Lillian
Vernon's Tips
For Entrepreneurial Success by Lillian Vernon
Fifty-one years ago, I never
dreamed my mail order business would grow into a company with sales over
$287 million. I had a dream, supported by my optimistic spirit and a
strong commitment. As an entrepreneur since 1951, I have gained a lot of
experience. Here are my tips for building a thriving and enduring
business.
To be a success, you must be
passionate about your work. Half-hearted enthusiasm will not sustain
you during the many challenges that will lie ahead. Your passion must
translate into a labor of love. For your developing business to
succeed, you must focus all your energies and attention on your
company, and accept the demands and sacrifices it will place on your
personal life.
Success is never an overnight
proposition. You must commit to long-term goals and tackle problems
head-on. Problem solving requires careful analysis. Understand
however, that once you solve one problem, other obstacles will
inevitably arise. You must be prepared to cope with business problems
in a calm and analytical way, and be able to take care of multiple
details.
Carefully study your business
prospects, including sources of financing, and other ways of
financially sustaining your company until it shows a profit. Develop
best and worst case scenarios to guide you through the first few years
so unexpected setbacks won't weaken your company. Network with other
small business owners and seek their opinions and advice.
Until you have acquired
experience, keep your business framework relatively simple. Begin on a
small scale so you can successfully introduce your product or service,
target your market, and keep costs to a minimum. Concentrate on what
you can realistically accomplish without being distracted by areas you
lack experience in.
Carefully study your
competition so your business will offer consumers something unique.
Your product or service should fill a special niche, or else the
competition will be hard to counter. Understand your customers' needs
and deliver quality service so they will return. Customer loyalty is
your most important asset.
Learn how to read balance
sheets and income statements. You don't need an M.B.A. to understand
finance. A local college or online accounting course is great for
beginners. However, don't underestimate the fact that you will need to
hire a certified public accountant as your business grows. Your
accountant can calculate figures, but you must be able to interpret
them so you can respond quickly and appropriately.
Adopt a conservative spending
rule. Do not spend your hard-earned cash on anything but true
necessities. Remember, there are bound to be inevitable cash crunches,
and if you don't have adequate reserves, or your business is
insufficiently established to borrow money from a bank or lending
agency, it may fail.
Understand the art of
management. Some entrepreneurs are so creative and committed to their
business, they fail to delegate responsibilities to others, which can
lead to failure. Hire talented employees who can carry out the nuts
and bolts of your business. Let them share responsibility in the
decision-making process. Keep an open mind, hear their ideas and
suggestions first before you turn down their proposals. You can
oversee all aspects of your company while they are involved as well.
When your company begins to
grow and prosper and you are feeling gratified, don't take a step back
and rest on your laurels. Growth is a double-edged sword. Problems
often strike at the moment of explosive growth. Rapid growth can eat
away at profits. You must be prepared to hire more staff to deal with
an increase in business. You might need to make a significant
investment in sophisticated computer technology or a warehouse for
storage and fulfillment. This is the moment when a cash infusion might
be necessary. If your books show that you have run your company
carefully, your cash flow can support interest payments, and you
understand good business practice, you will be an excellent candidate
for a bank or Small Business Administration loan.
Set your goals and priorities
by preparing a long-range business plan. Careful planning is the key
to success. By nature, entrepreneurs are optimists, but it can be
dangerous to have an unrealistic view of your company and competitors.
Step back and take a close look at your business with complete honesty
and objectivity. Don't ignore any flaws, mistakes, or deviations from
your original plan. Correct strategies that are not working, and
enhance the areas that are helping your business to flourish.
Lillian Vernon founded The Lillian Vernon corporation. She started the business in 1951 on
her kitchen table, and grew it into a company that reached $287
million in sales annually. She sold the business in 2003 to private equity
investors. For additional information visit the catalog
company's web site at http://www.lillianvernon.com.
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