The first business I had was in my early twenties. For the record, I’m now pushing 40. Anyway, it was the first Vacation Rental business in Las Vegas. I had two partners with whom I amassed a real estate portfolio in excess of $20M within a few years. It was built on a solid idea, a genius marketing plan, and egos that were so big that it made it impossible to even consider thinking small. By thinking small, I mean having enough patience to grow within your means as opposed to taking on more debt under the assumption you’ll grow into it.
The more debt we took on, the more we were forced to make decisions for dollars as opposed to making decisions for the benefit of the business. Those decisions, being inherently wrong from the get-go, led to the collapse of this company, friendships, and a great idea.
It’s funny, because when I think back, all I ever thought about was being big. And all I ever talked about was how many houses we owned. Never once did I have a conversation with my partners about controlling the growth of this company. Or for that matter, a conversation about coming up with a “magic number” of homes we could own that would ensure the company’s profitability, manageability, and sustainability.
I started BOX just before this company folded. And at that time, I swore I would never go into debt. My mantra was that I would only do what I could afford to do. Fortunately and/or unfortunately, I had no money. In fact, I’ve had exactly enough money to do exactly what I’ve done to date:
Create a 1,000 square-foot bikini-waxing salon in Las Vegas called BOX that’s recognized all over the world. You can’t get much smaller than that.
Think Small