Considering starting a business and need some insight

[Van]

Considering starting a business and need some insite.

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Ive reached the point that I dont want to have to go through the middle man to make my living so Ive been looking at a few options for gainful self employment.

(1) Installing CCTV/Alarm systems

I know that I will need basic hand tools and a couple of drills plus ladders and a van or truck. Im also aware of the need for liability insurance as well, is being bonded required or necesary at all? Is this a situation where its best to look at sub contracting through a security company such as ADT or Brinks? Given that I have done DBS work for 6 years and know something about how a home is built this wouldnt be a hard line of work to get into but is it one that is profitable enough to provide a reliable salary of atleast 60k a year though 80k or greater would be nice.

(2) Internet Cafe

I know that I will need a retail space, nothing fancy but in a good location on a bus line and near a busy population resource such as schools and or a mall.
Starting out I figure that I could go with 8 desktops using crts, one POS comp, and a gateway server, connection wise Im not sure what would be best but Im guessing a T1 atleast or a T3 since Im also considering offering pay by the block WIFI as well. Ive done some pricing and the desktops can probably be done for around $600 each, server about the same but POS is looking to be more. A standard retail space will vary depending on what city Im looking at and its location, the cost of the connection is what Im also looking at and wether or not it can be done as a month to month or if it has to be a multi month contract. I also havent found any info on a system for pay to use wifi yet.

Now I have also been thinking about this one further and have pondered the idea of going with a seasonal offering by retrofitting a school bus to accomodate the computer gear plus an a/c unit and place it at a beach parking lot or within very easy walking distance to a beach. Problems I can see with this is mostly going to be getting a connection to the bus and working out some sort of simple contract with whomever owns the parking lot but the upside is that again I will be offering wifi and highspeed internet and that would provide for those bored kids and spouses on vacation. The bus I have done research on before for another avenue and decommissioned ones range from 1k up to 5k. How hard is it to get a net provider to provide a connection to a location like a parking lot?, Im asuming that there has to be a pole nearby or a box but what would be required to do the connection and protect the cabling thats running from A to B?

Are net cafe's feasable today? I have never seen one, not when I would go to Ann Arbor a big college town and I havent seen one down here in Athens and its a moderate sized college town, the ones that I hear about are always in NY or STL or in Europe or the Asian pacific lands.

 

[KimmiKat]

There used to be many internet cafes around our area, but many closed as faster connections became more common in homes, but the ones that survive offer Wifi and other services and even have nights where people can play networked games and even have a mboard for their clients and visitors to keep up on things on.

As for a bus, our agency has a few coaches fitted with Wifi for the commuters that travel a fair distance to their jobs. I can ask how much they paid to install the equipment. Some agencies also sell their old coaches and they'll post those to their websites. Also eBay is another source of old buses.

 

[navychop]

Hard to make money on an internet cafe when Starbucks and several other stores offer free wireless internet. Not sure people going to the beach want to stop and electron surf instead- nor do you want a lot of sand. It would probably take several spots to make a living out of, anyway.

 

[bhelms]

Van - also VERY hard to make money in the home/commercial security business when you're competing with the nationals like ADT, Brinks, etc. I do have experience here - worked for a good buddy of mine for a couple of years, but we could never get over the hump where the business could give us both a decent living. I went on to other things and he eventually sold out. If you are serious about this line, I would suggest you work for someone else for a while learning the business before you make an investment of your own. In this business most of the money comes not from the equipment sales (with their minimal margins) or the installations (especially the difficult ones!) but rather from the captured repetitive business like the monthly monitoring agreements that you can broker to a third party service like UL or from the annual "maintenance" contracts. It takes a long time to build your business to the point where the income from those sources is significant, but once you do, that's the real substance of your cashflow and the real essense of your equity that you can eventually sell to someone else.

Here are some other general considerations for anyone considering their own business:

1) Most small businesses don't plan to fail, but they fail to plan and that makes the venture very risky and ultimately short-lived.

2) You need to be PASSIONATE about what you're doing, because you'll be doing it for 80-100 hours per week in the early years.

3) If you do head out on your own, make sure you avail yourself of all resources. There is probably a small business development authority of some kind near you that will give you a lot of free advice and some free or subsidized services like legal, accounting, tax, etc., and perhaps even office space at low cost with shared resources like phone answering, administrative, shipping and receiving, etc.

4) In almost any business you will have competition. You really need to determine and emphasize what differentiates you from the rest, and that has to be the reason customers will want to do business with you instead of your competitors. So that means that you also need to know your competion very well (do a "SWOT" analysis on each - strengths, weaknesses, opportunities, threats) and also what your customers really want. Too many businesses fail because they are catering to what THEY want and not what the customers really want.

5) You need a solid line of credit that will get you some initial operating capital and give you a cushion to ride out the slow periods. That can come from many souces including the aforementioned SBDA. But not having secured that credit line in advance can kill you.

6) You need a realistic solid business plan that looks out for at least 3 years, preferably more. You can't secure 5) until you have 6), and you shouldn't invest any of your own assets into a business until you have others convinced that it's a good investment as well!

Good luck with your endeavor, but do take responsible steps getting there...!

 

[Van]

I'll be shelving the first plan, I had been thinking that it was a rough field to go into much like being a Dish retailer but I wasnt sure.

