Kitchen and Bath Business and Project Management

1

Getting Started

Millions of people start their own businesses every year. Possibly you’ve already started yours, or you’re giving it serious thought. Whatever the case, many skeptics may try to scare you with the statistics on how many new businesses fail every year, how hard you’ll have to work, and how long it will take before you show a profit. But, if everyone listened to the skeptics… John Michael Kohler would not have started Kohler Company, Paul Wellborn would not have expanded Wellborn Cabinet, Inc., and the seven Jacuzzi brothers would not have started the now multiproduct Jacuzzi, Inc.

Learning Objective 1: Compare the pros and cons of owning your own business.

Learning Objective 2: Compare your personal leadership traits to the traits and characteristics listed in the chapter.

Learning Objective 3: Review the entrepreneurial innovation assessment and define your personal strengths and weaknesses.

Learning Objective 4: Recognize the characteristics of failed and successful entrepreneurs.

Learning Objective 5: Analyze common mistakes to avoid as an owner/manager of a business.

Pros and Cons of Owning Your Own Business

Pros

You are your own boss. The sky’s the limit.

You can prove yourself.

You will have a hand in all aspects of the business.

You will be able to take pride in promoting and marketing your own business.

You will be in control.

You will have creative freedom.

The more the company makes, the more you make.

You cannot be fired, laid off, or forced to retire.

You will have the ultimate satisfaction of knowing you started and ran a successful business.

Cons

There is no guaranteed paycheck.

It’s all on your shoulders.

You cannot please everyone.

You will work harder and longer than ever before.

You will assume the risk of investment.

There will be constant stress and pressure.

You will have to adhere to all the laws and regulations.

DO YOU HAVE WHAT IT TAKES?

It All Starts with an Idea

At some point it hits you that, like so many others, you could own and run your own business. You want to step out on your own and take control of your work and financial future. You are confident that you have what it takes to buck the odds and succeed. You also know that owning your own business comes with risks.

Business Success

Debbi Fields Rose, the founder and owner of Mrs. Fields Cookies, had her recipe for success called the 4 P’s. Mrs. Fields defines each P this way:

Passion. You have to absolutely and passionately love what you do. In your case, you will have to love designing and selling kitchen and bath (K&B) projects. Never go into business if your first priority is to make money. Money will be the by-product of doing something you love and doing it well.

Perfection. You must constantly strive for perfection because, for your business to succeed and have staying power, you have to do it better than anyone else. Stay focused on constantly improving while stamping out mediocrity.

Perseverance. Stick with it. You’ll need guts. Guts to start and guts to believe in yourself. Guts to take on many challenges, guts to face failure, and guts to stick it out.

People. No business can succeed without its greatest asset—people—no matter how good the products and services are. You’re not designing and building kitchens and baths, you’re helping turn dreams into reality. To achieve this, you will need a team that loves designing, selling, and installing dream projects as much as you do.

Four Keys to a Successful Kitchen/Bath Business

Put all four of these together and you have a wonderful chance of success in owning and operating your own business.

Evaluating Yourself

While it is true that starting and running a business is difficult, it’s successfully done all the time by many individuals and partners who have built both large and small K&B businesses. You probably know some of these people. If not, you can meet them by actively participating in National Kitchen & Bath Association (NKBA) chapter events or those of other associations. Develop networking opportunities for yourself: Introduce yourself and ask questions to learn what others’ keys to success are.

Would You Hire You?

If you’ve just begun to think about starting your own business or you’ve been running one for a number of years, you might want to determine if you are the right person for the job.

The position in question is one of being your own boss and running the whole show, which includes bookkeeping, sales and marketing, customer service, supervising employees, vendor relations, and so much more. Most important, your job hinges on your ability to make key decisions (some on short notice) and to utilize your people skills, because most business involves interaction with others. You may not be skilled in all of these key areas. If you’re not, you’ll have to find others who can assist you by providing strength in areas where you are lacking.

