January 26, 2006

Curious George: New Design Business I have quit my fulltime job to start and run my own design and creative services shop. I plan to provide all sorts of print and web design services, as well as web hosting and other services like copywriting and photography. But, with all my creative-fu, my business-fu has been a little shortchanged. I like to think I have a decent amount of common sense, and I'm already planning to go to the SBA and to meet with an attorney and a CPA.... But, I was hoping that monkeys out there had experience generally starting businesses, or specific experience with a design shop or setting up in CA/the Bay area.... What else can you all suggest?
  • You can get all kinds of great stuff cheap at Ichiban Kan in Japantown San Fancisco.
  • When you talk to the lawyers, have a specific set of questions for them to answer. Do not ask anything open-ended, such as, "So what do I need to know?" That will drain any money that you might have for actual business running. The same may or may not be true for the accountant, but generally they know that they'll make more money in the long-run if they don't drive you out of business with initial consulting fees, so you're probably better off there. So, if you need legal forms, find some examples from the internet, write up a description of what you're hoping to achieve with it in normal-person-speak, and have the lawyer turn it into a proper document. If you need a search for a trademark on a name, have everything ready and say, "I need to register this name for a business in California as an LLC, and I'd like to get the trademark on it as well, as well as a trademark for this logo." That sort of thing. Be prepared for expenses, and make the business the top time and financial responsibility (short, perhaps, of responsibilities to people such as a wife, fiancee, or child. Ideally, have them help out, as applicable). Listen to your CPA. As mentioned before, that will be your primary source of caution for business purposes, but don't lose your sense of risk. You need to balance risk with reward, whereas your CPA will probably work to minimize risk. Charge what the market will bear, buy low sell high, that sort of thing. And good luck!
  • No advice here, Queso. I just wanted to give you bananas for striking out on your own. Good on ya!
  • Legal advice is the basis of any succesfull enterprise. We've all seen so many great start-ups that get sabotaged by some loophole or bureaucratic snag that could have been avoided from the start. Ask you advisors about liabilities regarding material given by a client to work on, what to do to protect yourself regarding payment terms, and check your specific situation regarding hardware and software licenses. Good luck!
  • Much like you, I quit my full-time job and I started my own business about two years ago. I write and produce newsletters for Realtors and mortgage bankers (shameless plug: Left Field Media Publications). Although I’ve only been somewhat successful, I can offer you a few pieces of general advice: - Customer service, customer service, customer service! In the Big World of Products and Services, I’ve found that people like hands-on personal service. If that means giving a hefty discount or working an extra 10 hours on a minor detail for a client, so be it. No matter how good your product/service is, thousands of other companies are offering the same thing and the best way to retain clients is through service. - Keep your expenses down. I love office supplies, but I learned quickly that I couldn’t go out and buy the high-end fancy digital mailing scale under the pretense that I could just write it off as a business expense. An expense cuts into the bottom line, no matter what. - Word of mouth is the best advertising, but if you want to go the search engine route, Google Adwords and Yahoo! Sponsored Search are quite effective in reaching a lot of people—as long as you’re willing to pay for the clicks on your website (actually, since you’re web-savvy, I’m sure you know of other alternatives). - Don’t be afraid to set your rates high. Potential clients will think your product/service is the best of the best. It’s a lot easier and more palatable to clients to lower your rates than it is to raise them. Trust me. If you’re not getting enough clients, offer discounts off your regular rates. - If you’re working from home, stay off the internet as much as you can, keep the Coronas on ice at least until 4 pm, and don’t play golf three times a week. Yeah, it’s tough sometimes. Beyond that, stay organized and don't get discouraged if business is slow. Starting my own business has been the most rewarding challenge in my life and I highly recommend it to everyone (except, of course, those who want to start their own Realtor and mortgage banker newsletter business...). And once again: Customer service! Good luck, Queso!
  • Go get 'em! The worrywart in me wants to say "hang on to that full-time job until you get your business plan figured out", but it looks like that boat has already sailed. So, again: go get 'em! I've found that the people who run successful small bidnesses are the ones who love what they do, do it with vigor and believe in their own success. So, for a third and final time (and with several extra exclamation points): go get 'em!!!
  • Congratulations on your new business! I found this website a few years ago when toying with opening my own business. It's an extremely comprehensive website devoted to the small business owner. Also, a bookkeeper can do many of the things many people hire a CPA for, and is quite a bit cheaper. Setting up your "books" can be done by a bookkeeper, as well as maintenance. If you have/plan on having employees, they'll be able take care of the majority of the reporting duties.
  • The Small Business Administration will want you to make a business plan - in fact, everyone may want you to make a business plan, including you. Depending on your financial and marketing expertise, that may be a challenge. A good plan, however, will help you focus on issues and face realities. You may have already checked out the SBA site, but just in case. And, best of luck!!!
