Did you net a profit 1st year in business, or lose money?

[Mikey P]

Mike Draper asked me to put this up

I thought this poll would help out the new guy with realistic expectations of his first year in business. If you net a profit, how much did you make? Or, how much did you lose your first year. How much money did you invest up front to get going? I got about $25,000 in loans to get going my first year and lost about $15,000 my first year. I didn't know what the hell I was doing.

-Mike Draper

 

[Jim Martin]

Re: Did you net a profit 1st year in business, or lose money

lost my ass....for the first year and a half.....the losses were so big I don't even want to write the number....tried to sell the company twice before I got it figured out on what I needed to do..........took a lot to dig myself out and get me to where I am now......

 

[renegade_cowboy]

Re: Did you net a profit 1st year in business, or lose money

I had everything paid off before I went into business. So I had a profit.

 

[daniel@procarpet]

Re: Did you net a profit 1st year in business, or lose money

I made good money, but I'll admit I had no clue what I was doing and got lucky.

If I ever lost a penny, I would have jumped ship immediately.

I didn't learn what a truck mount was until late in my second year in this business.

I had so many people tell me when I dropped out of college to pursue this that I would fail miserably.

I will say I never borrowed money from anyone as no one would help me out.

Two years later and everyone was singing a different tune.

 

[Steve Toburen]

Re: Did you net a profit 1st year in business, or lose money

I didn't know what the hell I was doing.

And that has changed ... how?

Steve Toburen
http://www.SFS.JonDon.com

PS Just kidding, Mikey! I actually MADE money but only because my personal overhead was so stinking low. This does point up something many forget. Many people today are part of what I call the "Entitled Generation" as in "I deserve to eat out six times a week/ charge impulsive discretionary items on my credit cards/ drive the latest model car bought on credit, etc".

However, starting and/or at times even surviving in business can mean personal sacrifice as in cutting your PERSONAL overhead to the bone. If your business is struggling just think about how many carpets you will need to clean just to net enough to pay for that 60 buck dinner at Outback that you treated the wife to and then grandly put on your VISA card.

I know many of my friends (not just in the carpet cleaning world) that SAY they are struggling financially while maintaining a far more extravagant entertainment lifestyle than Sioux and I do. (Of course, our moderation is not based on financial constraints but over our health and Sioux trying to lose weight- put me in front of a menu and all self control immediately flies out the window!)

 

[Mikey P]

Re: Did you net a profit 1st year in business, or lose money

sorry Steve, those were Drapers words not mine.


I made well over a million my first year from all those loyal Coit clients I stole.

 

[XTREME1]

Re: Did you net a profit 1st year in business, or lose money

If you guys netted a profit in your first year, you don't know what you are doing

 

[Brian R]

Re: Did you net a profit 1st year in business, or lose money

If you guys netted a profit in your first year, you don't know what you are doing

Yeah, you get to lose money for the first 3 years in CA.

 

[floorguy]

Re: Did you net a profit 1st year in business, or lose money

[quote="Dipwad GC":258nsdew]If you guys netted a profit in your first year, you don't know what you are doing

Yeah, you get to lose money for the first 3 years in CA.[/quote:258nsdew]


at any 1 stretch magoo....

make money a year or 2, then loose it 3.....come learn the system... 8) 8) 8) 8) 8)

 

[bob vawter]

Re: Did you net a profit 1st year in business, or lose money

you guys kill me............!

 

[LisaWagnerCRS]

Re: Did you net a profit 1st year in business, or lose money

I think my mom and dad were actually PAYING to be in business back in the beginning. =)

I remember the years of paying employees, or having them hold their checks, and not paying ourselves. The days of having a large account not pay us, and have to kite checks to try to cover ourselves back in the days when you could do that.

It was really rough. They don't teach you that in school. Heck they don't even teach money management.

They certainly don't teach you how to take a $21,000 workers compensation penalty hit, payable in 14 days or your business license gets pulled, and you have to run around as a freshman maxing out credit cards and borrowing from every friend you have to help the family business.

That's when we were 50 cents a square foot, and all wholesale business. Those were the crappiest customers ever.

But I think... if it had all come easy right from the start, there would not be the really deep appreciation that we have for what we've built. And we don't waste money - I think we value it more because we know very clearly what it's like to not have any. I put myself through college working full-time and studying full-time. Did not learn a damn thing in college in business though... all of my real-world education came from actually running a real business "for real" (unlike any of my professors).

Today there are many more resources to help educate business owners before they get into business. Back then, I think a lot of us stumbled into it through family, or a fluke, or simply because working for someone else just wasn't working for us. I don't know many who grew up knowing they'd be a cleaner - it's usually something that just "happens."

But I wouldn't trade it for anything. I love this business. =)

Lisa

 

[Mike Draper]

Re: Did you net a profit 1st year in business, or lose money

Thanks Lisa, as I mentioned above, we lost our ass the first year and a half. We then found piranha and learned some good marketing tools and how to not be a hack. I raised my prices, re-named my business and started making money. Our business has been growing like crazy since then....( 4.5 years ago). My wife and I also know what its like to only have $15.00 for groceries to hold us over ( 1st year). We appreciate everything we have because of that we work very hard and take a lot of pride in our business.

 

[Jim Morrison]

Re: Did you net a profit 1st year in business, or lose money

Lost good the first year. When the year end was done by the accountant she told me "You have the biggest loss of all my clients so far this year" I kinda wore that as a badge of honor, no wonder a guy is bd. The up side was had a nice tax return that year

 

[dealtimeman]

Re: Did you net a profit 1st year in business, or lose money

We were profitable from day one but day one I was doing janitorial. Used the janitorial biz capital to branch into hwe carpet cleaning and immediately into water damage. Never made a lot of money with janitorial but was able to live well and save a little. First year of getting into water damage almost broke even but ended up way up thanks to some hurricanes. I am also very blessed!

I know you all have heard it over and over again but the saying is true. Work smarter not harder!

 

[Hoody]

Re: Did you net a profit 1st year in business, or lose money

Did not learn a damn thing in college in business though... all of my real-world education came from actually running a real business "for real" (unlike any of my professors).

Yup, the biggest thing I took from college is psychology. Its amazing to learn how the human mind works, but other than that it was a waste. I wish I would have taken more accounting though.

 

[steve r]

Re: Did you net a profit 1st year in business, or lose money

i paid cash for everything to start. made my money back but reinvested all of it back into the business.

ive been profitable since. someday ill figure out what im doing.

 

[Lee Stockwell]

Re: Did you net a profit 1st year in business, or lose money

Many can't count...or just don't. As long as they have cash flow (from "somewhere") they think they are making a profit.

I survived our first few years but didn't net a profit for nearly four years. My "real" job subsidised us.

 

[bob vawter]

Re: Did you net a profit 1st year in business, or lose money

i think we need ANOTHER poll:
How many work outta their pocket?

 

[Mike Draper]

Re: Did you net a profit 1st year in business, or lose money

Bob just because you WIPE YOUR ASS WITH $100 BILLs doesn't mean you can hijack my thread shiteatinggrin

 

[steve r]

Re: Did you net a profit 1st year in business, or lose money

Many can't count...or just don't. As long as they have cash flow (from "somewhere") they think they are making a profit.

I survived our first few years but didn't net a profit for nearly four years. My "real" job subsidised us.

my accountant says im to profitable. not that im making a bunch of money mind you. but i do pay income tax and have since the second year. its the only income i have.

 

[steve frasier]

Re: Did you net a profit 1st year in business, or lose money

started with $1200 and an $1800 a month janitorial account