Diary of Opening A New Business

[winch]

We are launching a new product line this morning.

I believe this is the beginning of the actual curve upwards. I have my peeps in place, a name in the market, and now it is go time.

If everything goes as planned, we should double in size in 60 days. and be into a lot of profit. (which I will probably just reinvest).

On a personal level. I am very excited, But my passion is not where it should be, I find myself wasting countless hours, countless amounts of time. I have no focus, not much drive. Honestly it is like I am going through the motions and because I have made money and think I know what I am doing. I am acting as if I am already at my 25 million in sales.

I wish I could snap out of it. < this might be insecurity or fear of failure talking, I don't know. Just thought some people might like to know what goes through peoples heads at any and all levels.

You young people. Keep your wonderment going.

Is it because you don't necessarily need this business to flourish? I got the impression you were trying it out because it might be interesting and could make some cake, but that you were essentially fine even if it didn't take off.

 

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[andviv]

Is it because you don't necessarily need this business to flourish? I got the impression you were trying it out because it might be interesting and could make some cake, but that you were essentially fine even if it didn't take off.

I agree. Sounds to me this is "just another business" so the fire is not there. And maybe this business does not need your focus, you have it down, so you don't need to really focus to get it done. Kinda like when learning to tie your shoes, you have to focus a lot the first few months, but then later you don't even blink thinking about it.

Quite interesting topic, actually.

 

[ZCP]

Sounds like it may be getting to a selling point (where you try to keep a little of the equity to profit from the fire of the person you sell it to)......could then just coach them instead of giving it day to day.

 

[theBiz]

Jack you have made a business flourish in a very short amount of time. Most people think about ideas in the period of time that you have grossed millions with this new venture.. Also, you told us $25k in startup capital is what you allocated for this from the jump.

These are all very impressive things, can you tell us even for someone of your caliber, what was the hardest part or biggest hurdle to get over?

What was the most unexpected roadblock that came your way?

Was it difficult for the sales team to get traction?

At what point do you realize your approach is bad or your product is not going to be easy to sell?

i think this is one of the most difficult question every entrepreneur has to ask themselves, is it the product or my approach.

thank you.

 

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[Michael W.]

On a personal level. I am very excited, But my passion is not where it should be, I find myself wasting countless hours, countless amounts of time. I have no focus, not much drive. Honestly it is like I am going through the motions and because I have made money and think I know what I am doing. I am acting as if I am already at my 25 million in sales.

I'm guilty of this myself. Although I haven't made any money..ever..

 

[JEdwards]

Thanks everyone for your responses. I think after a week off and a little needed vacation, I am back on course.

I cannot wait until the new year to start. New thing I have added has made some sales.. Great news for me.. Going to scale that up pretty quickly, come January 10th or so.

Jack you have made a business flourish in a very short amount of time. Most people think about ideas in the period of time that you have grossed millions with this new venture.. Also, you told us $25k in startup capital is what you allocated for this from the jump.

These are all very impressive things, can you tell us even for someone of your caliber, what was the hardest part or biggest hurdle to get over?

What was the most unexpected roadblock that came your way?

Was it difficult for the sales team to get traction?

At what point do you realize your approach is bad or your product is not going to be easy to sell?

i think this is one of the most difficult question every entrepreneur has to ask themselves, is it the product or my approach.

thank you.

1. Biggest hurdle, starting over with nothing, not even a stapler.

2. Roadblock, humm.. just hiring a team, and creating sales material, etc..

3. Yes, usually 3rd or 4th contact, we are really getting exponential results now.

4. I knew my product and service would sell. Or I would not of wasted one second.

5. Someone of My caliber, really I am just starting over, just cause I have a few more toys to start with does not mean I have any better chance. It still is the idea and the follow through..

 

[theBiz]

3. Yes, usually 3rd or 4th contact, we are really getting exponential results now.

not funny... lol

4. I knew my product and service would sell. Or I would not of wasted one second.

that may be a natural gift/confidence, or you just tested the market first.

5. Someone of My caliber, really I am just starting over, just cause I have a few more toys to start with does not mean I have any better chance. It still is the idea and the follow through..

no i understand that i agree, grass is always greener on the other side, im not trying to take anything away from you.

