Growing Pains - 01/94Next Previous Contents Sorry for the two month absence. Thanks to my fans for missing this column! Thanks to Ed Zimmer for filling in so well. As I write this we are scrambling to fill last minute orders and reorders. It's been a busy couple of months. Add to the list of lessons learned about a new business venture. If your business is seasonal, you can expect even more fun and games with material and cash flow. We have managed to cope with a major hump in the manufacturing cycle due to the holiday season. I'm pleased to report that things went fairly smoothly and that we are still in business. We were able to get order estimates and commitments early enough so that material flow was not a problem. Still we did not want to commit to some expensive long-lead items until we had orders in hand. So when the order level went through the roof in August, our promised ship dates did move out. This year's experience will really help next year. Our new line of credit with the bank was the key to keeping our doors open. I really don't know if we could have raised the capital to pay for material and wages another way. We had to add more parttime and temporary assembly staff and, for the most part, got good workers who contributed immediately. Our goal is to provide them with continued employment with (eventually) some level of benefits. We have the immediate problem of not much to ship in January. However, our product makes a fine Valentine's Day gift and January is the Spring buying time for our accounts. Also, a lot of people will be seeing a Technacraft Solar Chime for the first time this holiday season. This means their family, friends and neighbors will also see them and this should generate some orders. We are now working on 3 new models for production early this year. These will be better looking and easier to assemble making for a profit margin that will allow for our continued growth and survival. Customers have asked repeatedly for new models and can't understand why we just don't pop out a new model every week. Bootstrapping doesn't work that way. In addition to new products, we will be expanding our sales representation. Vast areas of the country have not had the opportunity to purchase our product. If our new products go over, and our new reps perform, then we will have even more fun next Christmas. To everyone thinking of starting a business -- this is the year! To everyone who recently took the plunge -- congratulations and hang in there. To everyone -- Happy New Year!
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