Starting a business at 25

[SethDamien]

Im not worried about sales or providing quality service and goods. I do believe in my product that im cut above my peers, and that i can market my business better than anyone locally.

 

Im more worried about not being taken seriously or be disregarded due to my age or status as a start up.

 

I know many start ups begin at an even younger age, but im sure they've had to face this problem some time along their path.

 

Im planning on a partnership with a bank. Its not a business loan, just a partnership for what the bank can offer for my clients. I really want to be taken seriously and i really do want them to take my proposal... But seeing my lack of experience might be a bit of a problem.

 

How do i make them invest their confidence in me?

[playlislay]

By brimming with confidence.

 

By having an answer to every question possible before you do your sales pitch.

 

By learning where to use apostrophes and capital 'i's.

 

[loveweary11]

I opened my first serious tech startup at age 27.

 

Age isn't a factor in being taken seriously at all (assuming usa, it is a factor in many other countries). Get that out of your head if we are talking usa.

 

The factors to winning any partnership, even outside of business is in successful answering and communicating the following:

 

"What can I bring my partner that they will value the most?"

 

The answer, in partnering with a bank, is: Depositors!!

 

You must structure your deal such that it brings your bank partner new business.

 

This is the secret to a retail banker's heart.

 

If we are talking investment banks, bring them what they desire most: deal flow.

[Mumbles]

Im planning on a partnership with a bank. Its not a business loan, just a partnership for what the bank can offer for my clients.

 

Sounds like you are in financial services then. If so this is probably the first big thing in getting your clients to take you seriously and to possibly 'de-risk' the proposition (depending on exactly what it is you are selling ... and you don't say)

 

I really want to be taken seriously and i really do want them to take my proposal... But seeing my lack of experience might be a bit of a problem.

 

How do i make them invest their confidence in me?

 

You'd have to give a lot more information to get a qualified answer here. But as a general response; you are right to be concerned imho. Facts be facts, you will be better at whatever you are doing when you have several decades of experience behind you. This is just the nature of life.

 

But, no reason to put things off, and you have to gain this experience somehow.

 

I would generally go with the poster above. You need to present a face to your customers that belies your actual (in truth) lack of experience by pulling together a slick and professional outwards facing business.

 

I started my business career by opening a 'business' which in my country means 'sole trading' entity. This worked, but later I moved to a 'company' structure (pty ltd) and this had an immediate and measurable effect on my customers perception.

 

Again, I don't know exactly what you are doing, but if my suspicions are correct, then make sure you have an office appropriate to your business, in an appropriate area, wear a suit, shine your shoes, all the basic stuff. Put real effort into your business advertising (inc business cards and whatnot).

 

In other words, present as the business you want your clients to see.

 

Also, I found it advantageous to not overly belabour the point that I was the Director (or owner). Don't lie about this, but if it doesn't come up, no need to mention it. Give yourself a title which infers seniority sure, if you like, but don't try to come across as the company director with 40 years experience as it won't wash and obviously isn't the case.

[Mind-Chants]

1. Have a concrete B-Plan. By concrete I mean, multi dimensional perspective of your business. Include new concepts of business management. Adaptability, changing technology, HR(imp. most people forget this), competition, market analysis, customer service (imp. again we have moved from a push market to pull market. changing as per customer demands is key aspect in business.)

 

Vision is more important.

 

2. Advisory group - If possible, include some people in advisory panel that their credibility would back yours.

 

3. Important aspect is Synergy. By synergy I mean, how the partnership is going to help both of you. This aspect is important. Probably they would be interested in this aspect the most. Make this as detailed as possible. Introspect, introspect, introspect. You also need to be clear whether u really need them or not. Benefits to u will get out of partnership is also important.

Else u will be wasting your time.

 

 

4. Understand common human psychology. If I see this in business language, u are marketing your idea. There are two kind of processing in humans. Something called central information processing and peripheral information processing. Central processing is critical. Things should first come to attention spam for them to be processed centrally. This is a high engagement system. So u need to stand out in your ways to project your ideas. Find a unique way to deliver your idea. Entrepreneurs don't do different things, they do same things differently. This is entirely ur call. Put ur signature style to aspects.

