Want to start my own company

Haoleb · « **on:** 10 Oct 2006, 07:54 pm »

Well this is something I have wanted to do for a while. I am only 21 years old and I figure that if I ever want to get to be in the same league of some of the more respected names in the field that I should get started. basically the mission statement would be to deliver good quality- down to earth products that perform, For reasonable prices and superb service. I have always tinkered on electronics stuff and just things in general since I was very young and have gone on to take classes throughout highschool such as electronics, drafting, digital media. Where I later went on to get a degree in electronics technology in college.

Right now I am a project engineer at a Custom home theater/ home automation company and while it may be a steady job its not what I enjoy doing. I really find that I am truly happy with a soldering iron in my hand, and creating. I wish that I had the skills to design curcuits and actually design something worth buying, as there are already so many good products at all different price ranges you really need to stand out to get noticed. Of couse there is always taking an easy way out, I could make things like racks or cables but thats not what I want to do.

What Im really looking for is feedback from the manufacturing community around here on how they got started and what things that helped them along the way. For a product, I dont know. I could make passive preamps, selector switches, perhaps make something with curcuits that are in the public domain. Im not sure. I have made a few headphone amps, and while they werent my design they turned out quite well. I know that there are alot of people who like me, started out with audio just being a hobby and they were able to turn it into a sucessful buisness. I would like to try and make this happen for myself too.

Duke · « **Reply #1 on:** 10 Oct 2006, 08:27 pm »

Aloha Ha ole B,

Well I think you are way ahead of the game to have already made that decision at age 21. I spent more years than that as an amateur speaker builder before I even became a dealer, and now here I am in my late fortysomethings barely a manufacturer myself.

I don't have enough experience to tell you the best path to follow; hopefully others who have walked the path(s) will convey that. My $.02 is to suggest that you look for a niche that's not being filled, rather than do a "me too" product that must compete head-to-head against products backed by huge advertising budgets and/or long-standing reputations.

One of the interesting things about audio is that there is still room for innovation and even discovery as far as "what matters most to the ears". Study up on the research that applies to your area of interest, and look for the answer to that question.

Finally, while you'll probably have to make some concessions to keep the price competitive, build something that you would want to own. It's much easier to be enthusiastic about a product that you genuinely believe in, whether you're a dealer or a manufacturer.

Pomaika`i!

Duke

montana girl · « **Reply #2 on:** 10 Oct 2006, 08:51 pm »

Computer audio is the future, make some good computer dacs and you'll have plenty of business.

TheChairGuy · « **Reply #3 on:** 10 Oct 2006, 09:19 pm »

Duke's right on in his advice...find a niche.

I manufacture in a different industry and stayed away from the tried and true products being offered when we started...I have seen many a competitor that started with us whither and die along the way as they had nothing to differentiate themselves from one another except price.

When you compete on price you are a commodity...and by it's very nature the only player than benefits from a commoditized business is the consumer - not the manufacturer.

Haoleb · « **Reply #4 on:** 10 Oct 2006, 09:31 pm »

From all of the things I have read about starting a sucessful buisness finding your own niche has been pretty much up at number 1 for everything. Looking through catalogs like music direct there are certainly alot of imaginative products out there. Amplifiers are one of my main interests at the time. Along with tubes and tubed products. Im sure that it certainly takes alot of effort to get your brand out there and to become known for a product that needs no introduction perhaps the best way for me to develop something is to sit down at the drawing board and let the juices flow. If I had a machine shop in my garage i would have all kinds of neat stuff but unforntatly I dont. A few of my past creations are on my website but none of those would ever make it in the real world.

Doublej · « **Reply #5 on:** 10 Oct 2006, 09:51 pm »

Not to burst your bubble but the classic route is to go work for a company, learn a boat load about the way to do/not do things and then go off and start your own company. This approach also gives you the ability to start your venture in the off hours and get it to a state where you can feed yourself from it before launching on your own.

I think there are far more people in the audio for the fun of it than make a living out of it. Look at how many companies fold every year.

If you love playing with a soldering iron, get a job as a repair technician or working for a small manufacturer. I am convinced that while the number of repairs have dramatically dropped as the technology has changed and become much more disposable, there is always work for people that can fix things.

