I am documenting this right here.. for those of you who may be interested in starting your own business (if you have not already) can follow along and/or make suggestions.
One request- keep politics out of this thread, they don't belong. The fact is I am opening a business in a period of recovery to help stimulate the economy, and in my mind that is patriotic, and also a little crazy. Still, I have been doing a lot of work lately, and that tells me disposable income is trending up, and its the perfect time to jump in and try and take advantage of low mortgage rates. I cannot blame nor credit the President for what happens in my business, only myself and my business decisions. Please try to remember that when contributing to this thread, I only am looking for advice and constructive criticism. As your momma should have taught you, if you don't have anything nice to say, don't say anything at all.
Ok now that the disclaimer/riot act has been read, lets get down to brass tacks.
I am opening a Tattoo/Body Piercing establishment in my home town. It has been hit as hard as any small town can be in this country, we lost over 10,000 jobs in early 2008, and the total county population is 41,930. Business has slowly been coming back, and I intend to help the community by offering my services, beautifying a local empty building downtown (hopefully, if I get the loan..) and maybe create up to 5 jobs in the process.
I have been working in the field for 15 years, in that time I have probably done about 30,000 tattoos, give or take a few thousand. I really wish I had kept track, but suffie to say, I have experience in the industry, I know what people are looking for, and I see myself as an effiicient and ambitious operator. I am trying to take the next step in the business, owning my own shop and stockpiling some goodwill in tattoo land.
We have two local shops, neither of which I am all that impressed with. One is a biker hang out of sorts, the other is (ugh) white "gangsta" types from what I can tell. When I worked in nearby Dayton, I was told by several locals who drove almost an hour to come see me that the drive was worth it because both local shops had nothing good to offer in reputation or art quality. It is time to bring a high-end, clean, comfort-inspiring shop to my town.. not in the interest of putting the other shops out of business, but I would not cry if they went under. No, I am trying to cater to a wider client base than the shop rats that hang out in front of those fringe shops smoking all day. I want to get business from your mom, your uncle, from the nurses at the local hospital and the doctors, too. I want to inform clients about what a good tattoo is, not just provide a "you pick it, I stick it" gallery of horrors.
My shop vision is a clean, well lit, comfortable and relaxing environment. I am thinking real art on the walls, not flash design sheets. A fountain in the corner. Comfy chairs to sit in, soothing music being played on the radio. Good feng shui. I also want to provide a gallery space to local artists who want to display their craft/skills for free, maybe even give them a shot to sell that work for a very small gallery fee. I want only the best artists and piercer and lobby receptionists to work for me. Like tattooing because you are a badass? Probably not the shop for you. You like the lifestyle, your betty bangs mean more to you than your tattoos, probably not the shop for you. I am looking for people with a fine arts background, not a hardazz who learned to tat in the joint. And I won't settle just so I can get the most money possible. I want my artists to make a living, not scrap over $50 kanjii.. therefore I start small, and as business picks up, I add the right element to the shop. I don't want anyone who is good starving under my stewardship.. I have been there. Lots of shops over-stock their artists, and as a result, nobody makes money except the owner.
In the coming posts I am going to describe as best I can every step I take toward making this business come to life. It will start with a checklist of legalities, forms I need to file, permits, licenses, services, etc. Then we will move on to documenting the loan process (which I am already engaged in) followed by the purchase or rental of my business space and its rehabilitation to suit my needs. Hopefully this thread, and my business, grows and prospers as I go along.
I don't have to share this. Its something special happening in my life I could just post about in my blog.. but .. the fiero community has made me feel very welcome. (Most of you anyway) and I have read many a build thread for cool cars, fieros and otherwise, that have informed and inspired me when working on my car I have come out that much richer as a result. I wish to give back, to many of you who have given to me already.
And maybe pick up an investor if someone REALLY believes in me. Edit- I think I already got one!!! My brother in law just called and might be looking to invest. We'll hash it out when he gets down here in late june for my family reunion.
Let it begin..
...now... if I only had a brain!
[This message has been edited by tbone42 (edited 05-11-2012).]
