My freshman year in college, I started a painting business. I was spectacularly successful at making sales, racking up $50,000 in paint jobs before the summer began. I was also spectacular successful at planning, purchasing my paint sprayer, my power washer, and other equipment in anticipation of the windfall of referral business I was sure to receive.
Unfortunately, there’s a yang to every yin, and what I possessed in salesmanship I lacked in management chops. As a result, I had a sloppy, slow crew and a less-than-stellar track record of execution. The referral business dried up and some of my contracts backed out on me. I learned Business Rule #1 – it’s difficult to lead when no one’s following you.
All in all, it was a great experience, and I learned a ton about my weaknesses in the world of business that I’ve worked hard to improve upon since. However, it also burned an enormous hole in my wallet, and I spent the rest of my college career in debt.
The first few years out of school weren’t any kinder – as someone who stubbornly insisted on starting my own enterprise, I was consistently walking a very tight line – I didn’t really get deeper in the hole, but I wasn’t making much progress digging out either. In fact, because I was so insistent on having fun with my friends, I didn’t keep nearly enough money in the business – when things got tough, I didn’t have a reserve. I learned Business Rule #2 – cash truly is king.
Now older and wiser, I’ve become much better at managing (well, at least motivating) people. I’ve also become much better at controlling my spending – in fact, as you know, last July marked the first time in years that I had been out of debt. But this morning, I discovered that paying off your balance doesn’t give you license to ignore your statements. Apparently, they put a 50-cent charge on my card for paying it off. That amount went unpaid for three months, and they decided (without notifying me) to close my account about a month ago. With about 10 days remaining before Christmas, not the best time for such a discovery.
I’ve learned Business Rule #3 – mind your business! Pay attention to what’s going on around you. If I’m to be successful the next time I decide to start a venture, I’m going to need to be much better about staying on top of things.
I guess it’s good to get these important lessons out of the way early, while the mistakes only cost me a few thousand dollars instead of much much more. But that cruise I was going to send everyone on will apparently have to wait until next year. Sorry guys…
