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Advice on How to Start an IT Business (Video)

Lee Drake owns a small IT service and sales company in Rochester, New York, called OS Cubed. He was a cubicle denizen many years ago, and didn't like it. So he started his own business, first with a partner and later as the sole owner. Rochester may be part of the infamous "rust belt," but Lee seems to be doing well, to the point where he's happy to pass on some tips about how to start and grow your own IT business. While Lee's company specializes in "Microsoft solutions," his advice applies to almost any IT business -- and almost any other kind of business, too.

91 comments

  1. That's by invictusvoyd · · Score: 0, Flamebait

    While Lee's company specializes in "Microsoft solutions,"

    my biggest problem ...

    1. Re:That's by Anonymous Coward · · Score: 0

      I completely agree with the above statement or "yep" for those into the whole brevity thing.

    2. Re:That's by mlts · · Score: 1

      Same here. One of my biggest gripes in IT is the "for someone with a hammer, everything is a nail" philosophy. For example, a MCSE wants to toss everything on a MS solution. A Big Iron person will have a zSeries solution. A UNIX person will have Linux or Solaris. It could be that the best solution is not one that a consultant is familiar with.

      I see this almost everywhere in IT. The Windows guys have some Linux servers or appliances, and they sit unpatched because nobody wants to touch them. The Linux people just have all the production Windows boxes fetch patches from Windows Update instead of using WSUS. The Hyper-V people wonder why the heck the VMWare appliances ask for so much RAM without realizing VMWare has the ability to deal with overcommits.

      The hard part is finding people who have enough of a clue to know that their favorite solution is not the right one for a job. Mistakes because someone likes one RDBMS or loves NoSQL based DBs for everything, even rigid financial transactions [1], can be extremely costly.

      I see this in internal enterprise apps. The SolarWinds people, versus the Splunk people, versus the SCOM guys, versus the Xymon guys. The people who loved one PC maker's servers coming into another shop that uses another PC maker's stuff, and then tossing the existing PC maker's servers for no real reason, other than lack of knowledge about them.

      Once an IT person realizes that all solutions suck, it is finding what sucks the least, that is someone who actually worth having on board.

      [1]: MarkLogic is the only exception that I know of where a NoSQL DB is ACID compliant.

    3. Re:That's by DiSKiLLeR · · Score: 1

      I agree, this is a serious problem. I see it all the time. But not EVERYONE is like this.

      I have a deep understanding of Windows technologies (since NT4, AD, Exchange 2003 through 2008, SQL Server and more) as well as Linux (been using it since 1995), FreeBSD (1993), OpenBSD, Solaris, and more and most opensource technologies like MySQL, Sendmail, Postfix, Exim, Courier, Dovecot, Bind, etc. Hell, even stuff like Oracle.

      I also have a deep understanding of programming (C, C++, C#, Java, Perl, PHP, JavaScript, Assembly, and more) and other IT technologies such as Storage (EMC, IBM, NetApp and newer technologies like Tintri), Virtualization (arguably, mostly only VMware ESX), and Networking (Cisco and Juniper switches and routers, all the way up to the really big stuff like MX960s.)

      I like to use the right technology for the job. Even though I _prefer_ Linux or Unix based solutions, I will use the right tool for the job. Sometimes FreeBSD or Solaris is better (such as when ZFS is concerned.) Sometimes Windows is the better solution (granted, not often. Mostly just as AD for windows desktops.)

      Yeah. We exist. We're called Senior Systems Engineers and Systems Architects. There might be a short supply of us, though. My skills got me a visa and I now live in the SF Bay Area because my employer spent over a year looking for a local and couldn't find one that was any fucking good.

      --
      You can tell how powerful someone is by the magnitude of the crime they can commit and be able to get away with.
    4. Re:That's by BosstonesOwn · · Score: 1

      Ironically... Im the guy that fixes this type of stuff.

      When I go into most shops I call out the trends immediately... Im a fan of Dell servers, cheap, run well and are reliable.. But admittedly, I have seen some cases where the lenovo and hp options were a better choice and were chosen...

      I have gone in and ripped out Oracle.. when mysql was more then enough and they had no issues... they also had in house talent for mysql and were spending uselessly.

      Im happy to be where I am but.. admittedly I want to just co back to being a consultant... There seems to be a lack of good ones out there right now.

