Starting an IT consultancy / security company

Hello everyone,

I'm looking for some feedback on a goal of mine, which is to finally stop relying on my company for a pay check and to get out there and build up something myself. I've not really thought this post through before starting to write it, so apologies if it turns out to be just some huge ramble.

Some background information:

Currently live in Japan. My Japanese is conversational, but I wouldn't say good enough for doing sales presentations in Japanese...

I'm currently working as a programmer (C++, Unix based), but have my CCNA and some other (relatively small) experience working in networking and with security based technologies. I'm not a complete muppet, but I'm definitely not the most experienced either.

I'm young. Really young actually for someone who wants to start something like this, at only 23.

Unfortunately, I really struggle with the daily grind that is going to work each day - and even though I have what I consider a fantastic job (very interesting, great prospects, and I saved more than $30,000 in the last year) I'm just the kind of person that *really* wants independence, and I'm willing to work for it.

This means that from my own perspective, the correct steps for me to do would probably be:

1) Wait and improve my Japanese to business level
2) Wait for the recession to start to turn around
3) Get more experience in the industry
4) Keep saving money, so that I'm in a better position to be able to get other investors, hire people, get an office etc.

That's a lot of waiting, and to be honest I don't want to be doing that. Then again I've got to be smart about a decision as this one, so I'm thinking that after investing more time researching the markets and finding out more for what needs to be done, I could be in a good position to start making things happening in a year or two.

So, is there anyone on this board who has made the steps to start his/her own company? If so, I would love to hear more about how it came about, your experience, and the problems that came up. Mistakes made, things you would have done differently if you had another opportunity, that kind of thing.

If possible I'd also be happy to generate some sort of discussion based on the best way going forward achieving these goals. Should I be holding back for a long time or going for it soon? How to go about writing business plans for this kind of thing? Techniques for evaluating the price something should cost? Meeting people who may be willing to invest? The types of people who should be hired? What work I can do on my own prior to this kind of thing?

Okay...._I've definitely turned this into a structureless ramble here (which probably best displays whats going through my head these days). I guess really I'm just looking for as much feedback as possible, what you guys think about these things, and for as much reading material as I can find (I'm browsing around the web for input, but any other external links you guys can come up with would probably be very helpful).

Anyway, sorry for wasting so much of your time reading this - but I'm very hopeful it can generate some discussion

Thanks very much!

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Comments

learningtofly22

I'll have to keep this short, though I could go on for days on this topic. I started a real estate investment business in 2004 when I was 26, and have had it since. When you're starting out, building your reputation is one of the most important things, not only so that clients will want your service, but also so that banks will have the faith in you(you're going to need them at some point, whether you like it or not). Most aspiring entrepreneurs moonlight on the side for a bit; in your case, you could start doing some security consulting work on the side of your normal job. Start a different bank account for the moonlighting, it will be invaluable. This will serve several purposes:

* It will give you experience in the field without you having to risk it all.
* You will begin building up your necessary reputation.
* Having a separate checking account just for the side work will rapidly bring you up to speed on how to run a business. It's not everything, of course, but seeing the money come in, and watching it go out for expenses will give you a mindset of a businessman. You will begin to form strategies to make your business stronger. As a student going into my last semester of a business degree, I can tell you that my experience doing this with my own business is more valuable than my schooling. I would liken my experience to being the "how" business is done, where my schooling is the "what" business is. Don't get me wrong, schooling in business is a big step up for any entrepreneur, but not absolutely necessary(think Bill Gates and Richard Branson). I'll contradict myself in a few moments, so hang on.....

In addition to the business side, work on the soft skills you've identified, like learning Japanese. Take classes, get a tutor, whatever it takes, and make sure your grammar is up to speed! No one will take you seriously if you respond to a Request for Proposal(RFP) with broken Japanese. This is crucial.

One thing that many people don't think about is the culture of the people they're working with. I was one of them until I took a class for my degree that outlined the importance of knowing the different cultures you work with. For example, Japanese people are very proud, and prefer to bow rather than shake hands (as I'm sure you know). They also are more likely to cover up a problem rather than admit wrongdoing, due to their high sense of honor. I had this very situation happen to one of my guys while working in New Zealand. The owner of a Japanese satellite company had told my engineer the wrong coordinates to the satellite, and he could not get the dish locked on for days b/c of this wrong information.

Time to contradict myself. A business degree is not necessary to be a successful entrepreneur, just like certifications are not necessary to be successful in the IT world. Having a degree will, however, greatly raise your chances of success, just as having certs will. Think of it as insurance. Risk management is a term that you will be getting intimately familiar with as you go further and further down the path to financial independence.

Ok, promised I'd keep it short. That should get you started.

EDIT: As far as waiting goes, DON'T. Successful business people are not reactive to the world around them, they are proactive and seek out the opportunity in every situation.

