is the idea that would be just a huge deal for the area. It would impact them by bringing jobs itself, then to the surrounding area with hotels, motels, restaurants and the like all profiting from it. I know I'm just dreaming...but hey...why can't the lil guy dream? Who says it's impossible?
  20. OK, I've been involved in quite a few new ideas, business, both successful & not successful.

    here are some very important things to think about:

    1. The idea is usually the LEAST critical part of the equation. There are a million ideas. What is most important is having the skill to start a business & then make it successful. A good idea doesn't usually make a good business. You need business acumen, contacts, money, and contacts :)

    2. Don't make the mistake of hiding your idea from everyone. Chances are, you're not the first person to think of it. Talk about your business to everyone you can think of. Get other people excited about it. if you tell the right people, they might be able to make things happen for you. Again, don't keep it under your hat. This relates to #1... it's rare that someone will steal your idea & run off with it, because they don't have the necessary skills, or most importantly, they are not as convinced & excited about it as you are. You need CONTACTS, and you're not going to get them if you keep it a secret. BEsides, if someone DOES steal your idea, is it really going to hurt you? Is the market so slim that you cannot have competition? if this is true, maybe it's not a good business, because if it's successful, you WILL have competition eventually.

    Also, if you're going to raise money, you're going to need to pitch your idea. you need a LOT of practice. tell people about your business. let them come up with potential problems, hone your pitch.

    #3. You need to have a CLEAR, defined idea of the market space you are in. you need to know everything about it. If you are approaching investors, they may ask you some very difficult questions. have the answers. know your business.

    #4. have a clear idea of how investors will make money. They need to see their exit plan. Are you going to go public? are you going to sell the business? are you going to dividend profits?

    #5. Try & figure out all the ways your business can fail. THINK IT THROUGH. I've heard a ton of ideas & seen a lot of business plans, and 95% of them have not been thoroughly thought through.

    #6. Your bank will not usually lend you the money unless it is secured or there is almost no way you can not succeed. Secured menas that you need to put your house up (if you have one) or most of your investment will be in something that the money is recoverable from. Angel investors or Venture Capital companies are sometimes a alternative as they invest in higher-risk businesses (of course they ask for a percentage of the company, but you don't have to pay them back!..also they can offer some good CONTACTS)... unless you know that you business is going to be successful, use someone else's money!

    ** Remember, it's not the IDEA that makes a successful business, it's the PERSON. A good entrepreneur should be able to make just about anything work, where a poor entrepreneur will likely fail at even the best idea ** this is the most important thing...

    PM me if you want some more info or want to discuss.

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