Thats basically the list of to do. I have the advantage of owning enough equipment to outfit two tattoo shops crammed into my house.. the only immediate things I will need are a few disposable supplies, a little bit of shop furniture, and the all important advertising. I felt pretty overwhelmed earlier by all this, but after making this checklist, I see the hoops I need to jump through and I am ready to get started.
Lastly, a little word of mouth advertising never hurt.. here is a very incomplete online portfolio, but it gives you the idea...
To be continued...
[This message has been edited by tbone42 (edited 01-29-2013).]
The bank has informed me that I need to get ahold of the realty service and start getting them working up a pre-finance contract. I will need to make them an offer, and if they accept, we sign on the dotted line pending on the condition of financing. In other words, if the loan falls through (50/50 chance right now I would guess) then I owe them nothing except a little "earnest money" they might require. This money would also come off the sale amount of the shop, unless I cannot buy.
I make the phone call tomorrow, and we go from there. I really, really, really want this building. All .0459 acres of land it is on and 2200 square feet of building on it. The ground floor is finished and needs very little remodeling to get open. The top floor looks like the home of Kevin Spacey in "Seven" or Buffalo Bill in "Silence of the Lambs".. it is trashed and full of someone else's stuff. And a lot of it.
Fortunately, it is secondary to getting the business rolling, but I eventually want to restore the upstairs and turn it into a rental. Until then, it gets turned into my storage unit. I have a ton of ceramics gear and other non-essentials like fiero parts I can put up there and free up the space in my house that is cluttered up.
Keep us informed, my wife loves tats, and if we get dayton way again, she has family there.. I will send her your way.
I would love it Dennis.. I will be offering a discount to forum members who want a fiero related tattoo. My wife likes meeting fiero-wives, too. (That is, if she isn't working at HER job..)
Ohio is one of the least business-friendly states in the country. If you have employees, you'll have to pay unemployment and workers comp. You also have to comply with OSHA. It's a total PITA, and is why I refuse to hire anyone. Keeping politics and the typical work ethic of the average worker out of the discussion, I'll just stop there.
I do hope you do well, just remember this phrase: "we prefer cash".
I was lucky in that I started my business before lots of the fees and licenses came into the picture. The only thing I really needed was a fee to the state to register my company name. I also didnt have any employees, except for a few, years ago that I paid cash. So it avoided workmens comp, unemployment, etc taxes. Im basicly grandfathered into everything. They even changed my zoning to 'commercial offices' from 'commercial manufacturing'. Making it offices would ordinarily bar any kind of service work, but being here before, the city attorney supplied permits and variances to keep things as is. My advice is to start it small with only what you need...then gradually buy more and better stuff as business improves. You dont want to start with a $100,000 investment only to have it fail in 6 months. I started with a small toolbox of hand tools, a small compressor and a paint gun and just bought more things one at a time with any extra each month or two. Now about the only thing I dont have is a frame rack. I farm that out. Good luck.
Ohio is one of the least business-friendly states in the country. If you have employees, you'll have to pay unemployment and workers comp. You also have to comply with OSHA. It's a total PITA, and is why I refuse to hire anyone. Keeping politics and the typical work ethic of the average worker out of the discussion, I'll just stop there.
I do hope you do well, just remember this phrase: "we prefer cash".
Isnt Deleware still the best place? At least it was when i was back in school and taking business classes.
My "12 Step" program to getting my business rolling!
Your checklist is a good start. It may seem daunting at first, but just address the checklist items one at a time and it will seem easier. Also be aware that many of these items are one-time startup issues. Despite what others may say (especially those who haven't actually done it), the administrative and regulatory paperwork required for running a small business really isn't that oppressive.
Having said that, I'll offer this hint: Over many years running my own business I was never ever able to ethically exceed about 60% billable time. This means that working 40 hours a week (which was rare), only about 24 hours max was billable to clients. The rest of the time was consumed with administrative paperwork (e.g. keeping the books, filing tax reports and various regulatory forms), taking phone calls, handling paper and e-mail correspondence, advertising, keeping your web site current, meetings, travel, sweeping out the place, etc. You soon get used to it, but it does take away from your billable time.
You may be interested in this presentation that I delivered several times in the 1980s. It deals with computer consulting, and some of the information is out of date, but much of it is still relevant today.