"In the middle of difficulty lies opportunity." - Albert Einstein

JDMurray

One of our moderators, keatron, started his own security consulting business. It would be worth reading over his posts on the subject, including:

http://www.techexams.net/forums/viewtopic.php?t=8496#46959
http://www.techexams.net/forums/viewtopic.php?t=22941
http://www.techexams.net/forums/viewtopic.php?t=10801#60790
http://www.techexams.net/forums/viewtopic.php?t=35103#230233

dynamik

Nice links JD. I was about to search for those.

I guess I'll just throw out some Japanese resources then.

JDMurray

Tesl wrote:

2) Wait for the recession to start to turn around

Don't wait for this too long. The liberal Dems here in the USA scream that we are in a recession, but it's the economies of Europe and Japan that are really in a recession. It's partly to do with the $US being down and energy (oil) price so high. Japan sees financial good times when the USA is economically strong, and I don't think that's going to happen under either of the "Dems" we have running for president.

Ahriakin

I'd have to disagree. The country has the largest deficit in history, jobs are rapidly decreasing (outsourcing hasn't helped) so the tax base is shrinking, our debt to income ratio is insanely bad and the companies that have been spoonfeeding debt to the consumer are being bailed out with money from the consumer (as tax dollars) which don't really exist it's transferred to national debt instead, the war is a huge drain on an already taxed economy, the education system has gotten to the point that Americans are lagging behind other developed (and even many 2nd world) countries which doesn't bode well for having the skills to dig our way out of this mess. Europe for better or worse is highly dependant on US trade and investment from American companies so yes there is a strong ripple effect, but the epicenter is here. While I do believe we will dig ourselves out of this mess eventually there's nothing Democratic or Republican about the facts. Look around you and the evidence is on the streets that yes we are in recession - people are travelling much less, stores and restaurants are relatively empty etc. and when capitalists have often touted the consumer as the corner stone of the economy (That this was acceptable is one of the craziest premises I've ever heard since if you mostly consume and don't produce you are running head first into deficit) and consumption is drastically and quickly down what else can happen? My folks and friends back home are feeling the crunch now but nowhere near as much as it is changing things here.

LarryDaMan

Ahriakin wrote:

I'd have to disagree. The country has the largest deficit in history, jobs are rapidly decreasing (outsourcing hasn't helped) so the tax base is shrinking, our debt to income ratio is insanely bad and the companies that have been spoonfeeding debt to the consumer are being bailed out with money from the consumer (as tax dollars) which don't really exist it's transferred to national debt instead, the war is a huge drain on an already taxed economy, the education system has gotten to the point that Americans are lagging behind other developed (and even many 2nd world) countries which doesn't bode well for having the skills to dig our way out of this mess. Europe for better or worse is highly dependant on US trade and investment from American companies so yes there is a strong ripple effect, but the epicenter is here. While I do believe we will dig ourselves out of this mess eventually there's nothing Democratic or Republican about the facts. Look around you and the evidence is on the streets that yes we are in recession - people are travelling much less, stores and restaurants are relatively empty etc. and when capitalists have often touted the consumer as the corner stone of the economy (That this was acceptable is one of the craziest premises I've ever heard since if you mostly consume and don't produce you are running head first into deficit) and consumption is drastically and quickly down what else can happen? My folks and friends back home are feeling the crunch now but nowhere near as much as it is changing things here.

+1

Very well put.

empc4000xl

Ahriakin wrote:

While I do believe we will dig ourselves out of this mess eventually there's nothing Democratic or Republican about the facts.

couldnt have said it better myself.

Mishra

I want to start my own business as well. However I think you need to come up with a way to do something that no one else has done before to make it easier on you. You need to capture a new client base, not try to steal or create a different one.

I have no idea how this would all work in Japan though.

Good luck.

Tesl

I don't really want this thread to generate into a topic about American politics, all I will say is that I would expect the economy to do better under the Dems than the GOP (as its always done historically)

The current GOP is a joke, and that it's even possible for them to be re-elected after the last 8 years is why the US is becoming more and more of a laughing stock (and why the majority of foreigners truly believe Americans are all stupid people).

A politics debate is one I'm happy to have ...... but please create a new thread for it if you want to continue

learningtofly22 wrote:

EDIT: As far as waiting goes, DON'T. Successful business people are not reactive to the world around them, they are proactive and seek out the opportunity in every situation.

Thanks for your post, definitely an interesting perspective. I quoted the bit above because I think this is right, and I'm aware that there isn't too much more to do other than just going out there and doing it!!

Mishra wrote:

I want to start my own business as well. However I think you need to come up with a way to do something that no one else has done before to make it easier on you. You need to capture a new client base, not try to steal or create a different one.

I have no idea how this would all work in Japan though.

