Forums: Discussions for entrepreneurs and small business.

You know how everyone says if you love what you do, you never work a day in your life?  Well, I have found something I love to do, something I create, that I would love to get into high-end children`s stores.  This is something beautiful, that I know will sell well.  I have shown them to girls of all ages, and they all love them and have asked their moms to buy them one. 

Here is my question - I know nothing about what I need to do to get my business off the ground.  Where do I start, and what do I need to do from there?  Right now I am in the stage where I`m making enough to actually sell, and I`m thinking of my company name.  Do I need a business liscence, and if so, how do I go about getting one, and what would one cost (cost is currently an issue).  Any and all info would be greatly appreciated.  Also, if anyone can think of a helpful book on the subject of starting a business such as mine, that would be fabulous.  Thanks!

A good starting point is the 10 Steps to Open For Business. I presume you want to take this beyond a home craft business.

There are lots of things to consider pretty much all at once. Other people will surely bring up those I miss. The first thing that crossed my mind is liability and risk. I have no idea what you`re making but every product involves some risk. What would happen if your young customer`s baby sister got her hands on your product? Incorporation, or an LLC along with insurance need to be high on your list of priorities.

Putting together a startup business is like building a house of cards. If you`re careful you can build a beautiful thing. If you`re careless it can all come tumbling down at any time.

How long can you make these products yourself? When you exceed that level you`ll have to pay someone else to make them or hire people yourself and setup a factory or cottage industry network. The price you set today needs to be high enough to absorb that cost when it comes. Besides the product cost you also need to consider costs of packaging, marketing, distribution (more than one level?), and retail markup. I`m not trying to discourage you; just trying to make sure you`re going into this with your eyes wide open. There are more hidden costs than you can even imagine. Include your own labor to make and sell at fair market rates plus taxes, workers comp, etc. Don`t forget to include your own profit in the equation. If you`re not going to make a profit, why bother?

Only after including all these expenses can you arrive at a retail price to begin market testing. Also, people saying "I would buy that for $$$" is not market testing. People (who don`t know you personally) actually laying out $$$ in exchange for your product is real market research. Only then do you know what people will pay. Rent a kiosk at a mall to gauge interest.

Aside from all that, it`s a piece of cake.

Don`t forget, if you do this right, this will be the first of many products you make. Don`t worry; the rest will come with time. A totally different business, but listen to Sarah Blakely`s story of starting up. Before starting up I listened to every radio show in the StartupNation archives several times. Time very well spent.

This may or may not be what you were looking for. I speak from my own experience, in the middle of a start-up, about to go full time, working along side my wife as equal partners and having the time of our life with our latest excellent adventure.



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The sba.com, firstgov.gov and entrepreneur.com provide outstanding information and plenty of training resources.  Good luck.


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I`m going to go out on a limb and suggest the following. For those of you who don`t agree, please don`t bash me too badddd...

I generally suggest people jump right in and work out the details as they go. Incorporating? Business Licenses? Insurances? That all can be worked out as you go. I say this because most people get caught up in getting everything "Just Right" before they get started and before you notice, 2 years have passed by.

And when they finally get into, many find they have NO market (or the market isn`t responding to their offer).  Sometimes, people fall in love with their products and will waste time, money and resources trying to bring their product/service to life, when indeed there is no life.

But if they had tested their ideas, products or services before spending thousand or wasting time, they would have found the idea was no good to begin with.

Should you get insurance? Should you incorporate? Should you get a license?

Of course you should...but most people can put that on hold initially in an effort to just get things going and once you start getting some money, those would be the first things I`d start doing right away (sooner than later).

Now, if you have products/services that are "high-risk" or theres the probable chance that someone or yourself included, could get hurt/injured, then yes, you probably need to employ those things before you even consider getting started.

But if you`re selling socks...then those things could wait until you start generating revenue.

I`d personally would probably get a business license since they`re so cheap and many of the vendors you deal with will probably require a Sales Tax ID # so you can purchase stuff at wholesale rates, but other than that...

