There's no doubt that starting a business with limited capital is difficult. I'm not saying you should do it for every business, but it might be a good idea for your first.
The one phrase that I couldn't get away from when I started my business was, "Most businesses fail in their first 2 years of business." This fact was further confirmed to me in the book, Starting from Scratch by Wess Moss. You may find it odd that this book was one of my biggest inspirations. But, the book also confirmed that 2nd+ ventures often succeed, and big. Now, I know why.
If I was going to give advice to an eager entrepreneur based on my experience, it would be 2-fold.
(1) If you're not willing to work harder than you've ever worked in your life, for no pay, don't start a business.
(2) Still in? Then, if you're going to start a business, don't get a loan or investors, just put a shingle out and muddle through it. You never know, you might succeed, but the odds are you won't. What you will do is learn about starting a business in a way that you will never forget. And, at the end of your education, you won't have to go back to your desk job to pay off your business loan.
I know it sounds harsh, but for the majority, it's true. It's definitely been true with Peekaboo. I told myself that I would take my first year perfecting the process assuring that every client will get the same Peekaboo Experience. I wheeled and dealed all over town taking on as many clients as I could. I did most of the work myself, even painting. In that year, I learned that there is definitely a market for my new concept. More importantly, I learned that marketing a new concept is like a deaf man communicating to a crowd of blind folks. It feels impossible.
There's no doubt that things have moved slower because I've boot strapped. But, what funding yourself does is that it forces you to learn the positions that you might otherwise hire someone else to do. That experience, for me, has been invaluable. Now that I'm looking to outsource some of these jobs, I'm not only able to speak a little of their lingo, I know, first-hand, the value of each job. If someone tries to charge me $1500 for a job I know I can easily complete in 2 hours, I keep looking.
This also rings true for my Peekaboo vendors & employees. I firmly believe that the best employers know and understand the positions of all those whom they employee. Because I have done the work myself, I have the proper respect for each job. When a vendor tries to up sell the work on a specific item, I know, from my own experience, whether that up sell is sincere or contrived.
So, where is Peekaboo today? Well, the old saying, "Hindsight is 20/20," couldn’t be truer when it comes to my business. At the 3 year mark, I finally know what it will take to make my business a success. About 8 months ago, I had a heart to heart with myself and really focused on the branding of my business. I re-evaluated profit centers, discarding those that aren't worth the time and adding some that will help fund my dream. Peekaboo is coming out of its' business cocoon and will soon be a beautiful business butterfly! However, had I gotten a loan for my "business education"...I'd be back at my old TV job selling air right now!
NEXT TIME: Things to consider before you leave that comfy day job...like fixing paper jams.
Please note the thoughts and opinions expressed in this blog are based on the experiences of the author. The information contained in this blog is in no way meant to take the place of professional advice. It is only meant as insight into the world of a small business owner. As always, thank you for visiting and feel free to share your own experiences or conerns by leaving a comment.