Isnt Deleware still the best place? At least it was when i was back in school and taking business classes.
I don't know how long it's been since you were here, but there is a lot of BS involved. There are of course the typical state and federal regulations and requirements. But then for signage there's local ordinances that are really strict, and then there's the historical (affectionately known as the "hysterical") society who also get paid a fee to tell you your sign is too big or too colorful or whatever. Overall, I like having the business here, and once you jump through all the hoops, the people are very supportive, and there's a great main street organization that works really hard to keep the place looking nice. It is hard for tattoo places down here though. There have been two or three that have been put out of business. Granted, one of them was running an illegal gambling operation out of their space. The other screwed up and did some piercing to some underage girls. It wasn't the piercings themselves that got them in trouble but it drew attention to them and they got the local board of health climbing up their ass and they wound up closing. The other issue is this is a small town, and politics plays a big role in business around here. There was a local restaurant owner who got in the sights of the prosecutor, and she ended up closing because he made her personal and professional life a living hell. So you have to maintain a low profile around here.
I don't know how long it's been since you were here, but there is a lot of BS involved. There are of course the typical state and federal regulations and requirements. But then for signage there's local ordinances that are really strict, and then there's the historical (affectionately known as the "hysterical") society who also get paid a fee to tell you your sign is too big or too colorful or whatever. Overall, I like having the business here, and once you jump through all the hoops, the people are very supportive, and there's a great main street organization that works really hard to keep the place looking nice. It is hard for tattoo places down here though. There have been two or three that have been put out of business. Granted, one of them was running an illegal gambling operation out of their space. The other screwed up and did some piercing to some underage girls. It wasn't the piercings themselves that got them in trouble but it drew attention to them and they got the local board of health climbing up their ass and they wound up closing. The other issue is this is a small town, and politics plays a big role in business around here. There was a local restaurant owner who got in the sights of the prosecutor, and she ended up closing because he made her personal and professional life a living hell. So you have to maintain a low profile around here.
All good advice! Thanks for that presentation, Marvin, I will read it later this evening as I am finishing my business plan write up.
I am mulling over the "employee situation".. I DO have options. One being hiring independent contractors. Sure, I won't have as much control, but it keeps me from going blind with unemployment paperwork, etc. I can also rent out the space to atists and let them run their business however they see fit, but that proposition is somewhat worrisome as I want some quality control and consistency with products (especially Inks) used.
The REAL problem I will have is reception. My wife will help out when she can, but she is a busy woman.. especially during most of my business hours. I have a few friends who would not mind helping out, but they all have jobs, too, and will eventually run out of skin if I keep paying them in trade. My thought is perhaps making the reception independent contractor, too, almost like a sales position. That way the more and bigger tattoos they sell, the better their opportnity is to make money. I have had hourly reception people in the past, and they are absolutely lazy. They don't care if they sell a tattoo or not because they get paid regardless.. I need to find a way to make sure they are interested in the place being as successful as possible.
I forgot one item on my list.. before I can open, there is a few minor things I will need to do before I can get open. Get shop furniture for the lobby, which would be some lobby chairs and a couple of racks to hold all the flash I have. I don't want that stuff hanging on the walls, but I have over $8k in tattoo artwork, and I don't want it collecting dust when it can be making me money. I also will need a lobby PC with internet to help hunt down designs as well as giving clients access to their emails.. they will be able to "email themselves" and then we can pull their account up and print any custom design ideas they may have. I will need a xerox type copier with enlarge/shrink options for the first step in making stencils. I will need a reception counter (i can build this) and a cash register.
If i get the building I want, I am going to have to put down some tile in one procedure room, and run water and a drain to it and install a countertop to hold a sink. I will also need to cut down a divider and make it look pretty to make for a larger lobby. The facade of the building needs a little sprucing up.. no changes for now, but just a couple repairs so it does not look completely gash. I will be sharing the upper brick facade with the building next door and it needs some paint bad. Looks horrible.. I will need to contact the owner of that building to find out if he would be willing to go halfsies on some paint and scaffolding rental and I would be happy to re-condition his half as well while I am up there. (Believe me, its no big deal.. maybe 2 hours of work.. and it might improve relationships with fellow owners... I want to reach out.)
