Good Fortune
Once upon a time, there was a police officer named Sid Martinez. As a cop, his job was to uncover problems and find solutions. Seeking a career change, Martinez found a new outlet for his problem-solving and bilingual communication skills: cookies.
While innovative ideas may be born in an instant, businesses can take years to succeed. Here are the steps Martinez and his partner, Jeff Dole, took to achieve success:
1994: While at a Chinese restaurant, Martinez decides fortune-type cookies could be the perfect vehicle for teaching Spanish. He modifies the cookie into a taco shape, adds cinnamon flavoring and inserts a small phrase, or "dicho." Each phrase is printed in both Spanish and English. He bakes 100 Dichos for a test run at a local restaurant and the treats sell out in 30 minutes.
1995: Martinez knows he has a great idea. Without food industry experience, however, he's unsure how to proceed. He meets food industry veteran Dole and invites him to join the venture. Martinez and Dole invest $37,000 of their personal savings and work day jobs to support the business.
Winter 1995-Spring 1996: The partners perfect the Dichos recipe, logo and package design. They apply for a patent and trademark.
July 1996: The duo finds a manufacturer and debut Dichos at the Texas Restaurant Association Show in Houston; 5,000 cookies are sold. Orders pour in from Mexican restaurants. Martinez and Dole quit their jobs to concentrate on the business full time.
October 1996: The "Smart" Cookie LLC is officially incorporated.
February 1997: The company lands its first national account with the Tia's Tex-Mex chain.
Spring 1997: Southwest Airlines purchases Dichos for holiday promotions.
July 1997: An article on The "Smart" Cookie appears in The Wall Street Journal.
September 1997: The "Smart" Cookie signs its first buyer in Mexico.
October 1997: The Austin Independent School District orders Dichos for school lunches, incorporating targeted bilingual messages for students like "Stay in school." The partners launch their Web site (http://www.thesmartcookie.com), which has garnered orders from as far away as Russia.
December 1997: Annual sales reach $250,000.
January 1998: Work begins on an amaretto-flavored version of Dichos with messages in Italian and English.
May 1998: The owners are offered $1 million to sell their business; they decline the offer.
October 1998: A deal is sealed with Taco John's International, a Mexican fast-food chain with more than 430 restaurants. The Taco Tico chain also comes on board with 85 restaurants.
December 1998: Sales reach $500,000. Of 25,000 Mexican restaurants in the United States, 1,500 carry Dichos.
1999: Martinez and Dole estimate $1.5 million in sales.
2000 and beyond: "This product will be around when we are long gone," says Martinez. "We're building a brand name."
Go For The Goal
Setting up shop? Put your plans in order!
Setting goals is an integral part of choosing the business that's right for you. After all, if your business doesn't meet your personal goals, you probably won't be happy waking up each morning and trying to make the business a success. Sooner or later, you'll stop putting in the effort to make the concept work.
When setting goals, aim for the following qualities:
1. Specificity. You stand a better chance of achieving a goal if it's specific. "Raising capital" isn't a specific goal; "raising $10,000 by July 1" is.
2. Optimism. Be positive when you set goals. "Being able to pay the bills" is not exactly an inspirational goal. "Achieving financial security" phrases your goal in a more positive manner, thus firing up your energy to attain it.
3. Realism. If you set a goal to earn $100,000 a month when you've never earned that much in a year, that goal is unrealistic. Begin with small steps, such as increasing your monthly income by 25 percent. Once your first goal is met, you can reach for larger ones.
4. Thinking short and long term. Short-term goals are attainable in a period of weeks to a year. Long-term goals can be for five, 10 or even 20 years from now; they should be substantially greater than short-term goals but should still be realistic.
There are several factors to consider when setting goals:
1. Income. Many entrepreneurs go into business to achieve financial security. Consider how much money you want to make during your first year of operation and each year thereafter, up to five years.
2. Lifestyle. This includes travel, work hours, investment of personal assets and geographic location. Are you willing to travel extensively or to move? How many hours are you willing to work? Which assets are you willing to risk?
3. Type of work. When setting goals for type of work, you need to determine whether you like working outdoors, in an office, with computers, on the phone, with lots of people, with children and so on.
4. Ego gratification. Many people go into business to satisfy their egos. Owning a business can be very ego-gratifying, especially if you're in a business that's considered glamorous or exciting. You need to decide how important ego gratification is to you and what area best fills that need.
The most important rule of self-evaluation and goal-setting is honesty. Going into business with your eyes wide open about your strengths and weaknesses, your likes and dislikes, and your ultimate goals lets you confront the decisions you'll face with greater confidence and a greater chance.
Contact Sources
The "Smart" Cookie LLC, (214) 939-2401, http://www.thesmartcookie.com
This excerpt was reprinted from Start Your Own Business (Entrepreneur Media Inc.) To obtain a copy, visit your local bookstore or our Web site at http://www.entrepreneurmag.com