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5 Ways to Build a Debt-Free Business

Sixth months ago today I quit my day job at a very respected Fortune 200 company.  Scary, yes.  I worried about my wife, our home, our pets, and whether this crazy idea could really take care of them all.  Today, I thank everyone who has helped us answer that question.  Our customers, our suppliers, and even our critics.  We’ve made our share of mistakes, but each one has helped us build a better business.

This weekend I leave for a trip to Vegas for Pack Expo, the largest packaging conference in the US.  Just a simple (and very inexpensive) business trip makes me realize how far we’ve come.  I used to travel infrequently when I worked for the giant corporation, and I almost always hated it.  Now that I am doing it as the owner of a company, the entire feel is different.  I’ve scheduled something almost every hour of the day, to try to maximize the products and services I might be able to offer to our customers when I get back.  I’m excited to meet some of my suppliers face-to-face for the first time.  I’m looking forward to letting my wife demonstrate her knowledge as well, as she’ll be running the whole kit and caboodle while I’m gone.

After sixth months of living the ‘American Dream’, one of the most enjoyable parts of my job now is talking to people, friends and family, and often customers, about the possibilities…both in my life and career, and theirs.  At the same time that I am approaching venture capitalists and angel investors about some ideas I would like to turn into reality, I do my best to offer those around me the same on a smaller scale.  I tell folks, yes, you really can quit your jobs.  You can build a business from scratch, with cash and without debt.  Yes, there are still opportunities for those who will take them.

If I had to offer 5 pieces of advice to someone considering starting a business or trying to figure out how to grow one they already have, here they are:

1:  Do more with your brand.

Many folks get stuck in what they are doing and don’t realize there are many ways to monetize or spread a brand.  I’d love to see my local electrician or plumber start a Facebook page or blog and answer basic questions for free.  While I know our blog has been pretty thin much of the time, we try to add value with Advice and Beans here, our little newsletter we put in each order now, and our Facebook page.   We also aim to be accessible by phone or email and to share what we know (or don’t know) openly.  I know many businesses that do their best to give away as little information (for free at least) as possible, and that is one of the worst ways to grow your business.  The more ways you can interact with a customer, the more chances to make a positive impression, which in turn (with hope) lead to more sales or recommendations to others.

2:  Don’t be afraid to try something new.

While several of our product lines other than the food storage supplies haven’t done great, we have had some success with the most random things (For example, we almost sold out of the new Stormproof Matches we are carrying in the store at the Gun Show this past weekend).  Both my wife and I recognize that Preparedness, while a great niche, is also a pretty small one in terms of the overall market.  Backing oneself into a corner is not a great way to stay in business if one product line turns sour.  And so, we are always on the lookout for new products and services to offer.  In fact, we’ve got some ideas on the drawing board we hope to patent, and that could be huge in the market.

3:  Grow only as fast as you can afford.

Our office is still in our home.  We sublet some warehouse space, but just enough to work from.  It’s sometimes inconvenient to have our entire bottom floor devoted to the business, but we never would have been able to sustain a decent cash flow if we had to rent an office or dedicated warehouse space.  I’ve heard more than a few folks tell me you can’t start a business without loans and capital, and it just isn’t true.

We started our business buying a couple of cases of product at time.  Then we ordered half a pallet.  Then a full pallet.  Now, some of our shipments can take up half a tractor trailer.  The main benefit of this type of growth is you prove your market, and you’re unlikely to be stuck with a ton of stuff you’ll never be able to sell.

4:  Everything needs to have more than one purpose.

The last point notwithstanding, I’ve been looking for a small retail space to open a modest preparedness store in Nashville.  However, instead of just renting anything that comes along, I have several criteria for the space.  For example, it has to have a dock, so that I can stop renting the warehouse space and accept pallet deliveries.   However, I also remember how hard it was when I first started the business to figure out how to receive deliveries…so to defray costs I would offer others the opportunity to use my dock and storage space for their own businesses.

