Ok, so when putting up your first company research is def the most important thing. I can’t even describe with words how important it is. Research takes time, so be patient.
To me it was important to secure the trademark first, so I spent some time initially doing research on trademark after doing a superficial research of the industry. The reason why was because I wanted a name that described what we do, not a name that was fancy or cool, and I wanted to be sure that I could use a great name… not a good name, or an ok name…a great name; also I had to have a great name to get noticed in my particular field. In the industry I will be operating in I noticed that many of my significant competitors had names that did not describe their service at all, so one of my competitive advantages is therefore the name. I will reveal both the name and the industry Im in later on in the process. Main reason why I’m not revealing it yet is simply because I don’t want you to think that this blog is directed at one particular industry. I’m trying to make this blog as useful as possible for whatever industry you are in.
The service that I will be offering is a ¨one time¨ service (a service that people normally only buy ones in their life) and statistics shows that people buying this type of service will turn to the Internet in many cases. Lets say I was a cup-cake baker. I would want to have the word ¨cup-cake¨ in my name so that it would be easier for potential clients to find me on the Internet. Makes sense; right?
I was really lucky with the trademark considering I did my own trademark research instead of hiring a lawyer, which most people do. Reason why I didn’t hire a lawyer was because I didn’t have the money to do so, and that was why I had to do the digging myself, therefore I wasn’t sure when I filed my application to the USPTO whether I would get it or not, or if I had filled in something wrong. After 3 months I got an emailing saying that it had been granted and the only thing I had to do was to respond to a ¨letter of action¨ as it is called. Good news turned into motivation, and I felt that nothing could stop me now. I mean…I did what a lawyer with years and years of education offer as a service…on my own! So of course I was bubbling of motivation and self esteem! Then…just days ago I found out something that wasn’t all so cool. I knew I had to change the approach, NOT give up! Although I have to say it did seem hopeless at first. Very hopeless. Most of all; time consuming.
I found out that to be able to open my own company in that particular industry in the US I would have to work 6000 hours under someone else to get a license. 6000 hours is about 3 years! Additionally I would have to apply for a license in each state I would operate in. This does not apply to all industries, but my industry. Lets say you are a movie director looking to work in the US; then you don’t have the same problem.
I wasn’t shocked… it does make sense, but obviously it is very different from country to country, and obviously I had overlooked something important during the research…something I should have spotted earlier in the process.
I used to work part time for a company in London, UK, and it was not a requirement to have a license to open your own company there, so it sort of didn’t cross my mind, although I remember thinking about it first month I was all caught up in researching trademark. I just ignored it.
As I am still doing research I don’t really look at this as a failure but a lesson to teach me how to change direction. I mean; I was prepared for almost whatever turns, but yeah…I have to admit it sort of ruined my original plan to be up and running international from January, but hey; At least I had a goal when to start, and that’s crucial. This is all I think about day and night. I’m not going to give up just because some rule, hell no! Either I would have to change the rule or go around the rule. That’s how my mind works.
It took me two days to find a solution to my problem or to straight up the failure as someone likes to call it. Well, not really straightening it up, cause now it’s going to take more time, but that’s all right. In my world however very few failures are actually failures. The word is overrated. Failure is just a tool to improve. The improve tool! That’s all.
I know some of you are thinking ¨My God this girl must be delusional! 3 years...6000 hours!¨ Why would I be so realistic? That word is also overrated to me.
Funny thing is, I have managed to brainwash myself with my business idea so that the only thing that I understand is the words KEEP GOING.
I must say that I do feel lucky because I actually found two ways around the rule, and not just one or non. I feel lucky yes, and not brilliant because I know that there are some industries where there are rules you can’t get around, and it takes some significant force to change it. It would really suck to have bought the trademark and then find out that you can’t even operate in the business. So be very careful with the research part. I’m not completely retarded. Its not like I didn’t know whether I would be able to go through with this or not. I have more than one territory checked. So in worst-case scenario, I at least had Europe, and then I could have moved on to the US after 6000 hours, anyway, there is an exception to that rule. I don’t know how interesting it is for you all to read about the exception I came across in my industry, cause you all operate in different industries. I just want you to know that there are normally ways around and that it is important to not give up just because you get a punch in the face, cause I’m sure Ill get more of the punches, and so will you.
Many doors will be closed, but then some will open. I swear this is true. I used to work with phone sales for Dun and Bradstreet while I was studying. I was selling credit ratings and you wont believe how many NO I got, but I knew that the only way to get a sale was to pick up that phone again and again until no became a yes, so all I’m trying to do now and all I want you guys to do is go get your yes! YES, YES, YES!
hehe, thats a serious lesson!
