Why Start a Business?

We had to close our business during this period, I know the pain.

 

Interesting, this couple quickly realised when they were not around the turnover was way down.
They immediately both gave away their day jobs.

 

That's a very good high quality post there @York

I've never been involved in the food game but I can echo the same sentiments as someone in building/retail. It's not all beer and skittles and it really grinds my gears when they flippantly say just appoint a manager...

 

@York
you may be interested to know that one of my very first business experiences was with a Mediterranean restaurant. My parents owned on in Glenelg foreshore and I was assistant manager (to my dad) at age 17.
I can't cook but did learn a lot by running the finances and staff in the background.

I used to love running the bar though and making cocktails - my favourite thing, I hate alcohol, never drink it but can put things together for other people.

 

This is a challenge we have not been able to conquer either, even after steadily growing to from solo to 10 staff, (our 5 most experienced staff added in the past 2 years), after 10 years in business.
The problem is that we keep gradually putting on staff over the years, but the business keeps growing, keeping us locked in, always working extremely efficiently as a business.
A solution may simply be to put on even more staff, but that may still not relieve us of responsibilities within the business.
I guess some businesses are easier to automate than others.

 

+1

 

Hi Daryl
Excellent points.
I think number 3 is huge, in early stages of business its difficult because you are trying to build cash flow and therefore can not afford staff.

 

Even if you find the right person/people to run/manage your business, there's still no guarantee that they will perform as expected.
They may be completely qualified and capable, but that might not be enough to get the best out of them and completely commit to the business, compared to business owners who realise all the profits the business delivers.
There's quite a large element of trust required.

I don't have experience in hiring managers, but could only think that they will only be motivated to perform at their best abilities if there are some sort of incentives in places, such as being brought on as a partner with some sort of profit share arrangement.
A significant financial interest is the only way I can imagine it would work.

 

one word. ownership. i encourage my staff to take ownership and rewards will come... money still work magic.

 

I am at this stage with my business now? Behave a lot of time to spend with family. Being in the building industry our hours are 7-3:30

 

Agreed, that often helps.

As an example, we hired a fantastic manager for one of our businesses on a fair bit lower base pay than previous job but big incentives/ commissions and the ability to buy into the business after a certain period at a discount. We also put in certain measures to ensure his focus would be on the business long term and not just buy in and bugger off etc.

It can be done bUT requires the right business, owners, staff member, deal etc all coming together.

 

Don't be so harsh on yourself, business is a hard gig regardless

 

Agree with @MTR. What you do may be a specialist area that requires special skills. No everyone has those. So don't be hard on yourself.

 

Great idea for a discussion @MTR after reading countless books, i have decided in order to achieve my goals working a PAYG is not going to cut it.
looking at lots of sales jobs, i came to the conclusion that i either become a car salesman or a real estate agent. I figured they are probably the most cut throat industries, if i can't survive selling how will i ever be able to run my own business.
The 40k salary is going to be enough drive to learn how to bring the sales in.

 

Love the attitude.

 

Good on you @tomlemke - having read a few of your posts, i'm sure you'll do great. I have a few young clients that have made the jump (cars), earning in excess of 250k. They are driven, work very hard and have learned their trade really well. Being in a scalable income industry with that type of mindset is a good recipe for big income gains IMO.

 

I always had the perception that your businesses were successful.

Not being able to find someone that runs the shops without you could be an indication of high standards rather than an inability to train.

Successful people usually have more control and know exactly what is going on - they are "in there" - Donald trump keeps his attention on every detail that's why it works.

I remember in one of your other posts Geoff where you were commenting about a worker not changing gloves often enough. You were onto it, the smallest detail, that's why your franchises were successful.

 

Thankyou Redom , its people like you and others on this forum that have inspired me to take life by the horns and not let a simple "no" from the bank stop me from acheieving my goals.
Time to build my income.

 

If I was a tradie I would start my own business without hesitation. I can't really think of a niche service to provide or anything where I'd have a competitive advantage though, which is why I've never done it. If I had a business it would probably just be selling goods at a brick and mortar store. It might make a profit it might not, but depending on the goods I think I'd have a large chance of being undercut by online competition since I'd essentially be operating as a middleman. Plus there's the whole 'are you buying a business or are you buying yourself a job'. A few years ago I was looking at starting child care centres, but I think I missed the boat with that since it's now raft with regulations and high entry costs etc.

I think the motivation for business is simple though. People want to be independent and not reliant upon the man.