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The Barriers to Starting Your Own Business (why you aren't running one now)

mattinglot.com — Details the major reasons that people come up with for not getting a business started.

Who dugg this? Made popular Apr 15, 2006

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  • Cookieman123, on 10/12/2007, -2/+41The problem with me is laziness. Hell, I'm not even going to click on that link.
  • Yorn, on 10/12/2007, -6/+18Blog Spam

    Here are the top three barriers to business:
    1) Federal Government
    2) State Government
    3) Local Government

    I'm only semi-joking.
  • darb, on 10/12/2007, -0/+7The trick: own a business, not a job.
  • elvis314, on 10/12/2007, -0/+6My wife and I started a business as something to do on the weekends...It is still a small gig but it makes us noticeable money and it keeps growing. It doesn't take money or a lot of brains, just a couple ideas, some hard work, and passion. I actually like waking up early to do my side business work...no more schedules and meetings to deal with. Plus the write offs are good:)
  • CKR600, on 10/12/2007, -0/+6How to run an online business, by me.

    1. Find product. You will need a business to buy from most manufacturers but these days it takes less than a day, here in Canada we can do everything online to start one. Buy the minimum order. If you are having trouble, call someone. Ambassadors of other countries will supply you with HUGE lists of what their country want to import, trust me, this is what they do, establish relations. Worried? Call the Paki Amb and say you need salt, 2 days and you have an email with 3-5 business in Pakistan mining salt. This is from personal experience, and I am Polish, I just wrote "I need salt, Thank you"

    2. Create eBay & PayPal account. This is temporary, when starting off its nice to see how you fair in a smaller market, this is your sandbox until you have enough money to pay the 14 year old you get your future site on Google page 1.

    3. Post items at 50% profit. Only take PayPal (block others). Buy for 20, sell at 30, ect. Get the hang of dealing with people. Some issues will be good lesons and some people will threaten you with bad feedback but stop and breathe, try your hardest to get the positive and remember, sandbox.

    4. Soon you will be making money. But you will notice that, although the same company; eBay takes its fees and then PayPal takes its own fees again... so you paying the same company a % of your sales, twice. Goal: reduce fee's. Join the big market and take credit cards.

    5. Hire family at half cost to run things for you. (packaging / email / site updates ). Never the money.

    I hope that helps, I'm at the end of step 4 myself. Looking to have my own site up and running within 2 months.

    Some hints: Sell things easy to move, fit in small boxes, light.
    BE NICE!!! Yes sir, thank you ma'am, nice doing business, ect. NO "eat ***** and die", or, "swallow a knife".

    hell of a comment.
  • chesterjosiah, on 10/12/2007, -0/+5That article was great, and READ THE COMMENTS too. They were just as insightful. Digg+
  • AndrewMayne, on 10/12/2007, -1/+6"I'm quite happy with my job, and pulling down over 6 figures a year, total." That would be *seven* figures a year. In other words, you're saying you make over a million a year. Who do you work for and where can I get an application?
  • bepo, on 10/12/2007, -1/+5It was a no brainer for me, I looked at how much I was making the company I worked for vs. how much I was being paid. I scheduled an appointment with a CPA who ran the numbers and figured taxes, expenses, startup costs, revenue, insurance etc. and said it financially viable. I spent around $2000 for startup (mostly for legal and CPA expenses). I made that $2000 back in the first week of business. The company I left was my first customer.

    BTW: The money spent on the accountant was the best money the company ever spent. Don't think you understand taxes the way a CPA does, I showed him my plan, he then showed me his plan, his plan had me paying $9000 a year less in taxes. Plus he laid out a whole checklist of what I needed to do and what order to do them in. He even included the phone numbers and locations of the local gov. office I had to go to in order to get business licenses and zoning compliance's etc. He handled filing for all of the federal and state tax id's.

    My second customer was my CPA.
  • nstern2, on 10/12/2007, -1/+5What about insurance? If something were to happen to me or my business then what? Nice article but it doesnt seem all that realistic.
  • starmanjones, on 10/12/2007, -1/+5 i have worked for myself all my all life. lets be realistic. starting a business in american today is an unrealistic proposition. if you can't ignore or if you think... any of that stuff you may be too realistic. if you can just jump in then you have some slim odds. mostly... its about persistence. you just keep failing until the odds fall your way and you do something right.
  • Nation, on 10/12/2007, -0/+4automagically, you seem to be looking to be self employed and not build a business.

    Self employed can be good, but your income is dependant on you yourself producing ... owning & building a business is about building something that generates money with little or no work (long term, not short term) from you.

    You might consider reading "Good to Great" (that's my current #1 business suggestion).

