BusinessRef. 2

Business: triumph & loss of starting mine 

introduction

This book will reflect on my journey from a student fresh out of college to a successful entrepreneur. It will chronicle how I built a successful graphics business only to lose my focus and find myself facing difficult decisions about my business and personal life.

It is my hope that others will read my story and gain valuable information that will help them on their journey to building successful businesses and creating wonderful family lives. 

college

I attended the University of Massachusetts where I majored in visual design. This program was one of the most well respected programs in the industry. I was extremely focused and hard working. I did not take any shortcuts because I wanted to learn as much as I could about the field. Therefore, I immersed myself in the latest technology, acquired design and presentation skills, and took every seminar and special program that was offered. 

I knew that the skills, theoretical knowledge, and experience I was acquiring as well as the traits that I was developing would give me a competitive edge in the business world. Even then I had dreams of starting my own design business, so I honed my skills and developed the business acumen that I needed to accomplish my goal. 

I took pride in the fact that I was a good student. My success gave me a confidence that filled all areas of my life academically and personally. Things were going quite well until financial and personal issues forced me to leave college with only two classes to complete.  

I married shortly after I left college and obtained a position in the graphic design field. I spent the next five years strengthening my skills and learning everything that I could about all phases of the business. 

freelance

In addition to my full-time position, I started to do freelance work in the evenings and on the weekends. This required hard work, long hours, and good time management skills. I enjoyed the freedom and flexibility of freelancing. It was exhilarating and satisfying work because my name was on each project. 

As a freelance designer, I obtained the business management experience needed to start a business. For instance, I acquired a wealth of knowledge about design practices, pricing, presentation, and out sourcing – among other things. I also gained a great deal of confidence in my ability to “run the whole show.” 

I aggressively sought out projects, and within a short period of time I had to make a decision to decrease my freelance work or open my own business. This was my moment. I knew that if I sacrificed and dedicated myself to achieving my dream there would be tremendous rewards. Also, I had made a number of contacts and had developed a keen understanding of the importance of networking. This added to my confidence in my ability to create a successful business. 

goals & dreams

By now, my wife and I had settled into our life together. Because we were both working, we had a financially stable lifestyle. So we decided that it was the ideal time to start our business. 

We dreamed of developing a lucrative business that would (1) allow her to stay home so we could raise a family, (2) enable me to make a name for myself in the design industry, and (3) allow us to build a bright future for our family. We planned to work as a team and support each other in managing these two important aspects of our lives. 

Now that our plan was in place, the time had truly come to set our dreams in motion and start the business. Our lives would never be the same.

business plan

The first step in creating a successful business was to identify my business goals and develop a well-structured and thorough business plan. Therefore, I researched several successful business models in my industry. To ensure that my business would be competitive, I focused on every essential business element. I chose the best elements – such as services offered, corporate identity, and pricing structure – from each model. A discussion about these elements is listed below.

Services: I created services that set my business apart from the competitors that I had researched. In addition to the traditional graphic services, I also offered mural illustration, exhibit design, large format printing, environmental design, and P.O.P. design. This comprehensive array of services made the business more attractive to prospective clients that had a large variety of ever changing needs.

Corporate Identity: Because of the nature of the graphic design business, I had to ensure that the design of all of our company’s literature was of the highest standards. It had to be creative and meticulous because it was truly a representation of the quality of our services. Therefore, I created a corporate identity and used it to develop a family of literature including business cards, letterhead, brochures, invoices, web site content, and all other marketing collateral needed to promote a business. My business' corporate identity was presented in the kind of literature that was common in the industry. We created  documents that were professionally designed and presented in a folder format. 

Because my marketing plan was to solicit businesses in a wide-variety of industries, the literature was targeted to a diverse group of clients. Furthermore, the folder format allowed me to develop promotional packages that catered to clients' individual needs. 

Pricing: My business' pricing model was based on industry standards and was in line with my competitors' prices. The research that I conducted on various business models provided insight into the services that were more lucrative. 

Therefore, I tried to avoid providing lower-priced services that did not have good profit margins. Sometimes, however, I took low profit jobs just to acquire new clients with the hopes of securing additional projects in the future. 

business name

I decided to name my business Lance M. Hemenway & Associates because I wanted to establish my name and reputation within the industry. Adding “associates” to the name signified my business’ alliance with other essential professionals in the industry.

business start

With my plan in place and my business name established, I started business operations in the cellar of our home. My office consisted of a Macintosh computer, two printers, some office supplies, and a few hand tools. I didn't have much space, but I stayed organized. With so much to do and learn, everyday was a new adventure.

portfolio

My freelance work allowed me to create a portfolio with real world project applications. I spent many hours fine tuning it and rehearsing how I would showcase it. I determined which designs would immediately grab the attention of my target market and chose other items that added content to the portfolio. My portfolio became a critical element in getting new clients.

business development

One of my primary business responsibilities was sales. I looked for new clients everywhere and spent hours researching manufacturer registries and cold calling prospective customers. I also joined as many business associations as I could and attended every event. All of my efforts were about networking and securing new business, and I was not afraid to travel long distances to obtain new clients. In fact, I spent a great deal of time traveling to New York at early hours of the morning to meet with prospective clients. 

