Forums: Discussions for entrepreneurs and small business.

It probably real dosen`t matter and I know there is aton about it on this site But I need to ask if I have been living in a cave all these years.

My belief has been (for 20+ years) that when you start a business (assuming no outside investors) you begin on a "shoestring" feeding funds in from your own pocket. Then at some point if you are GREAT you make a profit and plow that back into the business and eventually stop feeding your own funds in, at that point you are "bootstraping" ( a very emotional point for me almost threw away the plan).

Assuming these are trueisms what is the next step called?

Normally I`d be in the workshop now or just sitting down for dinner but I finished early and just can`t sleep so here I am.

Stan

 

Well,...you just keep plugging away.  It`s never easy when your using your own funds, but it should make you work `more at it`, or it will eventually make you feel like giving up.  But there`s also the other side of it, that hopefully you will see your profits sooner or later, and you won`t owe everyone else! Yay!

Hi Stan, I posted before looking at your website.  Do you do events?  Seems like a perfect product for that.  Also, there are many shopping centers I`ve seen, that will let you display and have your own event. I think you should look into these type of avenues where you can go out and display your product, and you can take orders with deposits!.

Profit, growth but always work, work work! I absolutley love your Outhouse Bar!! So Cute!! Have you thought of partnering with landscape firms to offer there clients outdoor furniture with their project? Great work!

Erin

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Thanks Erin, the outhouse bar was an idea inspired by a customer and a bar"b"que version is in the workshop, with a fold down work table / counter and a walk-in pantry setup. I actually have hooked up with a couple local landscapers and want to hookup with more, also garden centers and nurseries alnog with pool installers. the problem is being the operations staff, engineering staff, sales staff, marketing staff, stratigic planner, etc. while working full time for another company I really don`t have time to visit them in person (not to mention dragging a trailer full of product along).

Janie, thanks! my original biz plan called for kiosk type of "stores", in shopping center parking lots. However, my group has convinced me that at the moment being so micro my time would be better spent finding outlets that move product without having a retail staff to manage which I have come to agree with (for now).

Stan

 

 

 

If we call the startup "phase" (or bootstrapping) something along the lines of initialization, then to follow the aerospace metaphor the next phase would be "lift-off." That would be where the business has moved from alive but critical, to regularly surviving.

Survival isn`t the same as living a life, though. It`s just getting by. The stable phase is the same thing, where there`s just enough revenue to keep the company going, add a little bit to the pocket-money, and prepare for the "expansion" phase, which would be like the "attaining orbit."

Plan, Attack, Control, Consolidate, Expand: those would be another way to look at phases. The bootstrapping is in the "attack" phase, where you`re trying to gain a foothold in the marketplace---to control a "branded position." After that, you consolidate your position (building a strong defense against competition). Finally, you reach out for more territory.

Expansion can mean two different pathways, though. One is to gain increasing market share, where the other is to diversify into other lines of business.

One thing to note, as an addendum, is that there should also be an exit strategy. In other words, unless you`re intending a totalitarian dictatorship, the better solution is to take over a territory, then place it under management. Because this isn`t the same as a military campaign, the analogous concept would be to sell the business and either retire to enjoy life, or start some other business.