Do You Have What It Takes? (to be an entrepreneur)

[Doug Dahlke 114]

Ken always has great posts on the business and marketing end of things. I have printed some of them out and use them to develop my plans. Lately I have thought a lot about how to succeed in business which also forces thoughts on why businesses fail. I put together a list of my thoughts, many of which I am guilty of.

Why do Businesses Fail

1) Lack of a business plan. Before starting your business did you do any market research? Do you know how many competitors are in your area and how long they have been in business? Do you have an idea of what the market rates are for the services you will provide? Did you estimate what your start up equipment costs will be? Do you have a target market? Did you put together a marketing plan and budget? Is there a timeline for the business to turn a profit? Is there a back up plan if the business does not meet its profitability goals?

2) Lack of financial resources. You will spend and lose money before you make any kind of profit in a new business venture. What financial means do you have to pay the bills and fund the business until you are making enough money that the business is self sufficient? When the business is turning a profit are you saving enough money to keep things going through the tough times that all businesses will face?

3) Over extending credit. It is easy to use up credit resources thinking you will get a return on that money that doesn’t come as soon as expected. Think carefully about adding debt and new monthly financial obligations without the ability to repay.

4) Lack of experience. This applies not only to actually performing pressure washing services but running a business as well. Show up at a two story house with a 2.6 gpm machine and no x-jet, down streamer or other means of accessing the higher sides but a ladder and you can soon get discouraged. If your marketing plan consists of printing flyers off of your computer and sticking them on mail boxes you are in for a disappointment.

5) Unrealistic expectations. Don’t fall for the “Field of Dreams” mentality. Just because you build it doesn’t mean anyone will come. I drive by homes and businesses everyday that need my services but will never call me or anyone else to do the work. It is hard work finding the people who will hire you. Running a business also takes a big commitment of time. Starting a business an even larger one. When you are the pressure washer, mechanic, receptionist, salesman, marketing guy, purchasing agent, head of R&D, webmaster, accounts receivable clerk, etc. your time gets gone in a hurry. Even if you just want to be a full time one man show you will need to outsource, and pay for, many of the tasks mentioned earlier or you will be working 24/7.

6) Lack of desire. It will take three to five years to get a business off the ground and running. That start up period will require lots of commitment. In the last two years in my area I have already seen companies come and go. I assume most of these companies just didn’t give much thought to starting the business and pulled out when they realized it just wasn’t that easy.

[Beth n Rod 1,279]

I would like to add burnout to the list. Some times, this business is just not for someone and they get tired of it or have a bad enough experience that makes them call it quits.

Gotta love what you do.

Rod!~

[4000psi 16]

What recources could I be looking at for how to write a biz plan? I know nothing of what or how to do it.

[FCPWLLC 233]

Here ya go...

business_plan_for_start_up.pdf

business_plan_for_an_established_business.pdf

[4000psi 16]

Thank you I'll go over it.

[alvisishere 66]

very helpful info guys!!

thanks

[Beth n Rod 1,279]

Bump....time to read this folks...