Leadership Traits

Here is a checklist of traits and characteristics you may need to run a business successfully:

inline Ability to make important decisions

inline Ability to stay motivated, even when the business has slow times and is not running as smoothly as it might

inline Knack for organization

inline Good time management skills

inline Good communication skills

inline Stick-to-itiveness, or the drive that keeps you working long hours to get the job done

inline Good physical health and stamina to survive the long hours and little sleep that may be part of the job

inline Ability to get along well with many different types of personalities

inline Ability to harness and manage anger and frustration

inline Confidence in your skills, knowledge, and abilities to run a K&B business

inline Ability to find answers to questions you cannot answer easily

inline Ability to be firm or flexible so you can make adjustments or changes in your plans

inline Ability to do research and weigh options before jumping into a situation or making a hasty decision

inline Ability to balance a business and a personal life successfully

inline Ability to put money aside for difficult times

inline Ability to network and spread the word about yourself and your business

EVALUATE YOURSELF

Be honest with yourself. Identify how many of the listed skills and talents you possess. How many will you commit to learning? How much of the description just is not you? How many people will you need to hire to fill the void? If you need help with 40 percent or more of the listed items, perhaps you should reconsider starting your own business.

As you analyze yourself, keep in mind that although businesses do fail for a variety of reasons outside of the owner’s control, more often actions (or lack of actions) on the owner’s part lead to an unsuccessful venture. That’s why entrepreneurs need to have a clear picture of both their skills and their shortcomings in order to build on their strengths and shore up their weaknesses.

Complete the next Entrepreneurial Innovation Assessment to help identify your entrepreneurial potential.

Entrepreneurial Innovation Assessment

Read each statement carefully, then mark the answer that most accurately describes your behavior, feelings, and attitude as it actually is—not as you would like it to be or think it should be. Try to mark your first reaction.

Scoring Instructions

To score the test, circle and add up the values for your answers.

40. These characteristics score 2 points each: energetic, observant, persevering, resourceful, independent, dedicated, original, perceptive, enthusiastic, innovative, curious, involved, and flexible.

These characteristics score 1 point each: self-confident, forward looking, informal, courageous, thorough, open minded, alert, dynamic, self-demanding, and absentminded.

Interpreting Your Score

125–186 If you scored in this range, you are probably a highly innovative person. Ideas come readily to you. On the whole, you take an innovative approach to solving problems. You also discern possibilities and opportunities in areas where others find little potential. You are original and individualistic, and you have no problem resisting pressures to conform. You have the courage to pit yourself against uncertain circumstances.

77–124 A score in this range indicates that you are moderately innovative. While you lack some of the autonomy, self-sufficiency, and self-confidence of the highly innovative entrepreneur, you compensate with your predilection for method, precision, and exactness. You also have faith in the successful outcome of your current and future entrepreneurial efforts.

27–76 If you scored in this range, you may be more successful operating a franchise or working for someone else than you would be starting and owning your own business. However, remember: Innovative abilities can be developed and cultivated either through on-the-job training or by attending workshops or seminars. If you are determined to own your own business, do not give up.

BEFORE YOU START

Now that you’ve done the self-evaluation exercises and you still want to pursue owning your own business—or if you are already an owner and passed the self-evaluation—you have several more things to consider.

What Are Your Career and Business Goals?

Where are you today? Where do you want to be in three to five years? How do you plan to get there?

What are your goals? Yes, you want to make money, but how much and how fast? Do you see yourself running a small business (fewer than 10 employees) or one with multiple stores and many employees? Is it a business that you hope your spouse, children, or other family members might want to work in and take over someday? Or do you want to work hard for 10 to 20 years and then sell the business and retire? How will you mix personal and business in order to achieve a good balance in your life?

It is important to consider where you want to end up before you even start. Many experts will tell you to start planning your exit strategy the day you start your business.

Separate Home from Business

If your only activity is your business, it’s likely your family and social life will suffer. We all know people who are divorced due to problems resulting directly from the pressures of starting and operating a business. Don’t let this happen to you.