I would leave my home at 3:30 AM and drive into New York City where I visited manufacturers' showrooms, which were a good source of leads for me. I walked through New York City, stopping at all the showroom buildings. The buildings' lobbies usually had directories, which I used to select and prioritize the companies I wanted to visit. I was never shy about soliciting these businesses and always had my portfolio and business cards on hand. I generally left the city by 12:30 PM, which gave me plenty of time to return to my office to make phone calls, complete projects, or deal with business issues.

Trade shows were also a good way of networking and building business. Because they involved a wide-variety of industries, I made connections with all types of new and established businesses. I attended shows throughout Boston and New York and distributed several sell sheets that were based on prospective clients' industries and needs.

By using these two venues, I was able to talk with decision makers who were very receptive to creating new relationships and creative sources. Securing clients and building sales required time, effort, and creative thinking.

presentation & meetings

The easiest aspect of business development was presenting my ideas to clients and prospective clients. I had the unique ability to sell my ideas. So I went into meetings confident that they would like my concepts and that we would find something we could build on. The most important part of my job was to present good designs with confidence and energy.

I was never late for meetings and was generally 15 minutes early. I tried to make my appointments in mid morning because I found that most people were in a good mood during this time of the day. During meetings, I was always professional and understood who was making the decisions. I never took criticism personally and adopted the attitude that the decision maker was always right. I was also willing to attend additional meetings.

When presenting design concepts, I assumed that I was competing with other firms, and this competition motivated me to work harder. For instance, I researched each company to gain an understanding of its future direction. I also studied prospective clients' past projects to determine their positive and negative aspects. In addition, I reviewed their competitors' projects to gain insight into industry trends and develop cutting-edge design ideas. 

I went to meetings armed with this knowledge so I could ask in-depth questions that helped me gain even greater insight into clients' and prospective clients' needs. These questions often brought to the forefront information that they had overlooked. 

This strategy gave me the competitive edge I needed to win contracts.

design time

The rest of my time was spent designing and producing projects as quickly as possible. The design work sometimes took a back seat to business development efforts, but it was necessary because I had to build my reputation and clientele. This was not the ideal situation, but I relied on my expertise and ability to work long hours to produce quality designs that met my clients’ needs. Because I was driven, the projects came quickly.

Many of my days started at 4:00 AM. I got to my office early so I could have several hours of quiet design time. Because there were no questions or ringing phones, I was able to focus on my thoughts. At 8:00 AM, I prepared for our daily design and fabrication meeting, which took place between 9:00 AM and 10:00 AM. The meeting included time to evaluate our design and production schedule and troubleshoot any problems. 

After the daily meeting, I spent several hours working through production issues, which included subcontractors, pricing, shipping and receiving, purchasing, and research. My lunch hour was generally spent going through our accounts receivables and accounts payables to ensure that we were in the black. 

After lunch I made phone calls. I believed that 1:00 PM to 3:00 PM was the most productive timeframe to make calls because people were most receptive and willing to make commitments and financial decisions during this time. At 3:00 PM, I shifted my focus to scheduling and preparing for the next work day. 

Around 5:00 PM, when everyone left for the day, I headed home for a quick dinner. After dinner, I rushed back to my office and worked on designs and presentations until 8:00 PM to 10:00 PM (depending on my work load and how the design was flowing). 

At the end of this sixteen to eighteen hour day, I grabbed my sketch pad and headed home. The sketch pad enabled me to draft ideas that came to mind at any place or time because a designer's brain never stops thinking and problem solving, which can sometimes be a burden.

I continued this work pattern for years. Because my total focus was on the business, my wife, family, and friends took a back seat to my business.

ethics

As my business grew, I gained a wealth of experience. I learned that the way business is conducted and the relationships that are formed within the business community can make or break a business. Therefore, I maintained great relationships with my clients by going the extra mile to ensure that they were happy with all aspects of their projects. 

Former clients are a great asset because they have the ability to refer prospective clients to a business. In fact, much of my business came from referrals from satisfied clients. 

It is, however, also true that a bad experience with a client can cause a company to lose business.

pricing

In the beginning, accurately pricing projects was difficult. Although many web sites provided price guidelines for design projects, most clients wanted full-service that included design, production, and delivery. Often times, I did not charge enough for these services and cost overruns caused my profit margin to dwindle. 

Consequently, I quickly learned the importance of devoting sufficient time to researching materials, subcontractors, and delivery costs. Additionally, I developed a strategy of getting written estimates from subcontractors to ensure that I had set prices. 