I would also go into a space knowing that a retail preparedness store might not be the biggest draw, so my goal would only be to cover my costs through walk-in traffic.  We’re a mail-order company, and we’re good at it.  That would still be our main focus, and a storefront would really just be a place for us to work that isn’t our house!=)

Another example is the enclosed trailer we just bought.  The business is a 24/7 machine, and we recognize that.  However, having a trailer will allow us to take the business on the road, so we don’t come to resent not having many days off or vacations.  Next month we’ll be taking our first trip to visit family in Connecticut.  However, we’ll be outfitting the trailer with a computer and printer to process orders, and shelving to accommodate inventory.  We’ll be putting advertising on the sides to hopefully draw some business while we’re on the road; we’ll stop along the way to answer questions or visit with our customers.

So never just buy something with only one purpose in mind; always work to maximize the return of every investment.

5:  Just Do It.

Nike came up with one of the best slogans ever.  I’ve talked to literally hundreds of people who feel stuck in their jobs and their lives.  But do you know how many of them were actually willing to give up their TV time, or their Youtube watching, or their weekends, to really try to start something?  None.  Not one.  Heck, I’ve offered to buy people their first shipment of wholesale inventory if they wanted to try selling something on eBay (yes, I also expected a return if they made a profit), and I still haven’t been able to get any takers.

For many years I was those people, so I completely understand how easy it is to be trapped in a particular lifestyle.  I watched my brother and my father come up with literally dozens of ideas that with a little work could have been profitable businesses.  My brother died two years ago at 42, never having tried any of them.  My father is 73, with all the time in the world, and I can’t get him to either.

To be honest, I think that is the reason I actually pulled the trigger.  I didn’t want to end up like I did, giving my brother’s eulogy.  I talked about how brilliant, and friendly, and open, and funny, and loving he was, and how much people adored him.  What I really wanted to say was that he took his ideas, and made them real…but I couldn’t.  Heck, I would rather have said he tried and failed, than never tried at all.  And that’s what I want someone to say about me.

While I hope to be still selling Mylar Bags and Oxygen Absorbers in 25 years, I also plan to have 5 other businesses running as well.  Once I actually started this business, it was like a wave…I saw the opportunities available in everything today.  I have ideas for several pieces of software, for a unique shooting range, a game store, a theme park…and each idea is the stepping stone for the next.  Don’t ever believe there is not something out there for you to do, if you choose to try.   I think every 20-something, every single mother, every corporate middle-manager, every unemployed carpenter, has the same potential to build and manage a business.

If they’ll just try.

 

 

23

09 2011

The People We Don’t Want to Be

I saw this (The link has been removed…it basically offered a bunker spot for $200,000 for a single and $400,000 for a family, and to contact him right away) on Craigslist today, and it says ‘scam’ all over it.  It makes me wonder at the motivation of the sellers of these ‘bunker condos”.  For $200k or $400k, any one of us could buy a rural piece of property, bury our own bunker, and (based on back of the napkin math) fill it with several years worth of food, water, and fuel.  So why would I want to entrust my future to others, crammed in an underground complex with 50 other scared families, raising the possibility of mental breaks, diseases, and random violence?

Sounds too much like the setup to a bad horror movie for me!

 

 

31

08 2011

Updates: Long, Hot Summer Edition

My apologies for the slow pace of new posts recently, but its been a bear of a summer.   The good news is business is up in the wake of inflation news and the Dow upheavals, but it makes it harder to fit everything else in!  Also, I’ve spent 5 days working on the water project this month,  as we do our best to practice what we preach.  Again, that’s a good thing; however, some days the changes in velocity of SurvivalClub activities makes for some very long days (We went from taking a year to plan the project to now having all hands on deck for as many days as possible to implement it!)

Still, busy is good.  Some other bits of news:

