I need words of wisdom
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Thank you. I think the 2 challenging parts of it are getting funding and coming up with a good business plan. I think I'd better get started :)
I funded myself, twice. I used my own savings to get started in both cases and never borrowed a single dollar. Make yourself live on a cash basis and save every penny you don't absolutely need. Once you get used to living on cash only and no credit cards/loans that can't be paid off in a single month, you will have developed a habit that will serve you well in business and in your future. Be frugal and it may be surprising what you can save. If you already live on a cash basis, congratulations!
CQ de W5ALT
Walt Fair, Jr., P. E. Comport Computing Specializing in Technical Engineering Software
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Generally speaking, NOTHING happens until somebody sells something. Do you have something to sell right now? Is there some compelling reason that someone would choose to pay you for your expertise versus another, more established entity? Do you have any "outside" interests? Are you prepared to abandon all of your "outside" interests? I read your intention as A) Make some money. and then B) Start a company. and then C) Hire others. That's not such a bad "plan", if that really is your plan. That "plan" has been used to great success, over and over. That plan softens the impact of insufficient funding, in as much as you are going to A) Make some money and then B)Start your company, etc.... So, I advise that you come back here when you have accomplished step "A" to a significant degree. While you are DOING "A", everything else may magically fall into place. Sincere Good Luck!
Thank you for your advice. I really like what you said: "Is there some compelling reason that someone would choose to pay you for your expertise versus another, more established entity? "
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Hi, I have mad up my mind. I am starting a business. One of the problems is that i think i know what i am doing, but i might be wrong. I have been writing C, C++, python and MATLAB code for a long time now. My expertise are 'computer vision' (object recognition)and 'Data mining'. I have been teaching myself at home and am now at a point where i think i can use everything i have learned to make some money so i can start a company and hire other researchers in the field of computer vision. The other problem is that, in my bank account, i only have enough money for my bills :( I have started to design a website which will be ready in less than two weeks. I really need advises or any kind of help :)
My apologies for this long reply, but I am assuming you are quite serious so it warrants a serious response. I also apologise for re-iterating some of the good advice you have already got. You are talking about growing a business and employing people and I view this as quite different situation from “working for yourself”, therefore you need to do some very serious thinking before you set out down this road. As said by someone else, you must develop a business plan. This should be two documents … one a seriously written text document which is exceptionally well thought out and written which discusses and identifies a heap of things such …. What exactly you are selling, what your market is and how big, what is your route to market – how do you get sales and at what cost, what is your competition, how will you compete against your competition – why will people buy from you? What is your charging strategy? What is the basis of your sales forecasts? If appropriate what will your technologies be and how will you protect the intellectual property (patents etc). What is the future landscape and opportunities for your skills, products services and what are emerging and future new technologies and needs that you can leverage and provide opportunity? How will your company be administered, who will do the accounts, HR, legals for contracts etc? How will you recruit to meet your business plan? How scalable will your business be – are you personally a major dependency and can you personally scale or do you cap the growth possibilities? Identification of business risks and risk mitigation strategies and plan weaknesses, if you do not identify risks you have not thought things through and are not being realistic. What is your disaster recovery plan and equipment needs for DR – you or an investor cannot afford failure based on a disk fail, fire, flood or equipment theft I’ve seen most of these. What is your long term goal and “exit strategy” – you and your investors will (ultimately) seek a means of getting big reward for your effort and financial input – otherwise it is simply a “lifestyle business”. This is just a sample of the list of things you must consider in this document – do some research, also find out if your government has free business advisory agencies or start up assistance … get some professional start up advice. If developing a product and not simply a service, some governments offer Tax allowances for R&D. I know the “exit strategy” point is a little early for you
