Let’s open a thread here about entrepreneurship, as I haven’t found one yet.
General discussion about entrepreneurship and for those interested in it. Whether you are already an entrepreneur or just thinking about it.
Experiences, questions, and tips! How
In 2001, I found myself thinking more and more often that I was doing work I hated, and the compensation for it was disproportionately poor. As a young man, it felt sad when my days were filled with either agonizing over when the workday would start again or when it would finally end.
At the end of 2001, I resigned from my job and decided to become a private entrepreneur, developing a remotely commercial-sounding hobby around my passion for delving into music history. Publishing non-fiction books and such. The idea was that this would be a temporary stage, from which I would then move on to developing some salaried work, so I started with as little bureaucracy as possible. Hating to beg for subsidies, I didn’t even apply for a start-up grant, so I started with my back against the wall. Initially, of course, I developed various “odd jobs” alongside the main idea, so that some pennies would appear in my account. Not many appeared, and 2004 was the first year I had a faint feeling that I could actually make a living from this.
At the end of 2006, I was having coffee with a musician friend and listening to him complain about how slow album releases were due to record companies’ scheduling plans. I spontaneously stated that I would start a record company, and he would be its first artist. Things got started. The only small hindrance was that I could just as well have announced that I was founding a space technology company, as far as actual understanding of the industry was concerned. And to be clear, I have no understanding of space technology. So, for the next few days and weeks, I tried to figure out the basics. One of the first things was to get record distribution in order. A friend of mine listed different options for me in order of preference. I called the number of the first distribution company and explained my business. A somewhat annoyed voice asked, “Well, what are you releasing now?” After I mentioned the name of a niche artist, the voice brightened, the person who answered the call said they were a fan of this music and asked me to come to the office to sign a contract. “That works for us.”
Because I’m interested in music history, I wanted to start reissuing old records. I contacted various record companies, and the general attitude was “don’t call us, we won’t call you either.” However, one important partnership was formed, and new and old music appeared in the catalog at a reasonable pace. At best, some titles sold over a thousand copies, most hundreds, some dozens. So, a large part of them generated a net loss.
However, 2008 brought a stroke of luck: a release that was stuck on the official record sales chart for over a year. With that, I decided to fully concentrate on that industry, and there was a rush to find tax deductions… meaning more releases. Gradually, those contacts also started to work, I licensed releases, and from 2009 onwards, the situation turned around so that larger record companies asked me to compile collections for them.
The pleasant tailwind continued until 2011. Then, record sales to department stores practically stopped dead, which was a bad financial blow. The new music I released didn’t have much commercial value, for example, in digital sales or radio play. In licensed releases, I didn’t own any rights other than the production of their CD pressings.
I decided to start building the business on a new foundation and began acquiring the rights to catalogs of smaller record companies. From 2012 to 2018, I put all my spare money into this and bought thousands of songs worth of quality, mediocrity, and trash. That spare money came from CD sales at a declining rate, but fortunately, editorial work for releases was still commissioned, and for a few years, I also got extra income from working as a background editor for TV productions related to music industry history.
When I started that catalog project, the general sentiment among colleagues was very widely that the recording industry was dead. And quite a few companies collapsed or simply ceased operations around that time. One colleague barely managed to phrase his words more politely than to say that it was completely crazy. At some music industry event, Jari Sarasvuo is said to have remarked, “Boys, your business is going under.” However, it turned out that the music industry did not die, and instead, Sarasvuo’s best-known company went into corporate restructuring.
At a deliberately slowing pace, I have made the catalogs I bought available, and today I largely live off the copyright income they generate (radio and TV royalties, digital income, licensing for e.g., advertisements and films, etc.). The release of physical records ceased years ago. Sometimes I miss the time when I waited for new CD releases to come out of pressing like a child waits for Christmas, and when visiting Anttila, I would check to make sure my releases were prominently displayed on the shelves.
Although commercializing my hobby has diminished the joy of the hobby, I try to remember to be happy about how privileged I have been in terms of the meaningfulness of my work.
Entrepreneurship is fun!
You certainly have an inspiring and good story, thank you for it! It’s really nice to read things like this. I’ve also had a similar thought for a long time, that work doesn’t really have enough meaning when I’m doing it for someone else. Now, alongside my work, I’ve been building various projects but haven’t hit a goldmine yet. Someday I can still transition to developing my company full-time 
I founded my first company, if I recall correctly, when I was 15-16 years old. I was already working, having started at McDonald’s when I was 15. Founding is perhaps the wrong word, as I took over a company my father had established that was dormant. My first tasks involved making posters and stickers for the then-booming skateboarding scene. It didn’t generate much actual sales, and the meager income went towards covering expenses.
