RonJon Wheels, a few Business questions for those who know about corp progress.
03-06-2005, 12:25 PM
#1
RonJon Wheels, a few Business questions for those who know about corp progress.
What's up guys, Been so busy as of late i had a gard time surfing the net for anything non-company related.
Anyway, You guys know that I started Ronjon Wheels about 7-8 months ago, and I am having a hard time evaluating the growth of the business, whether it is heading for success and on the right track, or whether I need to revamp and cut costs.
This thread is really for those who have knowledge on business growth in relation with time periods. In other words, I invested 6 figures and after 7-8 months, I profited about $1000, lol. Is that normal? I mean, alot of people I know tell me that breaking even after the first year is fine, but I have been working 20 hours a day on the company and still maintain my clients freelance projects. My clients are slipping away since I am so drained after doing my own company work and the quality of work for my clients is diminishing. I'm pretty much running the show, as an exec, acount manager, book keeper, designer and salesperson, with a few commission based individuals helping out here and there. I just need advice really, any thoughts? Definetly love what I am doing, but I still have a familly to feed and bills to pay.
Also I might have to find individuals who have business experience and who would want to pick up where I left off, and possibly fine tune the corporate end of the company, while i focus on product design and develpoment. Too much work for one person who has little small business experience, but a ton of talent and ambition.
Anyway, You guys know that I started Ronjon Wheels about 7-8 months ago, and I am having a hard time evaluating the growth of the business, whether it is heading for success and on the right track, or whether I need to revamp and cut costs.
This thread is really for those who have knowledge on business growth in relation with time periods. In other words, I invested 6 figures and after 7-8 months, I profited about $1000, lol. Is that normal? I mean, alot of people I know tell me that breaking even after the first year is fine, but I have been working 20 hours a day on the company and still maintain my clients freelance projects. My clients are slipping away since I am so drained after doing my own company work and the quality of work for my clients is diminishing. I'm pretty much running the show, as an exec, acount manager, book keeper, designer and salesperson, with a few commission based individuals helping out here and there. I just need advice really, any thoughts? Definetly love what I am doing, but I still have a familly to feed and bills to pay.
Also I might have to find individuals who have business experience and who would want to pick up where I left off, and possibly fine tune the corporate end of the company, while i focus on product design and develpoment. Too much work for one person who has little small business experience, but a ton of talent and ambition.
03-06-2005, 12:38 PM
#2
dɐɹɔ ǝɥʇ ʇɐɥʍ
Contact me offline and I can offer you some help, I own 2 business' currently and am looking at starting a third very soon. One of which is now 14 years old and thriving, but I digress...... I have found working with a team of experts in there respected fields is key to success(both short and long term). Sounds like you need to talk with a business planner which is the key to finding the direction of your business, and making sure it stays profitable. I am just south of Albany so we're not that far away, and it may work for you. With out my team of proffesionals my last years $1.5 million investment in my oldest business would have been just about impossible and with out much of a doubt in my mind a huge failure.
Unfortunately starting a new business is a lot of low wage, back breaking, short term unrewarding work; unless you plan to make it differently.
Unfortunately starting a new business is a lot of low wage, back breaking, short term unrewarding work; unless you plan to make it differently.
03-06-2005, 12:50 PM
#3
Well, I have a business plan, and a business projection, it's just that warehouse rent, advertising and misc expenses are pretty high. Sales are fornutely rising overall, and if they continue at this rate, I should be doing decent by the end of the year. But still I would be somewhat interested in what you or anybody else has to offer from a relationship to advice. Is there anywhere I can look to hook up with Business people who are interested in actually earning their way into a potentially successfull company in their begining?
BTW, Tireguy, pm me or email me your contact info.
I have high expectaions and am very meticulous when it comes to business, maybe that is clouding my judgement on the progress of the company. any other people have some stories I can relate to, like the success of another company that started out similar to mine?
BTW, Tireguy, pm me or email me your contact info.
I have high expectaions and am very meticulous when it comes to business, maybe that is clouding my judgement on the progress of the company. any other people have some stories I can relate to, like the success of another company that started out similar to mine?
03-06-2005, 06:44 PM
#4
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Originally Posted by rondog
Well, I have a business plan, and a business projection, it's just that warehouse rent, advertising and misc expenses are pretty high. Sales are fornutely rising overall, and if they continue at this rate, I should be doing decent by the end of the year. But still I would be somewhat interested in what you or anybody else has to offer from a relationship to advice. Is there anywhere I can look to hook up with Business people who are interested in actually earning their way into a potentially successfull company in their begining?
BTW, Tireguy, pm me or email me your contact info.
I have high expectaions and am very meticulous when it comes to business, maybe that is clouding my judgement on the progress of the company. any other people have some stories I can relate to, like the success of another company that started out similar to mine?
BTW, Tireguy, pm me or email me your contact info.
