5 Snow Days vs 5 Years in Business

During the third week of February, we were snowed in for most of the week with three little ones. There were highs, lows, and other than checking a few emails, little work done.

Those 5 days reminded me of what it looks like for the first 5 years for many entrepreneurs starting out. 

Check out this comparison:

 5 Days at Home                                                    5 Years in Business

Day 1 – Sledding, hot cocoa, and snowmen	Year 1 – Freedom, excitement, and learning on the fly
Day 2 – Sledding with the neighbors, some hot cocoa, and snow angels	Year 2 – Hire employees, less excitement, and more learning on the fly
Day 3 – Tired of sledding, runny noses, and no hot cocoa	Year 3 – Fire employees, no excitement, and doing everything on the fly
Day 4 – Too cold to go out, lots of whining, and lots of Netflix	Year 4 – Too tired to sell, lots of whining, and lots of Netflix
Day 5 – Are you freaking kidding me…	Year 5 – Are you freaking kidding me…

In fact, the SBA estimates that 50% of businesses fail in the first 5 years.  Of course, if you are an optimist, that means that 50% of businesses succeed in the first 5 years!  Let’s look at the reasons and what to do about them.

1. Lack of Experience – You are going to be naturally stronger in some areas of your business than others, however, don’t take the weak areas for granted.  Take the time to read books, take classes for running a business, and keep up with trends in your industry.
2. Lack of Delegation –If you want something done right, you have to do it yourself.  If you want to own your business longer than a year, learn to delegate and deal with imperfection.
3. Lack of Capital (money) – Cash is still king, so before you make a purchase/expansion review your capital needs first.  Fill out a cash flow (not P/L statement) and identify shortfalls.
4. Lack of Planning – No, you don’t need a 50 page business plan.  You do need goals and a plan to reach those goals.  Decide where you want to be this time next year and create a game plan.
5. Lack of Marketing – Create a marketing calendar and stick to it! You should be marketing on a regular basis, even when you are busy.

     And if you ever get snowed in make sure to have plenty of groceries, a sled, and Netflix handy.

(A one minute recap of our week at home)