I overheard the McDonald’s regional manager contemplating the acquisition of terrace furniture, and I suggested that I could sell them furniture that wouldn’t need to be chained up at night. Since I was a kid, I had enjoyed making all sorts of things with my hands. We had a hobby room in the basement with hand tools, a jointer-planer, and a circular saw. McDonald’s did indeed take me up on my offer. From there, I started figuring out how to make log furniture. The family owned a small forest plot from which the trees were felled, debarked, and sawn. Eventually, terrace furniture went to five McDonald’s locations, until the wise leaders decided that log-made terrace furniture was not an ecologically sustainable choice. The log furniture was replaced with plastic composite, a truly ecological act.
During this time, I went to high school and moved to Venezuela for a year. There, I continued my favorite hobby of weightlifting and started thinking about what product related to my hobby I could bring to Finland. Venezuela’s offerings at the time largely mirrored those of the US. Upon returning to Finland, I registered the following products with the trademark registry: MetRx - protein drink, Otomix - training gear, and Gatorade - sports drink.
Unfortunately for me, MetRx was aware enough to notice the registration and intervene. The same naturally happened with Gatorade when Coca-Cola realized what was happening. Ultimately, the only successful registration was Otomix. The internet didn’t exist then, and I sold shoes and clothes on the pages of the only publication available at the time. There was a self-made and laid-out advertisement in a bodybuilding magazine. Let’s just say, politely, that there were more than two pixels. The business was almost sensible: I sold almost a couple of pairs of shoes a day, and expenses were covered.
Around the same time, a new bulking product, maltodextrin, emerged – or rather, the product existed, but trainers realized its potential then. A call to Finnish Sugar asking if they could bag maltodextrin for me. It turned out they had a few cubic meters pre-bagged with product descriptions, a test batch, they said. I bought the entire batch and distributed it to health food stores across Finland – the supplement sales channel at the time. This was now easier as I had a driver’s license.
Next, I founded a company specializing in security services with a few friends. Around the same time, I got into university to study. Otomix was left behind, and my shifts at McDonald’s decreased; 10 years of hamburgers was enough.
The security company was eventually run for over ten years, and I eventually became the sole owner. We bought a catering restaurant for my wife to run and moved away from the capital region. At this point, I had already started laying the foundation for a carpentry factory. It was the work that would have been the right one for me, but partly due to environmental pressure and reasonably good academic success, I ‘over-educated’ myself, so to speak. The security company and carpentry work operated simultaneously for many years. I can’t even count the work hours, but not a single week in a year was under 70 hours.
The security company was sold and is now a very successful business. Almost immediately after, the restaurant was put up for sale. The restaurant was eventually run for 7 years. I was hardly involved in its daily operations during that entire time.
Now I could fully concentrate on carpentry work, and initially, I worked for years without employees. In 2008, the first employees joined. Around the same time, I began collaborating with Finland’s largest hardwood wholesaler. We developed the idea of serving carpentry businesses with solid wood products. A significant shift occurred in the Finnish carpentry industry as the focus of products moved increasingly away from solid wood products. The machinery is completely different, as is the employees’ expertise. I calculated that solid wood products would still be needed, so I invested in machinery and personnel. This proved to be a good strategy. The use of solid wood has decreased, but it is still specified for almost all projects to some extent. Subcontracting is therefore the only sensible option for many businesses. Five years ago, the idea of selling the company and reducing work began to mature. So, negotiations began, and the sale of the first portion took place 3 years ago. The final sale is agreed for two years from now. I will remain between the buyer and the company, doing part-time consulting and sales, because one needs some work-like hobby to keep the mind active.
If you have bought a domestic solid wood table, for example, made of oak, there is a very high probability that its top or legs were made in our factory. The carpentry shop then finished it and performed the necessary machining. If you walk in a shopping center or a nursing home and notice wooden handrails, they were very likely made by our factory.
Entrepreneurship is fun, and for me, at least, it was the only right choice.
Looking back, it’s fun to think about the foolish ideas of youth. They reflect a childlike belief and completely inadequate research. However, I gained valuable lessons both in doing business and in the importance of the different stages of product development.
I made a thread a couple of years ago about entrepreneurship part-time, but at 22, I started as a security entrepreneur (part-time). So, I wrestled with drunks and listened to their chatter for about seven years. Sometimes I did personal protection. Most gigs came through another company, but my network expanded, and I ended up doing all sorts of things for all kinds of clients. However, I don’t consider it entrepreneurship because I never did any marketing. I negotiated invoicing with clients and sent invoices once a month.
Two years ago, I transitioned to being an HVAC entrepreneur. I had nothing but theoretical knowledge. Everything started from scratch. Complete idiocy, but I bravely moved forward. I bought a car, tools, and got a website. Now, two years later, things are running relatively well, considering this is a part-time job. I’ve made an incredible number of mistakes.
The biggest blunder was putting money into companies that seek visibility for businesses. For me, it was a terrible investment. Another common mistake was putting too much money into inventory and supplies. It would have been better to start with a small budget and make investments over time. The third mistake, which many new businesses fall into, is charging too little. They desperately seek work with a small margin. A small margin easily turns into a zero margin.
My tips for beginners: take advantage of the business services offered by the city. I got a lot of good tips. They even directly recommended accountants, and I could have gotten help with Google optimization for free.