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My apologies for this long reply, but I am assuming you are quite serious so it warrants a serious response. I also apologise for re-iterating some of the good advice you have already got. You are talking about growing a business and employing people and I view this as quite different situation from “working for yourself”, therefore you need to do some very serious thinking before you set out down this road. As said by someone else, you must develop a business plan. This should be two documents … one a seriously written text document which is exceptionally well thought out and written which discusses and identifies a heap of things such …. What exactly you are selling, what your market is and how big, what is your route to market – how do you get sales and at what cost, what is your competition, how will you compete against your competition – why will people buy from you? What is your charging strategy? What is the basis of your sales forecasts? If appropriate what will your technologies be and how will you protect the intellectual property (patents etc). What is the future landscape and opportunities for your skills, products services and what are emerging and future new technologies and needs that you can leverage and provide opportunity? How will your company be administered, who will do the accounts, HR, legals for contracts etc? How will you recruit to meet your business plan? How scalable will your business be – are you personally a major dependency and can you personally scale or do you cap the growth possibilities? Identification of business risks and risk mitigation strategies and plan weaknesses, if you do not identify risks you have not thought things through and are not being realistic. What is your disaster recovery plan and equipment needs for DR – you or an investor cannot afford failure based on a disk fail, fire, flood or equipment theft I’ve seen most of these. What is your long term goal and “exit strategy” – you and your investors will (ultimately) seek a means of getting big reward for your effort and financial input – otherwise it is simply a “lifestyle business”. This is just a sample of the list of things you must consider in this document – do some research, also find out if your government has free business advisory agencies or start up assistance … get some professional start up advice. If developing a product and not simply a service, some governments offer Tax allowances for R&D. I know the “exit strategy” point is a little early for you
I think i need friends like you :) I have seen a few episodes of Dragons Den... I will take my time to write my business plan because that is what investors are interested in. Getting money from the bank is not possible. I am a refugee in South Africa and bank only gives loans to South Africans. I am not taking your advice negatively at all. All this sounds like a lot of work, but it also sounds fun :)
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Hi, I have mad up my mind. I am starting a business. One of the problems is that i think i know what i am doing, but i might be wrong. I have been writing C, C++, python and MATLAB code for a long time now. My expertise are 'computer vision' (object recognition)and 'Data mining'. I have been teaching myself at home and am now at a point where i think i can use everything i have learned to make some money so i can start a company and hire other researchers in the field of computer vision. The other problem is that, in my bank account, i only have enough money for my bills :( I have started to design a website which will be ready in less than two weeks. I really need advises or any kind of help :)
Not sure my advice is the most traditional way of starting a business, but it has worked for me several times. Find a client/customer that will help fund your business. I've started three businesses like this, starting with $0 in the bank and just a dream. I've sold one of those businesses and continue operating the other two. Business plans, marketing plans, and all other plans are all great but I find that they are not the magic ingredient for success. I've started several successful businesses with no marketing/business plan but I had the most important thing - clients/customers for my product. After the dust settled, having a marketing/business plan is helpful for continued growth and sustainability for the company. Oh yeah besides hard work, sacrifices, and determination you will need a little luck. Good luck! Mitch
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Not sure my advice is the most traditional way of starting a business, but it has worked for me several times. Find a client/customer that will help fund your business. I've started three businesses like this, starting with $0 in the bank and just a dream. I've sold one of those businesses and continue operating the other two. Business plans, marketing plans, and all other plans are all great but I find that they are not the magic ingredient for success. I've started several successful businesses with no marketing/business plan but I had the most important thing - clients/customers for my product. After the dust settled, having a marketing/business plan is helpful for continued growth and sustainability for the company. Oh yeah besides hard work, sacrifices, and determination you will need a little luck. Good luck! Mitch
Finding a client; That itself is a challenge. I will have to convince him/her to be my client. But, before that, i will have to find that person or company that might need my service. Nonetheless, it is worth trying. Thank you
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This Jedi[^] wrote a series of articles on starting a business; they are a must-read. And we have a "Running a business" forum, which isn't very active. The bottom line is, technical content is but a small fraction of any business. :)
Luc Pattyn [Forum Guidelines] [Why QA sucks] [My Articles] Nil Volentibus Arduum
Please use <PRE> tags for code snippets, they preserve indentation, improve readability, and make me actually look at the code.
For sure, a great series of articles there. A must read. Cheers, Daniel
Daniel Vaughan Twitter | Blog | Microsoft MVP | Projects: Calcium SDK, Clog | LinkedIn
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hervebags wrote:
$40,000 is a lot of money!!
Yes, it is! A lot of people starting businesses make the mistake of knowing they really need more money than they have, but going ahead anyway. That's a sure recipe for a failed business and a big financial loss. Cheers, Drew.
