Successful Business Building Begins With Solid Footing of Your Business Idea

Michael Garr posted:




Have you ever wondered how a house is built? It’s really very interesting because building a house successfully to completion is no easy feat. It takes vision, a lot of hard work, good organization, a plan to execute, quality people and a concerted effort to stay on schedule. While some builders make it look very easy, anyone who has ever done it themselves would understand what I’m talking about, right? Any missing ingredient can lead to a headache of epic proportions. Every builder understands the importance of a solid foundation built right from the start. If the foundation is not correct, you will have structural issues following you throughout the project.

As an entrepreneur, you are also a builder. And, a lesson can be learned here.
Mike Keating, a friend of mine who once framed a house for me put it this way and I never forgot these words, “if your foundation is not right it will follow me all the up to the roof”. Mistakes like this are costly but they can be fixed. Adjustments have to be made and sometimes, you have to tear apart what you have already done. It’s not a place you want to go.

Look at your business as if you are building a house and pay particular attention to the foundation of your business as you build it. If you are already into your business and struggling, you may have to look at your foundation and think about what you may have to do to shore it up. As difficult as it may be, sometimes you have to tear apart what you’ve already done and fix it the right way.

VISUALIZING YOUR HOUSE

When I built my house, I had a drawing for the framers to work from but changes in my foundation plan effected all the measurements throughout the house rendering my working drawings nearly useless. I was fortunate because my framer, a designer and a Realtor were helpful with good advice as we quickly corrected the plan. The final design was excellent and helped me sell the house early on. However, I didn’t say the process was easy and it certainly increased my costs to make changes while framers were standing around waiting for someone to tell them what to do. At this point, everyone has an opinion. I would rather have spent a little more time understanding the full scope of the project and thoroughly completing the design before starting the project.

You see, I now realize I started too soon. I was not ready and I did not fully grasp all that I needed to understand how to build this house effectively. I had not properly vetted my entire group of sub contractors including my General Contractor who actually caused many of the problems. Organization was insufficient and I did not have proper measurement and tracking in place to manage the funds being paid out. Your business is not unlike this scenario. Your business starts with a concept but ideas are only that until you are able to articulate exactly what you want from your business and more importantly, what your business can do for others. Write it down then try to convey it back to others to test it before jumping in with both feet. If there is a hole in your theory or concept your friends and colleagues will surely punch right through it. Don’t forget to run it by your spouse or partner because you are already on uncertain footing if they don’t buy into your idea. Moving on around them without agreement? Well, just don’t do it. This is really important.

DON’T BUILD YOUR HOUSE ON A FOUNDATION THAT IS NOT SQUARE

When a foundation is not exactly square, plumb or level the framer will have to make critical adjustments to make it right because all of the cuts for framing will be effected by the foundation it rest on. If they didn’t, the whole house would be out of whack. The walls won’t be square and cabinets won’t fit right. The floors won’t feel level and the trim moldings will be a nightmare to the poor carpenter. For me, the biggest example had to do with the truss type roof system we had planned. It was cost effective and made sense initially until the foundation plan changed. Since my foundation needed extra attention in the beginning we couldn’t take final measurements until the top plates were completed on the second floor.

I mention this lightly but it was actually a very big deal. In fact, it created a domino effect and once we finally got the new measurements to the truss company they were back ordered. I can think of a nice Yiddish word: Oy Vey! As an investor, I wasn’t pleased watching my new house sit without a roof for a prolonged period time and several measures had to be taken to preserve the integrity of the house. So, why is this relevant?

Business experts vary on their view of what a business plan should look like. However, most will agree that it does force you to understand all aspects of your business concept from financial analysis of your markets, to understanding how much capital you’ll need to get started, the structure of your business and strategies for implementations. As an investor in a significant project, I did not consider all the aspects of this specific project. Consequently, I paid the price to fix certain items after the fact and believe me; it started not only with my foundation but also during the research and planning phase for my project. I’ve often thought about writing a book on how NOT to build a house because I made some very classic mistakes most builders would just snicker at.

At the end of the day, whether I was building a business or building a house (Let’s say the building project was a mini business). You must consider all aspects that make up the foundation of your business. Your business plan will help you frame all of this into the right perspective. It is your working drawing but you can modify it as you go. Having it on paper will allow you to share it with others so you can get the proper feedback you will require to move forward. Your plan also gives you a dynamic document you can refer back to measure where you are in the process of building your business at all times. Have you ever seen the working blueprint towards the end of a construction project? They are usually all marked up with pencil and ink with all the changes made on site. Your business plan will become something like that.

Running a business is hard work just like building a house. Everything has to come together in a timely way. Clearly, you must build upon a strong foundation if you want your business to survive in uncertain times because little things do matter and it’s the little things that ultimately destroy a business one piece at a time by chipping away from the foundation of a business one block at a time. Take the extra time necessary to thoroughly understand your business and how to execute your business strategy before you jump in with both feet. You can’t afford not to. Launching your business on good footing is one way to ensure some success while you grow your business.