    Don't let "I do not know about laws or taxes" be what prevents you from helping people. Yeah, they suck, but you just need to know enough to ask professionals good questins and not get ripped off.
  • Nation, on 10/12/2007, -4/+8please tell us about your business and how well it is going. If you do not have one, please explain why.
  • peteyako, on 10/12/2007, -0/+4What most people don't' realize is that having a good salary and having a business are two completely different things. I'm some people enjoy the 6 figure salary, but there is one catch with that. The moment you stop showing up at work, they stop paying you (!!!). Building a business might give you more flexibility, even though it demands more responsibility to succeed. If you do it right, the reward can be financial freedom..... or at least the option of working on your own terms.
  • Bitruder, on 10/12/2007, -3/+6Interesting and true comments.
  • tech10171968, on 10/12/2007, -0/+3All of this stuff about putting in 20-hour days, upfront capital, taxes and government fees, etc., really intimidates a lot of people, and that's all these articles ever talk about. But I've worked for some small but successful businesses and they all had one thing in common: for the owners it was a labor of love FIRST, then it was about the money. Think about it: if it was only about the money, you probably won't have the inclination to put up with the all of the financial uncertainty and risk. But, if you are doing something you actually LOVE, then putting in a 20-hour workday doesn't seem so much like work (in a lot of cases the business owners were making a living out of something which was actually their hobby).

    Maybe that's why I'm making a move to start my own sideline business in PC repair; I hate my present job and I'm always watching the clock (but it pays the bills), but when I get home I've been known to stay up half the night coding or tweaking/rebuilding PC's. I figure if I'm going to run my own business (even on a sideline basis) then I might as well be doing something I actually like. It's real easy to give 100% and stay tough during the rough times when you're doing something you'd almost do for free.
  • swax, on 10/12/2007, -1/+4Thats more like the top 5 excuses. Barriers would be lack of the right help to build a business plan. Or living in a location that doesn't have the types of investors your product requires. Or how a community with no small business resources. But I guess the article is right about the biggest barriar being yourself and having the time and dedication to sit down for many months coming up with a well thought out business plan. Though if your short on time, move to cali, and add .com the end of your business's name.
    (wow I didnt even notice the author's company is a .com, thats so perfect.)
  • timdorr, on 10/12/2007, -3/+6I didn't need money to start mine. At least, not anything that significant. Just about $250 and most of that was made up within the first two weeks. Been profitable every since :)
  • dusingaz, on 10/12/2007, -0/+3"Running your own business is what America is all about." aint that the truth.

    I started a company with an old friend almost a year ago, and yeah we started out small, only 1200 profit our first month, but now we are up to 10 grand a month, and have had a few stints at 20 grand a month. I'm just waiting for the day I can quit my day job and do this 24/7.... I've got a kid on the way and I want to be there.
  • peteyako, on 10/12/2007, -0/+3It always seems overwhelming if you look at everything that has to be accomplished. If you take baby steps it will seem easier. Start small, grow bigger with time. You don't have to learn all tax laws (as a professional), or know everything about everything the first moment you start. Make mistakes and learn from them. Giant corporations didn't start out big. Apple and HP started out in a garage.
  • peteyako, on 10/12/2007, -0/+2Very true. Looks like someone has been reading Kiyosaki ;)
  • inactive, on 10/12/2007, -4/+6I thought I could get into the domain/ hosting web solutions game. It all sounds so easy, but then you realize that no one knows about your site. Theirs Netsol, Godaddy, ipower, 1and1 . Various resellers of the previously mentioned.
    I hoped and prayed that at least I had a good domain name (frugalname.com) . It's not working so well. There are a lot of people that A. Can't spell frugal, and B. Don't know what it means. I even got FROOGLENAME.com . Most of you understand why. Hoped and prayed that Google/froogle would buy it from me. Nope. Marketing is my weakest point. All I want is to be able to take care of my 10mo old daughter at home. Seeing her 2hrs a day after work just isn't right. end rant.
  • antivirus88, on 10/12/2007, -1/+3The article itself was lame, but he has the right idea. I currently run my own business, and not only has it brought a new spark into my life, but it keeps me busy (something that I personally like). I've read a few of the books on his list, and they're definitely worth checking out.
  • lavawalker, on 10/12/2007, -2/+4I never had money to start my business nor to continue at least the first few projects. I always had word-of-mouth advertising and started with pro bono projects. After that, word got out and people started calling.
  • koolaide, on 10/12/2007, -0/+2Like Yorn said:

    "Here are the top three barriers to business:
    1) Federal Government
    2) State Government
    3) Local Government"

    It's so true. I've looked into starting my own business before, but having to ask Mommy Government permission to start my own business on my own private property which is none of anyone's business kind of turned me away from the idea.
  • Nation, on 10/12/2007, -0/+2A huge percent of America has some sort of home based venture ... I have not seen updated numbers recently, but it was projected to be around 60% to 70% by now (from a few years ago) ... so I could see a number on the digg having a computer repair deal, or being freelance programmer/web designer.