ReplyDeleteSo what is your solution to avoid those 6000 hours of experience? :)
will you operate from the State that doesnt require experience, or get licence in UK and go there?
tricky tricky :)
YO!
ReplyDeleteSolution:
A) Get in a partnership with another person with the experience required
B) Register a company in 3 of the other states where the license is not required and then outsource the employment; hire people in other states with the license to do the job.
C) Operate from UK, and outsource to employment agency in the US
It depends on nature of the business...
ReplyDeleteI guess it would be harder to make people pay larger sums of money ( $1000 - $2000 ) if you dont have a physical presence ...Specially when you are starting up...
People want to see a person who they are paying for, as you know- people buy people.
There are 1000's of companies that outsource accounting, customer support and other services in India, but I've never heard of outsourcing in US... If you would give some examples it would be easier to understand what do you mean by ' outsource to employment agency in US' ( i guess you cost would be enormous.. )
Yes, it depends on the nature of the business.
ReplyDeletePhysical presence is always a good thing, but today a lot of sales go through the Internet. People even buy clothes on the Internet.. clothes they haven't even tried!
About the outsourcing part:
Absolutely.
I have also highlighted in the blog article that different rules and different ways around the system applies depending on what industry you are in. This blog article was more of an encouragement for people starting up, but losing faith when more significant problems occurs.
In this case it is not about outsourcing an accountant, or the lawyer, or all those administrative sides; but outsourcing the actual operation hiring the baker, the singer, the actor or a spy from an employment agency instead of taking care of the training. Now, again... it depends on the industry. Im sure it is not that expensive to train a baker internal in the bakery shop and its not that much risk associated with hiring a baker if he screws up. If a baker makes bad cupcakes (unless poisoned), he will probably not be sued for it, but lets say we are talking about a spy/detective; there are so many risks associated in a spy operation and there are so many legislations to consider.
If I were to train my own people THAT WOULD BE EXPENSIVE and risky.
There are several of things you need to consider;
Volume. If you are just going to operate in a village then obviously it would be cheaper to just train the people yourself and then hire them (then again depends on the industry), but if you are thinking about operating in more than one city...maybe covering a whole country, then it might be cheaper with an employment agency to start off with... also that way you don't pay employment tax as far as I know when hiring from an employment agency. I might be wrong, but what Ive understood is that you pay the employment agency for their service as any other service, and then the employment agency pays the employment tax on behalf of their employers. Basically the people hired are not working for you and your company, but for the employment agency delivering you a service... so should be cheaper to do it this way.
BUT it depends on volume, territory and what industry for me to be able to recommend anything.
Thanks for the detailed answer.
ReplyDeleteI'm still not convinced...
when client pays money ( i mean 00'ds ) they want clarity and have many questions before they make decision
If you buy £50 jeans online you won't have many questions just buy it without trying, but you probably will not buy £700 dress online just like that....
Same for the services that cost hundreds or thousands, they might want to meet you in your office...to see who they are dealing with... And if you say that you employ someone from employment agency, client will have less confidence with your service...
Im not saying its wrong doing that, what want to tell that its hard to do it when you starting up...
If you have core people working with you, then you add others from employment agency to fill bits and pieces... but if people from EA are your main labour it can get complex to get credibility, unless you lie a lot... :)
First of all Thomas; you went to University with me. You know Im an excellent lier, and you should improve your lier-lier skills too! You are just too nice! JOKING.
ReplyDeleteI see what you mean, and in my case it is also about big sums. Not £50. As stated in the article it depends what industry you are in, but in my case all the people working for me needs a certificate which we guarantee, which the people from these agencies all have. The person that will be dealing with the costumer request is never the person who actually goes through with the operation in my business. So again it depends on what industry you are in.
Just so this is clear: Im not talking about a regular employment agency that have a database of different people from different industries. I think you are getting the wrong picture. I wouldn't have different people from an employment agency running my office and negotiate deals on behalf of the company, that would yes be very unprofessional and obviously scare the clients away.
Consider it more like this;The employment agency can guarantee me high quality professionals with the certificate and experience required. Some of them even train their employees. That way I don't have to think about doing background checks or train them. In other words; Im saving time, money and even some responsibility.
Every project is different. Its not a routine job, so the person who would be working for me is not excepted to do the exact same thing the next time they might work for me.
Its important that you understand this:
Im not saying that you are going to base your sale on doing all the payments through a Visa or Paypal solution. Im just saying that if you use that as a payment OPTION you can then set up a bank account in the US. The rule doesn't say anything about a minimum of clients having to use that payment method, its simply just to be able to get an account which is very practical in the US.
I don't know how many people that will be paying directly online. In the UK we have a split of 30/70, checks/Internet bank transfer, but we normally meet with the client.
:)