Think about these words from Lord Chesterfield (1694–1773): Few people do business well who do nothing else. What this quotation tells us is that you are likely to lose some of the very qualities that will make you a business success if you don’t remain well rounded in other aspects of your life. You already know you have to spend a lot of time with your business—but it’s imperative that you also set aside time for family, friends, and yourself. Without this relief, you’re likely to burn out long before you attain the success you want.

Here are a few suggestions for ensuring a successful balance between your business and home life:

Plan for the future but live in the present. Don’t let the good times pass you by.

If you do any work at home, designate an area for work only.

Keep your hobby alive. A hobby can be an excellent source of relaxation.

Maintain some type of physical activity. Exercise is a wonderful way to reduce tension and clear your mind.

When socializing, try not to talk about business topics unless asked by others.

Keep your significant other informed about your business activities, but don’t make it the only topic of discussion.

Although you will be putting in long hours on business, regularly set aside time for activities with family and friends.

Remember: Problems with family and friends can spell disaster for your business. Be sensitive to their needs as well as your own. Stay involved in activities other than your business to the greatest extent possible.

How Well Do You Understand Business?

You do not need to have an MBA, be a CPA, or read the Wall Street Journal from cover to cover to be able to own and operate a successful business.

Beyond operating a lemonade stand when you were a kid, do you have any hands-on business experience? Do you really know all the things involved in running a business? There’s a lot to it, including bookkeeping, taxes, payrolls, accounts receivable and payable, marketing, signing contracts, making deals, and operating in accordance with all government laws and regulations.

According to an analysis by Dunn & Bradstreet (www.dnd.com), experience and aptitude count for a lot. Dunn & Bradstreet suggests that poor management is the leading cause of business failure. They estimate that a lack of managerial experience and aptitude accounts for almost 90 percent of business failures.

WHY MANY COMPANIES DO NOT MAKE IT

Since so many small businesses fail in the first six years, it’s important to understand why this happens.

Lack of money

Lack of business planning

Inefficient control of costs

Inferior quality of products and services

Insufficient inventory control

Underpricing products and services sold

Poor customer relations

Failure to promote and maintain a favorable public image

Poor relations with suppliers

Poor management

Illness of key personnel

Reluctance to seek professional help

Failure to minimize taxation through tax planning

Inadequate insurance

Loss of key personnel

Lack of staff training

Insufficient knowledge of the industry

Inability to compete

Failure to anticipate market trends

Inadequate cash flow

Growth without adequate capitalization

Ignoring data on the company’s financial position

Incomplete financial records

Overextending credit

Overborrowing

Overdue receivables

Excessive demands from creditors

Failure Factors and Characteristics of Entrepreneurs Who Have Failed

Since the failure rate of new businesses exceeds the success rate, it’s important to look closely at typical characteristics of businesses that did not make it.

Lack of management experience. Many entrepreneurs do not understand the intricacies of running a business. Too many K&B dealership owners have entered into business with good design and sales experience but little or no management experience. Lack of skills in financial, human resources, and marketing management can lead to failure.

Poor financial planners. A major cause of failure is not having the expertise to write a comprehensive business plan, develop annual budgets, and generate and analyze monthly financial statements. This, plus poor planning in terms of capital requirements, can be the downfall of your business.

Poor location choice. For a K&B dealer, finding the right location is one of the most important decisions. Spend the time and money to be sure the business is in the right area.

Ineffective business controls. Lack of written policies, procedures, systems, and job descriptions, along with poor controls in accounting, job costing, accounts receivable, and inventory control, can kill a business before it even gets started.

Being a big spender. Buying all new equipment and furnishings versus. leasing or buying used is not wise unless the finances allow. Do not overspend on displays and building improvements. Driving expensive cars and taking too much salary can all contribute to a downfall.

Lack of commitment and dedication. In the early years of a new business, the lack of willingness to spend the needed hours or give up non–work-related activities will have a negative impact on the enterprise. At times, family life will be disrupted as the founder works long hours creating a strong foundation for the business.