 

Suggestion: - Keep a one or two pager summary of B-plan to hook them that they move to the bulk plan. That one or two pager summary is you trump card.

[SethDamien]

Sorry I left out a very important piece - I'm an Architect and I intend to set up a full-service company. Not just in providing Architectural services but in being a "one-stop shop" for all design and construction needs - including financing.

 

I already have 'partners' in the allied trade - engineers, contractors, project managers, interior designers, etc.

All I need is the bank to finance my clientele so they don't have to worry about funding their home/business. (IF they need funding). Basically, we want to do everything on our client's behalf.

 

I don't see many local Architecture firms offering such services. I believe this is my edge. Most firms only focus on designing.

Single proprietor architects only wait for referrals and no marketing prowess whatsoever.

 

Im also planning a corporate set-up with my trade partners. (less taxes to worry about as compared to single proprietors)

 

I am confident that marketing a home/business financing scheme along my Architectural services will boost my sales.

 

I already plan on hiring the services of a professional web designer. I also believe social media is the trend for marketing these days.

Edited January 3, 2016 by SethDamien

[thefooloftheyear]

I started at 23....But I had already built somewhat of a reputation ....In 4 years I was turning a healthy profit and by late 30's I was completely financially independent...

 

Its a simple thing. in theory, anyway...

 

I knew already that I was smart and good at what I did...Even if others had more experience, they just weren't going to outwork or out hustle me...That means understand that until you are established, you probably wont have anything that resembles a normal life..Vacations, sick days, holidays, etc...are for the working stiffs....If you want that as well, good luck, you will probably be the first one in history to do it...

 

People take you serious when you know what the fck you are talking about...Period.. And they don't teach you that at school...You get it by cutting teeth,,,

 

Good Luck..

 

TFY

[SethDamien]

I started at 23....But I had already built somewhat of a reputation ....

 

What business are you in if you don't mind me asking? and what did you do to get that reputation?

 

23 and already have a reputation... that's really impressive.

[loveweary11]

Sounds like a good niche.

 

Some concerns, as it's always good to have as many negative ideas as possible when considering a new venture....

 

1) Are you sure your bank partner will provide the lowest rates? Not many of your clients will accept a higher rate on a loan that size. What if you were to partner with a loan broker, more like lendingtree.com or a similar business, so you are providing the client with a few lending options at better rates?

 

2) For profitability, see if you can negotiate a point or two into each loan you place, while still remaining very competitive. Argue that you're bringing the volume (and bring the volume), so they can generate loans at below street prices, your business keeping the extra point or origination fee or w.e.

 

 

 

 

 

 

Sorry I left out a very important piece - I'm an Architect and I intend to set up a full-service company. Not just in providing Architectural services but in being a "one-stop shop" for all design and construction needs - including financing.

 

I already have 'partners' in the allied trade - engineers, contractors, project managers, interior designers, etc.

All I need is the bank to finance my clientele so they don't have to worry about funding their home/business. (IF they need funding). Basically, we want to do everything on our client's behalf.

 

I don't see many local Architecture firms offering such services. I believe this is my edge. Most firms only focus on designing.

Single proprietor architects only wait for referrals and no marketing prowess whatsoever.

 

Im also planning a corporate set-up with my trade partners. (less taxes to worry about as compared to single proprietors)

 

I am confident that marketing a home/business financing scheme along my Architectural services will boost my sales.

 

I already plan on hiring the services of a professional web designer. I also believe social media is the trend for marketing these days.

[Mind-Chants]

I think u shouldn’t worry about bank partnerships at this point. I get this that u want to use that as a marketing strategy to attract potential clients but I think very early in your venture u should rather focus on your core strengths to attract clients than auxiliary strengths. This would test the feasibility of your ideas and give u the feedback u need early in your start up.

On a side note, I don’t think banks would deny potential clients. But a lot would depend on your start up credibility. It’s better to influence them with results rather than with a vision statement. Once u thrive in your field, they would definitely come to u.

