Ever make business mistakes?

[JanetteK]

Did any of you ever make business mistakes but then recover and go on and be successful?

For instance if someone in her first year of business (having bought an existing store that was just covering its expenses) overspent her capital and had to borrow money from her family to pay her bills . . . could she still hope that she will eventually have a profitable store?

Just a theoretical, hypothetical question. No particular reason for asking. :rolleyes:

[Cliff Wilson]

Probably depends what mistakes were made and if they were corrected.

But, the short answer is, YES, it's possible and there'e hope!

[Maryann]

Theoretically, yes. But only if she comes up with a viable business plan and starts doing things differently.

A very simple answer to a very complicated question.

[Framing Goddess]

Forget about hope, she needs to get VERY proactive.

Yes, it's doable.

I happen to know.

To answer your first question: do you mean today? or this week or this year?

I learn the most from my goof-ups. You'd think I'd have learned all there is to know, but NOOOOO-O-O, I manage to find a new way to botch things. the lessons keep coming, dang it, even after 19 years in business.

Tell this someone in her first year to read all she can on The Grumble, and pay close attention to some of the business books recommended as well as ALL posts made by Bob Carter, JRB, Warren Tucker and Emibub.

edie the dontwait goddess

[Richard Darling]

I'd say turnarounds are almost always possible - but it may depend on how deep a hole has been dug.

We started my wife's art business in the summer of 2000. It wasn't our mistake that it turned out to be the start of the huge economic downturn. What WAS our mistake was that over the next year we spent $30k making prints, but never researched the print market to find that it was flat. Never had a good business plan either.

Fortunately, we've had the resources to last this long with 4 kids at home. But it has been extremely difficult (try delivering the morning newspaper for 5 years to supplement your income).

We are finally starting to get on top of things. The debt is starting to come down. Business opportunities are increasing. Taking on the frameshop/gallery has been great.

[J Phipps TN]

No never graemlins/party.gif

Just kidding!

Have a hugh Clearence Sale and move a few things to rebuild your cash flow and pay down your debt.

If it is was an exsiting business, you probably have alot of inventory that isn't moving. Reduce it 50% or 70% and just move it. Start fresh!

I did this in Feburary, and it was great.

Jennifer

[HannaFate]

It can work, but you have to re-assess. That's true even when business is good. You have to get out and see what is working for other people, what isn't, and what might work, but no one is doing it.

[JRB]

I have been in this industry since 1964, I have never ONCE made any kind of business, OR personal, mistake. Just the very idea seem ridicules to me.

OK, getting back to the real world. If you are still in business, then what mistake have you made?

There is an old adage, " The harder you work, the luckier you get."

You will survive this minor setback if you are willing to put in more effort. This could mean longer hours, lower prices to get more work, higher prices to show a profit, or a bazillion other variables that only you know the answer to.

You are starting on the right path, admitting there could be a problem. Next step is finding out how to get help solving it. The Grumble is a good start.

John

[Terry Scidmore CPF]

Janette, come to the next EPFG meeting May 9th in Lake City. We can tell you about all of the "great" business decisions we have made over our illustrious careers! You are among friends who will be willing to listen and share.

I'm the woman you were talking with in the restroom. Feel free to contact me for the address and time - you have my card - and I still have yours!

[MnSue]

You might want to call your local chamber of commerce or better business bureau. Some have small business mentorship programs that you can tie into. In Minneapolis, it is called SCORE, a group of retired business persons. They will consult and help with business plans, advice, etc., and get you on a better path.

You are on the right path when you ask for help.

It's had to see the forest when the trees are so dense - so fly at the top and look forward and higher
- Or buy a chain saw!

Keep pluging.
Good luck!

[Ron Eggers]

I think the biggest single mistake in business is to live on hope. "If I can just survive until the holiday rush, I'll be okay." "If I can just outlast the current recession, things will get better."

Sometimes they get worse.