  • We finally got the ‘Light and Fire‘ section of Discount Mylar Bags up and running with a couple of cool products!  The candle lanterns are an excellent, cheap and portable way to always have some light on hand (#5 on the list of things one must have to be prepared).  The kit comes with the very cool pop-up Lantern, 4 9-hour candles and a carry sack.  They also have a hook and chain, so we have taken to hanging ours on a nail on the porch.  It puts off just enough light to have a good conversation, but not as much as our regular outside lights which attracts a gazillion bugs.
  • Also in the section are a Light My Fire Firesteel, the premier brand in the category, and supercool storm-proof matches.  I usually recommend a standard Bic Lighter for most folks fire needs, but if you’re in the woods or going on what could be an extended excursion, Firesteel can’t be beat for ability to throw sparks (and it also has an emergency whistle on it as well).  The matches on the other hand, are something I would heartily recommend everyone get a set of.  We made a silly 30-second spot on Youtube about the matches, which really do burn under water!  They come in a gasketed waterproof container with an extra striking surface and would be a great addition to any 72-hour kit.  In general, lighters don’t work well when wet, so having storm-proof matches on hand can really come in handy in certain conditions.
  • In our ‘Gear’ section (just one item for now) is a 1-Liter ClipCap Aluminum Water Bottle.  It’s cap allows it to attach to almost anything.  We keep one on the stroller when we take the dogs for a walk (don’t ask), and I like them better for hiking because I often lose my Nalgenes because the drink pockets mesh on my backpack is too light to keep them securely attached.  If you’ve watched any Survivorman, you also know that Aluminum bottles are great to boil water or (in a pinch) soup in if you needed to purify some for any reason.
  • We’re pulling the trigger on the trailer purchase I mentioned last month and will be taking our first trip with it in late September (our In-Laws will be staying at our house for any burglar types), going up to see our families in Connecticut.  We’ll be taking 95 up to New England starting in Virginia, so anyone who wants to save some shipping on a big order, let me know and if we travel through your town we’ll be glad to stop!=)
  • We are still working with UPS trying to figure out why the rate structure on our contract is not actually working with our shipping account; that’s why we haven’t had the smaller sets of Gamma Seal lids available yet.
  • I am having a lot of fun spending a few minutes a day on our Facebook page.  We gave away a $50 gift certificate to the store at 50 friends and $100 at 100 friends.  We’ll do the same every time we hit another hundred friends (200, 300, etc) up to 1000; if we ever hit the 1000 friend milestone I promise to do something special to celebrate the occasion!!  So if you use Facebook and haven’t yet, please Like us! (You can also find us by searching ‘Advice and Beans’ on Facebook)

That’s all for now, stay safe and prepared everyone!

26

08 2011

Storing Some Pasta

Seeing the inflation occurring as well as the continued economic malaise, our family has continued to add to our food and other stores regularly.  We picked up 10 pounds of pasta and another 30 cans of vegetables this weekend at Publix from their Buy-one-Get-one section.  That’s pretty much the only way we buy things now, as we’re just adding to our stores and not trying to fill a pantry.

This month, we’re also going to do a formal written tracking of all expenditures in the household, from the mortgage and utilities to a candy-bar at the gas station.  I recommend everyone do it at least 1 month a year, as there is no better way to find the holes in your budget.  When I first did it over 10 years ago, I found I was spending more than double my electric bill eating fast food!

I had planned on doing a little Youtube thing on our pasta storage, but my wife beat me to it and was already done when I got back from the warehouse yesterday!  She did up 12 bags of pasta, 24 lbs.  She also did a bunch of dog food that had been collecting, and that was another 40 lbs.  I always find it odd it seems like we put away more food for our two dogs that combined weigh 11 lbs, than my wife and I do for ourselves.  We will use up the dog food within a year or two as it has oils in it that can go bad, but we will get a lot more shelf life out of it being stored properly.


 

02

08 2011

7 Ways to Simplify Your Life

Have you ever looked around your house or apartment and wondered, ‘How in the heck did I get so much stuff?’  Books, DVD’s, random piles of computer gadgetry, plastic and metal organizers that seem like THEY need organizing?  Kitchen appliances you haven’t used it years, fitness equipment you keep promising to use, 30 years of National Geographic?

One of the touchstones of preparedness and self-sufficiency is getting back to the simple things in life.  I look around my house and my life and while I am blessed with many good things, sometimes the blessings of material things weigh heavy on my spirit.  We held our annual yard sale this past weekend, and I was ecstatic to watch 500 pounds of stuff leave my life.  We didn’t care how much it sold for, we just wanted it gone.  We sold two heavy, old pieces of furniture for a third of what it was worth, just to get rid of it.  After several years, I finally acknowledged I won’t be getting back into my size 36 pants anytime soon, and they all went.  Video games that I haven’t played in 5 years.  And on and on.  And everything that didn’t sell was put into the van and brought to Goodwill.  If we are willing to sell something at a yard sale, why should I ever bring it back into my house?

