Info: business models/setup/requirments

[malibu795]

I know there are some seriously smart(defiantly smarter then me) people here in the business world.. like to pick your brains... the info would help out someone looking to startup a business.
I have watched several people on this forum and others go from weekend mechanic to full blown mulit-bay shops and multi warehouse parts stores

back ground.
in short I went self employed/owner op(truck driver) back in march/April 2012. with a little stint of being company driver for 7 months. been self employed/1099 for 3.5 years/
I spent several years asking questions of anyone that would talk to me about being self employed. I have still found out things the hard way about stuff that I didn't even know I needed to ask the question about...

from of the top. there are two or three basic ways, to do it...
1. debt free..
2. credit/loan..
3. combination of the aforementioned two

there are pros/cons to everything.. obviously..
my goal is debt free operations.. pay for everything in cash with positive capital.. the big plus is operating cost is minimum, have good year buy upgrades, charitable donations etc to fight off the taxman towards the end of the year.
it will be nice not to have to worry about making payments on equipment plus $$ for me..
there are several SBA groups/programs out there that can help with various thing money wise.. they can help with startups, expansions, working capital, etc..
most at min require a business account, be open for X period of time and roll X amount of $$ through said account, not necessary need a DBA if you are the sole proprietor, though you will need a DBA if you have employees though, for tax reasons.
I know there is pro/cons to LLC.. con being you're doing taxes twice.. one for the LLC and one for you.

I just recently found out about the business account requirement.. wish I new... blowing 3 engines up in ~5 months is rough...

as for tracking expense and income.
I personal use Neat desk/receipts and excel for weekly statements, state mileage/fuel, and expense all of can be exported/imported to each other, along with quick books, turbo tax, excel and several other popular systems used for tracking expense reports...
I usually try to keep it updated weekly/biweekly but seams more updated monthly..
the neat desk/receipt system is really nice... scan, convert to PDF, DOC several others.. I've scanned BoLs and emailed them, searchable database.. literally.. I type in "Napa" it brings up every receipt from Napa with clear pictures..
it has a business card scanning function... which is pretty much useless to me at the time...that in short makes a searchable electronic rolodex.

Neat desk recently setup a "cloud" that you can now snap pictures of receipts, docs, cards and put it straight into you systems via IPhone/smart phone.

i'm still learning excel spread sheets... but I have it down to where I can have a, weekly, monthly, quarterly and yearly summary..

so with that... what can be done to get better, efficient, advice, experience on what not to do...

not blowing stuff helps already know that :thumb:

 

[C.bowles2]

I went to college two years for business and basically all they taught it what you just posted so you have a great grasp on it all. I specifically remember one professor saying that an SBA will guarantee and back your loan with a bank. Something like 90% or more of the loan. This is if the SBA believes in your business plan. I myself would love one day to start a shop and be in the industry doing what i enjoy. Right now saving money is the only thing i can do. When i was a mechanic the one shop i worked for was an LLC and he seems to do well and i should ask him for more details on his business plans.




Sent from my iPhone using Tapatalk

 

[malibu795]

I went to college two years for business and basically all they taught it what you just posted so you have a great grasp on it all. I specifically remember one professor saying that an SBA will guarantee and back your loan with a bank. Something like 90% or more of the loan. This is if the SBA believes in your business plan. I myself would love one day to start a shop and be in the industry doing what i enjoy. Right now saving money is the only thing i can do. When i was a mechanic the one shop i worked for was an LLC and he seems to do well and i should ask him for more details on his business plans.
Sent from my iPhone using Tapatalk

well that's good to know... at least im heading in the right direction..

 

[Porno Joe]

I don't own my own business but my dad did for like 30-35 years. He always tried to operate debt free, but in the end that was what killed his last business (among other things).

two things he always told me:

1- Don't be afraid to take a chance/go in debt IF its a good for business.
2- know when to walk away if/when it time. don't let your pride cost your more money.

 

[jrkrace]

An LLC and a good insurance policy to start. You need to isolate yourself liability wise especially if you have employees. All it takes is one event and they can own your house....

 

[malibu795]

I don't own my own business but my dad did for like 30-35 years. He always tried to operate debt free, but in the end that was what killed his last business (among other things).

two things he always told me:

1- Don't be afraid to take a chance/go in debt IF its a good for business.
2- know when to walk away if/when it time. don't let your pride cost your more money.

I don't have a problem with little debt.. say revolving 5-10k that could easily be paid off... my trailer is paid for... like my truck to be as well... that would lower monthly bills substantially which right not is ~50% of my bills... 3 year note.. its pretty big... get a 2nd truck to keep as standby.. incase main blows up.. that way I can be doing something while getting engine fixed or have easy means to deliver/haul everything home to fix.