 

Another thought is that u mentioned about banks sponsoring the clients. I have one doubt here. Since you are one point solution from design to construction, u would be requiring significant capital to start with. How you are going to manage/build that capital base? If u are thinking client sponsor all from very beginning, I would call it a miscalculation on your part. Please look into it. I am thinking you are going way too linearly in this aspect. There are hidden costs, unavoidable expenditures, price fluctuations, mistakes etc etc. Also contingency requirements and other things mentioned earlier are there which are going to cost u a lot. So you need to be prepared for these.

 

My suggestion, chalk out a operation plan with your partners. Acquaintance doesn’t necessarily mean congruence. Few of them may demand advances and other stuff. Figure that out first then go for financing plans. Your expertize area is architecture. Make sure to understand the construction financing models and other things to build a sustainable business model.

 

Good luck

[Got it]

Sorry I left out a very important piece - I'm an Architect and I intend to set up a full-service company. Not just in providing Architectural services but in being a "one-stop shop" for all design and construction needs - including financing.

 

I already have 'partners' in the allied trade - engineers, contractors, project managers, interior designers, etc.

All I need is the bank to finance my clientele so they don't have to worry about funding their home/business. (IF they need funding). Basically, we want to do everything on our client's behalf.

 

I don't see many local Architecture firms offering such services. I believe this is my edge. Most firms only focus on designing.

Single proprietor architects only wait for referrals and no marketing prowess whatsoever.

 

Im also planning a corporate set-up with my trade partners. (less taxes to worry about as compared to single proprietors)

 

I am confident that marketing a home/business financing scheme along my Architectural services will boost my sales.

 

I already plan on hiring the services of a professional web designer. I also believe social media is the trend for marketing these days.

 

I am in the retail/food space and we have just started doing this for the franchise community. It was not something until we grew to the size we are at that we felt we could leverage our numbers/reputation and incentive the banks to want to partner to cut the best deals. By all means, it is attractive and look at the retail (retail, hospitality, and food space) as this is common for the franchise communities as they have to do upgrades/refreshing of their locations every x number of years. You may get some pointers from others on it. It is something I know our franchisees are happy about.

[Cherryz]

go with someone older that know more of it.

 

someone close to ,like your dad or so. and have him also as your mentor

[thefooloftheyear]

It took me quite some time to develop a good relationship with banks..Right now, though, I have to honestly say its a tough deal with the banks..I have private investors I have developed relationships with that are far easier to deal with..Moet of it is almost a handshake at this point...

 

Banks have changed their game...And it really pisses me off, because we all bailed their asses out and they stuck it to us...the smaller/mid sized businesses by making it practically impossible to deal with them...

 

I'd imagine that a 25 year old kid without a proven track record or an established name is going to see a lot of closed doors at standard retail/commercial banks...Like I said, even though I have an established rapport, I could imagine that starting out as a young kid will be a mountain to climb,,,

 

Not that it should deter you, but its just the way I see it...

 

TFY

[loveweary11]

Which is why he has to bring them what they are looking for.

 

It's how I partnered with a retail bank in NY with my first business in my 20s.

 

People tend to take you very seriously when you bring them new business.

 

Hell, you could be 10 years old. If you're delivering revenue to ANY business, they'll take you seriously.

 

 

 

It took me quite some time to develop a good relationship with banks..Right now, though, I have to honestly say its a tough deal with the banks..I have private investors I have developed relationships with that are far easier to deal with..Moet of it is almost a handshake at this point...

 

Banks have changed their game...And it really pisses me off, because we all bailed their asses out and they stuck it to us...the smaller/mid sized businesses by making it practically impossible to deal with them...

 

I'd imagine that a 25 year old kid without a proven track record or an established name is going to see a lot of closed doors at standard retail/commercial banks...Like I said, even though I have an established rapport, I could imagine that starting out as a young kid will be a mountain to climb,,,

 

Not that it should deter you, but its just the way I see it...

 

TFY

[Beach Guy]

Go for it!

[SethDamien]

...I think very early in your venture u should rather focus on your core strengths to attract clients than auxiliary strengths. This would test the feasibility of your ideas and give u the feedback u need early in your start up.