Nothing good happens unless you make it happen. Hard work helps, but it is not enough in today's market. You have to take chances, sometimes, that are so scary, they make you sick.

And you don't have time to be sick.

Sometimes you have to spend less time dong the things that are easy and fun in your business and more time doing the stuff you hate, because it needs to get done and who else is going to do it?

Oh, wait, you didn't ask for advice. You asked for a carrot.

Okay, standard line: You go, girl! Hang in there. You'll do great.

And be watch out for strange women you meet in the restroom. graemlins/thumbsup.gif

I don't mean to sound harsh. I'm only talking about mistakes I've made myself - regularly for 27 years.

[Jim Miller]

We all make mistakes. Day-to-day, we business owners have more failures than successes, but we take corrective measures and get on with it.

Whether one can recover from a mistake depends on how big or significant it is, and how effectively one works to correct it.

For example, if you bend your nose bumping into a tree, stop the blood and keep walking. But if you step off a cliff, there's a lot more at stake. First, recognize the possible consequences. Next, aggressively look for something -- anything -- to grab that will save you. Taking action is the key to survival.

Having survived stepping off a couple of cliffs and a whole bunch of bloody noses, I can assure you that it is possible to recover from almost any adversity. You just have to refuse to give up.

[JRB]

Jim just hit the nail on the head when it comes to owning a business that lasts.

"Never Give up."

It takes almost no effort or thought to close a business, you just do it.

The businesses you see that have been around for years did not operate that entire time without problems. What they did have is an owner who refused to quit, no matter what.

You have a money problem, so what, every business does, it's the nature of the beast.

Your the owner, find a way to solve it, without throwing in the towel. You just may surprise yourself.

John

[Bob Carter]

Jim, as usual, is most correct

If you never make mistakes the you will never grow

I feel I learn much more from our mistakes than from our successes. To quote our good friend William Parker "Some mistakes we like so well we make them over and over" or to that affect

I can say with a high degree of certainty that most every "successful" framer I know can tell you of that trip to the "edge" and saw the other side

That doesn't mean that there will be a rosey outcome everytime, but we all have had many failures along with the successes

[trapper]

Still growing, still learning and still making mistakes. Been at this game for a long time..somedays it seems like forever.
I am one of those who are just to stupid to know that I can't, or to give up on hope. Even now in the midst of this Gas war I can't help but worry about tourism for the year. Everyone up here counts on it.
Someone once told me that if you own a business, everyone then thinks you got lots of money. Not true she said. What we got is a lot of debt. Some more than others. People can only see what they see..whats up front and right in front of them. They don't know of the long hours the late sleepless nights, the finangling, the "rob peter to pay paul". They only see the new car in the yard. All the stuff you got in your shop. Never see how you got there and the sacrifices you made along the way.
In the end is it worth it...I don't know, only you can answer that. If money is your thing I do know for a fact that there are other businesses out there that one could go into and make a lot more at. A car wash would be one of them! Less headache?? I don't know! Seems like everything has its caveat. I Don't know of any business that doesnt have it's down side. Theres always something that you hate having to do.
I for one would never ever give up hope.
"I don't know what the future may hold, but I sure do know who holds the future". I find that very comforting and it sure helps me to sleep at night. Especially in this crazy and dangerous world that we live in.

[Patrick Leeland]

Yeah everyone will make tons of mistakes, both personally and business. Look at Donald Trump, does anyone remember about fifteen years ago all the banks were trying to get money from him. He had nothing, I think he might have even been bankrupt. Now where is he? He is making tons of money and moving forward.

The worst thing one can ever do is not make a mistake. If you don't you are not trying hard enough, it is how fast you react and what you learn from it that makes you better.

