Slowing Down

I realize that in every industry there are times when sales are going gangbusters and there are times when things are slower. In truth, I assumed going into this venture that I would be going like mad from October up to the holidays but in hindsight it turns out, at least after one Fall, that my busiest period is probably September - Thanksgiving and now things are slowing down.

In a way the slow down is frustrating because I feel like there's something I should be doing to bring in cash today that I'm not. Granted, I'm taking advantage of this time to work on new product ideas for next year, develop marketing plans, determine which trade shows to attend, and build up a small inventory (not to mention continue to ignore my accounting books which I know I have to update but somehow always find something better to do). But on the other hand, those things aren't bringing in immediate results and since I'm guessing that first quarter is also going to be slow, it makes you start to count your cash on hand and wonder how long it's going to last.

With regards to that, I've started to look at ways that I can cut back. Not on product quality because that's always paramount, but on different ways I can save money to make it through the lean months. What I've come up with so far is keeping a smaller inventory of product and packaging than normal and reducing time at the one rented facility I use. Unfortunately there are still some big looming expenses just after the new year - with tax accountant and a February trade show being the two of the larger.

I'm finding that my biggest problem with this - and the one which my advisers (aka - my family and partner) have to constantly correct me on - is that sometimes I get too focused on the short-term results as opposed to always thinking about what's best for the long-term success of the business. For example, I have the opportunity to attend two trade shows after the new year and was seriously considering going to the smaller of the two simply because it was cheaper whereas the larger one is where the majority of my "type" of contacts will be.

So, basically, like any small business just starting up, cash is very tight. But taken from a glass half-full perspective, that's not necessarily a bad thing. I like to think that it's helping me streamline and focus on what's most important for the success of the business. And it helps keep the company holiday party from getting out of hand - right now I'm thinking that a few pieces of steak ought to keep my VPs pretty happy.