Business 101 And The Three Year Big Picture Game Plan
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Original Post
Many of you may not know this but, the general rule of small business start-ups goes like this:
Year One.
You will spend more money just setting up your new business than you will ever bring in. That's a fact. Materials, tools, advertising, fees, computers and office equipment will put you in deep in the red for this entire period. You will invest your very soul in Year One... hundreds of hours of your time just getting the business off the ground. Not just 9 to 5 hours like your old job... Hell, you'll be up night and weekends too.... oh and ALL of your money too. There's nothing on Earth that compare with the depth of poverty one comes to know in a Biblical kind of way with New Biz/Year One.
New clothes? Movies? Vacation? What's that? Forget about all of the stuff you once enjoyed.
You may make some sales, you may make many sales, but ALL of your earnings will go directly back into your business.
Nobody out there knows you're alive. It's your soul mission during Year One to let people know that you are in fact alive and out there in Cyber-space.
You will eat a Helluva lot of Ramen in Year One.... years later, you will not ever want to eat Ramen ever again. Ever.
If you are a gardener, look at the first year like this:
You've just tilled a huge grassy field and are breaking up the clods by hand, you're tilling lime and composted manure into the virgin soil. After the blisters break, they turn to calluses and your hands no longer scream as you hoe. Duct-tape is a miracle. Keep hoeing.
Some of you will plant the first seeds in this first year, but many of you will not make it to harvest. Many small businesses fail within the first year
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Year Two. Seeds are planted. Sprouts are happening. Everything and everyone wants a piece of your garden. The Crows/IRS want a piece of "all that money you earned last year."
Money? What money? You did keep records right? Gawd, I hope so.
Forget about that Aruba vacation because you're spending all of your time with your fine ass planted in an office chair... working. A L L T H E T I M E.
Remember your old 9 to 5 where you would play solitaire on the computer at work when the stupid boss was away? Well, your new boss in this gig won't let that crap happen. Ever. Your time is too valuable. (A little part of you misses that.... Now, Snap Out Of It and get back to work!)
There are soooo many weeds in your garden!!! Every day they come up all over again! Your hands are going to look like Hell forever, ya know.
Plants are growing. You are promoting to beat the damn band. Flowers are setting fruit. You've had a couple of repeat customers. You leave business cards everywhere and by now friends are sick to death with your ethusiastic tirades about your awesome business.
At the edge of the woods, woodchucks, rabbits, tomato worms and deer are out there waiting and watching all that hard work of yours with lust in their beady little eyes. They like green beans too and they want in on the action. You may have to shoot them and their kin. *alas*
Keep records. Hire a book-keeper. Stop spending money on supplies if you already have lots of stock.
There's still a ton of work to be done before harvest.... which is cool because you are now a real Wiz with macaroni products.
There are officially seven twelve hour days in your work week. Your parents think you are possessed because you work at home in your jammies... Why can't they visit for the whole day???? Aaarrgh..
One morning you burst into your kid's bedroom like a madwoman, giving him holy Hell for missing the damned bus again... and it's Saturday.
Ooooops. Sorry, dude.
If you're one of the lucky ones, Year 2 is a sweet Break-even.
A break-even is a HUGE Victory, believe me. Your shop is no longer hemorrhaging money from every orifice. Thank God.
If you've hit Year Two as a break-even..... Congrats! Because this is the killer year for 90 percent of all small business. 9 out of 10 wither on the vine and die.
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Year Three.
For me Year Three is one month old. This is where I am right now.
*takes a cleaver to the very first big juicy watermelon sitting on the counter and splits it neatly into two even halves grinning like a fool.*
Ya know what?
Fruit from the store never tastes as succulent and sweet as the kind you grow in your own garden and fed with your own blood, sweat and tears.
I'll keep you posted as things progress. Please wish me luck.
Thanks a million to all of you who helped me to get where I am at this very moment. I'm humbled and grateful and very very surprised.
Please don't mind my ugly hands.
Want a slice of melon?
I really do love you guys.
Veronica
Posted at 11:00 pm Feb 13, 2010 EST
Responses
surrenderdorothy says:
Remember your old 9 to 5 where you would play solitaire on the computer at work when the stupid boss was away? Well, your new boss in this gig won't let that crap happen. Ever.
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freakin' hilarious, sadly true!
congrats girl, I'm in year 3 too :)
Posted at 11:11 pm Feb 13, 2010 EST
Thanks! Congrats to you too!
I'm really excited and just a little bit scared too.
Posted at 11:18 pm Feb 13, 2010 EST
I'm in year 2! Thanks for the look into the past and the future!
Posted at 11:20 pm Feb 13, 2010 EST
Loved reading this! Congrats to you! oh and pass me a piece of watermelon!
Posted at 11:24 pm Feb 13, 2010 EST
Wife thinks I died and went to woodshop hell - year 1 actually about 6 months into it.
You nailed it.
Posted at 11:31 pm Feb 13, 2010 EST
Your shop is lovely, WolfCreek. Tell your wife I said so.
Posted at 11:37 pm Feb 13, 2010 EST
Okay.... I'm off to bed. My boss expects me back at my desk at dawn.... she's a cruel mistress.
Posted at 11:48 pm Feb 13, 2010 EST