PL

[Marzipan1]

What they all just said!!! The reason I spend my Friday and Saturday nights reading the Grumble is to learn various ways of handling the next mistake I'm about to make. I can only add a couple of other things I've learned in the last 15 years of being self-employed. First, lower your expectations (NOT your standards-your expectations). Before you can have that new Toyota in the yard, you're gonna have to eat a lot of Top Ramen. Secondly--get to know the other small business people around you--learn to spot the winners and follow them. They are the ones who are getting up at 2:30 every morning to run a couple of paper routes, like Richard. They are also out there handing out flyers and talking to everybody they can think of about their businesses. A lady barber who moved here three years ago left an extremely successful business in a major city in the southern part of the state. She started from scratch--hit the ground running and hasn't stopped yet. She even cleaned offices for awhile, just to keep the $$$ coming in. She's becoming one of the most well-known barbers in the town. (And yes-barbers have BB's to fight with too!) I've learned a lot from her...I think I will learn a lot more before she's done!
Third most important thing I've learned is what's already been said: "Never Give UP!!" There's always a way out--it's probably the most creative thing about us!

Good Luck!

[William Parker]

Note: this is my third attempt to post to this thread. My apologies if the other two show up from cyber space.

JanetteK,

Just like the movie "Beetle Juice", just say/write my name (Bob), and I appear. Bob did a good job paraphrasing my line about mistakes. The full statement is that: "...you should listen to me because I have made about every mistake you can make in picture framing and the mistakes I liked, I made twice." My mistakes tend to be large, painful, and, so far, survivalbe.

I suppose that it is the nature of my personality that I tend to sail too close to the edge from time to time. JRB is a much better sailer. As a result of this flawed character I have sunk two sail boats, and one power boat. In the process of failing, I did defining the limits of performance. The sail boats lived to sail again with a lot of effort to get the water out. My nautical career parallels my business career as both are defined by making and surviving mistakes.

Janette, it is a little early to call what has happened a mistake. The first year is never easy, and there is a learning curve. My first mistake was wanting to own my own business so much that I under estimated how much it would cost to be in business. I convinced myself that I could defy all the laws of business and make it work on a shoe string. I was wrong, and had to go to my parents and ask for help. Not an easy thing because they wanted me to get a real career.

You have some very good advice given in this thread. The Framing Goddess is correct when she writes, "...be proactive". I remember standing in the stern of one of the sail boats I sank, as the bow rose out of the water, thinking "this boat is sinking." I just stood there transfixed and this is not the correct reaction.

Being proactive means defining where you are at this moment and reacting to an analysis of your cuurent condition. The need for more capital may indicate a problem, or it may indicate that the changes you have made to the business have not had time to take effect. A dramatic increase in advertising does not produce an immediate response.

I would suggest that you take today (Sunday) and spend some time making a chart of where you started and where you are today. Begin by creating two columns which are labeled "where I started" and "where I am today". Then ask these questions:

1. what has happened with sales?
2. what has happened to cost of good sold?
3. what has happened to net income?
4. what has happened to inventory?
5. what has happened to expenses?
6. what has happened to advertising/marketing?

The last two questions do not involve money.

7. what has happened to the market?
8. what has happened to my store?

With the answers to these questions, you will be able to evaluate where you are and what options you have. You have been offered some very sound advice by JPhipps who wrote "...sell old inventories" and John (JRB). The only issue I would take with John's advice, and remember he is the better sailer, is discounting to increase volume. Increasing volume, if margins are too thin, is a sure way to kill a business. You do not want to join the "....we were busy until the end" club. Bob and I have varied on this point, so listen to his rebuttal before you make a final decision.

Possibly the best advice has been suggested by Terry Scidmore, who said you should join the Evergreen Picture Framers Guild (EPFG). They are a great group for which I have a lot of respect. Their president, Paul Knoop, is one of those people, in this industry, who you should know. Networking is very valuable. Especially when you can avoid mistakes by learning from those who have already been where you are. EPFG is a very good way to do this.

Of course my blood runs purple, so I would also suggest that if you are not a member of the PPFA, you should join. Their business resources are very valuable and you can never have too many friends.

