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Overcoming the odds can herald great rewards

Overcoming the odds can herald great rewards

Overcoming the odds can herald great rewards

There are a number of phrases that relate to the fact that, sometimes, doing things the hard way can herald greater rewards than the easy option.

"What doesn't kill you only makes you stronger" and "learn from your mistakes" are just a couple.

While these are more regularly aimed at individuals, it is also true of business, as was so perfectly demonstrated in a recent CNN Money article entitled 'Easy Money can kill a business: Financing is almost impossible to get right now. In some cases, that's not a bad thing'.

The piece predominantly focuses on a business called DNA Software (DNAS), a Michigan-based company that develops computer programs for genomics researchers.

In this particular company's case, while things didn't go exactly to plan, the overcoming of obstacles has landed it on the pages of CNN Money - an achievement that will bring about numerous benefits as a result of the positive online PR.

In 2001, DNAS received a three-year grant of $1.5 million from the state of Michigan, which was to be paid in installments.

By 2005, the money had run out and the company was almost bankrupt. The obvious question is: how?

How did a successful company, impressive enough to attract the attentions (and funds) of the state, nearly go bust?

It came to rely too heavily on the grant and neglected other aspects of business growth, specifically a long-term game plan focusing on sales and marketing.

Essentially, DNAS had too much of a good thing.

Since then, the company has rebuilt itself and is expected to bring in $1.5 million in revenue this year; and it's done it the hard way.

Chief executive Don Hicks said that he had to take a 50 per cent pay cut and started doing calls and demonstrations - a far cry from easy government handouts.

Another business owner that suffered similar circumstances to DNAS was Mike Michalowicz.

Now the chief executive of Obsidian Launch, he saw his first company Olmec Systems struggle significantly following the adoption of a $250,000 loan.

Having had problems with debts, Mr Michalowicz learned from his mistakes and sold the company for a handsome profit.

Small business owners, when fortunate enough to receive a financial boost of some kind, should never take their eyes off the prize and ensure that while they use the money efficiently, they secure the company's longevity too.

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Overcoming the odds can herald great rewards

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