Sometimes in business we get a little excited and sometimes we get a little bored. Running a small business can be exciting at times. Especially as you reach each of those all important milestones you’ve set for yourself. So we can be excused once in a while if we get excited. But you’d think it would be hard for us to be bored considering all the things we have to do each day. Well a lot of what we have to do each day is the same as yesterday.
Now say your business has been doing the same thing year after year. You’ve gotten good at what you do and you’ve started to make a little money, the future looks bright. And you’ve got some ideas on how you could expand the business.
One of the themes that I’ve always preached to others when it comes to business is you need to understand the business you’re in. People don’t always do their homework before they start something. And not doing your homework in business can cost you a lot. I’ve always wondered how some businesses manage to survive.
For example years ago I was walking through a mall and I passed by a ribbon store, you know the kind of ribbon used on gifts. And I asked myself how much ribbon does a store need to sell just to pay its bills?
How does a business such as that make any money. I mean really they were located in a mall. The rents in those places can go through the roof! How many people are going to need that much ribbon. I just don’t get what some people are thinking of. And that is what you need to ask yourself if you’re thinking of diversifying your product line.
Most of us dream of building our businesses up and being the next Donald Trump but realistically most people don’t make it that far. Now I’m not trying to dampen anyone’s dreams because mine are the same. And after years of toil I’m still pursuing them.
No, what I need you to do is be very careful. Remember all you have worked for. Yes new projects can be exciting and maybe you’re a bit bored. But you need to very thoroughly think things through. If the idea or opportunity is that good it should still be there tomorrow.
What you need to remember is every new project and idea needs resources and time to make it a reality. Most small businesses have few resources and you’re the one that most likely will have to sacrifice the time. You need to seriously consider that. The resource side always means money and that could be cash or credit that has taken a long time to be built up. And the time factor can be costly too. You may say well I can spend the extra time on it myself. That’s easier said than done. Most small business owners already have a full schedule handling your day to day business let alone another new project.
If you are going to consider making a go of it make sure you do your homework first and consider all the ramifications of you decision. Maybe you’ll have a great product but it may cost more than it’s worth.
Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years of experience cover many small business topics. For more small business information you can go to SmallBusinessDelivered.com