Question to those of who have started and own a successful business

[BPH]

How did you get the idea that became your business, and when did you know "this is it"?

Were you trying to solve a problem for somebody that ended up being a solution others wanted?

Did you pursue a passion and found people willing to pay for it?

Maybe you were just looking for ways to make money and found something that was a really good fit for your skillset?

In terms of defining "successful" I'd say I'm most interested in hearing from people who make about $10,000/mo with at least 50% margins and do so while working less than a typical 40-hour work week. I realize that probably narrows down the responses I'll get by quite a lot, but I'm interested in people who have made themselves a business - not a job.

 

[AAAgent]

Find an opportunity, present a solution.

Start small, low cost, low risk, and then work your way up by scaling up. This way you learn the required skills you need along the way and don't end up risking much except time.

When you have more resources, and experience, than your risk appetite can be a bit larger. Then leasing a brick and mortar, or buying a business, etc. can be additional options.

50% margins btw is extremely high. You'll likely need to be in a specialized service industry (something obscure), tech or gaming. Majority of other industry's don't have margins that high.

--
There are a few people who have done well for themselves on the forum as business owners, but I doubt you'll hear from them.

Just some numbers below.

1. Retail (e.g., clothing, groceries): 2%–10% profit margins are common, with higher-end or specialty stores sometimes achieving higher margins.
2. Restaurants: 3%–5% is typical for most restaurants due to high operating costs, although some fast-casual chains may have margins of up to 10%–15%.
3. Manufacturing: Margins are typically in the range of 10%–20%, depending on the product and sector.
4. Software (e.g., SaaS companies): Margins can be 60%–90% due to low marginal costs, especially for mature products.
5. Professional services (e.g., law, consulting): 20%–40% is normal for many firms, depending on the specialization and market.

A 50% margin is considered high in most industries, especially in traditional sectors like retail or manufacturing. In industries with low overhead costs, such as software or digital services, 50% can be common but is still considered strong.

 

[jaygreenb]

How did you get the idea that became your business, and when did you know "this is it"?

Were you trying to solve a problem for somebody that ended up being a solution others wanted?

Did you pursue a passion and found people willing to pay for it?

Maybe you were just looking for ways to make money and found something that was a really good fit for your skillset?

In terms of defining "successful" I'd say I'm most interested in hearing from people who make about $10,000/mo with at least 50% margins and do so while working less than a typical 40-hour work week. I realize that probably narrows down the responses I'll get by quite a lot, but I'm interested in people who have made themselves a business - not a job.

If this is your first business, I would focus on what you are good at and has a reasonably low risk of failure or limited downside. If you have limited funds a service business is one of the lower risk options since you can provide the labor until you start cash flowing positive and can scale up as business increases. You will not get a 50% margin in a business like this though, I can be anywhere from 15-25% depending on a number of different factors. What type of budget do you have to get things going?

 

[sharkfinale]

How did you get the idea that became your business, and when did you know "this is it"?

Were you trying to solve a problem for somebody that ended up being a solution others wanted?

Did you pursue a passion and found people willing to pay for it?

Maybe you were just looking for ways to make money and found something that was a really good fit for your skillset?

In terms of defining "successful" I'd say I'm most interested in hearing from people who make about $10,000/mo with at least 50% margins and do so while working less than a typical 40-hour work week. I realize that probably narrows down the responses I'll get by quite a lot, but I'm interested in people who have made themselves a business - not a job.

I fit your criteria. I work 10-15 hours a week. Sometimes a bit more hectic.

I have independent consulting practice in two distinctly different fields. But I have the educational background, experience, and certifications required for the fields.

My high remuneration is mostly a function of there being very few people in those fields with sufficient knowledge and certifications.

Is the area I work in my passion? No, but it is interesting to me. I won't be banging my head against the wall doing the work.

 

[BPH]

50% margins btw is extremely high. You'll likely need to be in a specialized service industry (something obscure), tech or gaming. Majority of other industry's don't have margins that high.

I understand, I'm just looking to hear from people who didn't exchange one job for another. A 10% margin on $100k/mo revenue is just the same as 50% on $20k/mo, but I figure more people would fit the latter than former. Plus these are just generalizations - making closer to the latter would be better than a standard job if you barely have to work to maintain it.

If this is your first business, I would focus on what you are good at and has a reasonably low risk of failure or limited downside. If you have limited funds a service business is one of the lower risk options since you can provide the labor until you start cash flowing positive and can scale up as business increases. You will not get a 50% margin in a business like this though, I can be anywhere from 15-25% depending on a number of different factors. What type of budget do you have to get things going?

I don't have an idea in mind yet. I've tried a few things, they haven't worked out, so this time around I'll get validation from the market in the form of payment BEFORE I fully invest in something with my time and money.

This post is mostly there to ask people who have what I want the question of how and when they realized that THIS is what was going to lead to their financial freedom.

I fit your criteria. I work 10-15 hours a week. Sometimes a bit more hectic.

I have independent consulting practice in two distinctly different fields. But I have the educational background, experience, and certifications required for the fields.

My high remuneration is mostly a function of there being very few people in those fields with sufficient knowledge and certifications.

Is the area I work in my passion? No, but it is interesting to me. I won't be banging my head against the wall doing the work.