      --
      This package Does Not Contain a Winner
    5. Re:That's by Anonymous Coward · · Score: 0

      Hey DiSKiLLeR is an lying POS H1-B Visa holder...

      Anyone who's been in IT for any length of time can tell you his list of experience is completely over stated, or in fact a complete lie

    6. Re:That's by Tablizer · · Score: 2

      I've tried to "slide away" from Microsoft solutions over the years, but the bottom line is that Microsoft-related work pays the bills. When the bottom fell out of the IT market after the dot-com bubble popped, Microsoft shops kept me afloat when pickin's were slim.

      Maybe that's the selfish point of view, but I have a family and bills. I don't know exactly why, but MS work just "pays". Some say it's comparable to being in a boy-band: no dignity, but you get a decent check.

    7. Re:That's by Anonymous Coward · · Score: 0

      "all solutions suck, it is finding what sucks the least" - man isn't that the truth. That simple fact sours me on a large chunk of the software industry :P

    8. Re: That's by leedrake2530 · · Score: 2

      Specializes in does not mean we ignore other solutions. It means when we encounter an issue outside our area of expertise we collaborate with experts in those technologies. Or we refer them out if we are not able to contribute meaningfully.

    9. Re:That's by jalet · · Score: 1

      Go back to mom's basement please.

      --
      Votez ecolo : Chiez dans l'urne !
    10. Re:That's by NotDrWho · · Score: 1

      Did you come to Slashdot today with anything substantive or useful to say, or just to let us all know that you hate MS?

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    11. Re:That's by NotDrWho · · Score: 1

      Same here. One of my biggest gripes in IT is the "for someone with a hammer, everything is a nail" philosophy. For example, a MCSE wants to toss everything on a MS solution.

      The exact same criticism could be turned on an open source fanatic. For them, every solution HAS to be open source (or at least non-proprietary).

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    12. Re:That's by Anonymous Coward · · Score: 0

      MS pays because it's run by businesses who understand that goods and services cost money. Open source doesn't pay because it's run by smug hippies who think everything should be free. When I was in IT, I wouldn't even take a call from someone running desktop Linux. The only open source calls I would take were from businesses running Unix servers or Apache webservers.

      The hippies were easy to dispose of, actually. I would just tell them that there was an upfront $100 charge for me to even come out to look at their computer. That would send them off crying into their Che Guevara t-shirts.

    13. Re:That's by pnutjam · · Score: 1

      I'm a sysadmin / network admin who has traditionally made my living in a windows environment. At the size of companies I worked for LInux networking and system monitoring tools just made way more sense then anything in the MS ecosystem. I started learning Linux because I like to learn and I can deploy it to test without cumbersome licensing issues. I also dabble in system forensics and Linux is an obvious choice for your toolkit.

      WIthin the past couple years I've transition to mostly LInux system administration. I find there are less jobs out there, but the wheat to chaff ratio is much better. Employers respect and pay Linux Admins better, and the average Linux Admin is, IMHO, more likely to have the love of learning and curiosity that differentiate between the good and the great.
      I still get dragged into the windows world, because I understand both and I have alot of citrix experience, which translates into a pretty good understanding of AD and GPO.
      I only see Linux growing, more companies seem to be embracing a mixed environment, even if they start with unpatched virtual appliances.

    14. Re: That's by pnutjam · · Score: 1

      Theoretically, it means when we encounter an issue outside our area of expertise we collaborate with experts in those technologies.

      FTFY

    15. Re:That's by leedrake2530 · · Score: 1

      FYI we actively embrace open source in our solutions. Our main web content management platform is the open source version of DotNetNuke (www.dnnsoftware.com) and we use lots of open source solutions when crafting a solution for a client. "Microsoft centric" means that is where our expertise lies. It doesn't mean that's all we sell or support. Our goal is to build a stable solution at a reasonable price for a client, and if an open source solution makes sense we'll go that way.

    16. Re:That's by Coren22 · · Score: 1

      Wanna know how I can tell you don't know Exchange? There was never an Exchange 2008, you either mean 2007 or 2010. Perhaps that was why the company had to hire a H1B, because they couldn't find anyone with Exchange 2008 experience.

      I have 15 years in IT and could do most of what you have there. I am not an especially good programmer, but programming shouldn't be needed in systems work.

      I do agree though, it is the difference between a systems administrator and a systems engineer/architect, and perhaps that is the issue, understanding that there is a difference.