Thats all I have for now, I still am in the middle of filing for the Secretary of State and my Federal EIN and putting together my biz plan.. all stuff I want to have done by the end of this weekend, if not, by middle on next week. Keep the suggestions coming, I greatly appreciate all the input thus far.
[This message has been edited by tbone42 (edited 01-29-2013).]
I am mulling over the "employee situation".. I DO have options. One being hiring independent contractors. Sure, I won't have as much control, but it keeps me from going blind with unemployment paperwork, etc.
I structured my current business so that I haven't had a true "employee" since 1984, relying solely on independent contractors since then, but you need to be really careful about the legal distinction between employees and contractors. The IRS has a list of about 14 criteria, most (but not necessarily all) of which must be satisfied to qualify someone as a true independent contractor. Some key items: Do you provide their workspace, do they have their own regular place of business, or do they lease workspace from you? Do you specify the hours they are to work, or can they work on their own schedule? Do they provide their own equipment and materials, or do you provide them? Other than setting standards for the end result, do you control what materials they use and HOW their work is to be performed? Do THEY consider themselves to be a contractor or a part-time employee? How are they paid? Do you have a standard written conrractor agreement with them? (The existence of a written contract is vitally important, because it documents the mutually agreed nature of your relationship.) The key issue is CONTROL over when, where, and how they work for you.
This is something important enough, and the penalties for getting it wrong severe enough, that you really need to consult your accountant and/or attorney about it.
[This message has been edited by Marvin McInnis (edited 05-11-2012).]
Man, I may have to make a trip out there for my first ink. Hope you get the place and are able to make it go.
Oh, its gonna go even if I have to make it a home-based business - Which is legitimate here as long as I follow code and get it inspected b y the health department- but I really would like a "mainstreet location" for walk-in traffic instead of appointment-only.
Bring that fiero of yours out here and let me get a closeup look of all the good stuff that got done to it. (Still one of my favorite threads, you looked like a kid on Christmas morning!) Good news is we are only 2.5 hours away from each other, so its not too hateful.
Holy cow guys, I am almost legitimate already!
[This message has been edited by tbone42 (edited 05-11-2012).]
Oh, its gonna go even if I have to make it a home-based business - Which is legitimate here as long as I follow code and get it inspected b y the health department- but I really would like a "mainstreet location" for walk-in traffic instead of appointment-only.
Bring that fiero of yours out here and let me get a closeup look of all the good stuff that got done to it. (Still one of my favorite threads, you looked like a kid on Christmas morning!) Good news is we are only 2.5 hours away from each other, so its not too hateful.
Holy cow guys, I am almost legitimate already!
As soon as I have the money for the ink, money for gas and time off work, I'll drop you a line and I'll make it a weekend.
Just so you guys know I have not been slacking, I have had my business logo made for a while. I STILL want to do the mobile studio, and my DBA name might be different but this is the official "parent name LLC" business that all my paperwork
[This message has been edited by tbone42 (edited 01-29-2013).]
Existing and needed Inventory and supplier list done, Resume done, working on projections now. I was amazed to find out that I have over $15k in equipment and supplies that I have collected over the years. It does not seem like that much.
About half finished with the business plan. Gonna have to take a break, got called in to work Mother's day brunch at the restaurant and I am gonna help them out. The cash won't hurt either.
Monday I have an appointment with the county auditor to get my county vendor permit. I am also making an offer on the building on Monday, $42k plus add ons and closing costs.. see where it goes from there.
Not much else to report, still got a bunch to do.
[This message has been edited by tbone42 (edited 05-15-2012).]
I was lucky in that I started my business before lots of the fees and licenses came into the picture. The only thing I really needed was a fee to the state to register my company name. I also didnt have any employees, except for a few, years ago that I paid cash. So it avoided workmens comp, unemployment, etc taxes. Im basicly grandfathered into everything. They even changed my zoning to 'commercial offices' from 'commercial manufacturing'. Making it offices would ordinarily bar any kind of service work, but being here before, the city attorney supplied permits and variances to keep things as is. My advice is to start it small with only what you need...then gradually buy more and better stuff as business improves. You dont want to start with a $100,000 investment only to have it fail in 6 months. I started with a small toolbox of hand tools, a small compressor and a paint gun and just bought more things one at a time with any extra each month or two. Now about the only thing I dont have is a frame rack. I farm that out. Good luck.