I also learned that each project had a unique set of pricing variables that were better controlled with proper research and strong negotiations with subcontractors and vendors.

subcontracting

The industry includes a wide range of equipment that is used in a number of areas such as offset printing, screen printing, digital printing, and large format digital printing. I could not purchase all of the equipment needed to produce designs, nor could I hire the staff to operate it. Therefore, subcontracting (or out sourcing) became an essential element of business operations. 

I familiarized myself with the kinds of equipment on the market and their functions. I could then study the design parameters of a project, choose the best vendor, and solicit the best prices. I became an expert at negotiations. As my business grew it gained more leverage, and we were able to negotiate even better prices.

passion

My passion for design and the thrill of getting new business was the adrenaline that fueled me to work harder and harder. I gained a competitive edge by giving 100 percent to my business. The more successful the business became, the harder I worked.

Starting my business in my cellar to building a home office to, finally, constructing my own office building were some of the happiest and proudest times of my life. 

family life

The business grew rapidly, which meant my workflow and time away from my family increased. My family was also growing, and we now had three beautiful children. There was so much love, and we had everything anybody could ever want or need. We were living the American dream. My wife and I had worked hard to achieve our goals, and we thanked God for our blessings. This was a happy time for our family. 

Our home became the central hub for family and friends. We regularly hosted many major holidays such as Thanksgiving, Easter, and Mother's Day as well as numerous pool parties and socials. Our children were happy and were always surrounded by both sides of our extended families. 

I am sad to say that it ended with me losing my focus on what was truly important in my life.

focus 

Soon my total focus was on the business and everything and everyone else came second. I started to have much less patience and became angry quickly. I lost sight of the goals that my wife and I had made together all those years ago. She took on all the responsibilities of raising our children, and I became a ghost of sorts. I also stopped consulting my wife about business and financial matters and started making decisions that were not good for my family. 

This continued for many years, and I became more distant from my family. I missed numerous family events and special occasions such as school-parent meetings, sports events, and family movie nights.  The family movie night was something we did every Friday. It was by far the closest time we spent with each other laughing and enjoying just being together. I found myself making excuses about why I could not be there and soon made it a habit of being somewhere else. 

I began to occupy myself with everything that I thought could make me money. My desire to make more and more money shifted away from the design business and went into other areas. I knew nothing about many of these ventures, so I was taking huge risks at the expense of my family's well-being.

I started collecting artwork and spent thousands of hours conducting internet research, bidding, buying, cataloging, and storing items. I also began renovating and building homes as well as taking on construction projects

The lure of money had taken my focus off, not only my family, but the successful design business that had supported them for years. The whole point of starting the business was to create a lifestyle that would allow my wife and me to raise a loving, happy family that had a bright future. But I was now making bad financial decisions, and my wife and several family members knew it. 

Furthermore, I became obsessed with the lifestyle the money allowed me to lead. I started surrounding myself with new friends who did not have my family’s best interests at heart. I also began to spend my free time at the country club playing golf or socializing without my family. My wife tried to tell me that I was destroying what we had worked so hard to build, but I did not listen. As a result, my relationships with my wife, family, and friends soon deteriorated. 

These missteps and pressures further blurred my focus. I began to lose my grip on my business. For the first time, my business was losing money.

loss

I lost focus of the people and things that were most important in my life. My priorities had become distorted, and I became unrecognizable to the people closest to me. My wife of twenty years gave me many opportunities to make changes, but I did not. We have now been divorced for one year. 

My father and brother refuse to talk to me, and all of the people who were closest to me have turned their backs on me. Even my children no longer have close bonds with my wife or me and have very little contact with our extended families.  

The business is still operating; however, my ambition for it is gone. The reasons that I started the business were noble and based on what was best for both my family and career. Somewhere along the way I changed and made mistakes that I could not fix. For instance, I cannot go back and recapture the time that I did not spend with my children nor can I repair the hurt that I caused my wife and the many tears she shed over her family. I also cannot take back the way I treated friends, family, and other people I met. 

I became someone that nobody wanted to be around. In the end, I lost more than I gained.

change

I am now in the process of re-evaluating myself. I am also in the middle of an internal struggle for the direction of my business. 

This new beginning, however, is giving me the opportunity to make the necessary changes to secure my family’s future. It is also given me the chance to finally complete my college education. I am committed to being a better father, son, and friend. I am also trying to repair the relationships I damaged so badly.

In retrospect, I would change my materialistic attitude about money and possessions and never take my focus off the well-being of my wife and children. I am not quite sure what the future holds, but I know that I will not make the same mistakes twice.

in conclusion

My journey has taught me that maintaining balance between business and family is absolutely crucial. My original business goals included creating both a successful business and a happy family. Because I did not achieve this goal, I might very well lose both of them.

What purpose does creating a profitable business serve if the owner cannot find a way to live a balanced, fulfilling life? 

Therefore, my advice to aspiring entrepreneurs is to (1) never lose sight of the goals and principles that you establish for your business, (2) always value your loved ones more than your business desires, (3) never lose your focus, and (4) always listen to those closest to you because many times they can see things you are blind to.