Never Fear
Home Restoration, Plus Startup Tips
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Business:Paul Davis Restoration of Central Mississippi, a
home-restoration franchise in Ridgeland, Mississippi, for
structures hit by disaster
Founded: January 2003
Start-Up Costs: $100,000 from savings
Revenue So Far: $350,000
Employees: Four Crancer's
Background: Alan Crancer spent about 10 years in
telecommunications, much of it as an executive vice president, and
some of it working at a start-up where he was briefly a millionaire
"on paper" before the dotcom boom blew up in
everybody's face. Crancer's Top
Three Tips for Start-Ups: Content Continues Below
1. Do your homework. Says Crancer, "Make sure
there's a need for the business, but more important, that that
need is where you live or have established the business. You always
see people saying, 'This is what they're doing in
California and New York, so I'm going to do that here.' But
great ideas don't always work [the same in a different]
place." Crancer suggests interviewing people in businesses
similar to yours. Pretend you're an everyday customer, strike
up a conversation with somebody who works in the industry, and
learn some of the nuts and bolts of the industry. Says Crancer,
"It's amazing what salespeople will tell you." 2. Have confidence in yourself. And if you have a family,
as in a spouse and children, you need their confidence, too.
Whether or not the economy is uncertain, you can be pretty certain
that you're going to be in for some tough times as you start
the business, like "extremely long hours and financial
adjustments in the monthly budget," says Crancer, who bought
his business in January 2003 and then spent several income-free
months learning his craft before opening the doors. 3. Surround yourself with the best people you can find.
"I can't afford to go out and hire the best people; it
just [wouldn't] work," says Crancer. "But I put
together an informal advisory group of people I knew I could talk
to-an accountant friend of mine, a banker, a friend who is an HR
director. I tell them, 'I want to pick your brain; can I buy
you lunch?' I get a lot of free advice for the price of a
lunch." Crancer's Final
Two Cents: The best way to ride out economic ups and downs
is to have a business that isn't affected by the economy.
"I knew there would always be a need for what I do," says
Crancer. "There will always be kitchen fires [and] tornadoes,
and that has nothing to do with the economy." Hit the Ground Running To-do lists are crucial once you have a business, but
it's not a bad idea to have one before starting a business,
either. If you're thinking of taking the plunge, financial
planner Doug Charney has a few items that should go on your list.
- Do you have a market survey? In other words, do you know
the customers are out there? Any idea how much they'll pay? How
much you'll make? Charney, who owns the Charney Investment
Group of Wachovia Securities in Harrisburg, Pennsylvania, says you
can do your own market survey in theory, but it's better to
find professional help. "Chambers of commerce will have lists
of survey companies, and some colleges will do it using their
students, and those prices are very reasonable," he says.
"You can spend as little as several hundred to $10,000 to
$20,000, although for a new business, you don't need anything
like that. A few college marketing majors would be fine. You just
need somebody who is neutral."
- Have you plagiarized a business? Relax, it's not as
creepy as it sounds. Charney suggests visiting somebody who has a
business in the same field you're in, but in a far-flung
location. If it's clear that you will never compete, "most
businesspeople will be happy to help," says Charney, who knows
of one burrito entrepreneur who went to a more successful one, who
"wanted to brag about his business and laid out
everything."
- Have you tried what you're doing in the little
leagues? When it's possible, Charney suggests conducting
your business as an experiment in a small setting. "For
instance, if you're going to make pies, sell them at the
farmers' market, and see how they do. It can save you a lot of
time before jumping in whole hog."
Geoff Williams is
a writer in Loveland, Ohio.
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