Shark Tank Jump Start Your Business: How to Launch and Grow a Business from Concept to Cash (14 page)
Authors: Michael Parrish DuDell
Secured any patents, trademarks, or copyrights
Acquired any outside legal or accounting assistance
Purchased the necessary insurance
Developed a system for managing your financial books
Began tracking and recording your expenses
Educated yourself on your various tax responsibilities
Opened a business checking account
Assessed your basic startup costs
Budgeted for at least the first year
Crafted a strong and compelling pitch
Secured any necessary outside financing
| “My favorite saying is ‘We always overestimate what we can achieve in one year and underestimate what we can achieve in ten.’ When I started my current business ten years ago, we thought we’d sell $5 million in the first year; we sold $400,000. It took us five years to get to $6 million in sales, but in the next five, we got to $155 million. We were way overconfident when thinking about our first year, and not confident enough when planning the next ten.” |
If after reading the list above you feel calm and confident, you may be ready to launch. Only one question still remains: Are you prepared operationally?
While some ventures take time to grow, others experience a burst of interest from the start. If you’re lucky enough to be in the latter category, you’ll want to be certain that you’re able to deliver. Otherwise, you may be unable to capitalize on the initial buzz. Unless you have a very small service-based company where everything is run in-house, you’ll need to start developing a reliable network of trusted vendors.
While the word “vendor” can have multiple meanings, in this book it refers to any outside company that provides services to your business, including suppliers and manufacturers. If you have a granola company, for instance, your vendors might include the supplier of the ingredients, the manufacturing plant,
the fulfillment center, and any other company that plays a role in the development, creation, or distribution of your product.
Remember, your vendors are a reflection of both you and your brand, so it’s critical that you only work with the very best you can afford. While each business will have its own specific needs, there are a few characteristics that every business owner should look for in a vendor:
Quality:
You can have the most beautiful store in the world, the greatest customer service, and the best management in the business, but if your product is bad, your product is bad. End of story. Skimping on quality for the sake of better margins is not only ethically questionable, it’s shortsighted as well. Most companies offer some sort of return policy. If your product is poor, you better believe your customers will want their money back, and a high volume of returns can throw a business terribly off track.
