More Questions About Business, Getting Customers?

[BigJohnny]

I'll try to keep this as short as possible so as not to bore anyone to death. I'm 26, I'm skilled, intelligent and capable of doing damn near anything. I've made a few "not so smart" choices in my life that have kept me from being where I really want to be. I've ended up nowhere, and have a hard time seeing anything better in my future.

This bugs me, a lot, and it bugs me so much because I know what I'm capable of and I know I can do better, I just don't know how. One of my problems is confidence, I always end up doubting myself and think I will just end up failing or looking stupid, another problem is I'm not so much a business minded person, but I can lead, and I do believe I could manage a business, but with my lack of schooling I usually think people won't take me seriously because I don't have a little piece of paper to show them and don't have much else other than what I know..... and this leads back to the confidence problem.

I've been thinking about starting my own business for a long time, and as far as my goals in life, that's where I would like to be, running my own business. One problem area here is what. I'm not the type of person who knows only thing.... I can literally do anything I want to, it isn't a matter of skill, or knowledge.... it's deciding on what, and the lack of business sense.

As things are now, I'm basically a loser. I have no money saved, nothing to fall back on, I'm slightly in debt, though substantially less than most people, a couple thousand dollars is the sum of ALL my debts. I can barely provide for my family but do the best I can, and have always been a real man in this situation.

When I get to looking at things, I've always liked car audio, but never had a car until about 8 months ago, so I could never really get into it during my teenage years like everyone else, but it's one of the few things that have been a constant interest in my life.

The city I live in is crap for this type of thing (London, Ontario) and there are literally NO car audio shops... there have been a couple spring up and vanish, and other than best buy and future shop there is only one other place and they don't do a hell of a lot and are scam artists.

I think if done right, I could probably get a shop going here, just retail to start, selling components/accessories and what not and doing basic installs for things like HUs and basic boxes, just building up a rep. and getting some word of mouth going..... a place that gives real advice, not band-aid on a bullet wound(capacitors). If I could get that going, I could expand to doing more custom type stuff, even things like alternators and big 3 upgrades (no one around here that has ever been here has ever done anything like that)

I could carry brands that you just don't see, like Fi, DC etc. Which can also help them get their products into the Canadian market by having an authorized reseller brick and mortar store.

I would also have online sales setup, so people could buy from the store from the web, and I could have an eBay store setup as well.

There is a market for it, this I know but I don't know how to get this idea off the ground. There is a possible way for me to get a loan even if a bank won't but I still need the proof that I can make a business work.

So, how can I do this, how can I make this a reality and start doing something with my life. I know it's a risk, but if one isn't willing to take risks then one can't get anywhere.

Something else I would like to do here, is have you guys ask me some questions. The kind of questions you could expect to hear from customers coming into the shop, and I'd like to see how I can answer them.... so fire away.

I need the advice, because I need to do something with my life, I have a daughter and I don't want her to be raised by a failure.

[SplPhreak]

Just know that small business owners 95% of the time DO NOT profit for the first few years they're open. If anything they fall even more in debt than what they already were. So if you're looking for a "get rich quick" scheme then look elsewhere. But if you do go fourth with it, good luck.

[01xtreme]

If you're wanting to start a business you are going to have to put alot of time and energy into researching and gathering information to provide to investors. You're most likely not going to get a loan from the bank, so I would rule that option out right now. You're going to have to target private investors, and what they want to know if 1) What kind of return are they looking at getting once your business is profitable and 2) How long until they see a return on their investment. You're going to have to get a fair amount of capital to start buying since most big name companies are going to have a minimum buy in to start carrying their products. I would personally suggest doing proforma financial statements to see if your idea is going to be financially feasible because a brick and mortar building is going to be a HUGE expense and overcoming that is going to be fairly difficult. There's alot of stuff you should do when starting a business, and I don't really feel like typing it all down right now. If you want any more information, pm me, and I will help you out as much as I can with info. I have helped a few people get businesses up and running, and it is no easy task, and as someone said earlier you're probably not going to see a profit for at least a year possibly longer. Also you're going to be putting in ungodly hours trying to keep it afloat (not good if you're trying to spend much time with the family). If you want to do that, then go for it. Just dont expect it to be a walk in the park, or cash cow right away.