    I do own a business, but I decided long ago that any forum where I debated, and from time to time debated on a side other then my real opinion, I would avoid linking myself with my business.
  • bumpyzero, on 10/12/2007, -0/+2He's right. It sounds like you'd be doing it for the right reasons. Check out sites like Webmaster World and look into PPC. Web hosting is a commodity these days, and the margins are too thin.
  • inactive, on 10/12/2007, -1/+3I guess it all depends what sort of business we're talking about. Anything that requires stock is a money pit for a while, but something in the 'services' area like my own PC repair business is usually pretty cheap. You just have to REALLY know your stuff!
    Insurance $$$ are a HUGE hidden cost that most people don't immediatley think of. I had to buy $10m public liability insurance as I work on a lot of business/company computer systems, and you sure as hell want some cover if you screw them up :)
  • neurokaotix, on 10/12/2007, -1/+3Just because it is on a blog doesn't mean it is spam. What, you can't have a blog and post interesting articles on it for people to read? Is that against some kind of rules somewhere?
  • dusingaz, on 10/12/2007, -0/+2Well I have a partner and we like to keep cash in the company. so fr example we only would payout 1/4 of that to eachother. thats only 2500/mo

    We do mainly marketing of different products, and a lot of leed generation for companies online.
  • jasqwerty, on 10/12/2007, -0/+1Hmm, yes, I did phrase that incorrectly. What I intended to say is that I make past the 6 figure starting barrier of 100,000, and actually comfortably into it. Good catch :-)
  • inactive, on 10/12/2007, -3/+4I call BS. Millionaires don't read digg :)
  • tommorris, on 10/12/2007, -0/+1Why? That's dumb. The government screw up everything they touch. Government screwed up my old school. Government is the reason that if my mother gets breast cancer she won't be able to get the drugs. Government is the reason why I can't defend my property from intruders. Government is the reason why drugs kill people. Government is force, evil, incompetence, cruelty and malfeasance. The IRS as friend? What, they take money from you every year BY FORCE and you want them to be nice to you.
  • dusingaz, on 10/12/2007, -0/+1um. what do you think you need permission for? you don't have to do anything if you don't want to. You can incorp. if you want in some state to help lower your taxes... and you probably want an EIN which is free and takes 2 minutes over the phone. at no time do you really have to say in detail what you do.

    Trying to blame the gov for your shortfalls?
  • inactive, on 10/12/2007, -1/+2What I need is actual business ideas with my skill set and my current location. That is whats been stopping me. Sure I could do some web design work, but realisticly speaking, there isn't much business around here. Am I going to convince the local bar they need a website, and the restaurant to switch to me? And I'm not sure about a lot of things. I've run into a lot of trouble trying to get stuff like oscommerce and phpshop working for previous clients. Then there is actually charging, not really sure how to charge, and deal with clients on an ongoing basis, or if i should even worry them about hosting and technical details. A few years ago I had the idea of buying knives and stunguns wholesale and going to fleamarkets, bad idea, everybody already does that. I couldn't sell fast enough for it to be worth the time, barely cover the table fees. I'd love to do something, I just dunno what. My favorite idea is my own little web design or computer repair shop, but like before, I'm not a PHP guru, I can get a CMS or Cart working, with basic customising, but am lost at fixing a shipping caculator or credit card processor. I can build a computer with my eyes shut, but I dunno about having inventory and stuff.. as well as all the gov't laws, taxes, health code, license, etc. There are so many things you have to know besides your actual skill.
  • Nation, on 10/12/2007, -0/+1debt is the fastest way to make your company fall on its face. The reason is that debt multiples the mistakes you make, instead of making a $100 mistake ... you make a $100,000 mistake.

    Debt = bad
  • chazzj, on 10/12/2007, -1/+2hey... 4 out of 5 businesses fail, so you better get out there and start five businesses!
  • zombieball, on 10/12/2007, -0/+1There are two types of people in this world - employees and employers. (or for you computer geeks out there, there are 10 types of people in this world - those who understand binary and those who don't)

    Let's just face it some people aren't cut out to run a business.
  • BIGmog, on 10/12/2007, -0/+1I also discovered that small business loans are only given to businesses with a 2 year history. That makes it a bit hard to get funding from the bank. There's government programs out there but they're often aimed at minorities. 70% of small businesses are started with personal funds and funds of friends and family. My friends are broke and my family doesn't believe I'd succeed.
  • carlosglz, on 10/12/2007, -1/+2I run a small creative shop out here in Santa Monica, CA. We do everything from creating tv spots and buying air time to building websites and running online marketing campaigns. The article was ok, but don't expect to get all the information or inspiration you need from a few paragraphs. The best thing to do is to actually take the time to read some books and talk to friends or people you know that have or have had their own business. The more you know up front the less "fear of the unknown" you will be facing. Also, starting off big like the dotcoms of the early 90's is a recipe for disaster. Always start off as small as you can and be extra stingy with any expenses, especially monthly expenses...avoid those like the plague.
  • jasqwerty, on 10/12/2007, -4/+5Reason #1) I seem to lack these "fabulous idea[s] that [I] could make a pile of money from."