I have high expectaions and am very meticulous when it comes to business, maybe that is clouding my judgement on the progress of the company. any other people have some stories I can relate to, like the success of another company that started out similar to mine?
The following was written by a guy I know, who is a trader. He's talking specifically about trading, but much of what he's talking about applies to any sort of business. Highlights are mine:
The ease of entry in this business is deceiving. No one would dream of trying to become a lawyer or a doctor or a college professor without a proper education, but you'd be surprised how many expect to open a trading account and become millionaires within a few months.
I wish it were that simple. I'm afraid you'll have to pay some dues. But before you get started, it will help if you meet several requirements first.
For starters, you need at least $30,000. To open a daytrading account, the minimum balance required by the government is $25,000. The additional $5,000 is insurance that a bad trade will not put you under the minimum.
This money must be in the bank. Borrowing or using a credit card is not recommended. And this can't be money to which you're emotionally attached. If you're trading your life savings, an inheritance from a recently departed loved one, someone else's money or any other money that you are absolutely petrified of losing, it's not going to work. The pressure will be too much for you. Your trading decisions will automatically be emotional, and you will lose. I've seen it happen too many times.
You need enough money in the bank, or other means of income, to support yourself and your family for one year, with no income from trading coming in at all. It may not take you that long to become profitable, but you can't plan for the best; you must be prepared for the worst. It's not realistic to assume you can consistently make enough money to live off of while you are still learning. And that assumption isn't fair to your family. The pressure of that type of situation will eat you up and sabotage any chance you have of success.
You must have 100% support from your family. I don't mean lip service here; I mean solid support -- the kind of support that will make your spouse willing to eat beans for a year to see you succeed. I have seen far too many traders fail simply because their families were not behind them. If you are anticipating a disapproving spouse looking over your shoulder every day asking, "When are we finally going to get rich like you promised?" or "How much money did you lose today? I could have bought a new pair of shoes with that money!," you'll carry that weight into every trade you make. And you will fail.
You must want to be a successful trader more than anything in the world. "I think I'll give this a try and see if it works out" will not cut it. You have to love the market and love the game of it. If you are in it half-heartedly for the money alone, you won't have the dedication and motivation you will need to get you through the difficult learning phase.
You have to be willing to devote the time from 7:30 a.m. to 5 p.m. ET, five days a week, to the market. You also must be willing to spend additional hours studying and preparing for the next day.
A lot of people who fail are simply lazy. I see them showing up five minutes before the opening bell, asking what they should trade that day. I know they won't make it. Many of them won't even take the time to keep a journal of their trading. They chase after other people's calls and continually look for a leader to follow. They aren't confident in their own decisions because they haven't put the work in. Nothing in life comes for free. If it's worth having, it's worth working for.
What about learning to trade part-time? Yes, it can be done. In fact, that's often the better route to take. It's hard to hold down a job and learn a demanding new career at the same time. You will have to burn a lot of midnight oil. But part-time traders have several advantages as well.
First of all, having outside income relieves many psychological pressures that sabotage your learning process. Second, the time restraint is often a blessing in disguise. The prime trading hours are the first two hours of the day. Many times, beginners wind up giving away their early profits later in the day when trading slows and becomes unpredictable. Beginners who can only trade for the first two hours of the day and are then forced to go to jobs often avoid many of the losses and form better trading habits.
I knew one man who attempted to trade full-time for about a year. He was barely holding his head above water, until he finally got a job. Once he got the job, he could only trade for the first two hours, but the relief and security of that job allowed him to trade much more freely. Soon he was making more in those first two hours of trading than he was at his full-time job.
So do you still want to learn daytrading, or did I scare you off? Still here? Have you met all of those requirements? Well, you might just be cut out for this after all.
I wish it were that simple. I'm afraid you'll have to pay some dues. But before you get started, it will help if you meet several requirements first.
For starters, you need at least $30,000. To open a daytrading account, the minimum balance required by the government is $25,000. The additional $5,000 is insurance that a bad trade will not put you under the minimum.
This money must be in the bank. Borrowing or using a credit card is not recommended. And this can't be money to which you're emotionally attached. If you're trading your life savings, an inheritance from a recently departed loved one, someone else's money or any other money that you are absolutely petrified of losing, it's not going to work. The pressure will be too much for you. Your trading decisions will automatically be emotional, and you will lose. I've seen it happen too many times.
You need enough money in the bank, or other means of income, to support yourself and your family for one year, with no income from trading coming in at all. It may not take you that long to become profitable, but you can't plan for the best; you must be prepared for the worst. It's not realistic to assume you can consistently make enough money to live off of while you are still learning. And that assumption isn't fair to your family. The pressure of that type of situation will eat you up and sabotage any chance you have of success.