Thanks for replying, I have 2 main questions:

1. Is it YOUR business, or are you a consultant working FOR a practice?

2. How did you decide on your area(s, since you mentioned 2 different fields) of work? Is it a niche that isn't being serviced that you provide solutions for, did you go to school/have a work history in these fields, or did you stumble into it some other way - was it deliberate?

 

[plumber]

manufacture something, make an item and sell it.

buy and sell, buy stuff low and sell it higher. anything, house, car, food, anything..

consult, help other people to do something that you are good at or they think you are good at.

perform, sing dance box mma act gamble

service, fix build anything to help customer. women have an advantage.

 

[Chow Mein]

Find an opportunity, present a solution.

Start small, low cost, low risk, and then work your way up by scaling up. This way you learn the required skills you need along the way and don't end up risking much except time.

When you have more resources, and experience, than your risk appetite can be a bit larger. Then leasing a brick and mortar, or buying a business, etc. can be additional options.

50% margins btw is extremely high. You'll likely need to be in a specialized service industry (something obscure), tech or gaming. Majority of other industry's don't have margins that high.

--
There are a few people who have done well for themselves on the forum as business owners, but I doubt you'll hear from them.

Just some numbers below.

1. Retail (e.g., clothing, groceries): 2%–10% profit margins are common, with higher-end or specialty stores sometimes achieving higher margins.
2. Restaurants: 3%–5% is typical for most restaurants due to high operating costs, although some fast-casual chains may have margins of up to 10%–15%.
3. Manufacturing: Margins are typically in the range of 10%–20%, depending on the product and sector.
4. Software (e.g., SaaS companies): Margins can be 60%–90% due to low marginal costs, especially for mature products.
5. Professional services (e.g., law, consulting): 20%–40% is normal for many firms, depending on the specialization and market.

A 50% margin is considered high in most industries, especially in traditional sectors like retail or manufacturing. In industries with low overhead costs, such as software or digital services, 50% can be common but is still considered strong.

Appreciate your feedback.

Who did you end up with? ;-)

 

[FlexpertHamilton]

Many people have had really good business ideas, implemented it, stuck with it, worked hard/smart, but still failed.

Survivorship bias makes a lot of advice from succesful people useless because they say "what worked for me must work for everyone".

Ultimately, all you can do is try. If you have a gut feeling/passion to do something and the know-how to implement it, you just have to do it and dedicate yourself.

I had a bit of success with affiliate marketing with my LLC, relative to the amount of time I spent on it, and I am now going to try a similar thing with digital marketing services to local companies. Whether it works or not isn't fully up to me I may do everything right and it may still fail. Ultimately you have to know you may fail and may need to try again or do something else.

 

[Plinco]

How did you get the idea that became your business, and when did you know "this is it"?

Were you trying to solve a problem for somebody that ended up being a solution others wanted?

Did you pursue a passion and found people willing to pay for it?

Maybe you were just looking for ways to make money and found something that was a really good fit for your skillset?

In terms of defining "successful" I'd say I'm most interested in hearing from people who make about $10,000/mo with at least 50% margins and do so while working less than a typical 40-hour work week. I realize that probably narrows down the responses I'll get by quite a lot, but I'm interested in people who have made themselves a business - not a job.

I started my lawn business during the covid lockdowns, after losing my job and not being able to find another quickly. I was already in a bad mental state after marrying the wrong woman, so I was in a position where I felt that I had little to lose. I tried several things at the same time, planting trees, selling my services for writing resumes, mowing lawns, doing contract work, etc. I took an inventory of everything I was capable of doing that could generate income, and then focused on what I like doing. I like working outside, I like working with vegetation, I hate working with the general public, etc. I was in a position where I had no choice but to be successful, so I kept thinking of ways to expand my lawncare business by advertising in my area. I had to bust my butt almost every day. Four years later, and I make about 20% higher than the median income in my area.

 

[BPH]

I had to bust my butt almost every day. Four years later, and I make about 20% higher than the median income in my area.

How has the business evolved? Are you still busting your butt or is it more of a business now and less of a job?

 

[Bible_Belt]

You're putting the cart before the horse if money is the first consideration. It's much more important to be good at something and be able to offer a product/service that crushes the competition. Do that for long enough and the money will come eventually.

 

[Plinco]

How has the business evolved? Are you still busting your butt or is it more of a business now and less of a job?

In some ways it has gotten much easier. If I want to make more money, then I do have to work harder. Of course every business is different.

 

[BPH]

Do that for long enough and the money will come eventually.

I'm not putting money first, I just want to find out what the people who have what I want did to get there.

I do want to highlight this statement though...I could not disagree stronger. If the market does not need your solution, and doesn't value your offer, then it does not matter how good it is or how long you do it for.

This mentality led me to build out a great product, service it for several months, and spend several thousand dollars in upkeep. These things don't necessarily mean it's bad, but I did these BEFORE I had somebody willing to pay for it to validate my business - people who SAY they will buy it means nothing, payment is the only thing that carries intent. It doesn't matter how great it is if nobody thinks they need it.

I felt the need to comment on this since this kind of advice was absolutely detrimental to me.

 

[Bible_Belt]

I meant crush your competition from the perspective of the consumer, which would mean they buy it. I'd rather have lower margins on a better product, which is the opposite of the big business mentality of delivering maximum value to shareholders. That's why the quality of everything keeps going downhill.