Need Advice on Starting a new business...

[montanaharmons]

I hope this is the right forum for this...if not... I appologize...kinda new here. I am the lead design drafter for an Architectural/Manufacturing company and have been having thoughts of starting a new small buisness doing Architectural Drafting in a booming town in Montana. My current CADD manager is wanting to go with me if we decide to go. It is at this point that we are at a loss for what to do next. Does anyone have any experience with this topic? Any help would be greatly appreciated. Again, if this is off topic, I appologize. Thanks!

[hand471037]

Nolo is your friend: http://www.nolo.com/

Get the 'Small Business Start-up Kit (http://www.nolo.com/product.cfm/ObjectID/0CDBB7AF-09B9-4E29-BD1BE4B2C6DB6468/catid/9FA25870-14F1-4657-9778F19FB41FB93D/111/228/)'. It outlines tons of great stuff you'll need to know to do the next steps (which is mostly to calc out if it's *really* a good idea to start your own business).

Also, use your own tax dollars- there's a great website by the Small Business Association: http://www.sba.gov/

I, too, am in the middle of starting my own business, actually, and I've found these resources to be very very helpful in understanding what to do...

[montanaharmons]

Thanks for the info. the area that we are in doesn't have a lot of cadd services, so in that it would be a great move...I have also talked to a few local contractors and was told that they wished there were more of us out there offering the service. I have figured an initial start up at around $10,000, but could be way off. It will most likely begin as home based. The area we are in has two major resorts within close proximity of the town. the contractors here are making a killing. (as well as the co. I work for...) I will check out the afore mentioned links. Thanks again. What stage are you in now?

[jgratton]

Thanks for the info. the area that we are in doesn't have a lot of cadd services, so in that it would be a great move...I have also talked to a few local contractors and was told that they wished there were more of us out there offering the service. I have figured an initial start up at around $10,000, but could be way off. It will most likely begin as home based. The area we are in has two major resorts within close proximity of the town. the contractors here are making a killing. (as well as the co. I work for...) I will check out the afore mentioned links. Thanks again. What stage are you in now?

My biggest mistake when starting was not having a pre-established line of credit to carry me through start up costs and cash flow problems. I found out the hard way some clients are slow to pay invoices.

[montanaharmons]

so is it reasonable to ask for 50% down and the balance before finals are delivered?

[Wanderer]

I hope this is the right forum for this...if not... I appologize...kinda new here. I am the lead design drafter for an Architectural/Manufacturing company and have been having thoughts of starting a new small buisness doing Architectural Drafting in a booming town in Montana. My current CADD manager is wanting to go with me if we decide to go. It is at this point that we are at a loss for what to do next. Does anyone have any experience with this topic? Any help would be greatly appreciated. Again, if this is off topic, I appologize. Thanks!I'm going to move this to the cad managers forum as I believe it will be better served there, thanks.

[jgratton]

so is it reasonable to ask for 50% down and the balance before finals are delivered?

Not around these parts. If the job takes less than 1 month to complete, wait till its over. Otherwise invoice once a month, payment due within 30 days of invoice.

[hand471037]

I'm at the 'just about to jump of the cliff to see if I can fly' stage. ;)

I'll post more later, end of the month, when I can.

[montanaharmons]

the company i work for right now, asks for 50% down before we start drawing and the balance when the product is delivered...before it is unloaded. how do you charge...by the job or the sq. ft. of the project? also, what were your startup costs? (generally)

[jgratton]

I'm going to move this to the cad managers forum as I believe it will be better served there, thanks.

I'm sorry for objecting, but isn't the Cad management reference obscure?

[montanaharmons]

I'm at the 'just about to jump of the cliff to see if I can fly' stage. ;)

I'll post more later, end of the month, when I can.
thanks! i'll keep checking in. this is our busiest time of the year. i don't get too much free time to do this...lol...another reason to go solo...

[montanaharmons]

another question is...do you buy the software and start moonlighting before taking the major plumge...any benefits or no.

[Wanderer]

I'm sorry for objecting, but isn't the Cad management reference obscure? ;) perhaps, but, we don't really have a more fitting place. there are business owners in here and I think they'd be the most appropriate ones to answer his question.

[Wanderer]

another question is...do you buy the software and start moonlighting before taking the major plumge...any benefits or no. might be good for establishing contacts and feeling out the job market, making name for yourself, etc.

[hand471037]

another question is...do you buy the software and start moonlighting before taking the major plumge...any benefits or no.

That all depends on what you're current companies policy towards moonlighting is, and what you're really after. I mean, if what you're after is more pay and/or more time, you might be able to both start working for others and keep your current job...

[glee.94356]

Ok, you have probably taken the plunge by now.
As for starting a new business. There have been some really good advice provided here.
Have a business plan in hand.
Why? Because while you may not really need a business plan to go hat in hand to request start up capital in the form of loans from banks or lenders, it's agood way to get your thoughts together in a coherent manner.
Why are you starting your firm, what's your mission statement, what's the evaluation of your competition, what is the state of your market or potential clients, how will you get your potential clients to sign you up, and what is your start up costs going to be?
Do you have marketing costs to factor in?
hardware, software, business license, where are you operating out of? Your home or are you leasing or renting office space. If so, how much space do you need and where should it be located. What's the lease terms like. Can you afford it? If your business fails, can you afford it?
By putting things in writing, you help clarify these issues. That in turn helps you figure out how to solve each problem.
SBA is definitely a good resource. It's free and they take time to help you evaluate your business idea or plan. May as well register as a small business too if you want government contracts. But that's a different animal.
Factor in return on investment on everything you do, including marketing. Which avenues are going to be effective for you.
Then be prepared for the roller coaster ride of your life. For every 10 leads you get, maybe one project. That seems to be the way things go. Sometimes more leads less jobs.
It may help to have one project ahead of time before you go out on your own. Otherwise it's scary when there are no projects and you still have to pay the bills. If you moonlight, check your employee manual and see what it says. There's probably a non compete clause in there.
get the word out anyway you can about your business. Initially your firends and other contacts in your network will be your main sources. After you have been around for awhile, you'll get clients that are not part of that circle. Always shoot for repeat business, treat your clients well. they'll be your best repeat customers and your best referalls.
Good luck.