Originally posted by tbone42: 4)Open business bank account
I don't know what part of Ohio you are starting your business in, but if you are in the Summit County area, I would recommend you contact Lester with Huntington bank, 330 929 6000.
I setup our employee payroll through Huntington, & I didn't have to fill out much of anything. They take care of the direct deposit, taxes, filling, & prepare us with all the paperwork for our tax filling for like $30 a month. I think it's a good deal for a bunch of paper work that I really don't feel like doing.
Just finished the business plan, ran out of ink in the printer. So right now the business plan is to buy some printer ink. Inventory was the monster part of that, I had to shag down every picture resource, piece of equipment and disposable supply I will be using in the new business, then add it up after assigning the values.
Appointment at 2pm tomorrow to make an offer on the building. Vendor's license acquired for the county, although I might have to go right back in a re-register it when/if I move, at least that is free. That's the last piece of business registration/ hoops to jump through before a health department inspection once I get into whatever digs I end up purchasing/renting. Still need to set up a couple bank accounts.. one for sales tax payments, one for actual business, and eventually one for unemployment insurance and the like for future employees. Will also need to set up Property/Casualty and Liability insurances for my business, but once again, only after I finalize a location.
Found out today that being a single owner LLC I pay my taxes on a 1040 just like I have done as an independent contractor/sole proprietor. I don't mind doing my taxes, once you know how its structured it gets easier to do every year.
Just got another new client today through a referral, he has loads of contacts in the right age group.. he is excited about me getting into the shop and helped donate to the cause. Friendly guy and wants to show my work off, I feel this is going to be a good resource.
[This message has been edited by tbone42 (edited 05-15-2012).]
Met with the realtor/auction house a few hours ago. Made an offer on the building. They were asking $45k, I offered $41k. Just received a phone call from the family who owns it, and they have accepted. We signed an agreement and I put some earnest money down. (A thousand dollars.. a check that will never be cashed anyhow..) The agreement is conditional on loan approval and inspection of the building. If it is full of asbestos and lead, or about to crumble, the deal is off. If the funding is not approved, the deal is off.
I call an attorney to get the agreement gone over tomorrow, and an inspector to come do his biz accordingly ASAP.
Now waiting on the bank to tell me what's up. That's where I am at, but I was glad to get my offer accepted.
[This message has been edited by tbone42 (edited 05-15-2012).]
Also - your #1 job in your business is to be successful. With success comes the ability to do other things. You are not a social program. If you run your businss like a social program it will fail.
The way you know you are successful is that you are making money. After that, then start to consider the things that are outside of your business's walls.
quote
Originally posted by Taijiguy:
Ohio is one of the least business-friendly states in the country. If you have employees, you'll have to pay unemployment and workers comp. You also have to comply with OSHA. It's a total PITA, and is why I refuse to hire anyone. Keeping politics and the typical work ethic of the average worker out of the discussion, I'll just stop there.
I do hope you do well, just remember this phrase: "we prefer cash".
Also - your #1 job in your business is to be successful. With success comes the ability to do other things. You are not a social program. If you run your businss like a social program it will fail.
The way you know you are successful is that you are making money. After that, then start to consider the things that are outside of your business's walls.
No employees if I can help it for at least a year.. I will eventually be getting other artists in there, but as independent contractors. Reception is going to be tricky.. it will not be long before I need someone to answer phones/watch the place while I am working. My wife and a few friends can help for now and then, but eventually will need someone manning the desk full time.
I know, it won't be long after opening that ABATE (which I really support but cannot financially at this time) and other charities come in with their hands out... Last time I rented a place I had so many people trying to take money and not give it, it was ridiculous. The same goes for FOP, Chamber of Commerce, whatever... I gotta take care of business first.
Mike- I am determined to succeed or go broke. We'll see which happens.
[This message has been edited by tbone42 (edited 05-15-2012).]
