Regular readers of this column know I’m a born-and-bred entrepreneur. My parents ran their own professional or business endeavors most of their lives. I opened my first business in the basement of our house when I was 8 years old.
The entrepreneurial spirit is in the blood. I walk fast by a commercial building for sale or lease, wanting to outpace my mind’s commentary. “Hmmm, wouldn’t that make a nice wine bar?” “Wonder how far it is to the next Dunkin’ Donuts?”
In a semi-retired stage of life, I am happy as can be with a part-time practice coaching corporate executives and small-business owners. I want to stick to my plan, a wonderful mix of work and play. It’s like re-allocating the investment portfolio as we go through life. Now my play part of the pie chart is bigger, my work part smaller. Hooray, I love it. Just have to watch myself, need to be alert to that urge to give birth to another startup.
I do expect a surge in startups this year. The number of startups increased markedly during the recessions of l983 and 2001 and will in the current economy, as well. It is happening already. Former members of big law firms, investment firms, software development firms – you name it. They are striking out on their own, eager to make their unique mark. Many are embracing a social cause at the same time – going green in one way or another or finding a way for a business to contribute to a compelling cause such as feeding the hungry children of the world.
So, what do you need in your toolbox to build a sustainable business? Entrepreneur magazine cited Asish Gadnis, who was laid off from his job as president of a software development company. Within a week, he opened his own risk-management consulting business. Gadnis said, “Attitude is key. In the past four years, I’ve learned that in addition to a zero basis for fear, you have to have a zero basis for ego.”
Have some Saran Wrap in your toolbox, as Americans are tired of dishonest, greedy people running companies. Transparency is in. Herb Baum, former CEO of the Dial Corp., who wrote “The Transparent Leader,” defines that brand of leader as one who does the right thing regardless of the consequences. The transparent leader, according to Baum, “is honest and open with various constituencies and communicates regularly to prevent the rumor mill from taking over.”
Of course, discretion is needed. You don’t open your senior management meeting with a few words about the memorable intimate experience you had with your spouse last night. Keen discretion better be part of the wisdom you’ve gathered by the time you’re ready to run the show.
Knowledge is power, and you will be constantly learning. I heard a lot in the media about a new book, “The 100 Best Business Books of All Time,” so of course I checked it out. I was delighted to see that the authors of this helpful book are Jack Covert and Todd Sattersten of Milwaukee. They go way beyond listing and categorizing business books. Each recommendation is a comprehensive review.
Here are their titles in the “Entrepreneurship” section: “Art of the Start,” by Guy Kawasaki; “The E-Myth Revisited,” by Michael E. Gerber; “The Republic of Tea,” by Mel and Patricia Ziegler and Bill Rosenzweig; “The Partnership Charter,” by David Gage; “Growing a Business,” by Paul Hawkin; “Guerrilla Marketing,” by Jay Conrad Levinson; and “The Monk and the Riddle,” by Randy Komisar with Kent Lineback.
I have all these on my bookshelf and second the recommendations. They are filled with gems.
You will need an advisory team, of course. Think long about inviting kindred spirits with specialized expertise to serve on this council of sorts. You want a CPA who will be all about the accounting, a business attorney who will keep you in compliance, a marketing expert who understands Jay Conrad Levinson when he says, “Marketing is every bit of contact your company has with anyone in the outside world. Every bit of contact.” An independent banking consultant will be valuable on this team.
And … you need a business coach, who will be all about you. The right coach will illuminate your greatness and your blind spots, help keep your passion kindled and alert you to ways that you might sabotage your business.
You must know what you’re getting into as far as debt and cash commitments go and not overextend yourself. Leadership requires a good night’s sleep. You must “get” that sales and profits are not the same thing. You must know something – or tons – about the business you’re getting into. You must be willing to practice to improve your skills – managerial, technical, financial, and relational. You must believe your own elevator speech, down to your toes.
What else? Well, rule No. 1: Have fun! Someone asked Bill Rosenzweig (one of the Republic of Tea guys), “When is the best time to start a business?” His answer was, “Never and Always.”
