very general question ...
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for those of you who've started your own business, how much have you invested (perhaps in mandays if not in USD) before you get the first pay check or transaction? I mean real business that at least break-even with reasonable return - I suppose this exclude those selling on ebay or "web-design-consulting-for-ya-mom-&-pap" (sorry I know if this question sounds to generic)
dev
Hoo boy, talk about a loaded question. The answer for most IT companies would be "it depends" (if not most companies). In some cases, these factors are outside your control - how quickly the client pays, planned work that gets bumped by clients. In other cases, it's down to how large your initial projects are - and what payment plans you get put in place. Some thoughts to ponder: Do you get paid at delivery stages? Are you paid only on completion? Is this a 24 month project, or a 1 month one? What are you going to do if the client refuses to pay? What are you going to do if your client goes bust?
"WPF has many lovers. It's a veritable porn star!" - Josh Smith
As Braveheart once said, "You can take our freedom but you'll never take our Hobnobs!" - Martin Hughes.
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for those of you who've started your own business, how much have you invested (perhaps in mandays if not in USD) before you get the first pay check or transaction? I mean real business that at least break-even with reasonable return - I suppose this exclude those selling on ebay or "web-design-consulting-for-ya-mom-&-pap" (sorry I know if this question sounds to generic)
dev
started an audio site in january and still building it. i put in about 20 hours/week.
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for those of you who've started your own business, how much have you invested (perhaps in mandays if not in USD) before you get the first pay check or transaction? I mean real business that at least break-even with reasonable return - I suppose this exclude those selling on ebay or "web-design-consulting-for-ya-mom-&-pap" (sorry I know if this question sounds to generic)
dev
I made sure I had a couple of projects to work on before starting my own business, so it started paying off right after the first month. The money I put in it was basically what's needed to buy the basic hardware, my office was (and still is) set in a room at my place, in order to reduce costs. I dunno how it works in your country, but in Italy it's extremely risky to start a business if you're not sure it's going to succeed in a reasonably short time, since taxes would just kill you. :P
2+2=5 for very large amounts of 2 (always loved that one hehe!)
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Hoo boy, talk about a loaded question. The answer for most IT companies would be "it depends" (if not most companies). In some cases, these factors are outside your control - how quickly the client pays, planned work that gets bumped by clients. In other cases, it's down to how large your initial projects are - and what payment plans you get put in place. Some thoughts to ponder: Do you get paid at delivery stages? Are you paid only on completion? Is this a 24 month project, or a 1 month one? What are you going to do if the client refuses to pay? What are you going to do if your client goes bust?
"WPF has many lovers. It's a veritable porn star!" - Josh Smith
As Braveheart once said, "You can take our freedom but you'll never take our Hobnobs!" - Martin Hughes.
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for those of you who've started your own business, how much have you invested (perhaps in mandays if not in USD) before you get the first pay check or transaction? I mean real business that at least break-even with reasonable return - I suppose this exclude those selling on ebay or "web-design-consulting-for-ya-mom-&-pap" (sorry I know if this question sounds to generic)
dev
But my business is my-labor intensive so it sucks. I am working on something now that removes my labor but will require about $45,000 U.S.D. of personal investment plus my time. That is really the bottom-line, you either invest labor, capital, or both but if you are only investing labor you will likely always be investing labor and time is the only thing you can never get back.
Need custom software developed? I do C# development and consulting all over the United States. A man said to the universe: "Sir I exist!" "However," replied the universe, "The fact has not created in me A sense of obligation." --Stephen Crane
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But my business is my-labor intensive so it sucks. I am working on something now that removes my labor but will require about $45,000 U.S.D. of personal investment plus my time. That is really the bottom-line, you either invest labor, capital, or both but if you are only investing labor you will likely always be investing labor and time is the only thing you can never get back.
Need custom software developed? I do C# development and consulting all over the United States. A man said to the universe: "Sir I exist!" "However," replied the universe, "The fact has not created in me A sense of obligation." --Stephen Crane
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devvvy wrote:
including retirement money
Not if they are sensible... That's how you end up bankrupt if something goes wrong!!
Knowledge is knowing that the tomato is a fruit. Wisdom is not putting it in fruit salad!! Booger Mobile - Camp Quality esCarpade 2010
_Damian S_ wrote:
That's how you end up bankrupt if something goes wrong!!
It happens
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yes but apart from your computer did you have to quit your job? otherwise how can you manage
dev
I'll explain how to manage. I live in Boston. A large part of the population earn $10/hr. in retail or entry-level jobs. It is easy to live for $1500/month. $500 for rent, $150 for car, $500 for food, the rest for whatever. Lots of people do it. Software engineers take home $4000 to $6000 per month after taxes. So, if you don't buy into the consumerist culture and pressure to rent a $2000/month loft like your colleagues, you can easily work a year and take two years off to start a business. The double benefit of living cheaply is that it takes much less to bring your business to sustainability. You only need to find an average of 8 hours of consulting work per week and it's enough to live on. Anything above that is like a bonus. If you really only get 8 hours a week of work, you can spend all your free time developing your own projects and maybe sell a cool program or invest your time into forming a startup that's not just a consultancy. Having children makes all that different, but I'd assume you have a husband or wife who could work in that case.
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but I get the impression most startup do take people's life's saving, including retirement money. Good for you you didn't
dev
That happens most often when the person in question has had too much optimism and too little preparation.
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for those of you who've started your own business, how much have you invested (perhaps in mandays if not in USD) before you get the first pay check or transaction? I mean real business that at least break-even with reasonable return - I suppose this exclude those selling on ebay or "web-design-consulting-for-ya-mom-&-pap" (sorry I know if this question sounds to generic)
dev
Contracts (plural if possible) first - then start. 4 days in every week to work your existing contracts. 1 day a week to find your next contract. Remember that it can take many months to get a contract so also be working on getting your next piece of business. I strongly recommend following Frank Lloyd Wrights counsel about the first three laws of Architecture - Get the job, get the job, and get the job.
I just love Koalas - they go great with Bacon.