Question
Topic: Strategy
Normal Business Growing Pains Or Flawed Thinking?
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Some background: My business XPRT Creative is made up of four partners, including myself. We are a woman-owned/minority owned small business. Three of us work in New Mexico, while I am based out of Georgia. Currently, I am the only one working full-time for XPRT Creative. We take all profits, split them five ways, give one fifth to the business, and one-fifth to each of us. This way, we are putting back into the business to allow for expenses such as software, hardware or mailing costs. We have practically no overhead because we all work from our homes.
The problem: One of my partners suggested that our business is young (started in Jan 2005), and supposed to be supported BY us, while in reality, it's like we gave birth to this infant, and we are expecting it to support us, which is bringing a pending failure. One of our goals was to move two people full-time within 5 years, and we are not on that track in our current state.
Another issue is one partner will be quitting his current job in June to complete a master's degree which is a concentrated 2-year program and will benefit him and especially our business with the experience and connections he will gain. This entails him moving to Atlanta (which will bring him closer to me!) but will put us all in the position of the business having to support him, which at our current status, is not a possibility.
Currently, we are not doing any advertising; all of our clients have come by word of mouth and networking. Our client roster is steadily growing, with 99% of our clients returning as loyal customer evangelists. We are all not sure if we can take on the rush of clients we know would get if we were enacting our marketing plan at this point (with only one person full-time). We are also undertaking a new website design for our company which will better highlight our portfolio and be closer to the quality of the sites we provide our clients (will be replacing the site at www.xprtcreative.com). We are also hesitant to undertake any substantial marketing efforts until that is completed (ETA end of November).
The consensus is that we can't afford to hire anyone for design or programming for our sites (though I don't really agree with that) and publications because we would have to train them (how do you find people you trust?), and to maintain the high level of quality and customer service our clients receive and expect.
We have a solid roster of clients and projects, several of which are larger clients/projects that will come to fruition by June/July, but that are currently "under construction" at this point. These larger clients include a university athletic department, a city chamber and a national organization which we are creating websites and publications for. We know our portfolio will gain tremendous credibility with these additional projects, and we will gain a possible foothold in markets where we previously had none.
We all felt that we really don't want to get loans, but that we should be able to support our business while it's in it's baby stages, and be able to put more money back into the business, and be financially independent enough not to "need" the income from our business to make our own personal finances work.
From my standpoint, my involvement in XPRT Creative provides just enough income for me to stay home and work, and I work anywhere from 4-10 hours a day, depending on deadlines or projects. I feel pretty sure that if I cannot spend the time to fulfill the management role I provide (if I have to get another job to help support my family), then things aren't going to be moving forward like they could/should be.
We know many small businesses fail because the members might be good at their craft(S), but not necessarily business minded.
The Question(s): What do you think about this situation? Does anyone have any similar personal experience(s) regarding this to share? Regarding loans, I would definitely like to hear from you entrepreneurs out there — If you are self-employed, do you work in your business full-time? Is this part of the growing pains of starting a business? How much are we supposed to support the business, versus the business supporting us? Are we expecting too much too soon?
Looking forward to reading your responses and doling out points. Thanks in advance for your help ...
Best,
Jennifer
XPRT Creative