Good luck.

Obviously, being able to differentiate one from the competition can make a huge difference. Trust me when I say I've spent plenty of time trying to think up the next Ebay or Facebook, but unfortunately it just isn't that easy to whip something up like that

I think for me, Just getting something rolling and making progress is the most important thing at this time

じゃあ、頑張ります！

dynamik

Tesl wrote:

learningtofly22 wrote:

EDIT: As far as waiting goes, DON'T. Successful business people are not reactive to the world around them, they are proactive and seek out the opportunity in every situation.

Thanks for your post, definitely an interesting perspective. I quoted the bit above because I think this is right, and I'm aware that there isn't too much more to do other than just going out there and doing it!!

There IS a lot more to it than going out and doing it. You should research how to write a business plan and do that first. It'll give you a blueprint to follow as you grow your business and will come in handy when trying to get things like loans. You want to line up accountants, lawyers, and other professionals you might need. You need to get contracts written up and purchase insurance. I think he meant you should start planning and setting this all up, not rush out and get an office immediately. You will make things significantly more difficult on yourself if you're not prepared and organized.

binari

Tesl wrote:

I don't really want this thread to generate into a topic about American politics, all I will say is that I would expect the economy to do better under the Dems than the GOP (as its always done historically)

The current GOP is a joke, and that it's even possible for them to be re-elected after the last 8 years is why the US is becoming more and more of a laughing stock (and why the majority of foreigners truly believe Americans are all stupid people).

Yeah the econmy was better under clinton, but how much of that had to do with the internet boom, of which he had no hand in?

And you've asked the "majority of foreigners" that question?

It is natural for people in other countries to believe that thier country is better than another. as far as the last 8 years, the sept 11th ordeal cost the US and huge amount of money, now the war has been a major drain on the economy also.

As far as the republicans being reelected, I hate to break it to you, but GW is not running for reelection.

learningtofly22

dynamik wrote:

Tesl wrote:

learningtofly22 wrote:

EDIT: As far as waiting goes, DON'T. Successful business people are not reactive to the world around them, they are proactive and seek out the opportunity in every situation.

Thanks for your post, definitely an interesting perspective. I quoted the bit above because I think this is right, and I'm aware that there isn't too much more to do other than just going out there and doing it!!

There IS a lot more to it than going out and doing it. You should research how to write a business plan and do that first. It'll give you a blueprint to follow as you grow your business and will come in handy when trying to get things like loans. You want to line up accountants, lawyers, and other professionals you might need. You need to get contracts written up and purchase insurance. I think he meant you should start planning and setting this all up, not rush out and get an office immediately. You will make things significantly more difficult on yourself if you're not prepared and organized.

That is exactly what I meant. I'm emphasizing the fact that people that wait for the conditions beyond their control to settle into a favorable condition are the ones that get left behind by the people that go for it. HOWEVER, you have to have your conditions that you can control squared away first, i.e. a business plan, finance, etc. Like I said, start out with work on the side, and work your way up from there.

I'd like to recommend reading "Losing My Virginity" by Richard Branson, he started out small and worked up to a multi-billion dollar corporation spanning the music, airline, and international space travel industries. Now he's on the "green" bandwagon, off on another crazy Brit adventure.

Tesl

binari wrote:

As far as the republicans being reelected, I hate to break it to you, but GW is not running for reelection.

Please start another thread for this....

Though, I hate to break it to you, but John McCain IS A Republican.

learningtofly22 wrote:

dynamik wrote:

There IS a lot more to it than going out and doing it. You should research how to write a business plan and do that first. It'll give you a blueprint to follow as you grow your business and will come in handy when trying to get things like loans. You want to line up accountants, lawyers, and other professionals you might need. You need to get contracts written up and purchase insurance. I think he meant you should start planning and setting this all up, not rush out and get an office immediately. You will make things significantly more difficult on yourself if you're not prepared and organized.

That is exactly what I meant. I'm emphasizing the fact that people that wait for the conditions beyond their control to settle into a favorable condition are the ones that get left behind by the people that go for it. HOWEVER, you have to have your conditions that you can control squared away first, i.e. a business plan, finance, etc. Like I said, start out with work on the side, and work your way up from there.

I'd like to recommend reading "Losing My Virginity" by Richard Branson, he started out small and worked up to a multi-billion dollar corporation spanning the music, airline, and international space travel industries. Now he's on the "green" bandwagon, off on another crazy Brit adventure.

Perhaps my post should have been better worded, but I was referring to finally getting started wokrking on the plans, and researching into things.

I've not read that book, but I'm plenty aware of everything Richard Brandon has achieved. I'll try to find it

Thanks for your help everyone!

websponge

Nice to see people at your age can get good jobs and save that much, I also would love to set up my company, but have no money at all...

I have kids , so that doesnt help