      --
      APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
    17. Re:That's by Anonymous Coward · · Score: 0

      Would you rather pay someone to install something outside their area of expertise? People will naturally specialise in order to not become a jack-of-all-trades-and-master-of-none. A paying client wants the service provider to have expertise in their field hence the need to specialise else you have too much to cover - we are talking about small shop providers here not IBM or EDS - and your depth of knowledge will be too slight. For a small business (customer) it is also easiest to provide solutions they will be familiar with hence the use of Windows. It may not be the best tool for the job, it may not even be the least sucky, but it is likely the best solution given the client's IT knowledge, systems familiarity and access to other support/maintenance vendors.
      As a small service provider you will recommend that which you know and you are unlikely to offer "oh no, you shouldn't get me to do that as Linux is far more suitable and you should use my competitor". What the client ends up with is a function of what they request and who they approach.

    18. Re:That's by Anonymous Coward · · Score: 0

      There as times as a consultant where for the best needs of you and your customer, you send them down the road, rather than trying to use your excellent experience in one thing, to try to nail down a screw or try to cut a plank of wood with a drill.

  2. Step one by Ol+Olsoc · · Score: 1

    Move to India.

    --
    The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
  3. Erm..a by Anonymous Coward · · Score: 0

    I being dumb? Where is the effin' article?

  4. Re: Erm.. by Anonymous Coward · · Score: 0

    Apologies for the extraneous A.

  5. Am I missing something? by Anonymous Coward · · Score: 0

    Where's the link for the mf video?

    1. Re:Am I missing something? by leedrake2530 · · Score: 1

      I had to go to the desktop version on my phone to see the actual video. Another Slashdot win I guess :) Video appears to be hidden if you are in the mobile version of the site.

  6. Step two by Anonymous Coward · · Score: 0

    Make sure your web host can handle traffic before linking it on Slashdot.

  7. Erm..a by Anonymous Coward · · Score: 0

    I think you need to go over to slashdot deals and purchase it ;)

  8. Autoplay video is bad, and you STILL get it wrong! by wonkey_monkey · · Score: 5, Insightful

    What the hell is wrong with you, Slashdot? Autoplaying video is incredibly annoying and an insult to your readers (who, by and large, know how to play a video they want to watch).

    But, what's worse, you've managed to make it even more annoying than normal!

    1. The video doesn't autoplay right away - there's a delay of several seconds, plenty of time for someone to scroll down to the comments only to then have the video start playing out of view.
    2. With Flashblock on, the audio plays, but there's no video (mind you, in this case the video is largely superfluous)
    3. There's no volume control

    --
    systemd is Roko's Basilisk.
  9. Just kill yourself now... by Anonymous Coward · · Score: 0

    An 11 minute video with Roblimo and some tard selling Microsoft shit? No thanks...

    1. Re:Just kill yourself now... by Anonymous Coward · · Score: 0

      Truer words were never spoken.

  10. WHY to start a business by DoofusOfDeath · · Score: 1

    One thing I'm very curious about is how his personal income has changed over time, relative to what he'd be earning as a typical IT employee. Owning a business has a lot of pros and cons, but for most of us, the extra hours are partly justified by higher income.

    1. Re:WHY to start a business by Anonymous Coward · · Score: 0

      Net income

      huge difference in tax exposure as a proprietor and freelance contractor vs a salaried employee.

    2. Re:WHY to start a business by Okian+Warrior · · Score: 4, Interesting

      To become financially independent.

      Several people have looked into how people become wealthy, and they divide the methods into 5 broad categories.

      The categories(*) change depending on how you slice them, but generally the two which are accessible to everyone are: 1) Commission sales, and 2) Starting a business.

      Commission sales is for things like IBM mainframes, telecom equipment or movie scripts, where a single sale can net you 6-digit commissions. A number of people have become independent doing this.

      If you can run a successful business you get to build up equity using tax breaks and the productivity of your employees. It's not unusual for someone to start a business and sell it 10 years later for several million dollars. (BTW: The most common business that makes one a millionaire (as of the several years ago, may have changed) is dry cleaning.)

      Being financially independent requires roughly $1 million in assets. If you put that in a long-term equity fund, account 1% for management fees and maybe 2.5% for inflation, then you can retire and pull out $50,000 a year for the rest of your life.

