Almost doing business!

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Caroline
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Almost doing business!

Post by Caroline » Wed Aug 13, 2003 8:24 am

I have received my ALV registration (not kaupparekisteri) for my fine art and design business, which will officially start operation the first of September of this year. I also found a beautiful licensed bakery space to sublet, where I can produced products on a temporary (tilapäinen) basis until I hopefully save up enough capital to branch out on my own. A visit to the city tax office confirmed that the profits from the bakery part of the business will be added with the art and design part, and reported on the same tax forms, so it makes everything easier. There is only space to mention 1 major work area on the tax license registration, but according to the tax advisor it doesn't matter....if the profits from the food part surpass the fine art and design part, I can simply change the nature of the business, and maybe at that point even register for the kaupparekisteri.

One issue though: I aim to find as many retail sales channels as possible- both in Oulu and throughout Finland in the coming years. I am very talented on the creative side- production, advertising, product development, etc., but I am not very good in sales. I was thinking of advertising for another "naisyrittäjä" who has marketing know-how, to become a partner (avoin yhtiö). I don't know if it is so common here to advertise for business partners, but it's a bit like advertising for musical band members, or for folks to help set up a charity or community project.....each person does what they do best. I think that a partner would also be beneficial because my spoken Finnish isn't so advanced yet that I can negotiate easily without asking the customer to repeat several times and ask what they meant. Of course the profits would be split, but it would work out even, because I could spend more time in production and development, and my partner could devote the time to promoting the merchandise.

On the other hand, some people believe that a small-time entrepreneur has to learn to do everything on their own; even the aspects of the business that they don't like and/or are not very skilled at.

What do you think- which route sounds best?


Former expat in Finland, now living in New Hampshire USA.

Remembah whea ya pahked ya cah!

Almost doing business!

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Tom and Jerry

Post by Tom and Jerry » Wed Aug 13, 2003 8:35 am

I don't know what is best, but I can tell you about structures that are common. Avoin yhtiö is typically used in families, seldom solely for business purposes. So, it is a theoretical structure you suggest.

The other structure used quite frequently on the countryside is an osuuskunta with 5 - 12 members. That works better in practice.
Typically one is producing something (like bread, pottery, rugs) and others are selling it.

A membership of SYKL (suomen yrittäjien keskus liitto) will give you contacts who constantly can inform you on all kind of practical matters.

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Hank W.
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Post by Hank W. » Wed Aug 13, 2003 11:57 am

Yeah, avoin yhtiö has something in the form that makes it a bit dangerous regarding who can sign the debt and who is liable... like I order pizza and you pay...

But anyhow, congratulations! I think you are showing copious amounts of "sisu".

One place to advertise is either at the yrityskeskus, this kind of venture ads also are published in kauppalehti and even local papers job ads.
Cheers, Hank W.
sitting here like a lemon looking for a gin.

Guest

Post by Guest » Wed Aug 13, 2003 12:24 pm

Don't let them lure you into paying a sh*tload of money for a (full-color) ad with picture in the yellow pages.
It's NOT worth the money. If my information is correct (in Helsinki area) you have to pay EUR 695 for a 30x90mm full color ad.

You can get better and cheaper places to advertise...

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DAL
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Re: Almost doing business!

Post by DAL » Thu Aug 14, 2003 5:38 am

Caroline wrote: On the other hand, some people believe that a small-time entrepreneur has to learn to do everything on their own; even the aspects of the business that they don't like and/or are not very skilled at.

What do you think- which route sounds best?
In my opinion if you have the ability to find an individual that you can trust and has the ability to excel in areas of the business model that you disdain or are not very skilled at you should utilize that person. The problem is trying to find a person that has as much passion for your business idea as you do and also has an entrepreneurial drive to succeed.

Your goal should be to earn an economic profit from your venture and you can spend the time and energy trying to become proficient at sales and risk an economic loss or find a salesperson to complement your operations management flair. Good Luck

Go forth and make money….so the Finnish government can take it :D
Dustin

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Caroline
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Post by Caroline » Thu Aug 14, 2003 9:20 am

Thanks for the advice everyone!


An osuuskunta, according to my understanding, translates roughly to "cooperative" in English, and is generally associated with non-profit enterprises, a rare form of entrepreneurship here. In the business course, I learned that the goal of an osuuskunta is not really to make a profit, but rather to bring together people with varied skills to help each other make a profit. I've heard of and visited one osuuskunta here in Oulu. The members were really sweet, but it was located in a quiet part of town not likely to attract many customers, and the work environment was a mess. In a way it reminded me of a stereotypical bohemian campsite (make-shift this and that, clutter everywhere) I couldn't really see how anybody could work efficiently and move forward in business in a badly organized space. I guess I sort of got scared that if I started an osuuskunta, it would inevitably end up like that....you know, first impressions are lasting impressions...

I'll think twice about the avoin yhtiö....it is best for relatives and people who trust each other; prob. not recommended for a "mail-order business partner".


I definitely agree about the yellow pages being a waste of money. Also, it is not likely to help any in my kind of business.

I will find out more about SYKL.
Former expat in Finland, now living in New Hampshire USA.

Remembah whea ya pahked ya cah!

Caroline
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Post by Caroline » Thu Aug 14, 2003 9:23 am

it is best for relatives and people who trust each other; prob. not recommended for a "mail-order business partner".




Let me rephrase that. I meant....it sounds like it is best for individuals who have known each other and possibly worked together for a long time. Of course, even if I advertise for a partner, it has to be someone I get good vibes from.
Former expat in Finland, now living in New Hampshire USA.

Remembah whea ya pahked ya cah!

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jvrijn
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Post by jvrijn » Thu Aug 14, 2003 10:29 am

Definitely find a partner. Learning the stuff you are not good at, don't like to do is a long and expensive process that will divert your attention from what you are really good at - your core competence. In the mean time you have bills to pay today.

As for the trust remark, there are different levels of trust. Even when going into to business with family, you should make sure you are well protected as an inidividual.

/Jeroen

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Post by Guest » Thu Aug 14, 2003 11:27 am

Maybe going into business with family or close friends is not such a good idea.
There will always be differences of opinions and there might be a chance that those will escalate at some point.

When that happens it's better if you're not dealing with family or close friends.
You don't want to ruin your family ties or a good friendship.

An vague acquaintance or stranger might turn into a good friend when you work with him or her everyday, but then the basis of your relationship will be completely different.


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