As I kinda explained in my year in review, that there were times I thought I would not have made it to this point. But some key things I want share are. Pros and Cons of starting a business. You think about these but you do not really see them till you experience it.
PROS
You are the BOSS
You get to chose and create your work environment.
If you arrive late one day no one notices or do they??
You have control to fix issues. (no longer waiting to hear how to proceed)
Your reward is what you put in it. (This is for those who do not feel appreciated at work)
You can adjust your schedule to fit you life. (if you need off you can adjust)
You get to chose who to hire and represent your business.
Your opportunities are endless(financial and life experience)
You get to see your hard work grow and pay off.
and last, Your DREAMS can come true!!!!!
With all those exciting things you also have cons and it is harder to see those until they happen. It is kind of like car or motorcycle accidents. You know the risk every time you are on the road but you never think it will really happen to me.
CONS
You are the BOSS (it is great most of the time but you can not run and hide if you want to. All actions have reaction and you deal directly with all decisions you make good and bad)
All operations are now your responsibility (you can hire and delegate but you still have to check and make sure everything is done examples marketing, accounting, day to day operations, inventory control and to many things to name)
When your business does well financially you do well, but when it has a dry period so do you.
You no longer have someone over you to hold you accountable or to motivate yourself
You invest lots of time and money (sometimes without seeing any of it in return)
You no longer get paid sick days and vacation days (at least until you become established)
Your liabilities increase
and last, There is no GUARANTEE that your business will SUCCEED!!!!
When I made my pros and cons list in my business plan it said this:
PROS
You are the BOSS (Thinking all positive)
Flexibility for my family
Location has lots of potential
Business has lots of potential
Nice size Parking Lot
Pre established Clientele
Room to expand
Lack of competition and need of local supplies
CONS
Heating with oil
Rebuilding customers
Regaining from current pricing
Uncertainty of income
Renting Vs Buying
It does not look anything like the year later report. I am not sharing this to discourage anyone from starting a business I am just sharing what I am learning and have learned. My first business had very little investment and very little risk. This one has much more potential but also the risk and investment were greater.
I want to leave you to think about these pros and cons and make some for yourself with your business in mind but remember.
"Have great hopes and dare to go all out for them. Have great dreams and dare to live them. Have tremendous expectations and believe in them." Norman Vincent Peale.
Thursday, September 27, 2012
Wednesday, September 26, 2012
A Year in Review Part 2
Some major things I want to share with anyone thinking about starting a business or freshly starting a business. These are things I have learned in the last year.
1. Never wait until you are financially sound to start a business. It is just like waiting to have kids, you will never have a point that is perfect to start a family or a business. Just Research It and Do It. If you want it bad enough you will find a way to make it happen. I thought I was financially ready but it turns out I was not and I had to find options and do with out things to continue. The important thing is that I did not give up.
2. When starting a business make sure you have had current health checkups and are in good over all health. I went a period of time without health care coverage and could not afford a trip to doctor with the uncertainty of my income from starting a business. Plus even more important the stress load is very intense until you set up steps to allow your business to operate with or without you. My new year resolution is to update all my health care check ups and eat healthy again which is something I have not kept up with.
3. Know your business inside and out. I have several business ideas that if I had more capital and resources I would pursue but for now they are still in the dream phase. If I wanted to pursue any of them, I would have to gain some more experience before they could be successful. Owning a business is not just about the day to day activities. There is much that goes on behind the scenes. I have often said that Downtown Chambersburg needs a small shoe store for those who walk to get to places and can not drive to the mall to shop for shoes. Shoes are a necessity since our feet would blister and become extremely cold during winter without them so it is a guaranteed income but it is more than just ordering shoes and selling them. You need licenses, an estimate of inventory, permits, marketing plan, displays, and much more. If you have never worked in a shoe store before how would you know the secrets of the trade. A college degree in business would be great but if you can not live your business no amount of education will help you. They do not offer degrees on life experiences. I am not saying not to go to college because I think it can teach you so much about the business end or marketing department but not everything we do is learned in school and many of our best lessons are learned the hard way in life. Many businesses fail with in the first year since people have a great idea but lack the knowledge for the behind the scenes work. Think of it as building a brick wall, without the foundation you have nothing for the bricks to be stable and prevent them from falling. Build the foundation and the wall will follow.
4. Use your resources. You can use any of the resources I have mentioned all year long on this blog like books I have read, websites I have used, and trainings I have completed just check back through my blog for details. Your community offers many resources to help just ask. I started with the small business association. www.sba.gov and went from there. I also had many resources from local business owners in my community. All my volunteer work payed off when I needed help. I firmly believe you get what you give and live my life by "The Golden Rule".
5. Have a support team, when you own your own business there are many periods of ups and downs. While we can survive both and it is the choices we make that determines where we go, it is always great to have someone to talk to during the down moments to get you going again. It is just as great to share the great news moment too! I am thankful for my support team. I would not be where I am today with out them and their sacrifices.
