“Failing to plan is planning to fail.” – Allen Lakein
My heart sank…I was sick to my stomach…Buried in debt…
Fear consumed me…will I lose my house?…will I lose my car?…
In part 2 I shared how I jumped into the fire too soon on my first, official business venture and got burned. So here is what happened.
Yes, we did get a bit swept up in the idea of starting a business and the daydreams of success. Living a rock star life; the money, the stuff, the vacations, you name it. We weren’t a bunch of complete idiots, we did know we would have to do some work, but we would be the bosses so it would be easier, right?
And, we did do some minor research; it was just the bare necessities to legally start a business. It really doesn’t take much to start one. Just fill out some forms and pay some fees, you don’t even need to be that specific.
So that is what we did; we launched a clothing company in the action sports arena. Little did we know when we started how competitive the industry was at the time. If we were only a bit more thorough in our research we might have gained an inkling and thought otherwise
Of course, after we were official we started to figure out what we would sell, where we would sell, how much we would sell it for. All you marketing people out there, is this starting to sounds familiar?. That’s right! The Four P’s; one of the most basic concepts in marketing.
Never mind all that, we will just build a better mousetrap so it will sell no matter what. Everyone will want what we have to offer! Oh yeah, we didn’t know what we were offering yet.
Okay, so I am exaggerating a bit. The bottom line is we should have planned better and made some firm decisions as owners that were clear. Some specific market and product research which have really helped us. What exactly will we sell? Who will we sell to? What do these people like? How do they dress? How much do they spend? All the basics questions that are answered in a formal business plan.
I am sure this is starting to sound familiar as well. Good old business planning. You really don’t even need to create a formal business plan in all cases, but cover the basics. This is necessary to see if your concept is even viable. Can you start and run a business successfully? Do some planning and forecasting.
This is not an article on how to plan a business so I am not going into the dirty little details (contact me directly if you want to learn more or need consulting/coaching). What I want to make abundantly clear is to you need to jump in but don’t jump in blindly.
As I am sure you realize, we jumped in to our clothing company pretty blind. And I promised I would let you know how it turned out. Well, you read the opening sequence, right? A couple years in I was the main operator as the others moved on and I just kept it going. I figured it was way too far along; we had tons of inventory, an expensive website, and MASSIVE DEBT! I was way in over my head but knew I could get out only if???.
It lasted over five years and never made a profit. I had to pay for it with my own, or borrowed money because the revenue didn’t cover enough. I was in a heap of debt I couldn’t pay so what to get out of debt. I screwed up my perfect credit and had a garage full of product I couldn’t sell.
But you know what? I now have a head full of knowledge! Even running a failing business is still running a business. I learned so much from the experience and all the mistakes that I have become better and stronger and carry those lessons, and scars, with me today more than seventeen years later.
So what I mean when I say jump in the fire is prepare yourself a bit first for whatever it is you’re planning; a business, going back to school, a vacation, or whatever, and then jump on in. Do not let your fear paralyze you, but don’t be stupid.
We only have this life so jump in the fire and LIVE!
What came next?…Why I was the main operator?…Find out next…
Kevin W
Owner-Operator
@LEAP272
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