      Different people have different needs (family, kids, lifestyle), and different levels of economic risk (I'll need $2 million, just to be safe), but that's the basic formula: Figure out how much you need for a comfortable lifestyle, figure out how much you need in the bank to supply that lifestyle, start a business and build up equity until you get that much, then retire.

      More info: 80% of first businesses fail, but only 40% of *second* businesses fail, and the percentage goes down fast after that. Having business experience is apparently a strong predictor of future success.

      (*) Other categories are: Inheriting it (3/4 of the buillionaires), marrying it, *other* (really rare things like winning the lottery or finding an unknown Botticelli in the attic), and so on.

    3. Re:WHY to start a business by DoofusOfDeath · · Score: 1

      Net income

      huge difference in tax exposure as a proprietor and freelance contractor vs a salaried employee.

      Yeah, good point. I actually meant his effective salary, with all those differences factored in. I.e., is his income similar to what he'd get making $70k/year as an employee, or $200k/year as an employee?

      (I realize his ownership in the business's assets is a factor as well, but I'm talking about money he can actually afford to pull out as for personal income in a typical year.)

    4. Re: WHY to start a business by leedrake2530 · · Score: 2

      Doofus, my income has varied widely. It depends on many factors. Believe me there were years when I wondered if I wouldn't have been better off working for someone else. Other years i have been extremely happy with my paycheck. Income isn't everything of course. Day to day happiness counts for more than the bottom line.

    5. Re: WHY to start a business by leedrake2530 · · Score: 1

      Excellent summary.

    6. Re:WHY to start a business by Livius · · Score: 1

      More info: 80% of first businesses fail, but only 40% of *second* businesses fail

      Maybe half of them didn't want to go through the experience again.

    7. Re:WHY to start a business by Anonymous Coward · · Score: 0

      If you can run a successful business you get to build up equity using tax breaks and the productivity of your employees.

      When you put it that way it sounds terrible. A rephrase:

      If you can run a successful business you get to build up equity by not paying your fair share and taking advantage of people that depend on you.

      Not to say that it was your intended meaning at all, just that the practical results are identical.

    8. Re:WHY to start a business by Anonymous Coward · · Score: 0

      > you can retire and pull out $50,000 a year for the rest of your life.

      Yikes. I can barely live on $50k a year now!

      I'll retire in maybe 20 years... when $50k will have the spending power of $30k today... :(

    9. Re:WHY to start a business by microTodd · · Score: 1

      50k a year isn't too bad if you were debt-free. Imagine no rent, car payment, mortgage, student loan bills, etc.

      So part of the path to wealth/early retirement? Get rid of your debt! (easier said than done, I know)

      --
      "You cannot find out which view is the right one by science in the ordinary sense." - C.S. Lewis on Intelligent Design
    10. Re:WHY to start a business by leedrake2530 · · Score: 1

      I think the 40% of second businesses has already weeded out those that just gave up. It's 40% of those that DID try again :)

    11. Re:WHY to start a business by leedrake2530 · · Score: 1

      A) If you treat your employees fairly from a wage point of view how is that "taking advantage of them".
      B) Remember that a business owner bears pretty much ALL the risk. They are personally responsible for a number of things. Most small business owners are on the hook for their line of credit for instance. This means that if the business owes the bank $60k - they PERSONALLY owe the bank $60k if the business can't pay it. Owners are always responsible for salaries and taxes - no matter what their personal financial situation is they're personally responsible.
      C) There are lots of expenses outside the payment of salary in owning a business including rent, leases, capital investment etc. Many of those require a personal guarantee for a small business.

      In short - equity built up is a sum of many things, and is far from a guaranteed outcome of owning a business. Risk on the other hand is definitely guaranteed the moment you start your first corporation. Are there evil business owners that take advantage of their employees to rake in huge profits? Yep. Are there good business owners out there who would risk their own money and livelihood to keep a company going, including taking no salary or putting themselves at risk? Yep. You might be surprised how many fall into the latter category rather than the former.

    12. Re:WHY to start a business by leedrake2530 · · Score: 1

      Oh also - if the business fails - we can't collect unemployment. Which doesn't mean we don't PAY unemployment. On the other hand we are personally responsible for any salaries owed employees. And Taxes. etc.

    13. Re:WHY to start a business by Anonymous Coward · · Score: 0

      Being financially independent requires roughly $1 million in assets. If you put that in a long-term equity fund, account 1% for management fees and maybe 2.5% for inflation, then you can retire and pull out $50,000 a year for the rest of your life.

