Home: Message List - What risks did you take to run your new business

Re: What risks did you take to run your new business

DeanMalibu — Sat, 23 May 2009 13:34:56 GMT

To re-enforce what Luckiest is saying
I spent nearly 40k on research and 4 and a half years of my time. My idea was simple, I chose the business, crunched the numbers. Then I looked at my competition, what do they do right?? What do they do wrong?? Can I compete or take advantage of their weaknesses??? Are their weaknesses large enough to exploit??? I then took the greatest tool I know...Lexus wanted Mercedes Benz customers, so they asked these consumers what they wanted. That is what I did...here is an example of what I found...

I took a very hard look at Gamestop, and thought what do they do right??

They have the largest selection of games

They trade used & new games

They do not spend unnecessary money on advertising...the game producers do that for them.

Now what do they do wrong??

They don't rent games...renting fees are not taxed.

They don't deliver.

They are not open at midnight when many games are purchased.

They do not provide an area for gamers to really experience the games they are trying to sell.

They do not take advantage of gaming tournaments...more lost sales.

They do not show any customer appreciation.

They do not provide good customer service.

+*They
do not sell food & drinks...if you already have the gamers and they
are immersed in the new game, take advantage of that point of sale your
missing.*+

+*My business model

"Not Just Games!" addresses all these things.

+*We
deliver, we host tournaments, we sell food, we provide online gaming
for up to 12 customers at a time, we provide all the things "the
customer asked for!" All these things mean one thing...a bigger bottom
line! Nearly double what Gamestop's average yearly sales! What is that
number? They have a store average of 1.38 million, while we are looking
at 2.9 million. All this from addressing what the customer "Asked for!"*+

Luckiest always offers great advice so "take it!"

Re: What risks did you take to run your new business

Dangelo — Wed, 06 Feb 2008 06:25:19 GMT

NatOnline,
that is a great question but one that zooms in on the risk instead of the reward, but I will touch base on it anyway

It depends on the business obviously. If a business will require substantial time and monetary investment I have seen determined entrepreneurs sell their homes, take out their 401K etc... It paid off for many of them.

If it is a home business on the other hand, the investment is not more than a few thousand dollars or even less, so the risk is minimal or very low.

I personally had worked in my family's brick and mortar business since 12 and so realized that there was a lot of hard work (16 hr days) and a lot of financial investment. After graduating from with 3 university degrees, I decided to work in corporate America - it wasn't for me. I quickly realized that the American laws are written by the rich for the rich... as they should be.

After having tried several opportunities and MLMs I was turned off that there was no real training in place, the businesses were being run by people with jobs that still had to go to work and get a paycheck on the next Friday, so their mindset was that of an employee... (very different mindset between an employee and a business owner by the way), therefore my mindset was similar to the people I was following.

The difference and break-through happened for me when I decided to search and find self-made millionaires that could understand my situation and guide me to success... within 35 days I quit my job, went from working 12 hrs a day to 3 hrs a day, and made more money than most CEOs, or doctors in this country.... now, what is the risk for this lifestyle? Nothing... so the risk is relative... but yes, I had to borrow $2000 to get started... so I guess that was my risk...

oh, and there was another risk... the risk that maybe I would not succeed and my friends and colleagues would ridicule me as someone that was cought up in a scam... yeah, right... sometime when I drive by that old job, I see my colleagues quickly walking to the local deli for a quick sandwitch during lunch break... I wave, smile, crank up the music in my brand new range rover and head over to the non-for-profit organization where I mentor a teenager while others are still working... it is great driving in the bay area, CA in the middle of the day when everyone is working...

The highest risk is not taking one.

Best,
Nik D'Angelo

Re: What risks did you take to run your new business

CEO Space — Sun, 13 Jan 2008 15:18:13 GMT

When I first started my first business, I risked everything. I left my job, had no source of income, was single at the time, and cashed in my retirement knowing full well I would have to pay taxes and penalty on
it if I didn't get it paid back.

I worked 18 hour days and I don't think I really slept well or ate much for the first 2 years.

I was determined.

Of course, knowing what I know now, I would never do those things again. I didn't know about CEO Space back then. Had I known about them, it would have been all different.

It all turned out well for me and I went on to create other successful ventures.

Re: What risks did you take to run your new business

NatOnline — Sun, 13 Jan 2008 04:03:35 GMT

Hi Wingman,

I understand and this is sadly true. Business is tough particularly when you start from scratch.

I will also say this is a daily fight against technical problems, optimization for search engines if you run an online store. Problems also to find new manufacturers, raise of shipping cost, raise of products prices, etc....All the business game.

Working back for a corporation no way, particularly in my field in Las Vegas they are paying peanuts for experienced people and 70% of the time they are scams.

Besides the casinos there is not much. As you can imagine many employers in Nevada come here to make quick money and go back where they came from.

Re: What risks did you take to run your new business

Wingman — Sat, 12 Jan 2008 23:48:18 GMT

Hi NatOnLine,

My story is very similar to the responses from others.

I had a good paying corporate job that was demanding ever more productivity and skills but not allowing you to acquire these new skills during the 'workday'. After the team that I supervised was outsourced I was working practically all day. Waking up for 5:30 am meetings and then also having to be on conference calls at 9:00 pm. Let me tell you, that got old really fast.