Impulse to overexpand. When the business gets off to a great start, the first impulse is to expand—locations, products, services, customer base, and so on. Trying to do too much, too quickly can lead to a decline in services rendered, quality of product, and employee performance. The issue of available capital plays an important role in any expansion. A word of advice: Go slowly and be certain before undertaking any expansions.

Success Factors and Characteristics of Entrepreneurs Who Have Succeeded

To succeed, you must define your skills. To help you determine your level of expertise in each category, here is a summary of the skills needed to succeed.

Business planning. The ability to establish and achieve short-term (one- to three-year) and long-term (three- to five-year) planning goals for the business.

Finance. The ability to manage money, create and interpret financial statements, develop and update annual budgets, manage accounts payable and receivable, and successfully seek out funding sources for the business.

Accounting. The ability to accurately record and interpret the income and expenses of the business in a timely manner (preferably monthly). If the business includes installation as one of its services, this would include job costing.

Marketing. The ability to identify target markets (area and clients) and to put together a package of products and services that will be attractive to these clients. Marketing also includes knowing your competition.

Sales. The ability to close sales once clients have been attracted to the business through marketing efforts and the presentation of a solution-slanted functional design plan. This would include learning and teaching sales skills to all salespeople.

Advertising, promotion, and public relations. The ability to create plans, budgets, and campaigns that successfully sell the offerings of your business and attract potential clients to it.

Design. The ability to create space solutions that work.

Installation. The ability to manage a design/build kitchen/bath project with in-house installations or subcontractors.

Product knowledge. The ability to know and sell your products and services better than your competition.

Human resource management. The ability to recruit, hire, train, motivate, manage, and fire people.

AVOID THESE COMMON MISTAKES

Instead of making mistakes and learning the hard way, you can learn from the mistakes of others. Here are some of the pitfalls and common mistakes to be aware of.

Being married to your ideas. Learn to be flexible and be able to adjust and change.

Not identifying your target audience. Are you going to market kitchens and baths to high-end, middle, or low-end buyers? It’s unlikely that you’ll be able to be all things to all people. Select your niche carefully and thoughtfully.

Acting impulsively (i.e., not doing the proper research). You’ll need to learn everything possible about the K&B industry and the marketplace you plan to serve. Make time to learn as much as possible. Have the facts; do not operate on impulse.

Not having a business plan. You will need a business plan that includes a marketing plan, financial projections, and human resource needs.

Ignoring the competition. Study them, mystery shop (i.e., visit competitors incognito), research them. Know what their target market is, what main products and services they offer, what price point they offer, what image they project, and so on. In other words, learn everything you can—then use it to your benefit.

Underestimating your time frame to profitability. Having a business plan, knowing your competition, knowing your customers, and offering the right mix of products and services will definitely lead you to profitability in a shorter time frame.

Trying to be a one-person show. Yes, it is your business. No, you cannot do it all by yourself. The most successful businesspeople surround themselves with competent people. Good management is getting the job done through other people.

Cutting the wrong corners. Spending all of your money to build a great showroom but not having money left over to advertise and promote will not get the job done. Be prudent, but be smart.

Focusing too much on technology and too little on people. While technology can do wonders, it will not substitute for good customer, vendor, and employee relations. Do not spend all of your time and money on the latest and greatest computer-assisted design system while you should be training, motivating, and appreciating your employees.

Trying to do too much all at once. Take the whole process one step at a time. Prioritize, set budgets and timelines. Then proceed in an orderly fashion.

GETTING HELP FROM ADVISORS AND MENTORS

Do not try to build a business in a vacuum. Take advantage of the feedback, suggestions, directions, and opinions of others; they can be extremely valuable to help get a business started or to grow an existing business. Certainly seek advice from related trade professionals but also utilize your banker, attorney, accountant, insurance agent, and friends to help in your venture.

SUMMARY

This chapter covered the various pros and cons of owning your own business. You were encouraged to rate your own leadership traits and to evaluate your personal entrepreneurial strengths and weaknesses. Upon completing this chapter, you should have a better understanding of which mistakes to avoid in order to manage a successful business.