Finally, hang in there; the bad years are one, three, five, and seven. After that, you are a "lifer", and it all gets easier...until the market shifts, but that is another topic.

Best of luck.

Always sailing too close to the edge,

William Parker, MCPF GCF
Ambiance By Parker
Nashville, TN

[Bob Carter]

This is why I so enjoy William's point of view (and his friendship). Go with everything he said; he said way before I ever thought of it

While we agree on 98% of everything, we have a very slight difference on the two percent remaining

While I actually agree with discounting with a "too thin margin" (something about needing to Buy Right to Sell Right that I heard elsewhere), I will differ on the years that are "bad". I think making it the first 5 or so years is actually the easiest part. You are, purposefully, running lean and mean (okay, William and I are not exactly th efirst image that comes up when mentioning "lean"). To me, the difficult portion is maintaining that same "lean and hungry" mindset when you get a little "success".

Then, it becomes "fat, dumb and happy" and that is when the "edge" comes up quickly, too quickly. When you are lean and nimble, a hard tack is so much simpler.

And, did our good friend speak volumes when he made the reference to shifting markets

If you have been in biz for that magic "5 to 7 years" and cannot point to at least three major shifts (market induced) and how you have adjusted to them, then, you might be looking at your own "biggest mistakes"

[Jerry Ervin]

Originally posted by William Parker:
...The need for more capital may indicate a problem, or it may indicate that the changes you have made to the business have not had time to take effect. A dramatic increase in advertising does not produce an immediate response...

That is a very valuable understanding that a lot of retail business owners, not just framers, have a hard time with.

Many changes we make take time to see the results.

Good or bad.


Words of wisdom.

[trapper]

I just heard a good definition of what hope is.least I think it was.
Hope is your goal setter.
I want this or I want that..
what your really saying is "I hope for this or that to happen within.."
Now that we have our goals set we need somthing else to motivate us towards reaching that goal. That something is differnt things to different people. If that "something" succeeded , no way your going to convince them that "something" was wrong..My "something" is just plain old hard work.
Sert your goals and work hard towards them. Count the cost of building that bridge first.IF after you have added up the cost and it is still somthing you want to do..then set realistic goals..short term and long term ones. You need those short term goals in order to keep going. Sometimes just getting thru the day can be a short term goal.
It helps you along the way. You have to succeed at something along the way or else your not going to make it thru to the long term ones. Success is a building block. Means different things to different people. If you were to ask folks on here "what does sucess mean to you", you would get as many different answers as their are folks answering that question. I don't know if their is one true answer..Some might be better than others, but one that fits everyones idea...I don't know!
For some it might be money, others it might only be having something to do. while others it might be a position of respect within the community. Others might define it by " all of that and then some..."

[JanetteK]

Thanks, All. I've been reading and thinking about your responses. I do belong to EPFG (proudly wearing my apron right now) and went to their education seminar where I talked to Terry in the restroom :) among other good learning experiences.

I'm not sure I can make it to the May EPFG meeting, though, as it's about a 3 hour drive for me to Seattle, which would make six hours on the road plus the time spent at the meeting on a weeknight. I'm still thinking about it.

I'm also taking Jennifer's advice to mark down a lot of my predecessor's inventory, and I'm putting my display art on sale for the month of May.

I have spent a fair amount of money improving (I trust) the appearance of the store with more, and more frequently changing, display framing, also some new furniture and lighting. I spent a lot on advertising leading up to Christmas and had a good December. January and February were very slow, and I think that's part of what's causing my cash flow problems now.

I put up a website when I started and just updated it with pictures this weekend, having asked for and received a digital camera for my birthday in April. (www.creativebordersframing.com) And I just mailed out my first store newsletter to the customers who have visited the store during my ownership whose addresses I have, about 90-some persons or households.

I may write more later, but I'm going to sign off for now. Thanks again to all of you, and if more people have more thoughts to add, I'll keep checking for them. smile.gif

[Terry Scidmore CPF]

You callin' me STRANGE, Ron!?!

