On October 28 and 29 I interviewed Michael Armani the owner of local small business Cloud Solar. I wanted to learn a little about the ins and outs of owning a small business. I also wanted to learn about what it takes to successfully run a small business. I began by asking Michael why he decided to start his small business. He responded by stating that he’s concerned about global warming and wanted to do something about it. He also added that he wanted to have financial control and be his own boss. He made the decision to start the business on his own but has had great support from the very beginning. He has owned the home based business for two years but is considering having a commercial site.
I inquired about any business partners and learned that he has two. I asked him what it’s like to work with them and he jokingly stated that it’s like being married. Mike is not married and says he’s not sure if he wants to get married in the future. As the owner of the business Michael’s daily tasks include everything from e-mails to prototypes to seeking out investors. My next question was how does he delegate work to your employees. Mr. Armani jokingly replied “fight.” He went on to add that he asks all three of them to do what they’re best at doing. I asked Mike what he likes the best and least about owning a business. Michael’s favorite thing about owning a business is the variety that it brings to his life. His least favorite thing is the unpredictability. Since starting the business Mr. Armani spends thirty hours a week on business matter which hasn’t changed. However, the hours spent have become more focused and wisely utilized. Mr. Armani’s vision for the future is to mold a company where he can talk to other companies, figure out and identify their challenges and custom make a consumer and technologically savvy solution. The vision also includes plans to expand as fast as possible and build a new model of business and finance.
Mr. Armani stated that he wouldn’t have started a business if he didn’t think he could expand it. All businesses need short term and long term business plans. Mr. Armani’s short term business plans include identifying strategic partners and putting out the first big product. His long term plans include growing and multiplying. It’s important to know what things make a business successful and unsuccessful. Interpersonal relationships and having a smart phone for constant communication have been the main factors in Cloud Solar’s success. A lack of experience connections have been the main hinderers in Cloud Solar”s success. Mr. Armani did “a lot of planning and a ton of research” before starting up his business. When he was ready to officially start up, he talked to a lawyer, filed documents, asked for advice, and had lots of dinners with smart people. Mr. Armani updates his business plan every month but says that business plans are worthless.
Mr. Armani’s said he’s not sure what he would have done differently when he first started his business and added “you do the best with what you can.” His biggest fear when he first started out was that the business might be a “time sink.” Mr. Armani got the money for his business from the standard round of friend and family financing. He also put a little of his own money into the business. Mr. Armani attends standard meetings every month and hopes to have raised three million dollars and made a lot of product in the next year. In the next five years he hopes to sell off the business or branch it off.
I asked Mr. Armani what owning a business is like opposed to what he thought it would be like and he responded by saying that it’s a lot more of a marriage and a continuous social adventure. I inquired about any areas he’s struggling in and learned that he’s struggling to identify partners. He’s talking to everyone he can to try to fix the struggles. To prevent future struggles he’s trusting more in people with experience..
After concluding the interview I have several afterthoughts. Owning a small business is very unpredictable and doesn’t provide the comfortable predictability of having a regular job, but fear should never be a reason to avoid starting a small business. It’s not always a good idea to expand and expanding shouldn’t be a primary reason to start a business. Sometimes being very small is the charm of a business, and a business loses customers without its charm. Business plans are not worthless unless your business is where you want it to be. It may be a bit excessive to update a business plan every month, but a business plan does need to be updated on a regular basis. Owning a small business can be very stressful, it helps to have a good sense of humor.
