[bamurphymac1]

Good luck. I had a moderately successful web design business with multiple employees etc. in the early aughts (early on didn’t specialize but by 2006 our niche was home builders whooops!) and it can be pretty emotionally rewarding work if you develop strong relationships with good clients small biz clients.

Keep your overhead low.

[godzillabrennus]

Few other things I learned: 1.) Don’t personally guarantee anything for the business, including a real estate lease.

2.) Do create three separate bank accounts for taking money in, for paying your labor, and for paying bills with a debit card. It’s never fun when a vendor dings your card and accidentally adds an extra zero at the end of a bill and you needed to make payroll.

3.) You are not a Bank, don’t lend money by working first then getting paid, take deposits on phases before you start a phase. If a client has a big project and needs NET terms then use a factoring company to check the credit worthiness of the client and to take over your accounts receivable for your company.

[ams6110]

> Don’t personally guarantee anything for the business

How do you do this though? Banks/creditors generally demand a personal guarantee on any small business credit cards, loans, etc. Specifically because small/new businesses are very risky.

[godzillabrennus]

If you are running a service business you shouldn't need any loans if you manage the business properly. You can use factoring services to get paid on deals that require terms (negating the need for a loan to make payroll).

Small businesses are risky. It doesn't pay to put your personal financial well being on the line to sign up a customer. You aren't starting a bank. Good factoring companies do a monthly credit worthiness check on your clients for you. A real asset for this kind of business.

[supersarkar]

Wow! Thanks for your inputs mate, means a lot! :)

I will keep in mind to keep overhead low, and develop strong relationships with people in my niche.