One thing that I haven't seen mentioned yet: Do you have a product to sell? You sure had better quantify that or you'll go absolutely nowhere. I'm doing the same thing right now - starting a business. However I'm doing it on my own dime and taking time. I have a full income from my primary job to support me (a job that pays well enough for me to make small investments in my equipment, software tools, etc) and I have a product I've been working on for close to a year. The product is the result of 12 years of experience in the field I've been working in. I've already involved two other people who are interested in selling & marketing the product and in doing the installation and support. If you can be patient and develop your product, sales & support strategy without requiring venture capital, you will be WAY ahead of the game. Once you start actually selling your product you'll drop most of the profit straight to the bottom line since you won't have venture cap debt to worry about. But you MUST have a product. Confine it to a clear definition. Don't try to be everything to everybody. Identify your market, make your plan and stick to it. Just having programming skills is great but unless you're just going into consulting it could be difficult to pinpoint what you can or can not do. Consultants are everywhere. I know a number of individuals who try to make it on their own as programming consultants. Usually they wind up getting one client (it's called a job). You need to develop something sell-able that a customer can see that will provide them some kind of tangible value. Otherwise you may have difficulty getting them to part with their dollars. My 2-cents. -Max
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Hi, I have mad up my mind. I am starting a business. One of the problems is that i think i know what i am doing, but i might be wrong. I have been writing C, C++, python and MATLAB code for a long time now. My expertise are 'computer vision' (object recognition)and 'Data mining'. I have been teaching myself at home and am now at a point where i think i can use everything i have learned to make some money so i can start a company and hire other researchers in the field of computer vision. The other problem is that, in my bank account, i only have enough money for my bills :( I have started to design a website which will be ready in less than two weeks. I really need advises or any kind of help :)
I have a successful business for over a decade now starting from where you are at. I could give you a *lot* of advice but the number one piece of advice is don't borrow *any* money if you want your business to be self sustaining for the long haul. Never invest a cent in a business that doesn't come from the profits of that business. Ever. By keeping to that one rule you will save yourself a world of pain and suffering. Do not break that rule under any circumstances for any reason. It's ok to make a very minimal investment in a computer and website to get your started but that's absolutely it. Aside from that learn a *lot* about marketing, it's your most important skill, far more important than how good the ideas are or how good the code is. And do not quit your day job until your business is making enough money that you can put aside 3 months wages in reserve in the bank and prospects are good for the future. That way you have a safety buffer if and when things go badly and time enough to look for a job. Edit: a lot of people have said a business plan, we've never had one and I've just read an article recently that stated quite well why it's a waste of time but I can't seem to find it. Don't waste a lot of time on plans, they will all be for naught, I guarantee it. Just have some core values and ideas and stick with them but be flexible on everything else. Nothing is going to happen the way you plan it...nothing. Edit: Found it - http://www.entrepreneur.com/article/217768[^]
There is no failure only feedback
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Hi, I have mad up my mind. I am starting a business. One of the problems is that i think i know what i am doing, but i might be wrong. I have been writing C, C++, python and MATLAB code for a long time now. My expertise are 'computer vision' (object recognition)and 'Data mining'. I have been teaching myself at home and am now at a point where i think i can use everything i have learned to make some money so i can start a company and hire other researchers in the field of computer vision. The other problem is that, in my bank account, i only have enough money for my bills :( I have started to design a website which will be ready in less than two weeks. I really need advises or any kind of help :)
If you don't try, you fail. If you try you might fail. If you try enough you will succeed.