I appreciate the response and im sure the business will continue to prosper throughout the new year, congratulations, and i think this is where i should say goodluck but i dont believe in it.



Jack im pretty amazed by your business. I mean it seems your selling "hype" almost. I understand people to people will almost be important but whatever you are selling...


Are you not dealing with competetiors cheaper pricing?

Is the internet not a threat to whatever your doing? that is pretty difficult in anything today/

It almost seems like your doing some old school type of importing and selling, does alibaba.com and such hurt you?


I think the real science of all of this is you are combining a sale with a monthly service. Your monthly service acts like a strong back end which enables you to have a high CPA, not sure if you do but always a nice cushion.

 

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[JEdwards]

Jack im pretty amazed by your business. I mean it seems your selling "hype" almost. I understand people to people will almost be important but whatever you are selling...


Are you not dealing with competetiors cheaper pricing?

Is the internet not a threat to whatever your doing? that is pretty difficult in anything today/

It almost seems like your doing some old school type of importing and selling, does alibaba.com and such hurt you?


I think the real science of all of this is you are combining a sale with a monthly service. Your monthly service acts like a strong back end which enables you to have a high CPA, not sure if you do but always a nice cushion.

Thanks, I am not selling hype at all.. As I said before, boring old business is all it is.

1. Actually most of my competitors cost more on some items and less on others.

2. It is but being in an old industry, most of the Customers need a quick answer, are they moving more to the internet, yes and no, but customer service, price, delivery times, etc make them call me.

3. Well no, alibaba does not hurt me at all. Volume and inventory constraints.. If that makes sense.

But 2012 is my year.. things are going to get very interesting.

 

[theBiz]

Volume and inventory constraints.. If that makes sense.

Yes it does. you know i see such a big opportunity in importing one product, if i had no current business i was working on i think id peruse. I think there is alot of money to be made on plumbing products. Radiant heat pipe, pvc, boilers, even the fittings. I know products costs so much, maybe im wrong but things seems so overpriced in that segment right now. Problem is i think it makes you 100% price based, there are no monthly charges etc.

 

[JEdwards]

Yes it does. you know i see such a big opportunity in importing one product, if i had no current business i was working on i think id peruse. I think there is alot of money to be made on plumbing products. Radiant heat pipe, pvc, boilers, even the fittings. I know products costs so much, maybe im wrong but things seems so overpriced in that segment right now. Problem is i think it makes you 100% price based, there are no monthly charges etc.

Actually there is a monthly service.. It's like an enigma wrapped in a riddle, isn't it? But if I could, I could explain the whole process in 5 minutes and you would be like, wow, I really understand. That makes sense. Sorry can't yet. Lot's of layers.

But yes focus on one product, or two, bigger more expensive products, and think how can i get this into the hands of all plumbers while filing a need for local wholesalers and manufacturers.

 

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[Wuping]

Very interesting read! Really like the pictures too Any updates?

 

[oddball]

Any updates?
This is one of the great threads on here imo.

 

[JEdwards]

Not much new to report, Still growing well, Sales are coming in. New project going really well.

Just scaling it up at a good pace.

 

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[Wuping]

Great to hear that it's going well! Just out of curiosity, how many people do you have employed at the moment? And how many hours do you work per week?

 

[BEAR]

Fantastic thread!
Thank you for sharing you knowledge and experience with us.

Its been a little over a year since you started this and you originally stated that you planed to sell it after two years.
How is that goal looking?

 

[saigon]

Hey Jack, any updates on this? Was nice seeing the weekly or so updates and it's been awhile. Can't wait to hear any improvements or new milestones reached!

 

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[JEdwards]

Its been a little over a year since you started this and you originally stated that you planed to sell it after two years.
How is that goal looking?

I don't know. Since we stumbled quite a bit with the start-up, maybe-hopefully another 18 months.

Hey Jack, any updates on this? Was nice seeing the weekly or so updates and it's been awhile. Can't wait to hear any improvements or new milestones reached!

Yes, working on expanding. Hiring. One way I was doing something was a total failure, had to fire an entire department that I hired for a hair brained scheme that only flopped. I had to let go 9 people.

That sucked, and set me back a little. Thought I could do something the easy way. but no. Now I might need to hire outside sales reps.. 100+ of them to cover the entire U.S.

