So my DH’s plan is to start a business this year. So how are we doing? Well my DH took a business class last term called “starting new business ventures”. Everyone had to write a business plan proposing a new business venture they would start. Then present it to the class and 4 VCs who would give feedback on whether they would invest in the startup.
Also everyone in the class would comment and give feedback whether as regular people they would invest in the company. And everyone had to enter the elevator pitch/introductory business competition. This is where you give a brief pitch about your plan.
My DH won the competition and was the only person in the entire class to have been voted by all 4 VC as having an investable plan. All 4 VCs asked to setup a meeting with him after the holidays. Also 80% of his classmates said they would invest in his company. Thus over the holidays he began to futher refine his plan and decided to enter the normal business plan competition.
His next step was to send his business plan to people he’d like on his advisory board and gather feedback for his proposal. He also managed to gather support from 2 important advisors who agreed to be on the board. Where this leaves us?
I don’t know. But I guess we’re going to have keep moving forward to find out. Keep reading to find out where our journey leads us. It might go somewhere or nowhere.
11 responses so far ↓
1 dogatemyfinances // Feb 3, 2009 at 9:14 am
Good for him!
Not to downplay his success, but there is a whole lot more to it than that, especially if he hasn’t worked in whatever industry he now wants to enter, and especially in a recession like this.
He also needs to talk to the people the VC invested in. Not the happy, glowing references, he needs to find the ones where it went wrong. Those guys will eat you for lunch and make your life miserable if you don’t have an exit strategy.
2 LivingAlmostLarge // Feb 3, 2009 at 9:34 am
Dog, he is one of the only people in the field with a patent and has a product named after him. This is his thesis work done in graduate school. So very few people have his experience. Plus he’s been in the field almost 4 years.
Right now we’re talking to a lot of investors actually.
3 Kristy // Feb 3, 2009 at 9:52 am
I think its great that he has had that kind of recognition. However, I agree with Dog. He needs to make sure he does everything correctly and knows exactly what he is getting himself into. I know you said something about risk, but in this economy I would be terrified to start my own company. Especially since something like 80% of new small companies fail within the first 3 years.
Good luck with everything! And if your DH is anything like you, I am sure that he will research it and be prepared when he starts his company!
4 LivingAlmostLarge // Feb 3, 2009 at 10:01 am
I hate to say this but there is a lot of layoffs going on anyway in general in this economy. It seems like weekly it’s happening.
Thus I think it’s a good time. You can either be looking for a new job, or potentially starting a company. Either way there is risk.
And if you are downsized or laid off, there are tons out there also looking is the problem. Sadly. So I’m not sure whether there is more risk in starting the business or looking for a new job that may not pan out.
It’s a tough time. My DH has the hardest time wrapping his head around potentially leaving a job instead of being downsized. But I’ve told him, there is tons of time to start the company, 2009. And whose to say the layoff won’t be announced unexpectedly right?
5 ToBeTrophyWife // Feb 3, 2009 at 12:22 pm
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6 fengshui // Feb 3, 2009 at 8:48 pm
I know that this has been addressed before, but I can’t express it enough…. please, before you invest any of your own money in this business, PLEASE get a postnuptual agreement, if you didn’t have a prenup. A situation like this can become very complicated if one of you wanted to end the marriage. It is better to be prepared.
7 LAL // Feb 3, 2009 at 10:29 pm
How do you handle a post-nup? What would it do with regards to money?
8 fengshui // Feb 4, 2009 at 1:43 am
It is basically the same as a prenup, drawn up in a legal manner. Supposedly they don’t hold as much water in court, but they can be helpful. There is info on them on the web, etc. A postnup could spell out what would happen in the situation of divorce, where the division of assets would be divided in a predetermined manner, especially if $ was used that you had saved prior to marriage or from your family, etc. I know that it is “taboo” to plan for a divorce for some people, but I think that it is smart to have your ducks in a row, etc.
9 Kristy @ Master Your Card // Feb 4, 2009 at 2:38 am
Congrats to DH, LAL! That’s fantastic news. Personally, I think if you’ve done the research and feel confident and 100% committed to the project, then go for it. There will be hard times ahead, nothing is ever perfect, but if DH knows what he’s doing, then I don’t think the economy will matter overmuch. It won’t make this venture a cakewalk, by any means, but it won’t be the nail in the coffin either. People whose businesses fail, fail because they weren’t adequately prepared or because they weren’t committed to making it work. I think you guys can do it and I hope nothing but the best for you both!
As a side note, I agree with fengshui on protecting your assets. If you’re investing, some sort of contract covering what happens in a divorce is necessary. Now, if you’re going into business together, then I suggest considering an LLP or some other type of limited venture that allows you to be responsible for your portion only. But, when you get to that, I suggest talking to a lawyer.
10 LivingAlmostLarge // Feb 4, 2009 at 9:49 am
Sigh, someone else told us to up our life insurance, not that we have any. And to draw up wills and get more insurance for the business. Something not previously considered and we really need to discuss.
And definitely we need to start talking about LLC, that much I know my DH has researched. This is a long process.
It’s not a business that can be started in a home or out of our home. It will take renting a space, setting up, etc. So we have talked to realtors about renting space to budget what estimated costs. Plus we have to figure out insurance, etc.
Fengshui, I am definitely going to bring up a post-nup.
Part III - evolving frugality - Feb 13, 2009
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