    Or maybe I just have the brains to realize they aren't before I mortgage my house and go bankrupt.

    I'm quite happy with my job, and pulling down over 6 figures a year, total.
  • BIGmog, on 10/12/2007, -0/+1The biggest barrier to entry for me is money. The startup costs are way more than I imagined. To be safe, you also need enough money to keep the business going for 3 to 6 months just in case. There's many other costs that come up along the way that you might never think about. Find out how much money you need to start a business, then double it. Then double it again.
  • scramble, on 10/12/2007, -1/+1I recently started my own business doing computer repairs and networking. It was time for me to put up or shut up. I am two years from military retirement, and wanted to have time to build it up until I can go full time. I planned and broke everything down into smaller steps to make getting started more manageable. It only required $50 to get started (license). I get most of my business by word of mouth, and some from the advertisement in the rear window of my car. I am totally mobile so there isn't much expense. On my best day, I earned $240 for two easy hours of work.
    www.campbellcomputing.com
  • cjwl, on 10/12/2007, -0/+0So true, so true, there are not only a lot of concrete benefits to owning a business, there are big psychological advantages as well. The difference to customers between Joe Contractor and Joe's Software, Inc. is something that can not be bought any other way.
  • thedonquixote, on 10/12/2007, -0/+0I'm gonna go with Cookieman123 on this one.
  • bepo, on 10/12/2007, -1/+1Where in my post did read that I don't have employees? What do you want me to do post thier names SSN's and my Federal Tax ID number?
  • inactive, on 10/12/2007, -1/+1I have my own business all of you should get off your butts and start one.

    1. Taxes my tax rate dropped from 28% to 3% because of tax deductions.
    2. Flexibility I make my own hours, and I pick who I work with, and who I take on as clients.
    By the way when I have a deal going on I get about $600 hour.
  • rfunches, on 10/12/2007, -0/+0For those complaining about money, start small. I published a newsletter for five years and sold ad space, earning revenue of a little over $900 by the time I finally stopped. My current project (website) has higher operating costs, but I could use the money from the newsletter business to fund it; it's turned into an extremely profitable venture since I took the risk of taking on higher fixed costs.

    Once you have a bit of a cash cushion it's easier to accept the financial risk of launching a full-blown business (with a payroll, not a self-employed thing).

    (And the magical captcha has reappeared...)
  • starmanjones, on 10/12/2007, -1/+1i believe there should be a department of government that finances businesses. small you and me businesses. they should help with anything it takes to get that business functioning and repaying the debt. if it goes under i think the debt should be forgiven as long as you didn't do anything overtly wrong. if you want to try again then present your ideas and with some qualifications it should be funded. we'd have more work in this country than anyone could do. people would be happy with work. are we really pro business and free enterprise? lets put our money where our mouth is. the SBA doesn't do any of this. imagine the IRS being a friend that provided unbiased help to make business profitable so they can repay loans and pay taxes. i think this would directly address affirmative action.

    affirmative action is a broken thing. its also necessary. i don't think we need to worry much about details-as long as there is a statistical difference between white men and minorities and women its the only game in town.

    if people who get the advantages of affirmative action had an option to start a business they would do it. i can imagine some sort of classes to teach what people need to know about starting businesses. later, help running it. maybe "graduates" could be hooked up with the governments department of research... another thing we should have.... but take the developments made by the government and maybe even go into the class expecting to walk out with a product, a business plan and financing... that is a pro business way of solving problems. tax breaks... all that supply side economic crap is about redistribution of wealth... to the rich.
  • DruSam, on 10/12/2007, -0/+0Koolaide, please tell me you are joking. You can get all the legal stuff set up within days. Probably less than a day for most businesses. The United States and the Philippines are the two easiest places to start a business. excuses excuses...
  • DruSam, on 10/12/2007, -0/+0What can I say? You identified your own problem. You are bad at marketing. Solution: read about marketing + do marketing = profit. Place your 10 month old daughter on your lap and read some internet articles on web marketing.

    Then again, I don't know what it is like to start a family. God bless.
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