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The $100,000 Reality
When you have revenues under $100,000, of course, what you ultimately have at the end of the year is losses, until you turn the corner. In life, some are better able to handle those losses than others, obviously. The straightforward advice you might get from an expert — have a business plan, get a loan, etc. — can only take you so far. We can’t all plan every detail, more so for entrepreneurs over the age of 40 who may be starting a second career.
A “not atypical” client of mine, for example, was a former furniture company executive who pulled together a designer and a niche idea, and no doubt some financing to go along with his savings, to start his own outdoor furniture business. When he came to me, he wasn’t much in the mood to talk of business plans and strategy — each day was a hectic mess of details. More importantly, he had $150,000 of inventory sitting in a warehouse. It had to be sold as quickly as possible. The website was built, but they weren’t coming.
Well, obviously that’s not optimal. It might even seem backwards. Luckily in this case, people love the product when introduced to it, and are more likely to respond when mailed a color catalog. A perfect job for Google AdWords! Soon, that inventory was moving. (The client partially paid me with furniture. Every time I fire up the BBQ and have a cold Steam Whistle Ale on that cedar bench, I think about his success story.)
No, there aren’t very many good roadmaps on this bumpy road to small business success.
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