It’s good to have a decent cash reserve. Marketing is expensive, and few get up to speed immediately.
Good relationships are important. You might need someone’s help, and someone might need yours. The best marketing is well-done work. Invest in customer service; people will remember.
Positive aspects: I don’t see any point in entrepreneurship if you don’t earn more than an employee. So, the ability to influence income is a plus. I myself am used to the structures and bureaucracy of a large organization. As a small entrepreneur, you have free rein. Better Christmas parties than other companies.
Negative aspects: constant stress and responsibility. You literally have to pay for your own mistakes. Rarely is there just the right amount of work. Usually, it’s either too much or too little.
A slightly more negative experience, and these shouldn’t have to happen on Finnish soil. The atmosphere is already biased enough against entrepreneurship.
My son is an entrepreneur and applied for a home loan for the first time. The amount to be paid for a right-of-occupancy apartment (asumisoikeusasunto) is €30,000, and 85% of this amount is accepted as collateral. The amount paid in grows tied to an index. So, the bank has virtually no risk. Despite having a regular income, the entrepreneur did not get a loan of €30,000, of which €4,500 would be unsecured. Not even with a down payment. The bank was OP Bank. The reason given was entrepreneurship. One has to turn to the parents’ pockets, but what about those young entrepreneurs whose parents don’t have these pockets? Luckily, there are other banks.
There are certainly quite significant differences between banks and even individual loan officers. I once applied for my first mortgage from Aktia. The officer gave me a real lecture on how my income and expense estimates were completely unrealistic and that no housing loan would be granted. A few months later, I walked into another bank with the same request; this time, I was lectured about why I wanted to buy the apartment with such a large down payment instead of taking out more debt and investing in the bank’s funds. But I got the mortgage with the specs I wanted and paid it off quickly. Four years later, I took out a loan from the same bank for a second apartment.
Over the years, I’ve taken out several housing loans, and even now, a few loans are running in the background as a reminder of the importance of generating income. I have personally taken out several loans where the income from the last confirmed tax assessment was quite pathetic, and then I explained with some interim accounting or similar for a few months how I’m making a better profit now. And I’ve been surprised that, after that depressing first experience, I haven’t encountered similar belittling regarding entrepreneurship in banks. Especially when buying that second apartment, I was conversely surprised by how the bank didn’t seem interested in my income side at all, even though I had prepared for the negotiation at the branch with all sorts of paperwork and documents.
I have heard similar stories. I had problems with liability and legal expenses insurance. I received refusals from three companies because it’s a high-risk industry. There are different types of entrepreneurship and people have their own reasons for why they do it, but my own opinion on the matter is that you should earn at least 50% more as an entrepreneur than as an employee. Preferably double. A lot of work for which you don’t get paid, risks, and uncertainty about the future. Otherwise, I don’t see any point in the whole thing.
Is Finland a good country from an entrepreneur’s perspective? It’s hard to say since I don’t know how things work abroad, but as I understand it, you’re pretty much on your own if you end up on long-term sick leave, for example. I think the YEL (self-employed persons’ pension) reform is absurd. In the HVAC contracting sector, you notice how broke people are. I constantly have to extend payment terms, even when we are talking about very small sums. Online stores, with their zero-margin sales, have managed to ruin the margins for contractors. I have to offer lower-quality products if I want to win tenders. Far too little is left over from contracts; I don’t really understand how some are able to do it so cheaply.
Well, maybe I’m being too negative, but the construction industry has seen better days. Maybe the situation will still change; let’s hope so.
At what point do you send a payment reminder to the customer? I’m about to lose my mind; every third customer pays too late. Fortunately, I have a 30-day payment term for my own purchases; otherwise, it would be pretty shitty to pay thousands of euros in bills before the customer has paid. Luckily, I don’t do any big jobs, but I remember that on average there were about 50k in receivables at the end of the year when I was a sales manager at an HVAC company with a turnover of about 3 million. For a small entrepreneur, a bill for a few thousand would already be a lot of money, and even if it went to collection, you might not get the money or it takes a long time.
So far I’ve gotten the money; at worst it’s taken 1.5 months. I always wait a week before asking if the invoice has arrived. It’s not a big task to send reminders, of course, but it’s frustrating.
My invoices have a two-week payment term, and after that, I send a reminder if the money hasn’t shown up. It varies a bit depending on the customer, but as a sole trader, I can’t afford to act as a bank for clients. Fortunately, in my 6+ years of entrepreneurship, very little money has gone unpaid. 
Okay, I also have 2 weeks and wait a week before sending a reminder. Usually, the money shows up in the account the day after the due date. These days you can never tell with people; I’ve encountered cases where there was never any intention to pay. I’ve learned to recognize those types. If they ask for a quote even for tiny jobs, try to haggle, and say “this is only a few minutes’ work,” it’s often better to pass. I’ve had two like this. One wanted a two-month payment period for a €130 invoice, and the other did pay but complained about how expensive it was, even though in reality, no one would have done it for less.