Setting Up a Business
- Thread starter Trip
- Start date
Lazzo
Registered
In no particular order:
- Luck
- Timing
- At least 2 clients before you start
- Give up clubbing
- Colleagues/Partners "Who Know What They're Doing"
- Be absolutely certain that YOU "Know What You're Doing"
- Don't be nervous
- Don't be shy
- Don't be horrible
- Be firm and have goals
- Don't forget the invoices (me guilty)
- More luck
- Be prepared for 9 to 5 and weekends to become an alien concept
- Be certain that you can afford it
- Be prepared to be mugged by the Tax Bandits
- DON'T tell rivals, however friendly, what you're up to
And a zillion other things. I might have gone slighty away from your topic (sitting in my office at 0200hrs), still, I'll let you pick the bones out of it!
- Luck
- Timing
- At least 2 clients before you start
- Give up clubbing
- Colleagues/Partners "Who Know What They're Doing"
- Be absolutely certain that YOU "Know What You're Doing"
- Don't be nervous
- Don't be shy
- Don't be horrible
- Be firm and have goals
- Don't forget the invoices (me guilty)
- More luck
- Be prepared for 9 to 5 and weekends to become an alien concept
- Be certain that you can afford it
- Be prepared to be mugged by the Tax Bandits
- DON'T tell rivals, however friendly, what you're up to
And a zillion other things. I might have gone slighty away from your topic (sitting in my office at 0200hrs), still, I'll let you pick the bones out of it!
Make your computations correctly:
Gross Profit = Sales - Cost of Goods Sold
Operational Margin = Gross Profit - Fixed Costs (administration, office, salaries..)
Net Profit After Tax = Operation Margin - Interests (on loans) and Taxes
Retained Earnings = Net Profit After Tax - Dividends
Only Retained Earnings remain to start the next operating year !
If Retained Earnings of the next year are bigger than the one of the previous (and you didn't borrow), then you make money.
Rule of thumb, when you start a business, unless you are really sure about your income, divide your planned sales by a factor 3 and your cost of goods sold by a factor 2... and see if the business is still profitable.
Gross Profit = Sales - Cost of Goods Sold
Operational Margin = Gross Profit - Fixed Costs (administration, office, salaries..)
Net Profit After Tax = Operation Margin - Interests (on loans) and Taxes
Retained Earnings = Net Profit After Tax - Dividends
Only Retained Earnings remain to start the next operating year !
If Retained Earnings of the next year are bigger than the one of the previous (and you didn't borrow), then you make money.
Rule of thumb, when you start a business, unless you are really sure about your income, divide your planned sales by a factor 3 and your cost of goods sold by a factor 2... and see if the business is still profitable.
mr. k
Registered
Trip, assuming the buisness you are talking about is that graphic design on your web site, I was wondering how it is doing? Is it just a part-time thing for extra cash? You've had a few clients I see, and your sig says you do 'affordable' graphics, but does it pay the bills? Or get you enough spending money? It seems like something fun to do on the side.