- My Story
My name is Michael Woolf. I’m an Internet entrepreneur . . . and a former retailer.
You see, I lost my hardware store in the down economy. It’s not an uncommon story these days.
For many years, my family owned a successful lumberyard and hardware store in Woodruff, Wisconsin. It’s a vacation spot, but there was always plenty of activity.
Houses were being built. People were adding rooms, garages, and porches and renovating kitchens and bathrooms.
All of that meant a good business for my family and me!
And this was especially important because my father’s original profession had been dealt a staggering blow.
- Retail—Safer than the Stock Market?
As a successful stockbroker, my father had his own seat on the Chicago Board Options Exchange for many years. But he grew tired of the rat race—especially the daily commute from the suburbs to the city.
So at the age of 39, he announced his retirement, rented out his seat on the Board for a hefty sum, and bought our new family home—a really nice house on a lake.
But then came Black Monday—October 19, 1987.
The value of my father's seat on the CBOE dropped so drastically that we couldn't live on the rent from it anymore. I was too young to realize it at the time, but my parents were feeling panicky.
My father decided he needed to go back to work.
At first, he tried working from home. But technology then was nothing like what we have today. By the time my father dialed into a modem to make his trades, it was too late—he'd lost his chance.
And that's when he decided to buy a business.
After considering several options, he decided to buy Woodruff's lumberyard. Now, my father knew nothing about lumber or construction. But he certainly knew how to buy and sell things and how to surround himself with good people.
Thanks to his expertise, that business grew every year.
In 1996, my father bought out the hardware store across the street also.
- Groomed for Retail
Looking back, it seemed that all my life I had been groomed to take over that hardware store.
Even before my father owned Timber Wolf Hardware, I was working there during summers and holidays in high school . . . even while I was attending college. I learned the business from the ground up, and I knew all of the customers.
After college, I left for a while to try out Colorado—and worked in a retail sporting goods store there. When I returned, though, I become the hardware store manager, working directly for my father. I ran that store for my father for five years.
I loved working with people and feeling even more a part of our small community. The part I didn’t like so much was working for my family. I was ready to do my own thing and run the store as I saw fit.
So in 2002, I started looking for my dream job, and I found it. I became a technical sales representative for Cabot Stain in Boston.
Great! My family could go back to being my family and not my boss, and I could see another part of the country. Not only that, I learned a lot about paint that would be useful later on. After a year and a half, I moved back to Woodruff for personal reasons and, after a few detours, I finally came into my own.
- My Own Store—At Last!
It was June 1, 2007. I became the new owner of Timber Wolf Hardware. I had bought my father out, and the store was mine.
I was ecstatic!
And at first, everything was fantastic. My customers knew me, and they knew about my experience with Cabot Stain. People were driving half an hour or more just to consult with and buy paint from me. In fact, I was able to increase sales by 30% in my first year. The recession hadn't hit us yet. But in 2008 my sales didn't grow—they just stayed the same as in 2007. And in 2009, I lost $100,000.
If you're in retail, you know that your costs don't go away just because sales are down. You still have payroll, taxes, rent, utilities, and all the other costs. On top of that, my business was seasonal. It usually hinged on just eight good months.
In 2008, though, I had only four good months.
The rest of the year I had months of only $10 to $12K in sales. Of course, my fixed expenses remained at $17.3K per month plus sales taxes. Nothing improved during the spring and summer of 2009. By October 2009, I became convinced.
There had to be a better way to make a living!
My father and I sat down and did the numbers. Yes, I believed the economy would get better, but I also didn't have the resources to keep borrowing until that time. I had already done what I could to save the business. But when a bank insisted that I get my second wife involved as a payee on a loan, I gave up.
So in January 2010, I made the agonizing decision to put the store up for sale. Of course, it didn’t budge. Who wants a hardware store that's not breaking even?
While I waited for the store to sell, things went from bad to worse.
In fact, by March I was desperate. I was getting calls from vendors I couldn't afford to pay. The heating company shut the heat off—and it was still 20 degrees outside. It was time to liquidate and close the store. I ended up closing my store after Father's Day . . . just about three years after I bought it.
- A Happy Ending
I know this may sound like a sad story—but it’s not. It has a very happy ending.
Today I'm doing better than ever before. I don't have to miss out on my family life because I’m busy working 80 hours plus at my business. I don't have to cover for employees when they can't or won't come in. And I still own my own business. Only this business is actually making money.
Remember how I said I became convinced there was a better way to earn a living? I didn’t just think about it—I did my research. And I found the best business for me.
It is an Internet business.
With low start-up costs, virtually no overhead, flexible hours, working from home . . . this is just about the most perfect business I have ever found! You may be in the same situation I was.
After years of successful retailing, you may be witnessing the recession tearing apart your business. And you may need to ask yourself some of the same hard questions I did. No matter what you decide, you owe it to yourself to learn all of your options.
In fact, you can start right now.
By simply entering your name and email address below, you can get your own FREE copy of my Special Report, 10 Things to Think About Before Starting a Business.
It’ll give you insight on whether your situation now is sustainable . . . as well as what your next step could be. It never hurts to be informed. Especially when it comes to your life and finances!
Don’t wait, though. Your future is too important. Get everything you need to help make the right decision for yourself.
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