      Full stop. You do not know what you are talking about. The above statement is not only wrong but so wrong as to be laughable.

  11. Re:Autoplay video is bad, and you STILL get it wro by Anonymous Coward · · Score: 0

    Yeah, I think this is my last slashdot visit. This places just makes me feel dirty now. Off to reddit boys....

  12. On my small SaaS business... by njvack · · Score: 2

    For what it's worth, I've been co-owner of a small software-as-a-service business focused on libraries for the last five years. A week or so ago, I wrote a blog post on our experience and financial situation.

    Basic summary: by keeping costs low and our expectations reasonable, we're thriving even without a huge revenue stream.

  13. other vids by Anonymous Coward · · Score: 1

    This video is pretty good, but his other video is rock solid:
    http://youtu.be/SBioHq3aPsQ

    1. Re: other vids by Anonymous Coward · · Score: 0

      Lol my favorite song...

  14. Never trust the advice of rich people by Anonymous Coward · · Score: 1

    The last thing they want is more competition, despite all their claims of worshiping the free market and risk.

    1. Re:Never trust the advice of rich people by leedrake2530 · · Score: 2

      I would count myself solidly middle class. Not Rich.

    2. Re:Never trust the advice of rich people by Anonymous Coward · · Score: 0

      Middle class? So you have job security, employer backed health insurance, paid vacation, unemployment insurance plan, and an employer that pays into your pension fund?

      Fascinating, do tell.

      My parents had that 40 years ago with a high school degree. You're a lower class serf with delusions.

    3. Re:Never trust the advice of rich people by leedrake2530 · · Score: 1

      Well yes. I have all those things. So do my employees.

    4. Re:Never trust the advice of rich people by leedrake2530 · · Score: 1

      By the way - just fyi - I'm the guy in the video you're addressing as a "rich person" :)

  15. Re:Autoplay video is bad, and you STILL get it wro by Mordok-DestroyerOfWo · · Score: 4, Insightful

    I thought I was losing my mind, there was an odd voice telling me to start an IT company coming from behind my testing server. Thankfully it turned out to /. with an autoplay video. Seriously, this is not a Geocities site. Act like professionals make disable the fscking autoplay!

    --
    "Never let your sense of morals prevent you from doing what is right" - Salvor Hardin
  16. 11 minutes and not a single insight. by morto · · Score: 1

    Just common sense stuff like you have to be passionate about your business, when you have your own business sometimes you have to work more than when you were an employee, focusing on solutions for the client and the list of truisms goes on and on ... It was a waste of time for me.

    --
    "Think globally, act locally".
    1. Re:11 minutes and not a single insight. by Lunix+Nutcase · · Score: 1

      Have you never watched one of these videos before? They are always completely vacuous.

    2. Re:11 minutes and not a single insight. by Anonymous Coward · · Score: 1

      That is because it isn't magic. Find a niche and just do it.

    3. Re:11 minutes and not a single insight. by Anonymous Coward · · Score: 0

      Have you never watched one of these videos before? They are always completely vacuous.

      And nothing that couldn't have been done just as well with a written article.

    4. Re:11 minutes and not a single insight. by leedrake2530 · · Score: 1

      To be fair there is a transcript if you don't want to watch the video....

  17. Block player.ooyala.com by Anonymous Coward · · Score: 0

    Was the only solution I could come up with other than not looking at posts with video in them.

  18. Where'e video? by Anonymous Coward · · Score: 0

    Can't see the link to it?!

  19. OS-Cubed is a Microsoft Cloud Authorized reseller by Anonymous Coward · · Score: 0

    I guess patch tuesday is just around the corner :)

  20. Am I missing something? by MMacFadden · · Score: 1

    I don't see a video at all.

  21. Re:Autoplay video is bad, and you STILL get it wro by Anonymous Coward · · Score: 0

    Is there a solution on our end, aside from avoiding the story altogether? This is horrible. Is there is rational, logical reason to be so annoying? Is it really that effective? I hope they don't delete the pause/stop button, but at this rate, I won't put it past them. It's a shame to see this place succumb to spam tactics such as this. Bad, bad...

  22. Re:What is this business 101 for retards? by Anonymous Coward · · Score: 0

    Mod up! Anyone selling a Microsoft solution is basically fucking you over to line their own pockets.

  23. Acronym by LMariachi · · Score: 1

    Our company name is OS-Cubed, which stands for Optimal Stable Secure Solutions.