 

i agree

 

Providing client funding is a good prospect, but its certainly not (yet) in my area of expertise.

 

I'm not venturing into the construction either. My associate (contractor) has all the assets for construction.

Though cost estimates are covered as part of architect's work. Part of the job is providing budgetary estimates to our clients plus 10% allowance/contingency. Its a form of guaranteed maximum price. It's this price the contractors compete for in bidding.

 

It is also based on this maximum price our client can derive their bank loans from. In theory anyway.

[SethDamien]

It took me quite some time to develop a good relationship with banks..Right now, though, I have to honestly say its a tough deal with the banks..I have private investors I have developed relationships with that are far easier to deal with..Moet of it is almost a handshake at this point...

 

Thanks for your input. Though im not looking for investment from a bank... im just offering an endorsement of the bank's loan system as part of my marketing strategy.

 

-I market our services w/ additional bank financing

-the bank gets interest revenue and we get paid for our service fees

-win.

 

bottom line, provide client convenience.

 

idealistically though.

 

as @loveweary11 said, key is negotiating bank for low interest by offering to bring in the volume.

[Art_Critic]

Aren't you competing against the same businesses you are aligning with ? the construction companies for example.. at the RFQ stage they are working with the Architects to gain the business, they will not want to get in bed with you as they will miss out on the possibility of getting the job if you don't.

 

There is a real business reason the construction companies are separate from the Architects.. have you looked into why that business plan has never been seen ?

 

Your age will not hinder you if you have a sound business plan, I was a good bit younger than you when I was in business, as long as you give the customer what they want your age shouldn't enter the equation.

[Mind-Chants]

i agree

 

Providing client funding is a good prospect, but its certainly not (yet) in my area of expertise.

 

I'm not venturing into the construction either. My associate (contractor) has all the assets for construction.

Though cost estimates are covered as part of architect's work. Part of the job is providing budgetary estimates to our clients plus 10% allowance/contingency. Its a form of guaranteed maximum price. It's this price the contractors compete for in bidding.

 

It is also based on this maximum price our client can derive their bank loans from. In theory anyway.

 

Sorry I couldn't get ur business model. From what u have said till now I could deduce two models.

 

1. It is a partnership of urs with engineers, contractors, project managers, interior designers etc. YOU ARE NOT THE LEAD. You will be doing your architecture part and the execution of rest depends on others. No liability on you for other's poor work.

2. YOU ARE THE LEAD. By lead I mean, for any issue at any stage the client would come to u and liability would be on you. Others are at a relatively subordinate level. You decide using various transparent processes. (ex-bidding)

 

Sorry if it seems annoying, I am not trying to criticize your initiative just trying to understand it.

[SethDamien]

Its alright. im still picking up ideas, though talking about my business is not the main topic of this thread. lol

 

I could be that - be a part of a development team if you will. I will be working with Banks to finance the clients, work with real estate agents for lead generators, we design the buildings, and ensure the builder accomplishes the designs properly, work with engineers, etc.. However, i am not the lead. I will just be part of a larger picture.

 

or, i could be the lead. But that would fall into real estate development

-another venture for another time. lol

 

I'm just mainly focused on architectural services with added benefit processing the home/business loans for our clients. again - for their convenience.

I will not be held liable for foreclosures, nor for poor construction work.

 

But im thinking of having a construction business to complement my architectural firm, but that's another prospect.. lets not muddy the waters.

 

Sorry I couldn't get ur business model. From what u have said till now I could deduce two models.

 

1. It is a partnership of urs with engineers, contractors, project managers, interior designers etc. YOU ARE NOT THE LEAD. You will be doing your architecture part and the execution of rest depends on others. No liability on you for other's poor work.

2. YOU ARE THE LEAD. By lead I mean, for any issue at any stage the client would come to u and liability would be on you. Others are at a relatively subordinate level. You decide using various transparent processes. (ex-bidding)

 

Sorry if it seems annoying, I am not trying to criticize your initiative just trying to understand it.

[Mind-Chants]

Good luck.