A good business is almost organic in the way it comprises redundant systems and backups to handle the unexpected. In staffing, you should cross-train so the business is not dependent on any one person, particularly yourself. In finance, you should avoid any strategy that could bring the company down with just a single misstep. Early Winters, a Seattle-based outdoor clothing and equipment company, grew to $14 million in sales under the tutelage of its three founders. But they were stretched so thin financially that one bad season sent them into bankruptcy. Twelve years of hard work were lost in a matter of months simply because they had not sufficiently capitalized the business earlier.
At this writing I am adding bulbs from Holland, Israel, Oregon, and Japan to Smith & Hawken’s line. Two hundred varieties, and I don’t have a clue as to which bulbs will be favored by our customers. In this branch of the business I am as wet and green as I can be, and we will make serious mistakes in inventory projections. On the other hand, we’re sure the business is there; we have sold bulbs every year in our retail stores.