You must have 100% support from your family. I don't mean lip service here; I mean solid support -- the kind of support that will make your spouse willing to eat beans for a year to see you succeed. I have seen far too many traders fail simply because their families were not behind them. If you are anticipating a disapproving spouse looking over your shoulder every day asking, "When are we finally going to get rich like you promised?" or "How much money did you lose today? I could have bought a new pair of shoes with that money!," you'll carry that weight into every trade you make. And you will fail.
You must want to be a successful trader more than anything in the world. "I think I'll give this a try and see if it works out" will not cut it. You have to love the market and love the game of it. If you are in it half-heartedly for the money alone, you won't have the dedication and motivation you will need to get you through the difficult learning phase.
You have to be willing to devote the time from 7:30 a.m. to 5 p.m. ET, five days a week, to the market. You also must be willing to spend additional hours studying and preparing for the next day.
A lot of people who fail are simply lazy. I see them showing up five minutes before the opening bell, asking what they should trade that day. I know they won't make it. Many of them won't even take the time to keep a journal of their trading. They chase after other people's calls and continually look for a leader to follow. They aren't confident in their own decisions because they haven't put the work in. Nothing in life comes for free. If it's worth having, it's worth working for.
What about learning to trade part-time? Yes, it can be done. In fact, that's often the better route to take. It's hard to hold down a job and learn a demanding new career at the same time. You will have to burn a lot of midnight oil. But part-time traders have several advantages as well.
First of all, having outside income relieves many psychological pressures that sabotage your learning process. Second, the time restraint is often a blessing in disguise. The prime trading hours are the first two hours of the day. Many times, beginners wind up giving away their early profits later in the day when trading slows and becomes unpredictable. Beginners who can only trade for the first two hours of the day and are then forced to go to jobs often avoid many of the losses and form better trading habits.
I knew one man who attempted to trade full-time for about a year. He was barely holding his head above water, until he finally got a job. Once he got the job, he could only trade for the first two hours, but the relief and security of that job allowed him to trade much more freely. Soon he was making more in those first two hours of trading than he was at his full-time job.
So do you still want to learn daytrading, or did I scare you off? Still here? Have you met all of those requirements? Well, you might just be cut out for this after all.
03-06-2005, 06:49 PM
#5
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Originally Posted by rondog
Is there anywhere I can look to hook up with Business people who are interested in actually earning their way into a potentially successfull company in their begining?
Keep in mind an old Silicon Valley rule, that really works our well for any business: It's a lot better to give away 90% of your company to people who will help you succeed and end up owning 10% of something big, then to insist on owning everything yourself, getting no help and ending up with 100% of nothing.
03-06-2005, 06:53 PM
#6
Photoshops, and Polls!!!!
Good luck Ronjon, I respect and admire you and Soopa fore being the enterpreneurs you are!
I'm a 'corporeate' type and safely hide in my cubice from the day to day challenges you have owning a small company
dont give up, i know you can do it. often business are break even for 2-3 years!
I'm a 'corporeate' type and safely hide in my cubice from the day to day challenges you have owning a small company
dont give up, i know you can do it. often business are break even for 2-3 years!
03-06-2005, 08:40 PM
#7
VeniceBeachTSX, thanks for that writeup, def sounds like me, but i work 7 days a week, pretty much from 9:00 am to 12:00am in bunches. Familly is def supportive and the moeny I used was savings with wedding gifts mixed in with a small loan that is almost payed off, thanks to the bodykits. But like I said before, I used to have 10+ regular clients which were all in the aftermarket wheel industry, then when word got out to them that I was starting my own Company, I began losing them. I still have one non-related client that allows me to barely pay off my bills, but I feel so vulnerable like that. God knows I'm trying, but I don't want to inder the company by doing everything myself, I'd rather leave that up to a highly experienced bunch of people that are trustworthy and share the passion. i would be willing to give up 25% or less of the company as an incentive, but I really don't know the legal process to protect myself in that situation.
Jerky, thanks for the moral support.
Jerky, thanks for the moral support.
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03-07-2005, 07:02 AM
#8
Photoshops, and Polls!!!!
Ok rondog,. im going to askyou some business questions
Are you only donig direct sales to customers? do you have enough customer base to work with resellers or 'channel sales'?
Are you partnered with install shops that do other car work (such as audio, and other stuff) perhaps you can fall into a customer list by partnering with some large audio shops that can work on other mods, and do your stuff on the side.
do you have a line of accessories that you can sell that requires only little time to sell on your part (little configuration costs, and or easy to sell) those type of products are eay to sell online.
Are you only donig direct sales to customers? do you have enough customer base to work with resellers or 'channel sales'?
Are you partnered with install shops that do other car work (such as audio, and other stuff) perhaps you can fall into a customer list by partnering with some large audio shops that can work on other mods, and do your stuff on the side.
do you have a line of accessories that you can sell that requires only little time to sell on your part (little configuration costs, and or easy to sell) those type of products are eay to sell online.
