An entrepreneur’s life can be a real roller coaster. Having started a few businesses in my career, I thought it would be useful to highlight some of the hard-won experience I’ve learned throughout the process—the kind of advice I wish I’d known when I started my first, or even second, business.
1. Don’t underestimate a business plan
If you’re not seeking outside funding at the start, it’s tempting to forgo writing out a formal business plan. However, taking the time to write out your business plan, forecasts and marketing strategy is a particularly effective way to hone your vision. All planning should center around two essential questions: How is my business serving a particular need or pain point, and does this represent a major market opportunity?
In addition, don’t overlook the exit strategy at the beginning. Do you want your children to take over the company? Do you want to sell it? It’s critical to think about these questions from the start, as the building blocks of your company (such as legal structure) should vary depending on your preferred final outcome.
2. Do something you like.
Don't start something you won't want to do in five years. Because if you are successful, you'll still be doing this in five years.
3. Don’t hire friends
I form bonds quickly and make fast friends with people around me. While I generally consider this a positive trait, it has created some difficult situations when running a business. At times I have been reluctant to let employees go even though I know it’s not a good fit. If things aren’t working out between an employee and startup, it’s time to put feelings aside and trust that the person will find a better situation elsewhere.
Unfortunately, I’ve also learned that people can let you down, ranging from laziness to fraud. I still believe that faith in people is a good thing. However, blind faith can bring trouble.
4. Finish what you start.
Nearly every entrepreneur I know suffers from the same curse: we like to start things more than we like to finish them. In other words, if you are a good entrepreneur, you'll have a lot of great ideas. Most of them would probably work out well and make you a lot of money. However, that doesn't mean you should pursue them. Pick one and go with it until it dies or it makes you rich enough to buy a private island.
5. Don’t dive in without a plan
Just like the business plan, it’s critical to think through any initiative you wish to launch. When you’re in the midst of startup fever, it’s easy to get wrapped up with every new idea. However, be careful of losing focus. Moving forward is critical for any startup, and constantly switching directions can impede this forward progress. With each new idea, step back and think how it fits into your company’s overall goal and vision, then create a plan for how to make it happen.
6. Don’t be afraid to fail
Soccer coach Sven-Goran Eriksson once said, “The greatest barrier to success is the fear of failure.” An entrepreneur’s path is uncharted and sometimes a little bumpy. It’s easy to get stressed or downright panicked, but you cannot let fear prevent you from following your dreams. Think of it this way: the sooner you fail, the closer you are to discovering what works.
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