Any pointers on starting your own business?

SPC Private RallyPoint Member — Wed, 24 Feb 2021 10:25:06 -0500

I'm looking into starting my own security escort company (civilian PSD), and would like some tips. Any of my RP family have experience with this who would like to share their wisdom?

Response by Sgt Private RallyPoint Member made Feb 24 at 2021 10:39 AM

Sgt Private RallyPoint Member — Wed, 24 Feb 2021 10:39:31 -0500

SPC Private RallyPoint Member Below is one post. You can find the other posts dealing with starting a business by searching on "Starting Own Business", and then clicking on "Answers".

https://www.rallypoint.com/answers/i-m-looking-to-start-my-own-business-what-are-some-tips

I'm looking to start my own business. What are some tips? | RallyPoint

Looking to start my own business anybody current business owners got some tips?

Response by SSG Dale London made Feb 24 at 2021 10:45 AM

SSG Dale London — Wed, 24 Feb 2021 10:45:32 -0500

Starting a business is a scary enterprise. Here are a few tips to help you make it a success:
1 - keep your business finances and personal finances ABSOLUTELY separate. Do not allow any bleed over from company funds to personal funds. It is a business and reputation killer.
2 - This may seem like common sense but it happens a lot and it ruins almost every businessman that tries it: Don't accept any contracts (however lucrative they may appear) if you do not have the ability to fulfil them.
3 - Avoid hiring friends if you want to keep them as friends. The employer/employee relationship will overpower the friendship -- especially if you need to discipline or (worse) fire a friend.
4 - Be prepared for your new venture to completely monopolize your waking hours for the next three to five years. If you are married or in a committed relationship, you both need to know that a new business can be more demanding than a new baby. Be open and frank with each other and do not start the business if your partner is not on board for the long haul. If they are not, then if either the business or the relationship fails there is a real danger the other will follow.
5 - Make a fact-based and practical business plan and work to it. Assess it on a regular basis (I recommend quarterly for the first few years) and adjust it or your practices as necessary. Do not deviate from the plan without first devising a new one that is at least as fact-based and practical as its predecessor.
6 - Manage every project as if your reputation and the business's success depends on it working out -- because they do. Take a course on basic project management and employ the principles assiduously to your business model.
7 - Win. Win, and win again.
Good luck.

Oops - forgot one: Get a good, dependable accountant. Keeping your books right will save you thousands of dollars and keep you out of hot water with the IRS.

Response by Cpl Mark A. Morris made Feb 24 at 2021 11:06 AM

Cpl Mark A. Morris — Wed, 24 Feb 2021 11:06:41 -0500

I wish you great fortune SPC.
A business capability statement with two references is very helpful.
I listened to business and marketing lectures on YouTube. My business had almost everything ready to move into my office by the time I got an office.
You can build your own website these days and link it to your LinkedIn and Facebook business accounts as an example.
Networking and sub-contracting might be something you can consider if you register with SAM and certify your business with the VA.
The VA has jail systems under its mandate.
Registering with System for Award Management (SAM) takes about a day. But you will need a tax ID # and a code for your type of business.
Never give up.
Over and Out SPC

Response by SFC Melvin Brandenburg made Feb 24 at 2021 11:11 AM

SFC Melvin Brandenburg — Wed, 24 Feb 2021 11:11:41 -0500

I've started three. Two unsuccessfully and one successfully. In spite of having great technical abilities I made the mistake twice of being undercapitalized. That prevented me from taking advantage of opportunities and it left me ass out when unexpected events happened, and they will always happen. So, have a year or more of operating capital in the bank before striking out.

Response by SPC Erich Guenther made Feb 24 at 2021 12:03 PM

SPC Erich Guenther — Wed, 24 Feb 2021 12:03:33 -0500

Key points your going to learn with your own business.

1. New business takes time to develop and word of mouth is the cheapest way to acquire clients so always do an excellent job. Regardless of if you do an excellent job for everyone your going to have probably a few people that bad mouth you for whatever reason. Some just do it because they have some innate need to be a jerk. So you have to let those people and their comments roll off your back or find some way to neutralize them via service or reputation.

2. Have an exit plan if things do not work out. Monitor your financial progress and leave or sell the business at the appropriate time if you feel it is not working out and you have no real hope of a turnaround. This is where most people fail. They cling to a failing business emotionally until it drains them of money, hope and any realistic chance of departure without declaring bankruptcy. Keep in mind you can take a break from a bad business via selling or shutdown.........and come back to it later or always start a new one. Easier to start a new business with a disasterous bankruptcy on your recent history. Employers will tolerate a 1-2 year break in employment if you tell them you attempted to start and run your own business but it did not work out. They will tolerate that more than someone that says they were unemployed. So some Executives now when they are unemployed list that time as being a "consultant" so there are no gaps. Future employer does not care you failed at a past business startup in fact, for most employers it is a net positive you had the balls to try. After I liquidated my business I got a higher paying job in IT than I otherwise would have if I just stayed in IT the whole time. The employer was impressed I had employees and saw management potential. So it is not necessarily a bad thing if things do not work out and you should never fear failure to the point where you ruin yourself financially. Remember again, you can always start another business in the future.