6.The last thing is, Do not allow FEAR to prevent you from doing anything. I am not saying not to have FEAR but do not let it control you. You have to push it to the lowest point of your body and push through and do what ever it takes. Do not give in to the FEAR. It is easier to give up but the real challenge is to continue. Do not let Pride get in the way either.
"Anyone who has never made a mistake, has never tried anything new" Albert Einstein
1. Never wait until you are financially sound to start a business. It is just like waiting to have kids, you will never have a point that is perfect to start a family or a business. Just Research It and Do It. If you want it bad enough you will find a way to make it happen. I thought I was financially ready but it turns out I was not and I had to find options and do with out things to continue. The important thing is that I did not give up.
2. When starting a business make sure you have had current health checkups and are in good over all health. I went a period of time without health care coverage and could not afford a trip to doctor with the uncertainty of my income from starting a business. Plus even more important the stress load is very intense until you set up steps to allow your business to operate with or without you. My new year resolution is to update all my health care check ups and eat healthy again which is something I have not kept up with.
3. Know your business inside and out. I have several business ideas that if I had more capital and resources I would pursue but for now they are still in the dream phase. If I wanted to pursue any of them, I would have to gain some more experience before they could be successful. Owning a business is not just about the day to day activities. There is much that goes on behind the scenes. I have often said that Downtown Chambersburg needs a small shoe store for those who walk to get to places and can not drive to the mall to shop for shoes. Shoes are a necessity since our feet would blister and become extremely cold during winter without them so it is a guaranteed income but it is more than just ordering shoes and selling them. You need licenses, an estimate of inventory, permits, marketing plan, displays, and much more. If you have never worked in a shoe store before how would you know the secrets of the trade. A college degree in business would be great but if you can not live your business no amount of education will help you. They do not offer degrees on life experiences. I am not saying not to go to college because I think it can teach you so much about the business end or marketing department but not everything we do is learned in school and many of our best lessons are learned the hard way in life. Many businesses fail with in the first year since people have a great idea but lack the knowledge for the behind the scenes work. Think of it as building a brick wall, without the foundation you have nothing for the bricks to be stable and prevent them from falling. Build the foundation and the wall will follow.
4. Use your resources. You can use any of the resources I have mentioned all year long on this blog like books I have read, websites I have used, and trainings I have completed just check back through my blog for details. Your community offers many resources to help just ask. I started with the small business association. www.sba.gov and went from there. I also had many resources from local business owners in my community. All my volunteer work payed off when I needed help. I firmly believe you get what you give and live my life by "The Golden Rule".
5. Have a support team, when you own your own business there are many periods of ups and downs. While we can survive both and it is the choices we make that determines where we go, it is always great to have someone to talk to during the down moments to get you going again. It is just as great to share the great news moment too! I am thankful for my support team. I would not be where I am today with out them and their sacrifices.
6.The last thing is, Do not allow FEAR to prevent you from doing anything. I am not saying not to have FEAR but do not let it control you. You have to push it to the lowest point of your body and push through and do what ever it takes. Do not give in to the FEAR. It is easier to give up but the real challenge is to continue. Do not let Pride get in the way either.
"Anyone who has never made a mistake, has never tried anything new" Albert Einstein
Tuesday, August 28, 2012
A Year in Review Part 1
As September approaches I realize that I have almost been in business for one year already. I took over the rent and inventory on August 30th last year. My business did not have a Grand Opening until October 1st but the business was mine for the whole month of September. I have much to review and write about so my posts for the month of September will all be reflections, things I would change or not change, and just lessons learned. I will also cover my one year anniversary planning. I am hoping to get to all of these things because I think it is important to share with other who hope to start a business. Some of you may have noticed my posts have slowed down the last few months but business has picked up and my time is spent with my customers which is how it should be and growing my business. Plus it has been summer time and I have spent as much time with the family as possible. In the next year, I may need to expand in personnel or volunteers to help cover all day to day activities.
One thing I have noticed is you need a great deal of start up money when starting a business but it does not require as much to maintain operations. I am getting renewal notices for all my licenses and tax filing information. Renewal is cheaper than original filing. I had to learn new accounting tips last year for tax season and this year, I have kept things sorted differently making it easier come tax season. I do order items to complete everyday operations but they are not all required up front when you run out of paper you order or go get the paper you need. Not the trip for envelopes, cards, paper, tape, and etc. I no longer stress out about the little things since it has become routine. Filing quarterly taxes has gotten easier. When I first started it was overwhelming. I used to pay bills as they came in but now once a month I write checks and pay bills. These are all just small things you may not think about that change over the course of the first year in business.
Hindsight being 20/20 I am not sure if I knew then what I know now that I would have continued this journey but I think that is the plan. If we didn't go into business blinded by the joy and love of what we do when starting a business most businesses would never start. It is like being pregnant and going through child birth(sorry men but women will totally understand). If we knew the pain without the joy, would we have kids? I am not saying I am disappointed or that I am not happy with my own business but it was a journey with experiences and work that I never expected. I am glad I was blinded by the joy and love because that is what gets you through day to day. Well that and a strong support system. I recommend having as many people to help support you mentally during the first years of starting a business. Many THANKS to my support system, I could not have done this without you and I hope you know who you are!!!!!