I`d encourage people to simply get started...

With that said, you need to know that I`m not an attorney, and should you need advise, I would encourage you to speak with an attorney.

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Website Startup Coach: Step-by-Step Coaching to Help You Build a Profitable Business Online!

No bash here. I could not agree more.

Meatloaf Cake? Cartess, stop, you`re killing me!


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It`s an interesting proposition--jump in and get going. There are the reasons Cartess mentions, most importantly being to avoid the desire to get everything "just right."

On the other hand, and a really fun way to see that opposing point, there are situations like Steve Martin`s, in the movie, "The Jerk." Steve brings up the liability issue, and I wonder how many people with good intentions have been sued for some unconsidered problem with their product? We`re in that type of society, these days, as we`re often reminded.

I also got to thinking about an LLC as protection. Consider that Arthur Andersen was an LLC. It`s true only the partners directly involved with Enron were sued, but the repercussions brought down the company. Is that due to reputation by association, or was it a legal consequence?

More and more lately, I`m seeing the advantages of "opportunism," where you do what you do, keeping an eye out for those opportunities that arise almost spontaneously. They come along, right there, right at that moment, and they seem like a really exciting and good opportunity. Take advantage of them, and in most cases, they produce major changes in your pathway, process, and advancement. It`s a good reason to have an elevator pitch ready.

In other words, a combination strategy. If you have a product, continue selling it as you do, but start holding in your mind that you want to get into those high-end stores. Just having your mind focused is going to help opportunities "appear" to your perceptions, and produce a "mind set" where you`ll be talking about it.

From what I`ve seen in life, that`s going to open up those opportunities in ways you can`t logically calculate in the present moment. This isn`t magical thinking, or some New Age principle of unknowable vibrations. (It is, but there`s no mystery to it!) It`s simply practical advice. If you`re looking for opportunities, you`ll find them. If you`re focused on maintenance and preparation, you`ll find problems to fix.

Craig,

That was the best way I`ve ever heard that summed up. If you don`t mind, I`m going to put that in my swipe file and use!

Steve,

I don`t know what I was thinking about when I decided to put that site up. A friend of mine had mentioned the idea and I figured there must be a way to capitalize on it, thus the reason for the site.

I can thank my A.D.D. for that site...And I`ll tell you, A.D.D. has been both a blessing and curse for me

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Website Startup Coach: Step-by-Step Coaching to Help You Build a Profitable Business Online!

Hell yah, swipe away ;-D I gotta million of `em... 

Along the lines of meatloaf cake, I have a product in mind for the busy mom who`s looking to save time in the kitchen: roast chicken stuffed with brownies! I figure you adjust the brownie mix, stick it in the chicken, and cook `em both together. That way you don`t mess up a brownie pan, do two things at once, and since they`re all gonna end up in the same place anyway, you save on time and dishes!

I`m currently seeking venture or angel capital for approximately $48,127.73 (I calculate my projected expenses and income to the penny!), to help develop what I feel will be the greatest thing since meatloaf cake!

Okay, pardon my ignorance, but does a warning on the label protect you from a lawsuit?  The product I create is quite difficult to break, but there are small beads on this product, and say worst case scenario, little sibling gets a hold of it and with the strength of 100 men breaks it and chokes on a bead.  I would have a warning on the label that says it is not intended for children 3 or under, and to wear responsibly.  Is that any kind of legal protection, that you provided warning?  Like I say, I am completely new to all of this, and have about a gazillion questions that to you probably seem like no-brainers, but I freely admit I know basically nothing here and have MUCH learning to do.  Does anyone here know about legal aspects of business? 

Opie, no such thing as a "no brainer". We`re all learning as we go along. Some learn by watching others, some have to experience the pain themselves. This is a good place to get a gazillion questions answered.

As for the value of a label, that`s the kind of thing you need to ask your own attorney.

I wasn`t trying to scare or discourage you, just to raise some questions you might not have thought of yet and to make sure you include all types of expenses in your business plan calculations.

Good luck.


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