  • I just opened my own cafe last week. First business for me. I did it for a third the expected cost, and when a professional contracter came in he estimated my buildout cost at over $80k (it was really $20k). Build connections. Other business owners, your target market, your suppliers. Get to know people. Talk, smile, and then listen more. In the last six months of starting my business I've had hundreds of "I can't believe I got that for so cheap!" all because of getting to know the right people. The owner of an equipment supply company. The daughter of a baker. A hotshot marketing director. A refridgerator technician. Fellow restaurateurs. Connections connections connections, and I've barely paid a dime for other people's time and help. For me, I started selling coffee in a farmers market a year ago, and I'm still riding that wave of people I met. For what that's worth, that's my advice. /end of first meal of the day, fuck fuck fuck busy busy busy. And stressed and happy.
  • Business plan!! Follow path's advice. There is probably a small-business enterprise group in your area that will offer seminars on writing up business plans, or maybe for a small fee. A good seminar will ask you to name your target demographic, your marketing ideas, your possible shortcomings (and solutions to them) and your advantages over other, similar businesses. Those will go in a business plan that you can take to lawyers, banks, accountants, marketing people, anyone who you expect to consult with. I've been looking into starting a small business with a friend and that's been our advice from the get-go. I'm going to a workshop next month. I've also been told that finding the perfect premises to base yourself in is the hardest part -- although if you're primarily home- or web-based it's probably not an issue. Even though I won't be going into action until at least late this year, I'm building contacts now, talking to possible future suppliers at every opportunity, getting ideas from possible customers about what they'd like to see. Of course, suppliers will contact you without any effort on your part because they want your business, so that requires little effort. The tough part is getting them to leave you alone. :) The only Bay Area-specific advice I have is make sure you have customer parking! It'll be a very competitive market, I imagine, so I wish you all the best and lots of luck to go with your common sense and talent.
  • ian - would like to hear more about your cafe, when you're not so busy.
  • Advice - differentiate yourself from the other 100000000000000 businesses exactly like yours.
  • Aw, come on Settle, his skills may be just perfect for a niche in his area, or even in a broader market. Yes,he does need to differentiate, but his competition is probably something he checked out before deciding to go it on his own.
  • Thank you all so far for the helpful suggestions so far, especially Name That Itch and Path. I'm definitely going to spend a lot of quality time with the SBA; I understand they have mentoring programs with retired businessfolk for free. I'm also down with getting my business plan together. The bookkeeper idea sounds good, but I want to find someone who comes personally recommended, rather than an outright stranger. Congrats Ian Would Say! I have fantasized about running my own cafe too. Actually Settle: I don't do Flash.
  • I recommend this book: Starting On a Shoestring It's a hard-hitting nuts and bolts guide to getting up and running. It can save a lot of headaches. The book is great for developing a good head for business... ...And to keep a good heart: Principled-Centred Leadership.
  • es el Queso: Check out ReadyMade. The book has an entire chapter on how to start a business with zero capital. This is how they started their business - a few friends, a good idea, and alot of excel spreadsheets. It's an excellent primer on playing the credit card game, IE, continuously shifting debt around to accrue credit to get larger limits and new cards to continually shift the debt around. With decent credit you can easily raise $30k-$40k this way, and even get lower interest rates than would ever be offered by banks.
  • path: It's a standard cafe business plan - coffee, tea, pastries, sandwiches, nothing made on site (no kitchen), staffed with two people behind counter and one person working floor. What made me do it was an incredible location in the ground floor of a huge office building (built-in clientele) and no competition for almost a six block radius. What makes it a cool and unique cafe is the six months my partner and I spent building it out. Cherry and hemlock on all the walls, a 22 foot mosaic granite bartop (hundreds of small bits o' granite, smashed up, laid in red grout, and filled with many few gallons of clear epoxy resin), beautiful brass accents, tiffany lighting, and the most comfortable victorian style chairs of any cafe in Portland. I've also got a gangster-ass Grimac Zola. All my coffee is organic, fair trade, and roasted same day by my friend and business partner. And no-drip pots - it's all French pressed. And all my food comes from local restaurants who in turn buy from local farms. That's kind of a mess of information in this comment, but that's my business in a nutshell. We'll see how it does in the next few months, but so far, it's looking like I'll actually make it.
  • ian - sounds as though I'd like to live in your cafe! Also, as though you might want to start a side business doing elegant construction projects. Way cool.
  • ian and queso: keep us posted on how your business goes! (And queso, let me know if you hook up with any good printing or advertising contacts...)
  • Thanks path. (: Here's another business tip - move in with your parents. I'm serious. It has probably saved me $10,000 by living with them for the past 6 months. If you can emotionally handle it, economically the p-rents hizouse (and cizar) is the way to go.
  • A true businessman does whatever it takes! Good luck, Ian, though it sounds like you may not need it!
  • Ah, I'm rather late to give more advice, and most of the stuff I'd say has already been said. Ian, es el queso, please post your web sites when you have them to the self-post filter...and keep us monkeys up to date on your progress!