That's my two cents. Danny at GR Research, Klaus at Odyssey, Wayne at Boulder, Al at RAW Acousatics and many others can you real skinny as they have done it. They may even have a job for you.

amplifierguru · « **Reply #6 on:** 10 Oct 2006, 10:47 pm »

Hi Haoleb,

If your interest is in amplifiers and home theatre, you could always build a few amplifier kits from reputable designers.... monoblocks, stereo, multi-channel and learn to finesse the wiring and layout...

You will need a small workshop and oscilloscope and a good soldering ability. Once you get the build concepts fine tuned, there's no reason you can't compete with $10K+ amplifiers on sound quality.

Cheers,
Greg

ajw056 · « **Reply #7 on:** 11 Oct 2006, 12:22 am »

Hi Haoleb, my suggestion would be to start out doing it part time as an additional source of income first.
While you're doing this work for someone in a simialr field and a small business to learn the ropes.
It generally takes 3 to 5 years to establish yourself in the market place, and by far the best advertising is word of mouth.
Be prepared to invest lots of money and time, be prepared to LOSE lots of money in the first few years.
It isn't easy, but if you have the product and a good ongoing reputation for service and reliability, you should succeed in the long term.

Maybe look at developing PC's as a music/movie source/front end with DECENT on board DAC's, processing, etc. Need silent boxes to start with though.......nothing worse than fan noise..............

A word of caution...........forums like this one can assist via positive feedback from happy customers, they can just as easily kill your business if you dont do it right.

JoshK · « **Reply #8 on:** 11 Oct 2006, 12:37 am »

I happen to agree with Doublej and Ampguru. Lots of other good points too.

I will rain on this parade though. I have noticed a trend that may have been around a long while but it is worth noting. That is everyone and their dog is a home dealer or manufacturer these days. *yawn* I think most do it to try to make some money at such an expensive hobby or to get dealer pricing on wares they want. Makes it hard to see how you can make a living at such an industry. So many people are willing to enter (zero barriers to entry) and fad like demand (no loyalty).

There are some who charge obscene prices to try to differentiate themselves on perceived value but the more I learn the more I realize that few expensive products prices are based on underlying good and expensive to build designs it is mostly a gimmic to attract snob appeal and make money. Maybe its the cynic in me but I say find a job that you can make a comfortable living at and enjoy and then join the DIY community to make audio your hobby not a business (where you have to lie to live).

topround · « **Reply #9 on:** 11 Oct 2006, 12:41 am »

Josh,
You have reached true enlightenment

Be careful it can get lonely knowing the truth

Most people don't want to know it

mike

JLM · « **Reply #10 on:** 11 Oct 2006, 10:41 am »

Bring something new/different to the table.

Offer value (sound quality, material content, good construction, good service).

Don't compete based on price (you don't want to try pace yourself against Chinese prison labor or guys that just do it for cigarette money).

Vinnie at Red Wine Audio has rose quickly by offering something fairly unique (battery power), starting with doing mods by the moonlight, and moving into his own creations full time.

Without working on the side you should plan on having 2 years of capital (cash) to start with (for your living expenses and business start up costs).

Most creative, hardworking, passion driven start outs fail. Most because they know almost nothing about running a business.

Learning under a master (Frank Van Alstine or Brian Cheney for instance) would be great.

Captain Humble · « **Reply #11 on:** 11 Oct 2006, 11:00 am »

Haoleb,
I've owned my own business for the last 5 years.
The right niche might stack the deck in your favor due to less competition, but a competitive product at a competitive price doesn't guarantee success.

Most new businesses fail due to UNDERCAPITALIZATION.

It's like a poker game. Even the best hand in the world is a loser if the owner of the hand doesn't have a big enough pile of chips to continue to ante up and stay in game until the hand is over. When the money runs out, so do you.

Here's the good news.
At 21 you can afford to accept a risk knowing that you have many years to recoup your losses should the business fail.

Best of luck,
Jeff

arthurs · « **Reply #12 on:** 11 Oct 2006, 02:09 pm »

Jeff, where's your eatery in Dallas? Going to be over that way possibly this weekend or next, wouldn't mind popping in.

Art

Kevin Haskins · « **Reply #13 on:** 11 Oct 2006, 03:29 pm »

My advice is to spend some more years working for the man. You won't feel like your learning anything but you will.

Running a business takes a diverse set of skills and it takes discipline. You are going to give up a lot of things along with gain a couple. I've not had more than a long weekend vacation in over five years. I've not had a sick day since I started the business.

I come in if I have the flu, cold or the clap. I didn't have what it took to do this at your age.

