Q: In 1996, after 15 years as a
health-care administrator, I built and opened a child-care
facility. I knew the first few years would be difficult
financially, and therefore, I planned for that.
However, in a break-even mode in the fourth year, I raised my
prices for the second time in two years to cover escalating
expenses (salaries, food, gas, etc.). I lost 25 kids as a result,
thus throwing me back into the red. I have not been able to
recapture those lost students, and I continue to hemorrhage red
ink, despite advertising.
Last June, I decided to sell, or lease, the building. Thus far,
I have been unable to sell the business, which I have listed with a
reputable broker. I am considering closing the business and trying
to sell the real estate. I have lost all desire to keep the
business at this point. What do you recommend?
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A: You've got to give yourself
lot of credit for keeping good track of your money. Most business
owners are in denial when it comes to their finances. They think
that if they work hard and try to be of service to their customers,
the money will take care of itself. But that's just not true!
So congratulations on working with a business plan and a budget and
having a known financial position.
Still, at both lower and higher prices, you lost money. It
doesn't seem fair, and it isn't. People are incredibly
bizarre when it comes to spending money. (Imagine being cheap about
child care!) Here are your options at this point:
- Give it up. Stay in this business only if you really
want to. Take time for a personal retreat to determine what you
want. Talk to your mentors; keep a journal; even meditate if it
helps you make your decision. Ask yourself these questions: What
else can you do? Does child care really make your heart pound, or
are you clutching at straws? The world is full of opportunities.
What's your purpose in this lifetime?
It's possible to be successful in any field—but how
bad do you want it? Key into your life's purpose, and
you'll find the courage and energy it takes to stand out from
the crowd...and be really successful.
Every business experience teaches lessons. The game is to win
more than you lose ... not to never lose. Good luck to you, and
keep me posted.
Author Ellen Rohr nearly starved in her family's small
contracting business—until she learned how to manage money.
"Do what you love, certainly," she says, "but the
money won't just take care of itself." Ellen's pricey
college education didn't prepare her for real-world business.
"Financial business basics aren't that difficult...but
where do you learn them? Unfortunately, business literacy isn't
taught in school. I teach the basics and take the mystery out of
making money." Ellen's mission as an author, columnist and
seminar leader is to help people make a living doing what they
love.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.