Does it matter if the company is both a service-oriented and inventory-based business? We’ve been running for about 13 years now, well established, successful. It’s a small business, under 25 employees usually.
Just for a really quick idea:
How did you organize? Register your company? Finance your venture?
We “organized” haphazardly as hell. Seat-of-your-pants stuff. Recognized a need, made some phone calls, lined up suppliers and started selling basically. Everything was reactive as hell at first. Sometimes this can’t be helped as new business typically lack money to do everything perfectly. Sometimes it’s just inexperience but you learn quick when you’re starving for a paycheque.
We registered the company according to incorporation laws in Ontario. You’ll have to find out what the equivalent is in your area and do likewise.
The initial financing came from cashing in a small RRSP. Then, we used a small overdraft as an “operating line”. Banks only became more helpful when we started making money, naturally.
How have you grown?
We’ve grown pretty haphazardly too. For example, it might be a year of wild growth followed by a couple years of plateau, followed by a couple years of moderate growth, etc. We’ve somehow always managed to make money or at least break even annually. Which seems kind of miraculous when I think back on some of the stupid mistakes we’ve made.
What unexpected challenges have you encoutered?
You name it, you’ll probably encounter it: Supplier and supply problems, client problems, scheduling, vehicles, infrastructure, insurance, taxes, banks, money, employees, theft, sabotage, competitors, regulations, etc, etc, etc. Too many to list in one post and it doesn’t necessarily get any easier as time goes by, to be honest.
Would you do it again?
Weellll…I dunno. Sometimes I feel like chucking it frankly. Other times, I think I could never work for someone else again. I think a lot of business owners feel the same way. It probably depends on the day you ask them the question.
The most useful thing I could probably tell you in brief would be: Get a good accountant. They can guide you in more ways than number-crunching. Good ones are knowledgeable about some legal stuff too and might be able to save you some money there, at least initially. A really good accounting firm is worth it’s weight in gold, I kid you not.