Thursday, May 13, 2010

Risk Management a.k.a not going bankrupt in the first six months aka trying to save your own ass

I know that the pros have a formula and understanding of when to take a risk and when to play it safe, I unfortunately/fortunately do not have any such formula. I have only my stomach, when it grates and aches and churns I have to reassess my risk. If I don't sleep and can't eat then I KNOW something has to be examine or reconsidered asap.
Last night was the second and first. I knew something had spun out of it's orbit.
The craft sale was so successful even despite the trees pulled from their roots and BMW's squished from limbs during the storm. I made money from the craft sale, tables, raffle tickets and refreshments. Enough to reinvest, but not yet enough to rent space.
My plan was to purchase $1,400.00 in World record t-shirts. Now mind you I'm a bit gun shy with the t's, but that's another story from another time- that seems like a long long long time ago.
I've seen severe mismanaging and a thriving centre wither up because of poor management- err mismanagement and poor spending. One wrong deal resulted in destruction. What the hell was I doing? It was unmistakable.
I called to edit the order after a long talk with a friend about debit, the infancy of my business and how if I risked to much working for someone else could be my reality again! NEVER!
I literally had the order pulled from the shipping dock, it was embarrassing in the moment but I'm gonna sleep like a baby tonight, so screw some embarrassment. I feel like a good mother that protected my baby from potential harm. I strayed from my plan-no credit, work only with what I have and grow steadily. Maybe I'll slide my biz plan under my pillow tonight and hope I absorb what I've forgotten.
The store was willing to let me put cash down upfront then pay the rest after the event, it was all in place. It was so easy I thought it was the way to go...Pulling 1/2 the order will mean charges for restocking but they are manageable and in the end the best option.
Making the decision made me feel like a true business woman, saving my own ass made me feel like I was learning something. I was tempted to think big- beyond my means, but trusted my body and followed it. I think this was a great success.
Tonight no money issues in my bed, I like it that way best.
P.s. Meeting with my biz advisor next week to find out some detailed tools for risk management besides nausea

2 comments:

  1. That must have been a really tough decision but good for you for listening to your instincts!

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  2. Because of the rain date less than 200 people attended the world record event. I would have been stuck with t-shirts with the date and event. I am so beyond happy that I followed my gut. I would have been stuck with t-shirts, and behind in funds that I didn't have, thus creating - bad credit in the first 3 months of operation..... Yahoo me!

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