Here's another twist (variation on a theme):

About two years ago I set out with a similar goal. I have a three-car garage
that now has insulated walls, ceilings, heat and A/C and a couple of nice
windows. I then filled it with the tools needed to produce the intended
products for my new business. In the meanwhile, I have been employed by a
small but well-established out-of-state company, so I have been
telecommuting for almost 10 years now as my main means of making a living.

The bottom line is that I now primarily use my home facility for proving out
design concepts and producing prototypes for everything from PCboards to
mechanicals and optics. These almost invariably have been for the benefit of
my employer, who has been very loyal to me. As such, I have taken home more
$$ in the last few years than I made when I owned a small machine-making
business 10 years ago that was in the $1M range. Now, I get to work from
home, I get a great salary, a profit sharing plan, A key man insurance
policy that matures and will be mine when I retire, I get to buy all the
toys I desire with my company credit card, a $900/mo. health insurance plan
fully paid. My work schedule is as flexible as I want it to be, and I
generally get to decide when I travel, so I'm home with my family as much as
I want to be.
When something comes up that I really want to do on my own, I am able to
follow through.

I would have to take more like 3 or 3.5 X my current salary out of a
home-based business to maintain my lifestyle. I suspect this is not so
unique.

Looking back though, the reason I sold out my original business was because
I didn't own my own time. None of it. If I paid a professional manager to
run it, I would have needed to raise my prices, which would have sent many
customers over to larger, more established sources. (I tested this and it
proved true)
Insurance was a killer. Somehow, I escaped all major lawsuits and only had
to deal with a few small claims, for which my company had 0% fault. This is
not too common, though. One claim, true or false often puts a home-based
business under, and the owner in debt for years. Here's why: If your product
CAN BE USED by a customer in a control application where anything is
connected to an AC line, you are likely to be named in a suit against
everyone within a mile radius of any of the component or system suppliers.
You can survive this most often (not always) if you can present your UL
listing documentation, along with proof that your facility (H/W or S/W) has
been periodically inspected and in compliance. If your product or service is
used outside of the US, it'll be ISO and a host of other agency approvals to
comply with. Even if the product you sell is indirectly controlling a
potentially dangerous load, You'd better have some legitimate proof of
compliance with a recognized safety standard. The last device I did which
fit's in the palm of my hand, cost around $30,000 to get through this
process. I wouldn't want to finance that each time with the income from my
'garage business'. I wouldn't want to put something 'out there' without that
protection - that would be plain old gambling. It's worsened with a super
small business, because you are likely to be independently supplying
something that may not connect to a product from a manufacturer with deeper
pockets, leaving you as the only one named in the suit. Lawyers love to
pierce the corporate veil in these instances, and they would love to sell
your home in order to collect.

Finally, When you think about it, as a small, less established small
business, what kind of customers will you attract? Generally not good ones,
although there are exceptions. You'll get everyone that can't really afford
to do *whatever* properly, but for the little they'll pay you, you will have
to make it happen for them better than the more expensive and correct
solution. This translates to big headaches, small bucks. Especially since
you will likely decide that you will make up for the presence and appearance
shortcomings of such a small business by offering the most connected 1-on-1
support possible.
The problem is, that every time someone has a problem and reaches you on the
phone, they will get all they can out of you, and then some, deserved or
otherwise- once they realize they are talking to the owner.

So I add: count the cost of all involved. For a few dollars, how much risk
am I willing to take. How much less time do I want to spend with my family?
Single? odds of enjoying such adventure are best. Married? Not as high. Kids
also? forget it. Spend all your spare time now on the garage business, and
even if it succeeds, where will your kids be when they 17 or so. Will you
still be married, or even have the same girlfriend? It's not all about $$,
right?
Succeeding with a small business means being married to it, and it's
products and services become your children. That's all it takes. It depends
upon what that is all worth to you.


I don't know why nobody even considers investing in the job they currently
have. I didn't either, and found it to work well by accident. I'm sorry I
didn't try this 20 years ago....

I say play in the big leagues and follow the rules, or don't play at all.
Nearly everyone that has ignored all these warnings and has plowed ahead
with incredible energy has achieved some level of success. One in a million
do so with longevity. The consequences last longer. If you really want to go
ahead with a 'garage business' - go for it. Just remember that any costs,
monetary or otherwise, that you may not want to consider now, you will have
to deal with at some time.

Wow, I didn't realize I had such strong feelings on this subject...

CL

> Hi all,
>
> I'm considering starting a business selling some
> electronics/microcontroller
> modules I'm developing as a side venture. Does anyone have
> stories of their
> own successes/failures they could share so I can get a better
> idea of what
> I'm getting myself into? What kind of volume do you get with
> your niche
> product? Nightmares with suppliers or product support?
> Anything that might
> bring me to my senses and make me return to being a slave to the Man?
>
> Regards,
>
> Traveler Hauptman
>
> --
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