One thing I have noticed is you need a great deal of start up money when starting a business but it does not require as much to maintain operations. I am getting renewal notices for all my licenses and tax filing information. Renewal is cheaper than original filing. I had to learn new accounting tips last year for tax season and this year, I have kept things sorted differently making it easier come tax season. I do order items to complete everyday operations but they are not all required up front when you run out of paper you order or go get the paper you need. Not the trip for envelopes, cards, paper, tape, and etc. I no longer stress out about the little things since it has become routine. Filing quarterly taxes has gotten easier. When I first started it was overwhelming. I used to pay bills as they came in but now once a month I write checks and pay bills. These are all just small things you may not think about that change over the course of the first year in business.
Hindsight being 20/20 I am not sure if I knew then what I know now that I would have continued this journey but I think that is the plan. If we didn't go into business blinded by the joy and love of what we do when starting a business most businesses would never start. It is like being pregnant and going through child birth(sorry men but women will totally understand). If we knew the pain without the joy, would we have kids? I am not saying I am disappointed or that I am not happy with my own business but it was a journey with experiences and work that I never expected. I am glad I was blinded by the joy and love because that is what gets you through day to day. Well that and a strong support system. I recommend having as many people to help support you mentally during the first years of starting a business. Many THANKS to my support system, I could not have done this without you and I hope you know who you are!!!!!
Saturday, August 18, 2012
Gathering and Using Your Business Data
While I have not been open for a year yet, my business is no longer extremely NEW. They say a business is still in beginning phases until you have at least 2 years complete. This is when banks, wholesalers, government, and other services take you seriously. You have sales records, tax documents, and proof that your business really is doing what you say. But as I was saying I am no longer extremely new business. I have been open long enough to start creating those records.
Ever since my first job when I was taught inventory and placing orders, I have been a numbers and charts person. It helps that I had some of the greatest business men and women to teach me some of their secrets. Much of who I am today is thanks to all their lessons in business. I have a Big Thanks going up to heaven to Bill for teaching me customer service skills, business inventory, merchandising, marketing, bargain shopping, and much much more.
I have been starting to chart my sales by categories and the month of the year. I am doing this along with a weekly and monthly inventory. I also chart my online sales, cash sales, and other services sales according to the month of the year. As this year has progressed, I have been adding additional categories to help better serve my research. In fact one of my first improvements was a larger cash register with more categories to help me keep track.
The next step of sorting my data was better taught to me by my next teacher who was also my boss and a Big Thanks to Gary for my extra knowledge of merchandising, seasonal flow, impulse targets, and many other retail tips. He helped me realize items that are staples of seasons, holiday shopping goals, sales that are effected by weather conditions and seasons.
Now I can chart weeks of the year that are the busiest and maybe understand what things going on around me are making that happen. What weeks are the slowest and what can I do to increase sales during that time. I also can control my inventory to have more sales by understanding what customers are buying more of and does it change from month to month or year to year. You also have to keep tract of any loss, this could be do to damaged merchandise, out of date or code, recalls, and miscellaneous reasons.
These resources will help you make sound business decisions through out the years. Things may also change from year to year then you need to make averages as well as current data. Sometimes things change do to an outside force like the economy and you have to adjust to survive the low times. Make patterns and start doing yearly charts as well as your monthly.
Ever since my first job when I was taught inventory and placing orders, I have been a numbers and charts person. It helps that I had some of the greatest business men and women to teach me some of their secrets. Much of who I am today is thanks to all their lessons in business. I have a Big Thanks going up to heaven to Bill for teaching me customer service skills, business inventory, merchandising, marketing, bargain shopping, and much much more.
I have been starting to chart my sales by categories and the month of the year. I am doing this along with a weekly and monthly inventory. I also chart my online sales, cash sales, and other services sales according to the month of the year. As this year has progressed, I have been adding additional categories to help better serve my research. In fact one of my first improvements was a larger cash register with more categories to help me keep track.
The next step of sorting my data was better taught to me by my next teacher who was also my boss and a Big Thanks to Gary for my extra knowledge of merchandising, seasonal flow, impulse targets, and many other retail tips. He helped me realize items that are staples of seasons, holiday shopping goals, sales that are effected by weather conditions and seasons.
Now I can chart weeks of the year that are the busiest and maybe understand what things going on around me are making that happen. What weeks are the slowest and what can I do to increase sales during that time. I also can control my inventory to have more sales by understanding what customers are buying more of and does it change from month to month or year to year. You also have to keep tract of any loss, this could be do to damaged merchandise, out of date or code, recalls, and miscellaneous reasons.
These resources will help you make sound business decisions through out the years. Things may also change from year to year then you need to make averages as well as current data. Sometimes things change do to an outside force like the economy and you have to adjust to survive the low times. Make patterns and start doing yearly charts as well as your monthly.
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