 

[Bob Haller]

theres money to be made fixing office machines. i charge 100 bucks a hour, my big competitor is GBC general binding corporation, their first hour charge is 250 bucks.

I specialize in laminators that apply plastic to paper. this is way better than being a E dealer.

if your curious I can provide more info

 

[Van]

No Im stearing away from office repairs, warranties hurt and so does the fact that so much of this stuff is cheap and toss and throw when it stops working, plus hearing about how much of a hard time you have had with getting paid by the sector your working in and how your market is dwindling should be a sign for you to get out of the business and into another one.

 

[navychop]

I knew a guy who left the Navy after 12 years to go with Shaklee. Bad move.

Working for yourself will mean you'll have to keep nimble to survive and prosper. And you'll be working for the worst boss in the world.....

 

[navy8ball]

customers guaranteed for life of business. go into the funeral home business.

 

[TheForce]

I moved from working in industry to Home based business in '93.

I like home based business because it eliminates the huge overhead from the start.

I chose a business that offers work that I have fun doing. In the 80's it was underwater stuff but I had trouble making enough to pay a decent living. ITt led me into video production which I liked and that led to Broadcast TV. Lesson- Choose a business that has an upgrade path. The Internet cafe is a niche business that will be obsolete very soon. Installer is a tough way to do manual labor for little reward.

The biggest lesson I learned about being in business is the amount of time I spend doing the fun stuff. 2/3 of the time is spent managing the business, doing sales and customer support, accounting, etc. not fun for me but it goes with the territory. The nice part is having many bosses ( customers) this way you can fire one of them and it won't impact you the same as if you quit a "day job" But then your customers can fire you to, much easier than a boss can. Finally, working for your own business has to be fun, why else would you want to work 12-15 hour days 7 days a week?

 

[Bob Haller]

might check with SCORE service core of retired executives for advice about business in general.

Over the years I have fired some cusomers and never regretted it a bit.

I think the vast majority of my customers are my friends. their employeer pays them, and most are nice and friendly.

 

[bhelms]

Anyone in business certainly has to "fire" customers that provide minimal cashflow and/or require a disproportionate amount of time to service them. Sometimes a long-term relationship with a "marginal" customer pays-off in other ways, like the occasional big, profitable job that helps rebalance things, or referrals to more positive customers. So in that case you have to weigh the whole situation, not just what the "numbers" tell you. But in general you need to focus on the customers with the most potential and lowest investment on your part given your limited resources. That requires that you have an objective, unbiased means of making that kind of determination, like a spreadsheet that provides a lifetime cost/benefit analysis by customer.

 

[Kevinw]

Internet Cafe / Gaming cafe. Do a search on internet gamnig. All kinds of applications form PC, console to coin-op.

Zazoox MMOG MPOG Internet Gaming Vending Stations
Whotspot Gaming Solutions

 

[kenny911]

I don't think an internet cafe will work . Everyone already has the internet and who really wants to use someone elses computer?

 

[Bob Haller]

the customers I have fired were all over demanding loud mouths. all tried to come back and I said NO.

the most memorable caused troubles with my supplier. she complained so much i took her machine to charlotte and let the factory service it. funny thing it went back and forth to the factory repeatedly they couldnt make her happy either. she became their worst nightmare.

I asked factory later was it me. heavens no they replied, she was never happy and messed with all the adjustments constantly. she also tended to price shop repeatedly trying to drive prices down. I bumped into my competitor and found he bounced her too, she complained his service tech sweated on her machine, the laminators run about 300 degrees and it was in her spare bedroom.

I think she and her hubby were seperating about this time. divorce makes people flakey

 

[Kevinw]

I don't think an internet cafe will work . Everyone already has the internet and who really wants to use someone elses computer?

Internet cafes work well in large tourist spots. Travelers can check there email and such. Much easier than carrying a laptop around. Plus even if you do find a hotspot most places charge around 10 dollars for a day. Even Starbucks charges for internet.
You can't make a living on just the connection. Snacks and beverages play a key role in the cash flow.
Adding the gaming aspect can increase revenue too. Again you need to be in populated areas, primarily a large college town.
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[Bob Haller]

if yur thinking about starting any business get a part time job at one similiar to your choice. you get education and get paid all at the same time

 

[Derwin0]

Internet cafes work well in large tourist spots. Travelers can check there email and such. Much easier than carrying a laptop around. Plus even if you do find a hotspot most places charge around 10 dollars for a day.

A lot of hotels are providing free connections to guests these day, which in turn makes internet cafes in tourist areas a dying business.

 

[Kevinw]

A lot of hotels are providing free connections to guests these day, which in turn makes internet cafes in tourist areas a dying business.

As I said earlier, If you bring a laptop. Combine with the gaming aspect and lite food and beverage, the internet/gaming model still can be succesful in the right areas. Such as downtown Altanta or Washington DC

 

[Bob Haller]

downtown pittsburgh is getting FREE internet access for everyone. to enhance the city.

check locally to make sure your town isnt doing this.

I hear car washes do pretty well, the wand and unattended drive thru type.

pizza shops tend to make money from the day you open

my business has its problems but its low overhead. a phone, vehicle, gasoline and small hand tools. with such low overhead I can make a buck fairly easily.