03-07-2005, 09:51 AM
#9
Pro
Rondog, I have several questions...
1) You mentioned that you only made a profit of 1000...now does that mean that you have taken care off all your debt? have you completely paid off your loans? is this 1000 after all expenses???
the reason why i ask that is because that has a huge impact on your profits...and i'm sure you know that...if, last year, you made only 1000, but your debt was paid off, then this year (2005), you have less expenses to worry about, hence it could possibly increase your business (all else being equal)...personally, i think that the biggest investment for a company in your field should be marketing...the products that you create have a lot of competition...now that leads into another question...
2) Would it be possible for you to create items/wheels/body kits for other cars besides Acuras/Hondas?
the reason why i ask this question is because if you limit yourself to just Acura/Honda, then obviously your audience is limited...for example, if you take your wheels and modify them a little bit and make them more "universal" then that could significantly increase your sales because obviously you are reaching out to a larger audience (people who have bmw's, toyota's, lexus, or just any other car brand)...ya i know that if you do that then the hub-centric part goes away, but that's something to evaluate...
i'm really glad to hear that you enjoy what you are doing...that passion is what's going to make this business run...i guess you would just have to see your net revenue for this year, 2005, and then you would have a better idea whether the business is worth it or not...in the first couple years, it becomes very difficult to see profits because of debt, administrative expenses, and several other expenses... hopefully, "word of mouth" should increase your sales...and I think that the new TL and CL bodykits should generate a lot of revenue for you as they are very exclusive...
1) You mentioned that you only made a profit of 1000...now does that mean that you have taken care off all your debt? have you completely paid off your loans? is this 1000 after all expenses???
the reason why i ask that is because that has a huge impact on your profits...and i'm sure you know that...if, last year, you made only 1000, but your debt was paid off, then this year (2005), you have less expenses to worry about, hence it could possibly increase your business (all else being equal)...personally, i think that the biggest investment for a company in your field should be marketing...the products that you create have a lot of competition...now that leads into another question...
2) Would it be possible for you to create items/wheels/body kits for other cars besides Acuras/Hondas?
the reason why i ask this question is because if you limit yourself to just Acura/Honda, then obviously your audience is limited...for example, if you take your wheels and modify them a little bit and make them more "universal" then that could significantly increase your sales because obviously you are reaching out to a larger audience (people who have bmw's, toyota's, lexus, or just any other car brand)...ya i know that if you do that then the hub-centric part goes away, but that's something to evaluate...
i'm really glad to hear that you enjoy what you are doing...that passion is what's going to make this business run...i guess you would just have to see your net revenue for this year, 2005, and then you would have a better idea whether the business is worth it or not...in the first couple years, it becomes very difficult to see profits because of debt, administrative expenses, and several other expenses... hopefully, "word of mouth" should increase your sales...and I think that the new TL and CL bodykits should generate a lot of revenue for you as they are very exclusive...
03-07-2005, 10:07 PM
#10
Its in the bag, I just need to bring more experienced people on board to fill the proper positions. I invested just over 6 figures into the company, and I don't expect to make it back in one year. But if I count my consistant sales and from the first month, and calculate my expenses per month, i am breaking even. Then again, I started the company in August, which is the begining of the slow season and we are just starting the spring which is the best time of year for sales from what I've heard, so maybe it will end up more than I expect.
03-07-2005, 10:30 PM
#11
Suzuka Master
Like I mentioned to you when I was at your place, your business is somewhat similar to my fathers. His busy season is the summer due to schools being out, and so is yours due to the weather. He also has very high overhead, which it sounds like you do to.
I know some years he can be in the red for the winter months as its slow, but come summer hes back in the black for the year. It sounds like you have to wait and see after you have a full year go by as you haven't yet entered your busy season, so to say, even though you are probably starting to burn out from doing everything yourself.
If you want, I can have my father talk to you as he has been in your situation before, albeit being in a different industry. We also have a family friend who is an entrapanuer of sorts who has made millions through building businesses and selling them. He is very cut-throat, but he may have some advice for you. He's now the VPs for a company thats worth 660 billion dollars (and hes not one of hundreds of VPs either).
I'll talk to you later.
I know some years he can be in the red for the winter months as its slow, but come summer hes back in the black for the year. It sounds like you have to wait and see after you have a full year go by as you haven't yet entered your busy season, so to say, even though you are probably starting to burn out from doing everything yourself.
If you want, I can have my father talk to you as he has been in your situation before, albeit being in a different industry. We also have a family friend who is an entrapanuer of sorts who has made millions through building businesses and selling them. He is very cut-throat, but he may have some advice for you. He's now the VPs for a company thats worth 660 billion dollars (and hes not one of hundreds of VPs either).
I'll talk to you later.
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