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I have a successful business for over a decade now starting from where you are at. I could give you a *lot* of advice but the number one piece of advice is don't borrow *any* money if you want your business to be self sustaining for the long haul. Never invest a cent in a business that doesn't come from the profits of that business. Ever. By keeping to that one rule you will save yourself a world of pain and suffering. Do not break that rule under any circumstances for any reason. It's ok to make a very minimal investment in a computer and website to get your started but that's absolutely it. Aside from that learn a *lot* about marketing, it's your most important skill, far more important than how good the ideas are or how good the code is. And do not quit your day job until your business is making enough money that you can put aside 3 months wages in reserve in the bank and prospects are good for the future. That way you have a safety buffer if and when things go badly and time enough to look for a job. Edit: a lot of people have said a business plan, we've never had one and I've just read an article recently that stated quite well why it's a waste of time but I can't seem to find it. Don't waste a lot of time on plans, they will all be for naught, I guarantee it. Just have some core values and ideas and stick with them but be flexible on everything else. Nothing is going to happen the way you plan it...nothing. Edit: Found it - http://www.entrepreneur.com/article/217768[^]
There is no failure only feedback
Thank you for your advice :)
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Hi, I have mad up my mind. I am starting a business. One of the problems is that i think i know what i am doing, but i might be wrong. I have been writing C, C++, python and MATLAB code for a long time now. My expertise are 'computer vision' (object recognition)and 'Data mining'. I have been teaching myself at home and am now at a point where i think i can use everything i have learned to make some money so i can start a company and hire other researchers in the field of computer vision. The other problem is that, in my bank account, i only have enough money for my bills :( I have started to design a website which will be ready in less than two weeks. I really need advises or any kind of help :)
Word of Wisdom #1: You have to really want it. What I mean is that if you really want to start your own business, you have to want it more than anything. If you aren't willing to sell your house for a couple more years of development, if you aren't willing to spend your retirement savings (tax penalty or no), if you aren't willing to live in a crappy apartment in a bad part of town just because it inconveniences your family, if you aren't willing to shamelessly ask anyone you know with money to be a shareholder, then forget it. There are lots of guys with skills. There are lots of guys with a good business idea. But the guys who are successful want to start a business more than anything else in the world. For these guys, not having a good idea is less of a handicap. Shoot, I'm maybe as smart as Bill Gates (who's made some awesomely dumb mistakes), and my coding skills are several steps better. May be the same with you. But Bill Gates is 1,000 times more competitive as I am. That's why he's a zillionaire and I work for a living. It also helped that he was born at exactly the right time, and that he had a rich dad to finance his startup. But it's the competitive drive that made him. Word of Wisdom #2: There is no number 2. Drive is mostly all it takes. Brains are good. A good (at least ok) business plan is good. Luck is very helpful. Financing makes it much easier. But it's drive that makes it work. Do you know anybody who is a really good singer? Someone so good you think they should record? Well, the world is full of good singers. The folks who get to be rock stars are mostly reasonably talented musicians, but it's not the music that makes them fameous. It's the drive. The willingness to tour 300 days a year, to play any gig that might get you noticed, to sleep in your car with three other somewhat smelly musicians because you're driving to a gig a long way away. There are guys who play pick-up basketball down at the park who can hit 50 consecutive free-throws. Why aren't they pros, when the pros often can't even do two in a row? It's not raw talent, obviously. It's the drive to play basketball AND go to college at the same time. It's the drive to get up off the floor when some extremely motivated and aggressive guy weighing 200 pounds has just knocked your ass down and the ref didn't even call a foul, and get back in the game. It's being able to hit even one consecutive free-throw when there's 20,000 people boo-ing you and your team is down by 30 points. It's drive, man. There are plumbers
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Thank you for your advice. I really like what you said: "Is there some compelling reason that someone would choose to pay you for your expertise versus another, more established entity? "
If you really want to boot strap your business, don't confuse selling with delivering. Do you know people in business who need something? If not get around and ask people what they want. Tell them you can give them that, offer them the features they need at the price they need. Once you got that down, work like hell and get out your first cut, sure it won't quite be what the customer expected, but sell it to them on the promise that the next version will fix their problems, and if they buy the current version they can get used to the app, and will get a discount on the next version. This is how successful companies operate. Sure it sounds dodgy, but that's they way of the world. I knew a guy who travelled a lot and started a new business wherever he went. He just listened to what people wanted and promised to deliver, then went about delivering what he could. Once people decide to go with you they get somewhat emotionally attached to their decision. If you aren't the greatest sales person then maybe you need to partner with someone who is.
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Hi, I have mad up my mind. I am starting a business. One of the problems is that i think i know what i am doing, but i might be wrong. I have been writing C, C++, python and MATLAB code for a long time now. My expertise are 'computer vision' (object recognition)and 'Data mining'. I have been teaching myself at home and am now at a point where i think i can use everything i have learned to make some money so i can start a company and hire other researchers in the field of computer vision. The other problem is that, in my bank account, i only have enough money for my bills :( I have started to design a website which will be ready in less than two weeks. I really need advises or any kind of help :)
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Move your office out of Nigeria and work directly in the States. That way you can cut out the middle man and keep the extra $$ for yourself.
No Nigeria. South Africa is where i live :)