Even with that, I am Still growing at a pretty good pace, and I am personally taking money out monthly, so that is a great thing.

 

[Runum]

Thanks for posting an update Jack. I assume you hire good, talented people to do your jobs. Where are you finding the employees or contract labor that can fit your requirements?

I would think any start up would go through changes that would require different kinds of people at different stages of development?

 

[JEdwards]

Thanks for posting an update Jack. I assume you hire good, talented people to do your jobs. Where are you finding the employees or contract labor that can fit your requirements?

I would think any start up would go through changes that would require different kinds of people at different stages of development?

I find my employees through the old reliable, craigslist and monster...

The worst is most people do no like change, so it is hard for them to believe something will work or sell in a different way.

As a start up, people must change (adapt) and they will tell you until you they are blue in the face.. I can change, but then they allways come in a month later and say, I can't sell this, It is cause you are changing us all around.

 

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[Runum]

So, the demands are different on the employees as the business matures and changes? I really had not considered that an employee that is great at the drama of building a business on the first day may not be the same employee that is needed a year later. It must be tough to build on continuity if the employees are having to be replaced every few months. Does that make you the glue that holds it all together or is that your manager?

 

[JEdwards]

I don't know.. I am not saying everyone does not adapt, just some people, usually the ones that you think won't.

But please understand, now 75% of my employees have been with me for 6 months or more. We got a great team to build on.

Having said that, I am probably going to have to hire 100 reps in the different markets, I am really starting to believe that might be the way to go. So that will be fun.

 

[Stam]

Great thread JackEdwards! Love that you document the progress this way, kept me exited for an hour, and made me realize what I need to do next.

You have done, what I have been doing for 7 years, in only a year of time. Its inspiring! I am kind of in the middle with both manager and business organizer, but most of my time if not all sometimes goes into the first role. Its need to change, with some other aspects changing to.

Thank you!

And how is it going now? No updates after april? (I saw this referenced in a new thread.)

 

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[JEdwards]

I am doing fine, thanks, growing, As I said before in this thread, business gets to a point where you have to wait it out, Let it grow, etc.

A lot of repetitive stuff that there is no reason to post over.

That is where we are, every month the numbers are getting bigger. I am taking home some good change. I think we have a real business , that has gone over the hump.

Now just growing it to the best it can be, so I can sell it.


I will also add, that it is hard for me not to go crazy with other ideas, in my 20's I got to where I was making great money and decided I should go out and open new ideas, new businesses all the time. Instead of just keeping with my main one and running it up to it's highest point..

I am certain that alone cost me 100 million, easy..

Right now i have no less than 4 ideas bouncing around my head that I would like to give a try to.. But keep saying, No jack.. No...

 

[Amail]

Do you feel comfortable yet spilling the beans on what exactly your company sells? I keep imagining you sell flourescent light bulbs or urinal mints - I'm dying to find out your actual products.

 

[JEdwards]

Do you feel comfortable yet spilling the beans on what exactly your company sells? I keep imagining you sell flourescent light bulbs or urinal mints - I'm dying to find out your actual products.

Wow.. You nailed it.. exactly..

 

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[Amail]

Now I wish I'd guessed ejection seats for spy cars.

 

[JEdwards]

Now I wish I'd guessed ejection seats for spy cars.

Ok, I will admit it, I was lying before.. you guessed right this time.. Sorry!

 

[Amail]

I knew it!

 

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[mdlevy2004]

I love the idea here and can't wait to hear the progress going forward. All the best!

 

[theBiz]

That sucked, and set me back a little. Thought I could do something the easy way. but no. Now I might need to hire outside sales reps.. 100+ of them to cover the entire U.S.

How and where will you find good outside salesmen who will actually move your product without wasting too much time on the bad ones. I have a friend who was in the title business and had many outside salesmen, and he always told me it was difficult to get good ones, most of them would quickly exhaust the lowest hanging fruit (family, friends, business contacts) but others more difficult to find had connections with builders and things of that sort so that one guy will have tons of people coming in all the time. Another problem with outside salesmen is they are selling other products so how do you get them to want to push your product and continue to have that motivation for your product/service. BTW now he is struggling to find 1-3 good outside salesmen/women( the outside saleswomen were the top performers btw)