I ended up taking a HELOC, liquidating assets and started my own business. I'm at the point now where I may have to give up on my dream and go back to the corporate world so I can payoff my debts but I have been true to myself and lived up to my mantra. I don't want to look back at my life when I'm 75 and think to myself 'what if....'

To be a business owner you have to be willing to take risks. Some calculated and some, just a leap of faith and belief in your abilities. I'm proof that not all businesses will be successful but if you really believe in yourself and follow your dreams, you can bounce back. Just look at all the knowledge you will gain along the way and all the experiences/knowledge you can share with others.

Wingman

Re: What risks did you take to run your new business

NatOnline — Sat, 12 Jan 2008 22:39:12 GMT

Score is a joke, no offense David

Re: What risks did you take to run your new business

LUCKIEST — Wed, 26 Dec 2007 22:27:19 GMT

Then there is always SCORE. SCORE helps people in Business FREE
You can visit SCORE on line and take 26 Online Seminars (FREE) at " www.score.org"
or maybe the following will help. LUCKIEST

h3. 6 Steps to Small Business Success

1. Start Smart
2. Plan Ahead
3. Set up Systems
4. Seek out Sales
5. Aim for Growth
6. Leverage Opportunities

1. Start Smart.
Identify a niche. Don't compete to be the lowest cost provider. Look
for what makes your product or service unique and adds a special value
for the client and charge for that value. Every business has many
facets. Start with what you know and like; start a business that has
meaning to you. Keep in mind that we don't know what the future holds,
many of the jobs and businesses of tomorrow don't exist today. You can
create your own success.

Now is the time to dream. To start smart, you should like the idea of
the business. The way to earn a good income and build wealth is by
serving clients well, making their life better in some way-it's more
than filling a need in the marketplace. To succeed you want to test the
idea to make sure your potential clients like the idea too. Test your
ideas.

2. Plan Ahead.
People often ask me why bother with a business plan? Look at the
lottery as an example. You may get lucky and get the winning ticket,
but the odds are against you when you rely on random chance. I'm a risk
taker...but not that much, minimize the risk of going into business and
maximize your potential for success. Take the time to write a plan of
how you get from point A to point B. A plan gives you a clear future
focus and increases your chances of success.

The first rule of a start-up is put some of your own money in the
business. As the owner you must be willing to capitalize the business.
The second rule is put as little of your own money as possible in the
business. Prepare your plan and look for funding for your business from
multiple sources, which can include a business loan or business line of
credit.

Don't go it alone. Plan ahead now to build your team. Your team may
include a CPA and an attorney that you work with as needed. Add a
mentor from your industry and get a SCORE mentor to help you plan for
success. No one has all the answers. You get more ideas and information
by building a success, support team that can help you plan ahead.

3. Set up Systems.
The most basic system every business should have is a good financial
system. Ask yourself how am I going to generate enough income to
support myself and my family. Begin here. Put together a personal
budget, so you know what it costs you to live. Now, you can move on to
the business budget and sales planning, so you can see how many sales
you need to break even and make a profit. The start-up expense plan,
operating budget and your accounting software are vital to your
success.

4. Seek out Sales.
The daunting question is how do you go about seeking out your first
sale. Recognize that since you don't have a big ad budget to be seen by
everyone, you need to target a niche and get connected in your market
community, be it local, regional or national. You need other people
selling for you-not employees-goodwill referrals. Get out and talk to
as many people as you can. Join organizations that would have clients
for your product or service. Become a visible part of your market, and
then ask for the sale. You begin the sales process with people that you
know. Yes, it's okay to start with friends and family as your first
customers, and then broaden from there.

5. Aim for Growth.
The basic tenant of creating a company is that you own the company. You
are not just creating a job for yourself. It's less risk and less
investment to get a job. Building a business is creating a company that
is more than the job itself. Think about the future. How large do you
want the company to be in terms of sales, net profit and employees?
Your answer to each of these questions will influence how you grow.
There are varying costs and profits associated with growth. It's
important to make a deliberate choice early about how you want to grow
your company.

6. Leverage Opportunities.
Good luck. Good fortune. Good timing. All play a part in business. As a
business owner, be very clear about your core focus for the business
and how it serves clients. Your core business is what pays the bills.
Then, as an entrepreneur you are about opportunity. When you see a
potential opportunity or stroke of luck measure it against your core
business focus. Good fortune is great, when it matches your vision for
the business. Always consider if a good opportunity is the right fit
for your business. If something looks great, but it's not in sync with
your long-term plan and budget, think carefully before committing your
company's resources.

Re: What risks did you take to run your new business

frazzle — Wed, 26 Dec 2007 21:53:34 GMT

Ok, I'll try to get my story in thestory section, though there's not much to it. I'll work on it and post when it's up.

Re: What risks did you take to run your new business

Small Biz Wiz — Wed, 26 Dec 2007 21:23:36 GMT

Many of the resources at www.GoSmallBiz.com are free. There is an archive of previously asked questions that you can access for free but if you want to ask a specific expect a question directly, you will have to join for a small monthly fee. To learn the benefits of joining, watch the video. There is a link at the top right of the page labeled "How GoSmallBiz.com Works." To join, go to www.YourSmallBiz.org.

Re: What risks did you take to run your new business

NatOnline — Wed, 26 Dec 2007 21:17:01 GMT

How much does it cost to reduce the risk and access to the very best experts?

Do you think every business owners have got thousands dollars or even more for consulting?

I trust my instinct