One of my passion projects has been coaching young entrepreneurs in their start up stage. Most people have ideas, concepts and processes they think up as great business ideas. I have about 3 a day myself, generally when I traverse the dream and awake world. The hard part is to implement and having the grit to make it happen.
So, what is the magic sauce for an entrepreneur? In my opinion it is the following:
Lack of prestige and variance in skills. In start up mode, one is the office janitor (if you are lucky enough to have an office), assistant to oneself and a jack of all trades. In early days, there are few funds for outsourcing, the skills need to be in house. If you do not have the skills, then you need to be fearless in learning.
Strong relationships and a stellar network which within that you are known as responsible and clever. Early investments are friends & family and those relationships need to be strong.
Despite point 2, do not staff the business with your friends. Your first hires should be for what core competencies the business needs, keep your friendships to after business hours.
Relevant experience and timing. If I had to say the perfect age to start a business, I would say between the age of 28-30, providing that puts you at about 9 years of working experience. It is crucial to have worked within several different organisations and corporate cultures in order to put together a company that will flourish for many years to come. I look back fondly on my early career and what I learned both from the organisations and my mentors within them. They have saved me a lot of money and grief as an entrepreneur.
Humility. Being an entrepreneur is not for the ego-driven person. You will need to have a thick skin both in terms of feedback and disappointments.
Savings. Do not try to get something off the ground without 1-2 years of living expenses saved up. If you cannot feed yourself and pay your bills, the likelihood that your business will take hard knocks as a result is high. You may take in the wrong investors or make short-term-quick-fix decisions that are not in the business’ best interest. This will cost you down the road.
Time. Guard it fiercely as it is the only thing you can control and the one thing we all want more of. Sometimes saying “no, thank you” can save you more money & energy than it would have brought in. To hone “discernment” is the skill that will make you the most money.
Do not be impressed by what people say, be impressed by what they do and accomplish. There is a difference.
Fail fast and be flexible. Do not hold on to a concept or a plan fiercely if the data and feedback point you in another direction. My business plan has changed several times as I had to adapt to a changing market. Did I like it and embrace it? Not always, but I did it.
I often get asked if I would do it again. Yes, I would because I love running and continuously developing my own company. I am still learning new things/skills 20 years in. The reason I am still learning is because I never stopped asking questions and I still feel like I want to know more.
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