3. It is far less stress if you have a source of income apart from the business to live off of other than just living off your savings. My first attempt I tried the living off my savings business and it was more stress on me to turn a profit as well as it shortened the time at which I had to execute an EXIT strategy. So my next attempt will be after I retire with a pension and social security.

4. When you list your business with the state, don't use your personal phone number. Use a disposable phone or a phone number you can switch out after the first few months. Reason is every tom, dick and harry that monitors the state treasurers office will have the phone you submitted and will call you incessantly at that phone number to sell you everything from insurance to pens. Your phone will ring off the hook and few clients will get through. So be mindful of that.

5. Insure your business and your workers and buy a Workmans Comp insurance policy at a minimum. This is maybe a $2,000-$5,000 annual premium but it covers all your employees from work related injuries and the law allows them to get treated at the best medical facility available (not some cheap clinic). Definitely worth the price and peace of mind. Also, THE HARFORD, or whatever they are called now has one of the best Workmans Comp policies for employees and it is reasonably priced. The policy will cover their paid work hours while they are medical leave as well as their medical payments and expenses. Very good deal and employee benefit that a lot of new employers skip.

6. Never trust anyone you hire until you have a long track record of relationship. Most especially Veterans. I hired a Veteran from Gulf War as an Assistant Manager, former Navy Corp6sman. He started stealing money from me and later I found out he had a criminal record and was wanted by some Police Departments. All because I thought I could trust a Medic from my past military service. People will steal from you if you give them a chance. Only about 50-60% of your employees will be honest, the rest will try and screw you someway.....and you will either hear about it or see it in the financial reporting. Remember the Reagan saying "TRUST BUT VERIFY" it applies to employees. Most of my employees liked me and gave me a high rating because they said I wasn't afraid of work and also took out garbage and cleaned bathrooms like they did. That went a long way in the area of respect.

7. My first business took 80 hours a week in time with Sundays being closed. Your going to work your azz off especially initially with new business development. Even with that time commitment and sore feet and back, it was one of the best times of my life being my own boss. So yeah I am going to try it again in the future.

Response by Cpl Vic Burk made Feb 24 at 2021 8:22 PM

Cpl Vic Burk — Wed, 24 Feb 2021 20:22:21 -0500

There is an organization out there that can help you. Service Corps of Retired Executives. I had an electronics repair business for a number of years before I went back into teaching. Low cost of consumer electronics killed me! Check this site.
https://www.score.org/
They have people all over the country that give you advice. Best of luck to you Brother.

Homepage

SCORE is the nation's largest network of volunteer, expert business mentors. We have helped more than 11 million small business owners since 1964.

Response by Lt Col Jim Coe made Feb 25 at 2021 4:34 PM

Lt Col Jim Coe — Thu, 25 Feb 2021 16:34:21 -0500

I worked in the private sector for 17 years after retiring from the AF. The company I worked for was started by three retired officers who thought they could fill a need in the Government contracting sector. It turned out to be a successful business and they all sold out for a tidy piece of change after 30 years. Based on what I know about them and the early years of the company, here's my best advice.

-Develop a strategic plan for the company. Set goals and objectives right off and work toward them every day.
-Fill a need. Make sure the market into which you are moving actually has a need for the services or product you will provide. If there's no need, or more companies filling the need than the level of demand, it probably isn't the right time to start a company in that location.
-Early on hire people with specific skills, knowledge, and abilities to fill jobs for which you have customer demand. Don't hire a bunch of "generalists" who will soak up payroll and not produce services or products right away.
-Pay to scale and avoid unions. Pay your employees the going rate for people doing the type of jobs you have available. Do not go to unions to find employees. Unions are mostly trouble for the employer.
-Set a go/no go milestone. In your strategic plan, set an evaluation point when you and your investors, and maybe spouse, critically evaluate the company. If it looks like you aren't going to make the milestones in the plan either readjust the plan or close it up and move on with your life.
-Be prepared to fail. Lots of small businesses fail every year. Keep enough money and property separate from the business so you have a place to fall back on if things don't work out.

Response by SSG Robert Perrotto made Oct 26 at 2023 4:43 AM

SSG Robert Perrotto — Thu, 26 Oct 2023 04:43:01 -0400

I started my own venture a few years back, and there were definitely some lessons learned along the way.
Firstly, you need a solid business plan covering every aspect: financing, operations, marketing, etc. As part of marketing, knowing what works for competitors is invaluable. I personally use this Adspy tool from https://poweradspy.com/. It really helps to grasp what strategies successful companies are employing.
Secondly, ensure you're compliant with all the legal requirements: insurance, licensing, and such.
Lastly, networking is crucial. Connect with other business owners in your field - they've been where you are and can provide priceless advice.

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