REVIEW QUESTIONS

1. List five pros (advantages) to owning your own business. (See "Owning Your Own Business—Pros" )

2. What are the four P’s that Debbi Fields Rose listed as her recipe for success in operating her company Mrs. Fields Cookies? (See "Business Success")

3. What are four important building blocks in your business foundation? (See "Four Keys to a Successful Kitchen/Bath Business")

4. List what you believe are the five most important business leadership traits needed to run a successful business. (See "Leadership Traits")

5. List five things that will help you ensure a successful balance between your business and your personal life. (See "Separate Home from Business")

6. List five reasons why your business may not survive. (See "Avoid These Common Mistakes")

7. List three areas of operating a successful business that you feel are your strongest. (See "Success Factors and Characteristics of Entreprenueurs Who Have Succeeded")

8. List two areas that are your weakest and explain out how you might improve them. (See "Failure Factors and Characteristics of Entrepreneurs Who Have Failed")

Resources

American Association of Entrepreneurs

655 15th Street N.W. Suite 400 / F Street Lobby Washington, DC 20005 Phone: (202) 659–2979

American Institute for Small Business

7515 Wayzata Blvd., Suite 129 Minneapolis, MN 55426 Phone: (800) 328–2906 http://www.ed2go.com/business/

National Association of Self-Employed

P.O. Box 612067, DFW Airport Dallas, TX 75261–2067 Phone: (800) 232–6273 www.nase.org

U.S. Small Business Association

403 3rd Street S.W. Washington, DC 20416 Phone: (202) 205–7701 www.sba.gov

The resources for marketers and entrepreneurs are infinite. Here are a few to get you started:

American Express Small Business Exchange

Phone: (888) 792–0279 www.americanexpress.com/smallbusiness

BizAdvantages

Phone: (800) 223–1026 www.bizadvantages.com

SCORE (Service Corp of Retired Executives)

409 3rd Street, SW, 6th Floor Washington, DC 20024 Phone: (800) 634–0245 www.score.org

SmartBIZ

www.smartbiz.com

2

Planning Your Business

Whether you’re starting new, have stepped into the family business, bought an existing business, or have been operating a business for some time, you need to evaluate (or perhaps reevaluate) the type of business you want to own.

Learning Objective 1: Compare the three main business models for kitchen and bath businesses.

Learning Objective 2: Explain the stages of company growth.

Learning Objective 3: Explain the components of a detailed business plan.

Learning Objective 4: Explain the difference between a short-term (one-year) and long-term (three- to five-year) business plan.

Learning Objective 5: Explain the advantages of being a niche type of company.

WHAT TYPE OF KITCHEN AND BATH BUSINESS ARE YOU GOING TO OPERATE?

There is no right answer to the question: What’s the best business model for a kitchen and bath firm? However, there are several typical business models. Although other models do exist, the next outline is an overview of companies found throughout North America.

Business Model No. 1: A Designer’s Studio

An independent kitchen designer operates out of his/her home or a studio location and provides design services for a fee (Figure 2.1). The designer may work closely with area kitchen specialists representing products* or may provide only generic plans. Installation is rarely provided. Often contractors/installers are recommended. The individual is the branded image in the community.

FIGURE 2.1 A designer’s studio business model

Business Model No. 2: A Design Practice Firm

A design practice firm (Figure 2.2) offers cabinets and counter surfaces to the consumer. The firm also may provide appliances, fittings, and fixtures. Installation services are offered through in-house staff or subcontractors. The business may be in a destination location, part of a home-based business, or in a retail strip mall environment. The owner is typically the only designer, or the primary designer, for the firm. Both the firm and its owner are known in the community, with the owner as an individual the better-known and recognized entity rather than the firm itself.

FIGURE 2.2 Design practice firm

Business Model No. 3: A Design Business Firm

A design business firm (Figure 2.3) is a larger organization with a showroom and an attached or remotely located warehouse/shop facility. The business may be a department of a larger business: the kitchen/bath section of a large lumberyard, for example. Such department-style organizations normally use a reference program directing clients to installation specialists rather than maintaining an installation department. Another model is a comprehensive design/build firm where in-house crews or subcontractors provide a turnkey operation.

