Forums: Discussions for entrepreneurs and small business.

As you may have read in the introduction I posted, I run a small web hosting company and have since May 2004. At the time, it was an easy and low risk way for me to get my feet wet with entrepreneurship. It also enabled me to take advantage of my web design and technical skills. I never bothered to register as a LLC so this is probably something that would need to be taken care of before any serious expansions are attempted. What are the consequences for conducting business without being registered as a either a corporation, LLC, sole proprietorship, etc? I understand that there is no division between personal and company assets but considering the size and type of business I run, I don`t feel particularly uncomfortable about this and plan on changing it before building a team. Currently I run everything on my own.

At present, the company is stagnant and receiving very little attention due to its self-sufficiency. I just sort of milk it like a cash cow at the end of every month. Ideally, I`d like to put together a team of web designers, developers, identity specialists, etc, and really grow the company. Ever since it`s inception I`ve relied entirely on word of mouth for business and would like to initiate marketing campaigns once the aforementioned changes have been made. The brand is memorable, the company has a small customer base which can be targeted for when new services are rolled out and it also has the advantage of history doing business.

A few concerns I have:

1. Working with people remotely. How effective is this when you`re relying on people to make up critical parts of the business? Can a business really operate as a business when all of it`s members are living and working independently of one another? I`d really like to tap into the local market and would prefer it if team members lived in my locale.

2. Ownership. I`d really like to work with someone who can assume a leadership position and make pivotal business decisions concerning client projects, employees and other business related matters. Thoughts on this? This would probably be a partner.

I guess what I`m considering is taking a seed that has already been planted and maximizing its potential to grow by giving it the nutrients it requires which are exposure and the support of a dedicated and talented team.

What do you guys think about this idea? What is the next logical step if I`m to proceed? Any reasons why I shouldn`t proceed? I`ve also considered selling the company and using the money to invest into a new venture. It isn`t that I dislike what I do, but like I said, there`s very little action going on now and the company is dying on the vine. I either want to revive it and come back strong or pull out and get into something else.

Ideas?

Thanks,
Mason

Apropos remote working and ownership, I just did a bit with a world consulting group, and met 1 person---the central project manager. I worked with maybe 20 different people, invovling complex projects, groups working on the same things, deadlines, and time zones around the globe. It wasn`t a problem at all.

Consider this: you hire someone in town, have a deadline, explain things, and one day they don`t feel like coming to work. They quit, or their car breaks down, or whatever. How is it really different than the person living in Australia? What are you gonna do....go to their house and drag them out the door? :-)

Leadership is a mental and character event, not a proximity event. In other words, leaders emerge through their actions and communications, not where they live. In each sub-project, one person had a stronger interest, more expertise, or more knowledge, and so they became the de facto leader. It didn`t matter what their job title was, as it really never does anywhere.

So finding someone who can buy into your project(s), take ownership of them, and who doesn`t use corporate jargon phrases like these is a function of working with different people until you find the right person.

Don`t partner with someone until you`ve worked with them for a few months and been through some ups and down.

Finally, if you`ve considered selling the company, then turned 180-degrees and want to fully invest in the same company, wouldn`t you say you`re maybe a little inconsistent? :-) Where do you envision this company in 1 year?

As per usual Craig, very insightful post. Thank you.

My vision for the company really came to fruition when it made it to the point where it supported itself with little to no involvement. I set it up to generate a nice residual income on the side. Now I`m considering either growing it or either selling it and investing into a different business. If growing it and working with a team of remotely located team members is feasible, it`s very possible that`s the route I`ll chose to travel. If it isn`t, that`s when I`d consider selling it.

I always planned on selling it once I got to a certain point in my college career and that point is quickly approaching but now I`m contemplating other options. My life is beginning to take a new direction and I need to involve myself in some type of business by either growing this one, starting a new one or joining up with other people.

Thanks again Craig. You`ve given me some more to think about.

Hey Mason...

After checking out your introductory thread and reading your thoughts above, I suggest thinking about what direction you want to go in before planning to expand this business.  Like Craig points out, there are some inconsistencies in what you are asking about here.  But hey, that`s totally okay!  This is a place for getting some guidance.

You mentioned in your other post that you hold passions for stuff like web design, identity development, SEO, usability, etc.  It sounds like these are the kinds of things you want to expand into with your current company.  So what is it that you would do with a new company that is different?

(By the way, welcome to SuN!)

Hi Steve.

That last question is a good one. I suppose I`m still undecided as to whether I want to grow this hosting business into a company offering end to end web solutions, join up with an existing team of designers and developers at a different company, or maybe sell my company and take the money to an entirely different type of business altogether.

I guess only I can really decide what decision is best for me at this point. I should probably better organize my thoughts. Things are just zipping through my head right now.


That`s a good question and one that I still need to spend more time thinking about.

stoavio,

You might want to create a basic strategic business /life plan. Get in touch with your business passion. Develop a concept and model around that passion.

Then see if it "fits" with your existing company or if it is so different that you would be better off starting a new company.

 

 

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Robert, that`s a good idea. I`ll try doing that. 

stoavio have you looked at the 10 steps to grow your business that SUN has as well:

http://www.startupnation.com/steps/71/grow-your-business.htm

 

I`m going to give my personal opinion on hiring locally vs. having remote workers.

First of all, there`s just no reason for this type of company to have an office. It`s not worth the gas, expense, environmental impact, etc.

Secondly, I put up ads locally and couldn`t find anyone I wanted. So then I had to search nationally ... I put up ads in every major city. And finally I found an artist I liked (after about 250 responses) in Texas ... who saw my ad in Boston. So, I think only hiring talent locally when there is no reason limits your pool of applicants.

Thank you Tikki50 for the link and Nikole for the input. That definitely makes sense to me.