Have you always wanted to be an entrepreneur? Do you have a great idea for a “can’t fail”business? Are you ready to jump in with both feet?
Not so fast. Sure, boldness has power and genius in it, but you need more to be a successful entrepreneur. You need the wisdom that comes from experience. But that’s a bit of a Catch-22—how can you get that experiential wisdom when you’re first starting out? By listening to those who’ve gone before you. Successful entrepreneurs Wade Brantley (SaM Solutions), Bill Whitehurst (Whitehurst Mergers & Acquisitions), and Eric McGehearty (Globe Runner SEO) have a few lessons for wannabe entrepreneurs:
Make sure you’re ready for the responsibility. “Starting a business is a lot like becoming a parent,” says Brantley, who’s the Director of U.S. Operations for an international software services and solutions provider. “I was a bit naïve about the challenges (and associated stresses) of being a business owner. It is literally a 24/7/365 responsibility.”
Know thyself…Before starting his mergers and acquisitions company, Whitehurst wishes he had assessed his skill sets, strengths and weaknesses, so that he knew where he personally added value to the venture, and where he might need assistance.
…Then delegate. Before he recognized how to utilize his strengths, Whitehurst struggled to manage his company for a number of years. once he realized he was a much better salesman than manager, he (and his company) became very successful.“If I’d learned the lesson earlier,” he says, “I would have been better prepared to staff according to my weaknesses. After delegating some of the important managerial duties, I would have been in better position to spend my time more productively in a lead salesman’s role.”
Plan (and budget) for the hard times.When asked about common errors of first-time entrepreneurs, McGehearty, the CEO of an online marketing firm, had a ready answer: He believes that many new business owners underestimate the expenses they will have going forward. “It is so important to budget for experimentation and mistakes,” he says. “Every time I see a business plan, it seems as though the entrepreneur was planning for everything to go perfectly.”
Whitehurst agrees. “It is virtually impossible to determine the amount of working capital that a business will need. What is really important is not the capital required to open the business, but the ability to get more money as the need arises. The big mistake that many new entrepreneurs make is not setting up the additional working capital source before they start.”
Focus on the long run. Short-sightedness is another mistake of inexperienced entrepreneurs, says Brantley. “Many (myself included) make the mistake of allowing short-term focus to cloud their thinking and decision-making. This is especially true of people who want to “get rich quick” or build a business to sell rather than build a business to succeed.” He also suggests that business owners concentrate on the qualities that will help them build their businesses long-term. “Looking back, I would have not focused so much on growth, and focused instead on factors like quality and efficiency.”
Follow your instincts. Whitehurst once ignored his intuition. “I let the numbers do the walking,” he said. “I was successful in that venture, but it ended up being a huge struggle. Now I follow my instincts rather than a spreadsheet full of numbers.”
Screen employees carefully. That intuition should extend to hiring employees. Though Brantley took particular care selecting hires when he first started his business, he failed to maintain his standards as his operation scaled. “The resulting bad hires slowly and stealthily began to inject a toxic negativity into my business that took months to eradicate,” he says. “It was a painful lesson.”
McGehearty learned a similar lesson. “Over the years I made a lot of great hires and a few I regret,” he says. “If I had it all to do over again, I would be slower to higher and quicker to fire.”
Create a positive culture. By choosing the right people and setting a good example, McGehearty inadvertently created a perk for Globe Runner: a positive team culture. “I had not initially put much thought into it,” says McGehearty, “but it has become one of our biggest assets.”
Enjoy the journey. Being an entrepreneur can feel great, according to Brantley. “Succeeding as an employee was a good feeling,” he says, “but entrepreneurial success is an entirely different ballgame! The intrinsic satisfaction of creating and operating a successful company was far greater than I would have ever imagined.”