I’ve read a lot of articles on simplifying, and most of the ideas are common sense.  Still, it is hard to let go of some things, either because we spent money on it, it is sentimental, or because we fear that once we get rid of it, we might suddenly need it.  What do you mean I don’t need that waffle maker?  I made waffles 4 years ago, and I might do it again soon!

My wife and I have a goal.  The next time we buy a house, we aren’t going to move any of our stuff into it.  We will buy (as frugally as possible) only items we must have to live there in reasonable comfort, and nothing more.  If the house has lots of closets in the bedrooms, we won’t buy dressers.  If a space on the walls seems empty, we may put up a piece of art, but not a rack full of knick-knacks.  If we want music, we’ll install a permanent speaker system inside the walls or ceiling and run it from our laptops, and not a giant stereo system.

Maybe you like your stuff, and that’s cool, I used to have a great love affair with all of ours!  But if you feel your stuff draining your spirit and attention, here are 7 tips to help you take back your space and simplify your life.

1.  Identify what is important to you, and eliminate everything else.  Yes, much easier said than done.  We’re not even close to doing this yet, but it is our goal.

2.  Mediate your Media.  If you haven’t watched it, listened to it, or read it in the past year, sell it.  I know people with 1000’s of DVD’s, games and movies.  Most of them are as busy or more busy than I am, so I know they can’t possibly watch 1000 DVD’s, especially if they have seen the movies before.  Pick 10…heck, pick your 25 favorite movies, and sell the rest.  If you really feel like watching something, it is likely available online from Netflix, Hulu or other digital service.

3.  When you reclaim space, give it a purpose.  The two pieces of furniture we sold took up a lot of space in our work area.  Instead of refilling the space with clutter, my wife built shelving into the wall, which now holds business supplies that sat on a table or in totes on the floor previously.  We have gained at least 75square feet of floor we didn’t have before.

4.  If you don’t wear it, donate it.  Those parachute pants are never coming back into fashion.  And sitting on the couch will never make you a size 2 again like you were in high school.  If you haven’t worn it in a year, you are not going to wear it again.  Bring it to Goodwill and it will find a a good home.  Prior to this yard sale, our clothes closets were bursting at the seams.  Now, we have spare hangers for the first time in years.

5.  What do you really enjoy doing?  Pick your 3-4 favorite hobbies, and sell any hobby-related items not related to those.  For me, that means preparedness, hiking, reading, and board games.  Sorry Roller-blades, you were fun but I don’t use you anymore.  The X-Men, Thor, and 5000 other comics I have?  Sell in bulk to a shop, or donate to a children’s home.  Collectible cards?  I sold them last year for over $500 and put the money into a savings account.

6.  Use what you have.  If you have something serviceable, don’t buy something new just because you want to.  I have an excellent Mountainsmith backpack, and it is still in excellent condition after 5 years of use.  When I started thinking about my Appalachian Trail section hike, I asked my friend Bill from BuyItRight about what I should get for a new, larger backpack.  He told me not to get anything at all.  He said ‘if you have a larger backpack, all you’ll do is carry more stuff.’  The same goes for my sleeping bag.  Instead of buying a new -30 bag, I should probably schedule my hike to where my excellent 32-degree bag works just fine.

7.  Use Technology.  It sounds funny even saying it because most of us have computers, cell phones, and GPS devices.  But do we use it all to the fullest?  All of my banking is done online, including auto-bill pay, direct deposit when I had a regular job, and even my check-writing is done online.  No more stamps, a permanent record of when I paid or got paid, and about 1/3 the time I used to spend on that sort of thing.  Some folks are still a little wary about doing things online, but almost all banks protect you from fraudulent charges.  I’ve been doing it for over 5 years, and I check my credit report for free regularly to ensure nothing has gone wrong.  To be honest, I need a better system to organize all that data, but it’s better than the filing cabinets filled with paperwork my father has.

Simplicity creates a sense of peace, serenity and control over our surroundings.  As the timeless Henry David Thoreau said ‘Our life is frittered away by detail…Simplify, simplify.’

28

07 2011