Janette, I thought you had a good head on your shoulders when we chatted in the restroom! I was glad to see that you looked up the grumble, and I hope that you have been reading Bob Carter, Jim Miller, William Parker, and the other posters I mentioned to you.

I know that commute can be a killer for the EPFG meetings. I have many years under my belt of planning these meetings as well as driving to them. I understand how hard it is to get a lot of enthusiasm up to get behind the wheel and go.

Anyway, I put you on our contact list, and you will probably be hearing from various official EPFG'ers who will keep bugging you!

BTW, the food at the next meeting is to die for - well worth the drive. The evening topic is all about maintaining and fixing those darned pieces of equipment that fill our shops. You will get a chance to see a lot of different kinds of equipment at our host shop - Lake City Picture Framing.

Don't forget that a couple of our meetings will be up closer to you - and one is on a Sunday. And one will include WILD BLACLBERRY PIE!!!!

Feel free to contact any of us - our e-mails and phone numbers are in the newsletter. You will find that we are a pretty nice group of people.

We also encourage membership in PPFA/PMA and see the EPFG and PPFA as a complementary duo.

Thanks for the nice words, Mr. Parker! Hope you can come and visit us again soon!

[Emibub]

Man, I wish I had time to add some insightful thoughts, I certainly made a ton on mistakes in the beginning. Maybe tomorrow.....

[J Phipps TN]

OK, What does EPFG stand for?

Jennifer

[William Parker]

Jennifer,

To answer your question, EPFG is the Evergreen Picture Framers Guild and they are a great group of framing professionals who are located in the Pacific North West (Washington/Oregon and surrounding states). They have a strong commitment to education and professional development. Their educaional weekend events are always good. They have a great news letter. As Terry noted, many of their members are also members of PPFA.

William Parker MCPF GCF
Ambiance By Parker
Nashville, TN

[Baer Charlton]

And some of the EPFGers wander around far afield...

Again, thanks for the kind words William. Looking forward to bringing a little EPFG to Nashville in November. I can't wait to play at the Parker Shrine. graemlins/thumbsup.gif

I'd like to add to "making mistakes" but I can't. Long ago I stopped making "mistakes" and started "learning lessons" instead. Some have been very expensive.. although, I haven't sunk a sailboat yet.

When you make that mental shift, you start paying more attention to the lessons. They also lose a lot of the emotional baggage and you can see them just a little clearer... and a lot uglier. And that is the down-side to accountability.

The biggest lesson you can learn is: "never stop asking for help/advise/help/ideas/suggestions/help/perspective/a mental or physical hand up". graemlins/help.gif

When you think you know all the answers, is when you start the real learning. graemlins/thumbsup.gif

Many of us humans have one huge fault: we don't want to bother someone that we respect with our petty little problems even if it is an aligator thats swallowing us up to our hips. I'm not suggesting call Bob, Jim or William on a weekly basis... but a well thought through email a couple of times a year, I don't think any of us would find offensive or a bother.

Personally I try to pick Bob Carters mind any chance I get, because he sees the numbers just a whole lot better than I do. I keep looking at the boards hiding in the trees, and he sees the ebb and flow of the forest.

Probably one of the most powerful articles I have read of late would be William's in DECOR. Even if he does confuse GM with Fords.... it's OK, I used to get Rococo and Auralist confused. graemlins/party.gif

[William Parker]

Baer,

I know that Renault made the Rococo, but did Chrysler make the Auralist? We did not have them "fern" cars in Alabama when I was growing up.

Sorry, I could not resist, and thank you Baer.

William Parker
Live from Orlando and day four of the ISA Core Course.

[Baer Charlton]

William,

As you started it, do you drive the "fern" cars to "fern" bars?

I understood what you were saying once you tied it all in with the Cataract, but Mar and JRB might not have seen what you were saying, unless they still have thier eye-teeth. :D