First an update- I started this page as a hobby in 2018 to give me something to do while on long plane rides, alone in forging places, and mostly as a storage bin for my creativity. As I’m now into a routine of writing, making videos and also starting a second business it’s probably time to put in an update here.
18 months ago I came home from Asia for a friend’s bachelor party. I intended to stay a couple of weeks then head back for a trip to the Maldives, or Greece. However, every time I sat down to plan the trip I couldn’t find the excitement I had when left for India months prior. Instead of forcing it I decided to take some time to just chill in my hometown. I rented a lake house, got my old boat out of storage and took the summer to hang out with family and longtime friends.
Being back in Milledgeville I got into a habit of working, running and relaxing. As this time drew to a close I realized a small town isn’t a place for a single guy without kids. Although the decision to not move back to New York wasn’t set in stone, it still came quickly to go look in Atlanta for a permeant residence. Now in Atlanta I begin to recast my friendships from college and settle into a social scene that occupied more and more of my time. Like most- when the COVID pandemic set in, the reality came fast.
Existing Business
By March of 2020 Apache Ad Works, my first business was running well. I had spent the fourth quarter of 2019 working on an ad serving deal that would double our revenue. The deal had just gone live. The managed services part of the business was running well. Neither of which could have been done without my team. Apache was running so well I had ventured into a passion project and gotten my Used Car Dealer License and was making a little money with a side hustle brokering cars for friends and friends of.
As March was drawing to a close the news of how hard Italy was getting hit by the pandemic was on every channel. Meanwhile, my friends and I were enjoying time with a friend who was visiting from Hawaii. Within a couple of days, the news was now hitting home. New York was considering a shelter in place order. I remember hearing this and thinking- this sounds serious but what the fuck is a shelter in place order? I was sitting at a restaurant having a margarita when my Google results came in. I looked around and noticed the manager was removing tables to lower capacity of the restaurant. At this moment I realized that if New York issued the Shelter in Place order, other states, willing or not, wouldn’t be far behind. My friends and I discussed and made the decision to hit the liquor store, followed by the grocery store.
A month into quarantine work seemed to be going well. I set-up pacing reports that ran every day. This allowed me to forecast revenue 60 days out. As changes happened I would need to immediately adjust and then prepare for the incoming drop in revenue. I viewed this as if being employed and getting put on probation or a performance plan to keep your job. Being self-employed/entrepreneur for the time that I have, I always hear different variations of the same line- It must be nice to not have a boss. I almost never say it but I’ll write it here- we’re all someone’s bitch, business owners are no different. My bosses are- my landlord, Georgia Power, Whole Foods, 401K, my clients, etc. So yes, seeing an incoming revenue drop is like knowing the day you’re going to lose your job. The difference here is I don’t have unemployment to fall back on.
For the first two months things looked great. At that point I even made the comment to friends how well things were going. By the end of May things were not as great. One client was entering their planned dark period, while my new client wasn’t answering emails. Within 7 days a keystone account would zero out on my pacing reports. This was the siren I had been waiting on. I instantly felt this in my chest. It was similar to my early days when I had one client I was invoicing but no money was coming in. It was the same feeling as when I got served a rent demand from the Queens County Court. It’s a paralyzing feeling.
As I’ve learned you can’t think clearly in these moments. It’s important to know that if you’re committed, you will have these times. I starred at my pacing report realizing that in 60 days I would be taking a 65% pay cut. I knew that in 90 days I either had to have a plan, or wouldn’t have a job. The only way to have a plan is to clear your head, take inventory, make priorities, and take action.
I once worked for a guy that would always try to get me to finance things. He would tell me things like- “you should go get that motorcycle. You’ve been working hard and deserve it”. Once I asked him why he was always trying to get me into debt he answered- Debt motivates. Although it is a crass way of putting it, he isn’t far off base. Every new client I’ve signed to Apache Ad Works, I did it when my back was against the wall. I once took a high touch client that wasn’t in our primary scope of business just to pay rent until I could get more clients. Now was no different.
When taking inventory, I realized my advertising clients had already come up with their plan. I got in touch with them first. How long would they be dark? I knew they would be back online at some point. If Apache Ad Works was going to survive I would need to figure out what bridging that gap looked like. The company has always had cash flow issues. We survive by shuffling margins from client to pay other clients past due accounts. Loosing accounts means there wouldn’t be any margins to borrow against. This was an issue I would have to deal with once it was in-front of me. It didn’t take much to realize there wasn’t much I could I do in the short-term.
My New Business
As for my hobby of car sales, that business, Nelson and Company, was picking up. I initially got my used dealer license so I could drive something nice for a few months, sell it, and then do it again. However, now this business was seeing a lot of organic growth. Holding my license also cost a decent amount of money. If I wanted to keep this business I would need to make it a real business and stand on its own.
It was here where the answer became clear. For Apache Ad Works to survive anything that wasn’t generating revenue would need to be cut off, myself included. I wasn’t going to take a 65% hit, but a 100% hit. Nelson and Company would now need to cover my cost of living.
The difference in my two businesses is one is reoccurring revenue while the other is transactional. Transactional requires a lot more time and would need to managed as such. To help this part I bought a car at auction and began renting it out on Turo. Being rented for 75% of the time it was a runaway success. My one rental has filled in a small client worth of revenue from Apache. I’m going to need to duplicate this, quickly. You can read more about that venture with the link below.
Managing Them Both
Which brings us up to date, week one of the 4th quarter, 2020. Apache Ad Works is coming back online and Nelson and Company is present. Neither are where I want them but I feel as though I can manage the two in way where they can lean on each other. Nelson and Co. feels like a rapid spinning merry go round that is slinging parts off as it spins. As quickly as I can place a part back on it, something else moves. There isn’t a moment to rest with it. It’s consistent project management. Although it might be a tad bit out of focus, it’s moving forward. Just like every small business as growth happens you have to be willing to find the path that works for you.
As for Apache- it is now time to put in the effort and grow the business. Accepting that this year’s dealings have cost some clients the business is still there. Just like in the early days, it is going to take long days, late nights and lots of effort, and even more sacrifice. To grow this company to the point it was at in January, I’m going to need to fill in the lost clients. To do so, I’ve structured my approach. To get things moving I spend time every morning committed to sales activities. Actions drive results.