[PUNKYOU007]

Just know that small business owners 95% of the time DO NOT profit for the first few years they're open. If anything they fall even more in debt than what they already were. So if you're looking for a "get rich quick" scheme then look elsewhere. But if you do go fourth with it, good luck.

i strongly second this, you WILL spend more than you make in the first 2-4 years. building up many things that will make you buisness sucessful in the future. you will fail very very fast if you let this get to you. if you are in debt and you have a family to provide for then this will be a very scary thng to do, trust me i own a buisness and have yet to make it a full time thing because what happens if i dont make it, what happens isf i cant pay rent, what happens if something happens to my wife or my kids or me. when you work for yourself insurance aint so cheap, i know people that pay over $1500 a month for him and his wife. there are so many factors here its hard to get into. dont get me wrong do what you love or else whats the point. maybe try to work a few more years to pay off your debts then when you dont have them you will have more peace of mind when you decide to spend/invest your money. we all love our vehicles and our systems but maybe now isnt the right time to go all out. you might have some money in your pocket but should you buy that nice new Sundown amp or should you pay down some debt. what will help you in the long run. do you know any of the people that owned the stereo shops that have opend and closed? if so find out what happened, i mean some people just dont have it, some people get in over there head, some people cant handle the time it takes to start a buisness. you will find that all your time will be put into your buisness if you are really truly into it. it will cause issues at home, make sure the people in your life are there for you, you cant do it by yourself. on the loan note, if your married maybe it should be your wifes buisness, women and minorities get loans way easier than a white guy. point blank. also banks are scared as hell right now i dont know the situation in Canada but here, they are pulling loans from people left and right. i am in the lumber/hardware industry so i have seen many many people go out of buisness. the economy is separating "the men from the boys" the guys that know what they are doing and the guys that try to make you think they know what they are doing. i know some great builders that have had there loans pulled after they started building, banks wont risk it and the way things are going now failure right around the corner for a ton of buisnesses. go pay for buisness license, print out fliers and get some cards, Vista print is very reasonable and they have tons of options, get your name out there get your car lettered show off your system or others that you have done. shops dont make money off of big SPL setups, they make it off installing prefab boxes and alarms. my shops around here are fuckin gay as hell, they were impressed, like really impressed with my 1/0 wire. they guy was trying to sell me some 4 ga untill i showed my Knukoncepts. start off small and advertise. dont spend a fortune on advertising but like i said get some cards and get your car lettered or your boys cars lettered. fliers, more or less a lost cause you could make 2000 and not get a call. been there done that. i know im all over the place but sit down and get a game plane together, look at you income now and your outgoing money. pay down some debt, save some. everytime you are about to buy a videogame or something you really dont need take that money and put it into your buisness or into a savings account for your future buisness. there is no such thing as getting rich quick or we would all be rich. keep you head up and dont let my rant get you down, i could go on for days about this. another thing to remember is that anyork you do, you are responsible for. it bothers me that you think your a loser. i dont know you but im sure your not a loser, everyone has hard times. keep your head up and dont let some little shit get you down. i am your age and i have a shit load of problems, i have a ton of debt, i have a wife and 3 kids to take care of and its scary and sometimes i get depressed but i always think that my time will come, im puttin in work everyday so my kids and my wife get what they want and dont go without. i mean i been trying to come up with some money to buy me a new amp and i dont have it yet but i know i spent enoght money on my kids and my wife that i could have bought 2 amps, but like i said my day will come and so will yours, your not a loser, just another dude trying to get by itll balance out in the end. again i know i been all over the place with this but i hope you got something from it. if you have any questions you can PM. you sound like a dude that wants something out of life, keep at it and you will succeed.

