Business Entry

[Smitty37]

In most new business attempts, the entrepreneur never leaves their day job, or they create a back-up plan, or they have a job lined up in case the new business fails. In these cases, failure IS an option. Couple that with this; if you're not totally committed to your business, your chances for success will be greatly diminished.

We often read that the number one cause of start up business failures is poor management. The US SBA says it is lack of experience, which can be read as the same thing.

My own assessment after starting 4 moderately successful businesses is that it boils down to - "No Business Plan".

How many times to we seen here - I want to start a business. How should I price my pens? There is a heck of a lot more to starting a business than pricing pens.

Those who are successful, and you know who you are, what would you advise a new comer starting up to do - before beginning to sell pens.

My first item would be Write a business plan. There are a lot of places where you can get help with this. SCORE if there is a chapter nearby can be a big help with this.

 

[jd99]

Very true, but I'm the exception I still work a full time job (too close to retirement to stop now), and I have two sucessful businesses, and the wife has one also.

But before we went into these ventures we made out our plans, and investigated, so we knew what we were getting into.

I might add the pens, and wood crafts are just a side line for me to sell at craft shows with the wife, although it has taken off better then I expected it is still a low priority venture and the others come first.

 

[OldGrumpy]

We owned a small business from 1987 until 2003 when the wife decided she was tired of working and I decided I was tired of working 60 hours a week. Most people have little idea of how much work goes into operating a small business. Smitty you are 100% on target about having business plan. The preparation makes you aware of how short you are on being prepared.

 

[sbell111]

Perhaps this thread belongs in the 'Marketing & Shows' section of the forum, since it has absolutely nothing to do with the act of penturning.

 

[Smitty37]

Perhaps this thread belongs in the 'Marketing & Shows' section of the forum, since it has absolutely nothing to do with the act of penturning.

Tell the mods - if they agree they can move it. I can't. I'd be more inclined to think casual conversation since it isn't really about Marketing either.

 

[Chuck Key]

If you like working 8 hours per day - get a job.

If you like to work 24 hours per day- start a small business.

 

[ashaw]

I agree Business Plan number one. Also the plan needs to updated at least once a year. Decide which market you what to be in. (See business plan)
Market can be
retail,
wholesale
or both.
What venue are you going to operate out of.
Store Font.
Web Store
(Both)
Shows only (Arts & Craft, Pen Show)
How are you going to market your business. A lot of marketing can be done for free.

How much money do you need to survive on. How much money does your business need to continue to grow.

All of this is in the business plan. Remember even if this not go to a bank for financial reasons it is your guide to manage the business.

I use to be it took 3 years before your started to see a profit and it is more like 6 - 7 years.

I work an average of 15 - 18 hours a day. I would do over again in a heart beat.
Also the driving force about have your own business is not getting rich. It's about a passion of what you are doing. If you do it right the money follows.

Most importantly do not give up. Failure is OK because it is telling you what you are doing wrong. Just do not make the same mistake over and over again.

 

[Smitty37]

Also the driving force about have your own business is not getting rich. It's about a passion of what you are doing. If you do it right the money follows.

You got it there- some sources cite the leading cause of new business failure is going into business for the wrong reason.

 

[Displaced Canadian]

When doing research and everything looks too good to be true, it is. You missed something. Image is important. You need something repaired in your house and you see a beat up station wagon with Bob's house repair painted freehand with a brush in the side driven by a guy with a dirty T shirt who has not shaved in a week and a Family handyman van that is clean with a clean and uniformed driver. Which one would you call?

 

[ed4copies]

When doing research and everything looks too good to be true, it is. You missed something. Image is important. You need something repaired in your house and you see a beat up station wagon with Bob's house repair painted freehand with a brush in the side driven by a guy with a dirty T shirt who has not shaved in a week and a Family handyman van that is clean with a clean and uniformed driver. Which one would you call?

This would fall under "marketing" in your business plan.

Prior comments might be "financing".

Somewhere you should delineate "management and tasks"

A business plan can quickly become a book.

The simple structure: "I want to buy a product from a vendor at $x, then sell that product to a purchaser at 5? times $x".

In a pen business, you will "add value" in your turning. "I want to be compensated at $y per hour".

You will have to have someone sell the product, "I will pay the salesman $z (usually a percentage of SELLING price).

And, if you read and listen to the "experts", they will tell you "pay yourself first!!" Unfortunately both your BANK and UNCLE SAM disagree!!

Owning a business is, first and foremost a study in self-control. There is no one TELLING you to do anything at any particular time. So, it is easy to spend all day in the house, watching television or playing computer games (structured or unstructured). THAT will make your business fail.

EVEN IF you have the best written business plan in the world, laying on the table.

Success starts with concerted effort, otherwise known as a four-letter word: WORK.

When you have been in business long enough, you earn the right to work only half days!!!!

9AM to 9PM.

 

[jd99]

In the words of Maynard G. Krebs "WORK!!!"

Yep you don't like working for a boss, start your own business and have thousands of Boss's. :wink:

 

[Smitty37]

I perceive the purpose of a business plan is to help you make you're hard WORK profitable. I agree 100% that the easiest way to fail is to not work. But that is also true when you work for someone else...they will usually resent paying you for doing nothing.

 

[ed4copies]

If you start watching TV or computer playing at work, SOMEONE will "redirect your efforts" (unless you own the place). OR you will soon be fired.

When you work for yourself, business FAILURE is the equivalent of being fired. Except you can't collect unemployment.

 

[ed4copies]

I'm not really debating here, Smitty.

My problem with a business plan is simple: I have read and even watched others write BRILLIANT plans, then have their business fail.

I have seen a couple real "stupid s#ips" succeed. The car repair shop next door to my business is an example. The immigrant running it could not speak well, did not understand business, he was "doomed to fail"-----except he did a great job of fixing cars. No plan----just hard work and success.

 

[Smitty37]

I'm not really debating here, Smitty.

My problem with a business plan is simple: I have read and even watched others write BRILLIANT plans, then have their business fail.

I have seen a couple real "stupid s#ips" succeed. The car repair shop next door to my business is an example. The immigrant running it could not speak well, did not understand business, he was "doomed to fail"-----except he did a great job of fixing cars. No plan----just hard work and success.

It is a plan - writing it is just part 1. I will say this - writing my first business plan caused me to realize that a business that I was considering was not for me.