Combining Passion with Due Diligence
Success is the child of drudgery and perseverance. It cannot be coaxed or bribed; pay the price and it is yours. - Orison Swett Marden
I wanted to open a Mexican restaurant and had found the perfect spot in the heart of my historic downtown. It was already outfitted as a restaurant complete with table and chairs. I was so excited and felt like it was meant to be. I wanted to open this restaurant yesterday! Then I tempered my excitement because I knew that I needed to make sure the numbers worked.
No amount of positive thinking was going to overcome a losing proposition. It is an important balance that every business owner needs to consider. Along with positive thinking has to come due diligence to ensure your potential business ventures are profitable.
When I was considering my new restaurant location, I spent hours creating a realistic cash flow projection. I called vendors and got pricing for supplies. I went online to research necessary equipment prices. At the end of this process, I could tell you how much a single napkin cost. The result showed it was a profitable venture! The excitement and confidence grew because I knew this startup stood a chance.
Takeaways: Use the initial energy you have for your new business venture to fuel your market research.
Take the time to google some high level stats but then ask for feedback from your potential or current customers.
Develop a survey and put it out there.
There is no need to hypothesize when you can just ask!
Fill out my cash flow projection, which is available below.