Starting my own business...advice needed.

[Ochigal]

After 20+ years of doing what I do...but for someone else...I have decided to do what I do best...as a consultant and work for myself. Yesterday I submitted my 30 day notice of resignation....YIKES!

Here is my question...I am thinking of starting an LLC...Have been advised (by friends only) to do that.

anyone have any experience with that....what are the pros and cons.

[Seveen]

Re: Starting my own business...advice needed.

congrats Ochigal

do you have your first client

loads of info at this link

http://sbinformation.about.com/cs/ownership1/a/LLC.htm

you should be able to file the paperwork yourself

all the best to you [img]/forums/images/%%GRAEMLIN_URL%%/70409-waytogo.gif[/img]

[img]/forums/images/%%GRAEMLIN_URL%%/70459-hugs.gif[/img]

[swedishrasta]

Re: Starting my own business...advice needed.

(((((ochi)))))
Congratulations. I know you will be huge success. I'm just thrilled for you and please keep us posted on the progress.

[img]/forums/images/%%GRAEMLIN_URL%%/icon_hug.gif[/img]

[Stormmey]

Re: Starting my own business...advice needed.

go for it Ochi, nothing like being your own boss. I have been doing that for eighteen months now. All the best [img]/forums/images/%%GRAEMLIN_URL%%/70409-waytogo.gif[/img]

[Gen]

Re: Starting my own business...advice needed.

Ms Ochi congrats. In that 30 day interim, try to get your marketing campaign together pronto. the sooner you get the word out the sooner you will start building client base.

[Ephratahe]

Re: Starting my own business...advice needed.

Go MrsOchi, Go MrsOchi, Go MrsOchi, Go MrsOchi, Go MrsOchi!!!

Mi no too sure 'bout di pros an cons, but I've heard people sey dat an LLC is di best way fi protect di owner's interest dem, cause after all your liabilities are limited (an mi noh tink too much people can sue you fi what's limited - feel mi? [img]/forums/images/%%GRAEMLIN_URL%%/wink.gif[/img])

[Kurlie]

Re: Starting my own business...advice needed.

Congrats girl..you are on the right track..started mine a little over two months ago..and in time will give my notice. Yes LLC is the way to go especially when starting out small.

[Ochigal]

Re: Starting my own business...advice needed.

Thanks everyone.

I have 2 clients already...one I have been working for since January...just a few hours here and there. One has been begging me to do this for 2 years...so they are just sitting and waiting for me to be freed up. We already have signed contracts in place and between the 2 of them...I will be busy full time right away...it may not stay full time, eventually it will phase down a little...but thats OK. What I really want is to work less hours.

I crunched some major numbers before making my decision. I worked out what I make an hour...then figured out all my benefits at my place of employement..vacation time, 401K, health insurance, paid holidays...everything. And I calculated the value of these then worked them out to an hourly rate...added that to my rate of pay and came up with a minimum of what I would have to make hourly to break even. I am using that figure as my base when I quote a job...and so far no one has blinked an eye. One client is actually paying me DOUBLE that minimum figure because the work is more specialized... [img]/forums/images/%%GRAEMLIN_URL%%/desdentado.gif[/img] chaching

But good idea about the marketing materials...I will also check that link...THANKS everyone!

[Gen]

Re: Starting my own business...advice needed.

ms ochie although these clients may not bat an eye at your fees, others may, and the key is to build up the base. so also check out your competitors and see what they offer just to make sure that you don't lose clients based on your fees. it may also serve you well to structure fees based on the complexity of the job, of course mi nuh know wah yuh do so that may or may not work for you. [img]/forums/images/%%GRAEMLIN_URL%%/grin.gif[/img]

[Nylah]

Re: Starting my own business...advice needed.


alright, I dont mean to contradict Geneva atall but from experience, dont be too quick to lower fees just to get some business.

The best advice I got when I started out on my own a few years ago, was just that. I set my fees based on my skill set, overhead, profit margin, etc. But the feedback I was getting was from some ppl was that my fess were more than they wanted to spend. Of course, I started to get discouraged.

I spoke to a friend in the same field and she point blank said dont you lower your fees to meet ppl's expectations, but rather you explain why you are worth your price given the competition.



Trust me, I sputtered and twisted over it but I took her advice and when I had any questions about my fees I justified the cost to value.

Guess what - it worked.

And I had two clients that from my initial year when somewhere else because of the fee issue but called me up a year later and are now clients to this day [img]/forums/images/%%GRAEMLIN_URL%%/smile.gif[/img]

You dont want to price yourself out of the market but you also dont want to price yourself to be less than what your value is.

The relevant question is: why are your worth that price? As long as you can answer that question confidently you are in good shape [img]/forums/images/%%GRAEMLIN_URL%%/70409-waytogo.gif[/img]

[Ochigal]

Re: Starting my own business...advice needed.

Thanks Geneva and Nylah for some really good things to think about.

Nylah...my husband said the same thing...And Geneva...you are right too... There really is a happy medium in that case. One of my clients does have a lower price because I know for a fact that his business is struggling so much...that wihtout my service he will most likely loose it soon....but I also know he doesnt have much to be able to pay me...so I gave him a deal, but was clear that it was a deal since he is one of my first and I need a good reference. I wont continue to offer the low price to him once his business is thriving...if he still wants my services he will be fully aware of the value and will have to then pay full rate. I actually have a fee schedule that varied depending on the service.

Geneva made the point about the competition...well thats the beauty of this all. There is NO competition in my area...No one is doing what I do although for years we have all complained that the community needed it. If you want someone to come do some consulting...you have to bring someone from the nearest big city...and pay travel time and costs...AND they have big city rates. So...so far its been a no brainer and seems to show all signs of being a success.

HERE IS THE CLENCHER...My former (or current at this point) employer has asked me to give them a bid to continue to do some of the things on my job description...AT my contract rate. So basically I get to pick and choose items that I currently do...but do it on MY terms...

Its all happening so fast...my head is spinning. [img]/forums/images/%%GRAEMLIN_URL%%/eek.gif[/img]

[Nylah]

Re: Starting my own business...advice needed.


It seems like you are in a good position MrsOchigal [img]/forums/images/%%GRAEMLIN_URL%%/70409-waytogo.gif[/img]

Even with the spinning head [img]/forums/images/%%GRAEMLIN_URL%%/grin.gif[/img] you are gonna do really well!

[Gen]

Re: Starting my own business...advice needed.

wasn't suggesting that she lower her fees for that purpose. depending on the industry some clients are charged less based on their size, needs etc.


I can't charge 250.00 to a large cap client and then turn around and charge 250.00 to a sole prop who won't have the same needs [img]/forums/images/%%GRAEMLIN_URL%%/grin.gif[/img] but the whole fee structuring is anadda chread


anyway seems like it's all sorted out. [img]/forums/images/%%GRAEMLIN_URL%%/grin.gif[/img]

[Nylah]

Re: Starting my own business...advice needed.

naah man, I get what u r saying Gen.

but a thread bout fee structure is a good idea [img]/forums/images/%%GRAEMLIN_URL%%/70402-thinking.gif[/img]

start one then woman [img]/forums/images/%%GRAEMLIN_URL%%/grin.gif[/img]

[7777]

Re: Starting my own business...advice needed.

yes, a thread about dat is a good thing. cus when u a start out inna business, fee structure - thats a major issue..