    That's not how exponents work...

    1. Re:Acronym by Anonymous Coward · · Score: 0

      Stable and secure? This guy knows he's selling Microsoft products right?

    2. Re:Acronym by leedrake2530 · · Score: 1

      Lol excellent point my friend..... Math was never my strong point, thus the book keeping comment.

    3. Re:Acronym by Anonymous Coward · · Score: 1

      It's exactly how exponents work. OS would be O times S, yes? Exponentiation takes priority over multiplication, yes? So OS cubed means S is cubed, then multiplied by O, yes?

      You're thinking (OS)-cubed.

    4. Re:Acronym by leedrake2530 · · Score: 1

      Nah technically he's right. S cubed would be S times S time S :) Not 3 Ss.... :) We could write an "S"say about it.... :)

    5. Re:Acronym by Anonymous Coward · · Score: 0

      SSS is three Ss, and that's S cubed. You're thinking S+S+S, which is 3S, but there's no plus signs in the english phrase.

  24. Re:Autoplay video is bad, and you STILL get it wro by Tablizer · · Score: 1

    What the hell is wrong with you, Slashdot? Autoplaying video is incredibly annoying...

    Agreed! Anti-kudos for that one. Mad panic for the volume slider.

  25. Missing the point by mcrbids · · Score: 1

    I'm a lifelong business owner, and this guy is calling it exactly, giving good advice, and all you can do is complain about autoplay? Just be decent and don't complain about cubicle life, OK?

    --
    I have no problem with your religion until you decide it's reason to deprive others of the truth.
    1. Re:Missing the point by Anonymous Coward · · Score: 0

      No one here cares about what a Microtard is hawking.

    2. Re:Missing the point by leedrake2530 · · Score: 1

      Lol whatever. I hate autoplay as much as the next guy. Not going to bother responding to the Microsoft trolling. To each their own. Thanks for the positive feedback.

  26. Cash Flow & Pipelines by Gumbercules!! · · Score: 1

    If you want to start your own company, then one thing matters: cashflow.

    I ran a side business from about 2003 until 2010 when I decided to quit my job and go into full time business, where I still am today.

    All the good ideas in the world don't matter for anything if you don't have income actually coming in, day by day. You can have the biggest profit on the balance sheet but if you don't have actual cash in the bank, you're dead. So you find yourself perpetually chasing debtors, chasing money and doing work you would rather not be doing because it pays immediately.

    My advice is - start young, don't wait. When you're like me and you have kids in private school, cars, mortgages (and now staff), you can't have bad months. When you're 23 you can afford to eat noodles or whatever if it slows down, so start young when you're not already tied up with responsibilities. Make sure you have a couple of stable (couple - not one) customers, who can pay you some money each month, so you're ok and you can survive one of them going quite for a while - because they will.

    Don't base your business on a dream of money coming in once you make something unless you have deep pockets (i.e. a start up) or no costs.
    Don't base your business on one customer because a) as far as your government is concerned (at least most of them) that's not a business - that's being a consultant, which is not the same thing for taxation and b) if they hit a rough patch, you're screwed.
    Diversify your customer base as fast as you can. Don't assume that a project on the horizon is going to happen because it my fall apart for reasons out of your control.
    Minimise your outgoings, always. This goes for IT, rent and every other cost.

    The bad thing about running a business is that you're running a business. If you love development or cloud or IT or whatever, if you start a business doing it, you wind up running a business. You have to chase leads, find money, do your taxes, pay staff, hire staff. Manage them when they're lazy or pissed off or bored or whatever. Pretty soon, you're not doing development or whatever - you're going to some shitty "business leaders breakfast" to hear a bunch of PHB bang on about their latest buzzwords because of the off chance you might get a meeting, which will allow you the privilege of spending 4 days making a detailed proposal (for free) to then give to someone so they can never bother getting back to you to even say "no thanks".

    All that said, I wouldn't leave it for anything.

    1. Re:Cash Flow & Pipelines by leedrake2530 · · Score: 1

      Great summary and yes - cash flow is king. Getting projects on retainer or prepaid or closely controlling your receivables is the key to that. Developing rock-solid contracts (not just handshakes) is also best. Planning for the inevitable too - inevitably at some point a client or customer will go bankrupt, or fail to make a payment due to THEIR cash flow or challenge an outcome. For you to survive that you need a reserve you can draw on. All the times my company has been at highest "risk" has been due to a client not being able to make their financial commitment - sometimes despite all the above being in place.

