I’ve just started my second year in business but I feel I’m losing direction. Help!

Hi Aunty,

I am beginning the second year of start up and feel my sails are flapping in the wind with no direction.

All seemed good in the beginning. A client came out of nowhere, was really easy to deal with, my first big job was completed and in all honesty the reception has been very good.

It’s a construction-based product, so my timing is not good. We’re getting more enquiries but no new sign ups.

I’m a little tired, but I love doing what I do and really want to make a company out of the concept.

I just would like an objective response on whether you think it is a good idea or not. I won’t take it to heart – I just need some fresh eyes on it.

I really don’t want to go back to looking for a job as I feel I will lose the momentum, but am I just being an optimist and hoping or do I need a good dose of realism?

The reality is that cashflow is going backwards and I really need to do something soon.

Thanks,
Marcus,
WA

Dear Marcus,

I’ve checked out your product and I love it! I really do. You have a great idea. So tick that box.

Now for the reality check. First, be aware that the start of the second year is the hardest period. That will give you some perspective on where you are on your entrepreneurial journey and show you that you need to grit your teeth and dig in!

Second, you have only focused on operations. Where is your detailed marketing plan? That plan doesn’t just look at how to get the word out, but also how to transform enquiries into sales – a subject that really needs your attention. At what stage in the enquiry process are potential customers turning off? At the price point? At the time it takes to build? What other products are customers buying? What are your competitors doing? Is it your sales people or your website that is failing to convert?

Your marketing plan should also examine what conversion rates to expect. And you should be getting detailed reports on the whole process measuring inquiry levels, leads, conversions etc.

Lastly, if you have the price and logistics right, this could be a global export opportunity.

Rather than search though for venture capital funding, I would make a list of fantastic entrepreneurs in the construction industry and approach them for coffee. You are looking for an angel investor who will provide you with funding in exchange for some of the company.

The investor can also help you with marketing advice, sales and expansion plans.

Good luck,

Your Aunty B