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Hello,
For the last little while I have been thinking about starting a small business with my husband from home.
I want to build insulated dog houses as well as cat tree condo's and other animal furniture.
I love building stuff and I love interior decorating so this would be right up my alley.
We have the work space and the tools to do this.
I am more excited about it then him, he said it's a good idea but when I ask family what they think they laugh and roll there eyes..so I'm starting to think it's not such a great idea, Do you guys think it's a stupid idea?
Also do you think I could make a good profit by doing this?
Thanks for all of your answers.
Sounds like a great idea! Go for it!
You have a product. You need to identify your market. Target and focus all your energy on one market segment at a time (one sliver of the market like say "Elderly church-going women" - that would be a segment). When you UNDERSTAND and start getting revenue from one segment, move on to the next one. Tackle one segment at a time, you've got time to build your business.
Hire an accountant. This is the most important expense you will make. Play with some numbers with your husband (cost per unit, production time, estimated advertising costs, utilities, sales tax formalities etc...) and then run it by your accountant so he can draw up a cashflow forecast. CASHFLOW is what it's all about in the beginning. Watch your costs and manage your business according to the sales you ARE making as opposed to the sales you HOPE TO or EXPECT TO be making. It will take some time to learn your market
Check out your local library for books how to write a business plan. This an important road map before you start since with all the initial optimism it's easy to ignore the planning of exit strategies. If it's successful... Are you going to hire more employees and expand? Are you going to sell the business? Are you going start here and then distribute your product to other cities? If it is not successful... will you re-evaluate your business plan if you haven't reach X$ of revenue in X number of months? Are you going to limit your losses at X$ so that when you reach that line you won't be taken in by the "sunk cost fallacy"?
There's a lot of planning involved in a small business. Make sure you do yours and have fun!
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