Forum Workshop
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FORUM WORKSHOP
FORUM WORKSHOP
Starting your
Business
Business
OWN BUSINESS
Starting Your Own
Starting Your Own
EXPANSION
If one is profitable, five may make you
bankrupt. This principle applies to all types of
If one is profitable, five five mayyou bankrupt.
businesses.profitable, may makeX-Press PrintIf one is Ednaʼs publishing,
make you
This principle applies to company), and Keeping (my former partnerʼsall types of businesses.
bankrupt. This principle applies to all types of
Ednaʼs publishing, suffered
sake Jewelry allX-Press Printing (my former
the
businesses. Ednaʼs publishing,fromJewelrythe
X-Press Printpartnerʼs company), and Keepsake
all
syndrome. the the syndrome.
ing (my former partnerʼs company), and Keepsuffered from
EXPANSION
sake Jewelry all suffered from the the
syndrome. Case History #1:
Too Much, Too Soon,
Case History #1:
Killed the Business
Too Much, Too Soon,
Ednaʼs publishing companyʼs original publication,
Ednaʼs publishing the Business publicaKilled companyʼs original
F
O
R
U
M
a magazine promoting downtown, was building a
tion, a magazine promoting downtown, was
loyal readership and a renewing a renewing adbuildingpublishing companyʼs advertising base.
Ednaʼs a loyal readership andoriginal publicaHowever, the sales staff found sales
vertising base. However, thethemselves limited
tion, a amount of advertising space staff found
by the magazine promoting downtown,could
they was
themselves limited by the amount of advertising
building single, monthly, 32-and a magazine.adsell in a a loyal readership page renewing So
spaceinvented aHowever,athe salessemi-annual
vertising base. second, in-house, monthly, 32Edna they could sell in single, staff found
page magazine. So Edna contract toapublish a
magazine and accepted aamount of advertising
themselves limited by the invented second,
in-house, mall catalog. magazine and accepted
quarterly semi-annual a single, publications
space they could sell inThe three monthly, 32were magazine. So a audiences with a slight
a contract to to specificquarterly mall second,
page targeted publishEdna invented a catalog.
overlap in market that
The three semi-annualallowed successful crossin-house, publications were targeted to specific
magazine and accepted
audiences with a slight overlap in market that
panyʼs original downtown magazine; it provided advertisers with
an either-or choice and took busiselling. But the fact that Ednamaga- magazines
panyʼs original downtown had three
instead provided advertisers with
ness it of one spread companyʼs
zine; away from the working capital very thin.
And when the company accepted a contract to
staple.
an either-or choice and took busido a playbill and another shopping mall catalog,
ness
there away from the companyʼs
In herwas little room on failure. Both lost money,
take for
staple.haste to catalog more and directly with
and the new
competed
more jobs, each of which de- magazine; it
the company ʼs original downtown
pended on advertisingmore and choice and
provided advertisers on sales to
In her haste to take with an either-or
pay business away of Edna companyʼs staple.
took jobs, each from the demorefor production, whichneglected the fact that the companyʼs
pended on advertising sales to
In her haste to take
more negretentionproduction, salespeople
pay for rate foron Edna and more jobs, each
of which depended on advertising sales to pay
was two including herself. Not
lected the–fact that the companyʼs fact that the
for production,
neglected the
only was rate Edna salespeople
retention working capital spread
for rate for salespeople was two
companyʼs retention
thin, two – herself. Not only was working capital
was her time was as well. The
– including including herself. Not
companyʼs her time was as well. The companyʼs
only was working capital spread
spread thin, monthly magazine
nearly died of neglect. New neglect. New
monthly time was as well. The
thin, hermagazine nearly died of
salespeoplecould only comprehend – and sell –
salespeople could only comprecompanyʼs monthly magazine
each – died publication. New
hend upcomingof – neglect. Edna created a third
nearly and sell each upcoming publication.
company magazine. company period in After
Edna created a third After one magazine.which
salespeople could only comprethe period in produced five magazines in about
onebusinesssell – each upcoming publication.
which the
hend – and the monthlybusiness produced five
five weeks,
was cut to twenty-four
magazines in a third company magazine. After
about
weeks, the monthly
Edna createdbecausefiveone had the time to sell
pages, simply
no
was period in whichproblems, further diluted five
cut to twenty-four pages, simply because
one
it. Health and legal the business produced the
no one had inWhen Edna examined the bottom
ownerʼs time. time five weeks, the monthly
magazines theabout to sell it. Health and legal
problems, further diluted the pay because
line, she was unable to give the ownerʼs time.
was cut to twenty-four pages, simply raise she
When Edna examined the bottom line, she was