[Dr. Johnson]

97% of all companies fail in the first 8 years of those 3% less than 10% break even before 10 years. It sounds discouraging but it is the truth. You can start buy taking business classes online and learning how to do a business plan. Once you get the basics down you will be able to see a little of what you are up against then and only then should you decide if you are willing to put your self and family through it. If you do good luck. Just my 2c

[pstone11]

My 2c.... Join the service - free college while you're in, awesome for your resume. Go in for an electronics job.... 4 years down the road you'll be set. I was in your position about 12 years ago.... (decided the military is a great place to be, still in free college classes, making OK$$, happy for sure)

again, just my little input.

[qu1cks1lver56]

if you really want to start a business plan to work your ass off.

figure out what you wanna do, is it service based or sales based?

go get a business license, file the shit for a corporation (LLC's are much better for both the business and the owner).

my family's always owned businesses, i owned a small lawn care company when i was 16-17, still have it just havent worked hard at it this year (moving for college)

[Ben Building]

The first thing you'll want to do is define your current (or potential) capabilities and what it is you plan to do for your market. You need to describe your target market very specifically so that, later, you'll know where your efforts are going.

Also, think about starting smaller if currency limitations stifle your grand scheme. For example, what about alarms and remote start systems in your market? I'll bet it gets pretty cold up there, so how many people would be willing to pay for the added convenience and comfort? Do a marketing survey (ask people) and find out!! Alarms and RS systems are fairly quick to install, once you get your method down, and, who knows, you might be able to help finance your next move with it.

You will need to think of ways, from the very beginning, to keep your expenses as LOW as humanly possible. After all, your profits go to your expenses first.

By the way, is there a Canadian version of the Small Business Administration (SBA)?

[PUNKYOU007]

My 2c.... Join the service - free college while you're in, awesome for your resume. Go in for an electronics job.... 4 years down the road you'll be set. I was in your position about 12 years ago.... (decided the military is a great place to be, still in free college classes, making OK$$, happy for sure)

again, just my little input.

NO! dont go join the military for the free schooling thats what the hell is wrong with shit now. i hope thats not why you joined cause that shit makes me sick. i see alot of people just join the military as a way out, not because they are interested in defending our country. if in fact you have always wanted to fight for your country then by all means go... and thank you in advance. most of these young boys i see thats all they do get in for the enlistment bounus and the school if they are not completly retarded , do there first 4 and get out the same asshole they were before but now there showin off in there new car wit 24's.....complete pussies. you join the military do it for life and because its what you always wanted. otherwise stay the hell out.

[BigJohnny]

Ok, I didn't read through everything in detail, im getting ready for work.

Investors, The people I work for are scam artists, they screw insurance companies all day long, they are big money makers and know how, nothing fails with these people.

The owner has an investment company set up, and has 12 business under its belt, i don't know what exactly but they do invest. The CEO of this investment company was a superintendent of a jail before he was this CEO, and my dad and him are good friends, I also know them well(the CEO and owner). My dad also worked for him rennovating the buildings for the clinics, I now work for the clinic.

Where is this going? If i can setup a good business plan, They will invest in me, but I have a lot to overcome to prove that I can do it.... they know I'm smart and could do it, but they need to know im serious and also that it WILL make money.

With these guys backing me, they won't let the business fail..... just for the record, im NOT looking at this like "because these guys are here I have nothing to worry about"... no no no, that just gives me a little tiny microscopic edge towards getting an investment for my business.... when I say they won't let it fail, it means if I'm doing a bad job they get rid of me and take it over......

Keeping costs low? Well for an actual building renovations would need to be done.....that's where me and my dad come in.... we do the work ourselves, as we've done before.....saves a SHITLOAD of money since we don't need contractors etc. Surplus stuff, secondhand display units/stereo/speaker racks.

Keeping it cheap shouldn't be too hard when it comes to things like that. And while renovations are going on, there can be an ebay storefront to try and get some cash flow before the actual store is opened.

I dont know any of the shop owners who have gone out of business but I go out on a limb and say that a part of it is the demographic, meaning that the people starting these store are looking for a get rich quick scheme, hoping to scam the local idiots around with things like capacitors, and shitty cheap installs. or it was just a front for something.... there are a few fly by night business that have cropped up as fronts for something more illegal.

anyway, Ill take a better read of the thread when I get home.