Almost all businesses go through good times and bad times. If you have a spouse make sure they are up to the stress. If your spouse isn't the type to roll with the punches then you would be wise to reconsider.

Overall.... my reason for doing it has to do with stubborn independence rather than income, or any potential windfall I'm likely to meet. Also... your joy of playing with the soldering iron will end. It will become.... just work.

If you do go into business ignore the people who tell you to borrow a lot of money. They are just setting you up for failure.

TheChairGuy · « **Reply #14 on:** 11 Oct 2006, 03:43 pm »

Oh yeah, young Haoleb, don't actually TELL people you have clap even if you do

Quote from: Kevin Haskins

I come in if I have the flu, cold or the clap.

kyyuan · « **Reply #15 on:** 11 Oct 2006, 04:21 pm »

Quote from: arthurs on 11 Oct 2006, 02:09 pm

Jeff, where's your eatery in Dallas? Going to be over that way possibly this weekend or next, wouldn't mind popping in.

Art

Art -- Jeff's place is in Plano. I've been there once and the food was great.

Haoleb -- I believe Roger Modjeski at Music Reference is always looking for potential audio engineers. Check his website. http://www.ramlabs-musicreference.com/employment.html

Ken

modwright · « **Reply #16 on:** 11 Oct 2006, 04:37 pm »

Hi, this is Dan Wright from ModWright. I read your post and felt that I should at least share my $0.02.

The audio market is a tough one to break into and finding your niche is the best route. I can't tell you what that niche would be for you, but don't be daunted by the fact that you don't have a PHD in Electrical Engineering or something similar

. I am a Mechanical Engineer by degree and have simply worked hard and taught myself what I needed to know. There is no substitute for hard work, research and just getting your hands dirty. Follow your heart and do what you enjoy and are passionate about. If you do this, you will succeed.

As far as the business end of things, speaking from experience only, this is what I would recommend:

1) Treat the customer right and treat all customers the same.
2) Offer a good product/service that represents a good value.
3) Don't sell yourself too cheap! Good value doesn't have to mean 'cheap'. Bottom line, you have to make a profit to stay in business.
4) Align yourself with other people in the industry that share your values and business plan. I.e. networking is VERY important.
5) Keep your OVERHEAD LOW!
6) Follow your heart...

I hope this helps. It has served me well and I a happily in business today after 7+ years since the inception of ModWright LLC, now ModWright Instruments Inc.

In case you don't what we do, we started out doing digital player/DAC mods and now do this as well as manufacture our own products and do some consulting. I don't miss my day job in consulting engineering

.

Take care and good luck!

Dan Wright

Captain Humble · « **Reply #17 on:** 11 Oct 2006, 04:50 pm »

Quote

Art -- Jeff's place is in Plano. I've been there once and the food was great.

Thanks for the plug Ken.

Art:
Actually Dodie's Seafood Cafe II is in Carrollton, TX.
2626 N. Josey Lane #112
Zip 75007

That's the corner of Josey and George Bush.
We are on the North East Corner of that intersection.
We are in a small strip in the front of the parking lot next door & North of Chili's.
We are at the North end of a strip that also houses Game Stop and Leslie's Swimming Pool Supplies.
Restaurant Phone 972-446-8998

Thanks for your interest.
Jeff

Haoleb · « **Reply #18 on:** 11 Oct 2006, 05:20 pm »

Thanks for all the feedback guys, Alot of good advice here. One of the main reasons I took the current job I'm doing now was because its the closest thing I can do with working with audio equipment, which I figured would at least be somewhat intersting. Its definetly not something I plan on making a career out of. I had just finished college in may and started working there in june and have definetly learned alot about buisness practices although I dont deal with any of the real major sides of it. I think maybe instead of being in such a hurry to get where I want to go I need to start small and just see if i have "it"

Again, thanks for the input. Definetly gives me something to think about.

Daygloworange · « **Reply #19 on:** 11 Oct 2006, 05:36 pm »

Haoleb,

Most of the advice here is what you need to know. People will tell you "it's tough", but not elaborate beyond that. The advice people have been posting here is all valid, the elaborations and examples, not exaggerated.

I think probably the best advice I can give you, is to educate yourself about business. Many brilliant and talented people have failed in business due to them not being good business people.

At this moment, my advice to you would be this, unless you have a niche, expertise, product immediately available to market to people that will generate income starting today, you don't have a business. Drive and desire do not in themselves generate income.

Cheers