On the Financing part-
I know A few people who have built successful businesses while working "normal jobs" and I have helped with different aspects.
A Few Self Financed and grew slowly. I Know a few who also had some failed businesses (me being part of one) . At least from the Self financed Part I can say that it can force you to grow slow but if you do fail it is hard enough to concede defeat. I could not imagine then having to come to the realization that you have tens of thousands of Dollars in loans and/or credit card debt to deal with now. Or ...Or yes It makes me stutter. you just took a Heloc out on your house and now you have to deal with that. At least for us when we Shut it Down. It was find a Bottle to hide in, wake up the next morning, lick your wounds, Nurse your hangover and move on. I don't like Credit cards Much so luckily the temptation was not there to dig a deep whole that we could not crawl out of.
True stuff
- It’s not for everyone.
- It’s difficult.
- It can eat your life.
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Yes, Yes and Yes . We drove all over the state talking to potential clients, worked early and late and I still had a 70 mile commute each way to work and back. And deliveires had to be made if it was snowing or raining or a hurricane was predicted to come by.
Pitfalls-
1.Your first product doesn’t take off at all.
2.The product doesn’t take off as fast as you hoped.
3.You fall prey to the unexpected.
I would Say our Downfall was A combo of Number 1 and 2 aaaaaand 3. The Driving force behind this Grand plan was the Now wife was not able to find a permanent Job after everyone did their 2008 Lay offs. After numerous contracts as a Graphic designer that ended she was fed up. We spend a lot of time at the local farmers market and shops and she wanted to try to get into food. Basically The concept was to Make Organic Meals that were not bland or out of a can. She has a Knack for this. The goal was Mostly Vegetarian but also catering to those on the gluten free program. At first we had the issue with number one. How to do you get people to try your food when you are not in a little booth at Costco? Very Hard. Next best thing is to package up and just leave them with people. Boy tahts expensive. you cant just leave a little taste you needed to leave a small portion so they at least took you seriously.
Then there was Number 2 . We had some stores pick up the products and they were selling well for a unknown company. But not enough had picked us up and not quick enough. We were not even breaking even. it would have cost less for her to just stay home. All Unsold Products if we could not eat it fast enough was trash. Really just throwing it down the drain. And On top of that Some stores paid after the fact so you could go a week or two before you saw a check.
Then Number 3 . We were bleeding some money but that was expected at least int he beginning and it was tolerable. We ate like Broke college kids and ate all the unsold products we could. Until Regulations Kicked us in the face. We were told the state required us to cook all foods in a commercial kitchen if being sold or we could be fined. Fine I said We will convert our kitchen.... Nope, do not pass go, do not not collect $200 if you attempt you will enter the Poor House. Even doing all the work myself and buying used appliances it was a minimum of $10,000 was what we figured. We Got creative. Some friends owned a Bakery and let us use their kitchen, but bakeries have bare minimums especially theirs because they baked everything in a wood fired oven. So we tried to rent a Kitchen. This Killed us. Then to sell in some bigger stores you needed insurance, this killed us again. Our losses piled up so quick that within 2 months of starting to rent a space the white Flag was waving. A side note the Kitchen we were renting was no Cleaner than ours. We had to scrub the place down every time just so it was acceptable.
One Experiment Down and My wheels are turning and I probably will try to get something off the ground soon. Something we both like and can work on at home without having to pay for some one elses mess of a building. I am doing research on regulations first as that's what shot us in the foreheads the last go around. I will not do anything with perishable products and the Internet means you do not really need a brick and mortar retail space to start with or have to beg people to stuff a spoon full of food in their mouth and hope they don't spit it back out on your shoe.
The plan Is to get a few small products built and fine tuned to get an idea of cost and time as well as work out any kinks in manufacturing and design. Having The Graphic /Web Designer Wife Is nice. She can make the website look pretty and functional. Once we Finalize our first few products, I plan to build a few pieces of each product to have on hand and in boxes ready to ship. But I will keep only a few pieces in stock during the first stages so the cost of entry is fairly low. Non Perishable products are nice because people will not get sick if not used 3 days from now. Once we get the foundation built then the larger more expensive concepts can slowly get worked on. The Starting small and working your way up concept is definitely a borrowed idea from Schiit. The other Concept borrowed is quality products at a realistic price, and No its not an audio company. I am no Engineer. I can fix, diagnose, and solder electronics. Design and Engineering Nope.
Jason's Plan for the Marketing book could not have come at a better time. Of all in this past thread the biggest thing takeaway is. If You Want To Do Something,
Do Something.