What I Did:
Well after nearly a year and a half in business for myself, I am not only ecstatic at the fact that it has been a success, but it has been the best 18 months of my professional career. There has been many challenges along the way, but the challenges became opportunities and the opportunities became successes. It sounds so cliche to say that, but I have to tell all of you who choose to read this blog, starting a new company from the ground up has been a blast.
How I Did It:
This is my second go around as an entrepreneur. The first was during my last few months of graduate school. A classmate and myself started a patented technology brokerage firm. We ran that business for 3 years before selling controlling interest to a company who could finance the business at a much higher level then we were able. What a great experience that 3 years was!!!
I have grown up professionally within the food business. This experience includes time spent with Tyson Foods and three major food distributors across the midwest. Finally, after a failed purchase of a 30 MM meat purveyor in the Rockies, I decided to go it alone.
I chose to stay with what I know and that is protein distribution. Not a lot of sales people within the food business are educated to the point of being able to help the chef understand the anatomy of each animal that we as a society enjoy in our daily diets. This is where I recognized my "competitive advantage". Without a decisive competitive advantage within the marketplace, I figured I wouldn't last long.
I spent a week putting together a business plan that outlined the business concept and how I was going to go about financing it. I then shared the plan with about 5 cohorts that I felt would give me some "unfiltered" feedback. After being challenged on a few points, I then asked each of them to invest in my vision.
Basic plan included: easy entry into the marketplace. The idea was to acquire the necessary inventory, storage, and delivery vehicle. Easy exit if the business wasn't successful: liquidate the delivery vehicle and inventory, burn business cards and start interviewing for a job.
April 28th, 2008 the business was incorporated and the investment cash deposited. This last year and a half has gone quite quickly.
Lessons Learned
- You must have competitive advantage in a "mature" marketplace.
- Sales is the driving force that leads all businesses. Without "sales" the company will die.
- A strong marketing program was key in driving "sales"
- Cash is King!! Cash flow has and continues to be a challenge.
- The toughest thing in any business is to "predict demand". Making sure that we have enough inventory in stock to adequately fulfill our customers orders is a weekly challenge.
- Staying on top of A/R is also very important in helping cash flow.
- Staying focused on the "basics" of business have allowed us to succeed!!