FIGURE 2.3 Design business firm

The owner/manager leads the company and significantly contributes to the sales volume. However, it is the firm that has the branded image, not the individual. Once again, this firm may be in a destination environment, a retail shopping community, or in a trade/retail design center.

This type of firm might have more than one branch location—more than one showroom. The organization also may have a tier of middle management: A sales manager/director may head the team of sales associates and assistants. At each remote location, the organization may have a branch manager who is part of a leadership management team. The sales director/manager and branch manager bring a wealth of knowledge to the organization: Their input about ways to streamline the operation’s work procedures, as well as their ability to assist the owner in managing the business, is extremely valuable.

YOUR BUSINESS SELECTION CRITERIA

Select your ideal business model based on your market research, strategic marketing plan, long-term goals, and exit strategy.

A good business idea is one that will bring you a good profit. Beyond that, a good idea for business should meet some or all of the next criteria:

Fill a void and/or meet a customer need.

Offer a faster, better, easier or higher-quality product and service than is currently available.

Be realistic and within the scope of something that you can do.

Have a defined target audience.

Doesn’t oversaturate the marketplace.

Be legal.

What to Do after You Have an Idea

To determine the merits and shortcomings of your business idea, research, crunch numbers, and examine all the practical and not-so-practical aspects of making your idea a reality. Nurture this idea and help it grow into a full-fledged written plan. Then put together the elaborate puzzle that takes your idea from the drawing board and turns it into reality.

DECIDING ON THE RIGHT BUSINESS

A number of significant factors will be part of your decision-making process as you set about finding the right type of K&B business for you. Here are a few of these factors:

What will you enjoy doing every day that will earn the greatest profit and return on your time and money?

Will people pay for the products and services that you plan to sell?

How much financial help will you need and where can you get it?

What resources (people, vendors, mentors, etc.) can you gather to help run the business?

How much time and effort can you put into the business without sacrificing other aspects of your life?

Whether you are starting new or taking a fresh look at your existing business, step back and try to design the perfect scenario for yourself.

No, you probably won’t end up with the exact same thing, but at least you will have an idea what it is you want to achieve. If after 5 or 10 years you find yourself running a business that is close to what you pictured, then you have done very well indeed. But it all starts with a picture and a plan.

CHOOSING A NAME FOR YOUR BUSINESS

The name of your business is the key to your brand image in your customers’ minds. Chosen well, your name will reflect an image that is unique, memorable, appropriate, likable, and capable of advancing a promise for your business.

Following are several questions to ask yourself before committing to a name for a new business or changing the name of an existing business.

What kind of name do you want?

Owner’s name: Darlington Kitchen and Bath Design Studio

Geographical name: Northern California Kitchen and Bath Center

Alphabetical name: D & D Kitchens, Baths and Custom Cabinetry

Descriptive name: Creative Cabinetry

What do you want the name to convey? Words such as quality, creative, premier, factory direct?

Is the name you want available?

Screen the name for trademark ownership. Check the Patent and Trademark Depository Library (PTDL) at www.uspto.gov.

Check if the name is available as a domain name (www.networksolutions.com or www.godaddy.com)

Protect the name if it is available. An attorney can do this for a reasonable fee.

Is it easy to spell? Is it phonetically pleasing? Is it a name that works well in normal business conversation?

Is it original? Check several telephone books and the Internet. Aim for an original name that stands apart from the pack.

Is it memorable? Look for a name that reflects a distinct aspect of your company.

Can you live and grow with the name? You are going to have to live with this name for a long time, so the most important questions are: Do you like it? Will it adapt to your future?

Are you ready to commit to a name? Once you have settled on a name and determined that people can spell it, say it, remember it, and relate well to it, you are ready to take these steps to make the name your own:

Register the name and trademark in your state/province.

Register the domain name.

Create a professional logo to serve as the force of your name.

