risk

A Failing Course of Action?

While I was getting swept up in the excitement of my LLC approval, and having a successful focus group, I forgot about the lingering manufacturing costs.

My current design for the BeddyBye has a plastic infrastructure, a urethane foam covering, as well as a custom fitted sheet. The plastic and foam both need to be made with a mold. Molds are great if you have tens of thousands of dollars lying around and you know that you’ll be selling huge quantities, but the upfront costs make it almost prohibitive for anyone who’s starting out.

So far the cheapest quote for making the mold for the plastic component (JUST the mold – not even the finished product) was around $8,000. Yesterday I got the upsetting news that the molds for the foam (who knew foam needed a mold?) would be $3,000. The kicker is that on top of the mold cost, the cost per unit (if I’m ordering 100 at a time) is $45 each! And that’s just for the foam. There’s no telling how much the plastic units and the fitted sheets will cost. The upfront manufacturing costs will most likely be around $14,000. Even if I forget about the upfront costs, it will  cost about $120 for each baby bed to be made once I have the molds. A hefty number especially when market research indicates that I need to keep the price under $100. With these numbers it’s impossible to ever turn a profit.

This is when I think: Why couldn’t I come up with an easier product? or better yet, Why couldn’t I just be happy with a regular job?

So far I’ve invested $3,500 in this project. That’s nothing compared to my emotional and time investment. At this point I fear “escalation of commitment to a failing course of action.” In other words, am I holding on to an impossible dream just because I made an initial investment? Should I get out before I risk even more?

NOOOOO! That’s the whole point of this blog. I wanted to make the struggle public to hold myself accountable. Otherwise, I would have given up the second I first thought of BeddyBye. When I started the HeSo project I knew it wouldn’t be easy. I was leaving a secure, easy job for the horrifying thrill of following my intuition, believing in myself, and taking risks. Just as a difficult workout makes the heart grow stronger, I believe making difficult decisions will make my HeSo stronger!

Stay tuned for some of the solutions I have brewing!

Success is almost totally dependent upon drive and persistence. The extra energy required to make another effort or try another approach is the secret of winning.

Denis Waitley

It’s Never Too Late to go to Law School

Yesterday I met a woman in her early 50s who was just starting law school. You might ask why someone would go through the expensive and long process of law school so late in life. She fell in love with the legal system while serving 6 months of extended jury duty, and switched career paths as soon as it was done.

I can’t count the number of times I’ve heard people my age (and younger) say that they would love to go to law school, or medical school, or get a masters, or change professions, but they think it’s too late. How is it too late? Even if you can only spend 5 years doing what you love isn’t that worth it? Why are we all so afraid of falling behind on an imaginary life schedule?

So often we have this attitude that life is out of our hands. But the truth is you are the only one who can control your life. You get to make all the decisions! You can stay up late if you want to. You can eat ice cream in bed if you want to! And if you want to go to law school, then by golly, go forth!

It is never too late to be what you might have been.
George Eliot