      And yes - you won't be doing the techy stuff you currently enjoy as much (or at all) if you're running a business. If you think that running a business means you get to do techy stuff all the time you're not going to be in business long. For all my employees our goal is to maximize billable hours. For MY profile it's to minimize billable hours - the more billable hours I'm doing the less I'm concentrating on working ON the business rather than IN the business. Techys who start businesses and don't make the transition from techy to business owner are probably the most common reason for failed tech startups.

      One key factor not mentioned is knowing the metrics of what makes your business tick, and then monitoring those metrics. So for instance the key metrics for my business are:
        * Billable hours
        * Recurring billing contracts
        * Ongoing fixed and recurring costs
        * Cash flow
        * Sales Pipeline
        * Project flow

      We've placed various measurements around these so that if something is seriously out of whack we know about it before it becomes a problem, we then concentrate on addressing the specific need backing the metric. Metrics work in both directions. If my billable hours are low that means we probably have a sales or project flow issue. If they're too high it means we need to look at hiring.

    2. Re:Cash Flow & Pipelines by Gumbercules!! · · Score: 1

      Good summary. Anyone looking at going to work for themselves should read this.

      Fortunately, while I'm the techy, my business partner is not. He's a business consultant (which I did as a living for a short while too but I'm still fully aware that I'm too focused on the tech). I'm lucky to work with him as he is 100% about the business, so it keeps me in check.

  27. Re:Autoplay video is bad, and you STILL get it wro by John+Bokma · · Score: 1

    What!? And then Dice misses all those comments ;-)

  28. Re:Autoplay video is bad, and you STILL get it wro by porjo · · Score: 1

    4. Clicking on the video picture does not pause the video (unlike just about every other video player out there!)

  29. yesscript set to no on slashdot by blogagog · · Score: 1

    It's a pain in the butt, but /. clearly can't be trusted with javascript. So it's disabled now on 263 computers when they attempt to view slashdot. In fairness, only one or two of those computers visit here, probably. It's a work environment, so most of them are checking out Gawker and Drudge :(.

  30. Re:Autoplay video is bad, and you STILL get it wro by dbIII · · Score: 1

    Just be like me and don't keep your flash player or browser up to date - thus avoiding both "beta" and videos like that.

  31. So where is the video link? by Anonymous Coward · · Score: 0

    So where is the video link?

  32. Actually, the first step ... by Rambo+Tribble · · Score: 1

    ... to starting a small business is accepting a vow of poverty.

  33. Re:Autoplay video is bad, and you STILL get it wro by mjm1231 · · Score: 1

    Fucking Hell. I didn't even know the video was playing until I got to this comment and scrolled up. (Headphones plugged in, but not on my head.) Evil. If you are a slashdot editor, you are now complicit in working for evil.

    --
    Ideology: A tool used primarily to avoid the bother of thinking.
  34. Autoplay! by hoggoth · · Score: 1

    I get the bad feeling that Lee Drake has a problem interrupting people when they are doing other things, has social insensitivity, and has problems with appropriate behavior in an office setting. Oh wait, sorry that's just Slashdot.

    --
    - For the complete works of Shakespeare: cat /dev/random (may take some time)
  35. Wow. Autoplaying ad = very bad by neminem · · Score: 1

    Seriously, slashdot? I open the page and it automatically starts playing a video advertisement with no way to kill it except to close the whole page. You know better than that.

  36. I must be an idiot, but.... by Anonymous Coward · · Score: 0

    Where the heck is the video?

    All I see is a link to Lee Drake's facebook page, OS Cubed home page and wikipedia about rust belt.

  37. Re:Autoplay video is bad, and you STILL get it wro by Anonymous Coward · · Score: 0

    I have a different problem. I want to watch the video, but cannot for the life of me find it.

    Tried it in all leading browsers including latest versions of IE, Chrome, Firefox and even Opera. What happened to a link or a player in the browser?

  38. Re:Autoplay video is bad, and you STILL get it wro by Somegeek · · Score: 1

    I concur. I don't come here often anymore, and now that I have, an ad starts playing that I can't stop without closing the webpage? FFS. That's it for me. Somegeek out.

    --
    And as you tread the halls of sanity, You feel so glad to be, Unable to go beyond. I have a message, From another time..