Look for new ways to advance your name and logo—on vehicle signage, clothing, store signage, letterhead, note cards, advertisements, and so on.

Do all you can to make your name part of your brand.

STAGES OF COMPANY GROWTH

Just as people go through many stages in their lives, companies evolve and change over their years of operation. As you prepare to write a business plan, be sure that you know what stage of growth your business is in—from brand new to well established. Following are the natural evolutionary stages that almost all companies go through. Make sure your plan places you in the right stage.

Idea Stage

This stage is when you first start thinking about going into business for yourself and what kind of business it will be.

Planning Stage

This is taking the idea and documenting how the start-up actually will happen. The goal here is to develop a plan that convinces you and others that your idea is a good one and worthy of both the time and money invested.

Funding Stage

This is the stage during which you acquire the money needed to start or change your business. Many K&B businesses are self-funded (i.e., the owner puts up all the money). If you need additional funding, you will become the salesperson and evangelist to banks, partners, family, and any reasonable source. A good job of developing a comprehensive written plan will help immensely in the fundraising stage.

Start-up Stage

This is where you put your plan and funding into action. You select vendors, a location, build the showroom, hire help, and kick off the marketing plan.

Ramp-up Stage

The word is out. Clients are coming in because of referrals, and the business really starts to take off. This is good—but a word of caution is in order: Managing growth can be just as difficult as managing a business downturn. You may need more people or more equipment to become technologically in tune. This stage could last from six months to two years. Growth usually requires additional capital, and you will need to plan for this in advance.

Evolution Stage

When you reach this stage, you will find yourself asking What will we do next year? instead of Will we be around next year? Your future survival is no longer a major concern. This is where you step back and look at your product and service offerings. Just because things have gone well up to this point does not mean you can become complacent or sit back and rest on your laurels. You must be creative and innovative all over again. Take the next steps that will keep you ahead of your competition and in front of your target audience.

As an example: Maybe you have been marketing and selling K&B design and a selection of higher-end products, but you have not offered installation. You are finding more and more clients looking for turnkey projects, and a few of your competitors are offering this. As a part of your evolution stage, you may want to add installation to your services, and you may want to expand your products to include countertops, appliances, and lighting. After reviewing your projects, you find that 90 percent have been kitchens—you might consider marketing to grow bathroom design and sales.

Over time, you cannot stay at the same level in business. You are either moving ahead or you are falling behind.

Sustaining Stage

This is when you are all grown up. When you reach this stage, you will be an accepted, recognized player in the marketplace and, one hopes, a leader. People will look at you as one of the companies to beat when starting a new business. And they will look at you as one of the companies to emulate when doing their business. Even when you reach this stage, the planning, budgeting, and market research does not stop. It is an ongoing, never-ending process.

SHORT- AND LONG-TERM PLANNING

Nothing happens in the long term without short-term plans and actions that move you toward your desired outcome. These short-term actions cannot help you achieve any particular goal if no goals have been set or no plan has been developed.

You must know where you are going before you can figure out a route to get there:

Take time to determine your own goals; your company’s long-term mission and objectives will guide your daily actions. Without this framework, you and your employees may be busy but the business will not move forward because everyone is pulling in separate directions.

Make sure everyone knows and understands the goals and objectives of the company. It will make life a lot easier—for you as well as your employees.

For example: You are a Certified Kitchen Designer (CKD). You love designing kitchens enough to win awards. You are okay with the selling process because you know that is what really pays the bills. But now you are involved in the whole business management as well and you have found yourself designing less and hassling with installers more—you are not having fun anymore. This might have been prevented and, in fact, still can be changed by hiring an installation manager, someone you can turn that side of the business over to. Now you can get back to designing and selling—and having fun too.

Start with a Detailed Plan

Set goals to identify the actions you must take to get from A (where you are) to B (where your goals are).

A plan analysis shows you if your idea is viable or not. It saves you time, money, and heartaches.

You and your business associates use the plan as a road map.

The plan begins with the company as a start-up, then becomes the evolution plan, followed by the sustaining plan.

To make it achievable, be honest,