Found out today that being a single owner LLC I pay my taxes on a 1040 just like I have done as an independent contractor/sole proprietor. I don't mind doing my taxes, once you know how its structured it gets easier to do every year.
Even a multi-owner LLC & S corp has the income show up on your 1040.
Any details on the SBA loan? How much, terms and conditions, etc? I own a business that has the potential to rapidly expand provided the right input ( )... The best loan I could come up with was 10k, unsecured. Problem is I'd need a lot more than that to buy materials to really amp up production.
quote
Originally posted by tbone42: They were asking $45k, I offered $41k.
Commercial buildings are that cheap??
Is this a shack in the warehouse district? Got an address for those curious?
One request- keep politics out of this thread, they don't belong.
Oh, don't worry... I don't need to bring it up. I'll have a voter registration form ready to mail you whenever you're ready. I expect you'll probably be calling me after the first quarterly tax bill is due.
But also... I wish you good luck in getting this dream off the ground. I hope you're very successful!!!
Originally posted by tbone42: Vendor's license acquired for the county, although I might have to go right back in a re-register it when/if I move, at least that is free. That's the last piece of business registration/ hoops to jump through before a health department inspection once I get into whatever digs I end up purchasing/renting. Still need to set up a couple bank accounts.. one for sales tax payments, one for actual business, and eventually one for unemployment insurance and the like for future employees. Will also need to set up Property/Casualty and Liability insurances for my business, but once again, only after I finalize a location.
Found out today that being a single owner LLC I pay my taxes on a 1040 just like I have done as an independent contractor/sole proprietor. I don't mind doing my taxes, once you know how its structured it gets easier to do every year.
That's awesome, here I had to pay 400 dollars for the business license, and pay the first quarters "estimated" taxes before permits were released (If you don't make it to that estimate you do not get that back, but can apply it to other quarters.) Your already a few grand ahead of where other states would have you.
Any details on the SBA loan? How much, terms and conditions, etc? I own a business that has the potential to rapidly expand provided the right input ( )... The best loan I could come up with was 10k, unsecured. Problem is I'd need a lot more than that to buy materials to really amp up production.
Commercial buildings are that cheap??
Is this a shack in the warehouse district? Got an address for those curious?
Its a long "strip" building.. 14X184 for the building and property, its has 2 levels and a small basement, two parking spaces in the back and a vacant overgrown lot in the back of the parking lot.
I'll know more about the loan soon, but I do know we are having luck with the amount because we have no bills except a car and a mortgage. Student loans, credit cards, and everything else was paid off in November and we saved a pretty good stash for a down payment.
[This message has been edited by tbone42 (edited 01-29-2013).]
Originally posted by 82-T/A [At Work]: Oh, don't worry... I don't need to bring it up. I'll have a voter registration form ready to mail you whenever you're ready. I expect you'll probably be calling me after the first quarterly tax bill is due.
But also... I wish you good luck in getting this dream off the ground. I hope you're very successful!!!
And it is patriotic.
Todd
Not my first Rodeo, Todd.. back in 2000-2002 I owned a business and had to make quarterly tax estimates.. it sucks, but if you don't expect to make much the first year, you don't pay much. Not like poor Brad who had to make a quarterly estimate before even opening the business.. thats just crazy. I'm already registered, too.
I appreciate everyone's well wishes and encouragement.
Met with the realtor/auction house a few hours ago. Made an offer on the building. They were asking $45k, I offered $41k. Just received a phone call from the family who owns it, and they have accepted. We signed an agreement and I put some earnest money down. (A thousand dollars.. a check that will never be cashed anyhow..) The agreement is conditional on loan approval and inspection of the building. If it is full of asbestos and lead, or about to crumble, the deal is off. If the funding is not approved, the deal is off.
I call an attorney to get the agreement gone over tomorrow, and an inspector to come do his biz accordingly ASAP.
Now waiting on the bank to tell me what's up. That's where I am at, but I was glad to get my offer accepted.
Congratulations! You are now officially a capitalist.
[This message has been edited by williegoat (edited 05-15-2012).]
Edit- I think I already got one!!! My brother in law just called and might be looking to invest. We'll hash it out when he gets down here in late june for my family reunion. 
You are now officially a capitalist.
