Advice for Beginning Entrepreneurs
These last two weeks, several people came to me asking for advice on starting their own business. Funny, I never thought I would be in this position where others would be asking me for this kind of advice. My longtime friend, Kevin, in particular had some very specific questions. He’s an extremely talented guy. He’s software engineer who took two years off to pursue his passion in comedy and acting. But he burnt out and ran out of savings and went back to a corporate job. He wants to try again very soon, maybe with a podcast this time, and he doesn’t want to end back at a corporate job. This was some of the advice I gave him.
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Have a business plan. Like so many people, I never thought I needed a business plan. But I was wrong. I won’t go into the many details but my advice: if you don’t take the time to write the business plan, don’t start the business. 97% of all startups fail. To bet those odds, you need a plan. There are lots of free or inexpensive resources for small business like SCORE.org. This is the San Francisco chapter: http://sanfrancisco.score.org/
Manage your time. Most people don’t recognize that they are not managing their time well and/or they find it hard to do so. My #1 advice is to prioritize and simplify. If you’re working on multiple businesses or projects, choose one. If your time is divided, your projects won’t get the full attention it needs to grow as quickly and successfully as it can. Then you’re more likely to lose focus and lose motivation. Focus your time and energy on one project. Set milestones and create a plan to get you there.
Work smarter, not harder. That means find good talented people to help you. A great piece of advice that I received from a friend who is a successful Venture Capitalist said, “I never got rich doing everything myself. It wasn’t until I started hiring help that my business grew.” Of course, having the money to pay for the best talent is ideal, but few of us can afford that. I’m bootstrapping my own startup and cannot afford top talent. But event bootstrap, I have been able to find very good talent at reasonable rates and even people who can work part-time. It’s takes more work and a bit of luck to find such talent, but it’s doable.
Also, know that you will make mistakes. Start small (i.e. just hire a few people at first, and maybe part-time), learn from your mistakes and figure out what exactly jobs/tasks you need to do for your business and what qualifications are best suited for those jobs. Note: sometimes interns are not the best resources. When it takes more of your time and effort to train and/or oversee a person than what they are producing, then it is actually costing you more than the price of an experienced professional who knows exactly what to do and how to do it.
Stay motivated. Yes, you will burn out, and the harder you work the more you will burn out. There have been numerous times when I wanted to throw in the towel myself. My best advice is to try to see the signs before you reach the breaking point. Take some time off; for example, take one day a week and try not to do any work for that entire day. Try to keep a balance life style with exercise, regular meals, and some social time with your friends. Manage your stress. Collaborate and/or work with others. And above all, know that you’re doing your own business because you want to, because you choose to. If you feel like quitting, remind yourself why you started.
All this advice aside, you just have to do it. Do your due diligence and plan as much as you can. Then take a deep breath and jump into the water. Allow yourself to make mistakes and learn from them and adjust. You will make a lot of adjustments. Start small and work your way up. Listen to everyone’s advice but only implement what is best for you – some advice can lead you astray. Prioritize your tasks. Hire help when you need it; don’t try to do everything yourself. Remember to balance your life with exercise, down time, and friends. Best of luck on your adventure!
