Running your own business

When the vicar said "for  better, for worse" I don't remember hearing the words "and coping with an addiction" but many things can be placed under the heading 'for worse'.

If your partner is considering setting up a business, any business but especially one which involves the creative my advice is to prepare to become initially a widow/er, followed by a Punch bag and anger management consultant which will be closely followed by the new title of general dogs body.  It will start easy enough, it did with my other half, a great idea, the business plan, checking costs and financial planning but do not under estimate the lull before the storm.

So it began, with no stock , realistically no money and a name plucked from the dictionary a small order brochure was compiled and sent out, there was a pregnant pause, she paced questioning her idea while reservedly I offered words of encouragement.  It took just three weeks for the call to come requesting a meeting with this new company.

The craziness had started, normal life was on hold, a frantic visit to her supplier, her investment spent, products priced and armed with brochures she set off with her little car bulging.  A few hours later she returned with a pile of receipts, a list of customers a wedge of cash and what appeared to be very little missing stock, now I was the one doing the questioning, perhaps she was right maybe this would work!

Obviously it did not develop over night, thought it often felt like it.  It took time and considerable planning, heartache and frustration, consuming all her energy and every emotion.  But once it started the snowball just kept rolling, at times I thought it pushed her rather than her pushing it.  Travelling a winding path from supplying what was realistically a handful of local people for a few pounds profit.  Quickly a few customers became complete counties.  Finding premises when the venture outgrew her tiny car.  Visiting the USA to set up importing.  Worldwide sale through the company website.  And just four years on from that original investment there was fully stocked premises three franchises and a diary full of commissions.

If only I had known the addiction that original investment would bring.  The day it began I lost my wife and gained a business woman, entrepreneur and addict.  A woman who to her work colleagues, customers and business acquaintances glides serenely as an elegant swan across an azure lake.  Confident in all she does, proud of all she's achieved.  Though it's the family, who on the occasions she paddles frantically like the ugly duckling trying to stay afloat, drowning in the frustration of badly organised suppliers, customers who will simply NEVER be satisfied, throw the life ring and wait in the wings with towels and sweet tea.

The above whilst accurate is a lighter look at the results of running your own business, when embarking on working for yourself either as a work from home project or as fully grown project with premises you need to be fully aware of the many pitfalls waiting to help you fail. 

3 Biggest mistakes made by new entrepreneurs

• Cash Flow
• Stock Limits
• Pricing

Cash Flow - Sales, Profits and Cash Flow are the three monetary words used constantly in business that are often confusing to the new entrepreneur. There is a saying that sales figure build ego's while profit pays the bills and cash flow feeds the family. It's a great message that can keep you on track at any stage of your business life, while sales figures may be nice and high if your profit return is low realistically those figures mean nothing and can do your business much harm for without a good profit return there will be little or no cash flow to replenish stocks.

Stock Limits - Whilst it may seem like a good deal to purchase mass quantities of stock to gain a vastly reduced price if you do not have the customer base for the item it is only dead money. Successful businesses build their stock levels slowly, introducing new ranges one at a time in small quantities.

Pricing - Everything in life has a ceiling, a level beyond which it simply can't go. Your business may well stock some of the same items as a big brand company but your overheads may be higher per sq ft, the new business needs to consider whether there is benefit in stocking items they need to price more expensive than a competitor or conversely if they need to charge the higher rate charged by a similar business. Sometimes a business needs to carry one or two lost leaders in order to gain customer sales from other products.

You will need to ensure people can find your business by having a listing in the Yellow Pages, this is available free to anyone with a business telephone line.  Business cards are an important introduction to your company as is all your stationary, be wise try not to opt for the free print business card companies who add their advertising to your stationary.  Equally it is not necessary to invest a lot of money in printed items that may sit around, with some quality paper and a little creativity you can print your own on demand.