Taking the plunge! [2006]
- Date : (2006-01-04)
- Author : SAIE
Taking the Plunge!
It is often very scary to stand at the edge of something new. You stand with your past behind you and your future stretching out ahead of you. One thing is for certain; things are never going to be the same again!
Mlibo had been trained in woodworking skills, but his toolbox had remained closed for many years. “I only have the basic hand-tools, I will never be able to compete with people with fancy machinery.” He said, “and besides, I am not sure where I will be able to sell what I make.” Mlibo’s job as a church janitor did not pay very well, but there was, at least a cheque every month. Mlibo met a mentor who offered to invest time, money and effort in him and buy a set of power woodworking tools for a share in his business that he could buy back in the future. Mlibo was thrilled, but terrified as well! He could now use his skills and make wonderful products, but would he be able to sell them. His wife and his mother encouraged him to get going and offered to help to sell his products. Mlibo started off carefully, using offcuts to build up his confidence again and see if things he could now make would sell. He worked at night and over the weekends at first, not wanting to risk losing his regular income. After a few months he sat down and worked out exactly how much money he had made. He quickly realised that he was making much more from the woodwork than he was making from his full-time job. The job was now getting in the way. If he had all those hours in the week free to concentrate on his woodwork, he could make much more money.
“I’ve looked and planned and thought and schemed and weighed up all the risks.” He thought. “ Now it is time to get on and do it!”
Mlibo took the plunge and resigned from his job. Now he was running his own business full-time.
Reality Check
Mlibo checked out every angle very carefully. Have I looked at the situation and myself HONESTLY? Have I listened carefully to the advice of friends and family who care for me? Am I sure that I am being realistic and not just caught up in a romantic dream? Remember, you're going to be married to this business, so it helps to know everything you can before taking the plunge. Talking to other (non-competing) home based entrepreneurs in your industry, reading trade magazines and visiting the library or business advice centres will help you find out as much as possible.
Lifestyle Change
Mlibo chatted to his wife and mother first. Discuss your plans and the changes they will bring about with your family. Starting a new business can be as stressful as having a new baby or moving home. Make sure everyone involved knows what is coming. Sit down and hash out the basics like money expectations, where you'll work and how your new career will affect household duties. Everyone will need to keep a cool head as the changes impact the household!
Be the Best
Mlibo was a proud and well-trained woodworker. You must have the expertise for your chosen field. Your work needs to be better than everybody else's, otherwise, why would anybody buy from you. If you feel your work is superior, then great. If your work is less than superior, just keep growing and learning until you become the best. When you are serious about your work, and prepared to go the extra mile, you will succeed! Word travels fast and if your work is good, they will remember you.
Be Bold
Mlibo is good with words and is not scared to talk to people. You should have some natural characteristics to help you out when you are starting. One is to be naturally outgoing and friendly. If you are shy and quiet, it will be harder to put your best foot forward with other people. You will be dealing with customers, business people and suppliers. A good dose of self-confidence is almost a necessity, but this can be developed if you have supportive people around you who can encourage you. You will have to push yourself and your business constantly, and if you don't have the self-confidence you need, it becomes a big drag and you will lose interest.
Tell the World
Mlibo has called himself “Mlibo’s Creative Woodwork” and has a business card to match! If you don't take yourself seriously, no one else will either. Tell everybody who will listen what you have decided to do. Spread the word and don't stop. Make up brochures advertising what you do, where you do it and why customers should buy from you. Get business cards--and then get rid of them! They won't do you any good unless you hand them out. These are to hand out all over your neighbourhood, or hand out to anybody you come in contact with. Who knows--a casual meeting could turn into your next big sale! If you are smart, you will have your invoices, business cards, and brochures all to match with the same logo and colours or layout. This will show you are serious and organised.
Be Organised
Mlibo is careful to keep his business money and his household money separate. Set up a separate account for your business. This appears more professional to anyone involved with your company and you will be able to keep better control of everything. Keep good financial records--or hire someone if you don't have the time. Let's face it, not everyone likes crunching numbers. If you haven't balanced your business accounts in a couple months and couldn't find a financial report if your life depended on it, hire somebody (part-time) to do it for you.
Don’t charge too little
Mlibo is proud of the products he produces, he is careful to charge at least double what he has paid for all his materials. Do not give your work away or price it too low. This is an extremely important aspect of the business. Charge enough to make sure that you are receiving a respectable hourly wage for your time PLUS a profit. The very fact that you demand a fair price for your work points out that your work is superior. Mediocre workmanship can be found anywhere. Your product or craft is better.
Never Stop Marketing
Mlibo already has his wife and mother taking orders! If you don't tell people you're in business, how will they ever know? Set aside a certain number of hours each week to spread the word--no matter how swamped you feel. Remember, business may be going well now, but if you don't keep your name in front of people, they may forget about you tomorrow.
Plan Your Working Hours
Mlibo wants to work during the day. Some of is neighbours have complained at all the busy wood-working sounds that he was making in the evenings whne he first started his business. Stick to the plan! It's easy to get caught up in working 60-plus hours a week because you don't manage your time or, alternately, sleeping in every day because you can "get to it later." Besides, having business hours makes it easier for clients to see you as a professional and reach you easily.
Have Fun!
Remember, owning your own business isn't about working endless hours for low wages; it's about living your passion! When it all gets too serious, sit back and remember why you went into business for yourself. Freedom. No bosses. Working in your own time. Ah, isn't it worth it?
