This is not the first article on dancing with the idea of doing your own thing. It certainly won’t be the last one. This post is about the hard questions, the plan, and the execution you need to commit to before taking the leap.
I’ve worked for large companies and startups, consulted independently, run my own practice, and worked as a Director for a start-up investment fund.
The thread running through successful entrepreneurs is focus and understanding of who they are and how they will execute.
Below are some of the most basic thoughts around this topic that I find often overlooked in our rush to read every ‘top 10 things article’. It’s time to take a step back, breathe in and out, and think freely for a moment.
Is the grass always greener on the other side?
Entrepreneurship offers a world of flexibility and freedom. You can work from anywhere, choose your hours, and deliver on a passion project you’ve wanted to do for a long time.
But of course, with great power comes great responsibility…
Entrepreneurship isn’t easy. You are in charge of everything: sales, marketing, message crafting, office management, and if you are lucky you will get to spend a few hours a day on what you are passionate about.
It’s time to be very clear with yourself on your strengths and weaknesses and be real with yourself.
- Assess your weaknesses and strengths
- Ask yourself why this is the way you are (sometimes this requires multiple whys)
- Determine how this may affect you in a new environment (aka, starting up)
So what does that mean for me if I decide to quit my job and start my own business? Will I be able to put my head down and quickly reiterate to a working business model? Will I be as quick to accomplish milestones timely? Will I do what I said I would?
Entrepreneurship is about getting to know yourself at a very visceral level. There is no where to hide and your actions can easily be accounted for if 6 months into your new adventure you have 0 clients, $0 revenue, and you are still holding onto your number of unique page views as proof of success.
Choosing a path to start on
Once you believe you have the heart and the foundation to be successful, begin to evaluate your ideas. The $100 Startup: Reinventing the way you make money by Chris Guillebeau says it best. Ask yourself:
a. How would I get paid with this idea?
b. How much would I get paid from this idea?
c. Is there a way I could get paid more than once?
I would also add, which idea are you most passionate about?
How will this business affect your personal goals?
If you are toying with a few different ideas, these questions will help you see the personal value proposition in each idea.
Be able to distill your goal into a meaningful sentence or two. You are doing what, for who, and are fixing what major pain point for them?
I’ve talked to far too many entrepreneurs who do not know the answer to the above question. As a prospective client or investor, I need to be excited and curious about your business in one minute or less. As an entrepreneur, YOU want this as well because it helps cut through the noise. You will be able to quickly identify whether you’ve made a business connection or not.
Leading me to believe:
The first rule in starting-up should be to talk about your start-up succinctly for the situation. I won’t harp on this – boil your value proposition down to 6 words or less.
It’s not about the idea, it’s about the execution.
I am a big believer that most ideas have already been conceived – whether in the shower, at a bar with friends, or in a brainstorming session.
Once you define your targeted business idea and why you are doing it take a moment to day dream and ask yourself:
What does success for your business look like?
Where are you sitting while working at your business?
How many people are around you?
What are you doing with your day?
How are you interacting with customers?
How do your customers feel?
What change does this business accomplish in your customers lives?
When is this success happening? Soon? After years of grueling hard work?
What will change from your current life as you transition to this successful business?
Think of this as the equivalent of visual imagery in sports. If you see success in detail in your dreams, it is easier to make that 3 pt. shot off the rim of the basket.
Then, start working backwards. How do you get to each point in your day dream? When I first opened my business, I imagined how many clients I would work with. How often we would interact and what that looked like.
I wanted to do meaningful work. I imagined talking in front of small groups about taking financial charge of their lives.
How would I convert prospecting into X number of clients?
Do your homework and make a rough estimate based on factual data others in the industry relate. If you think you can beat it, go for it!
Metrics can move as you gain more insight and data. A business is always evolving and constantly moving forward with new product(s), marketing, etc and the metrics will change with it. Get comfortable with uncertainty – this is what developing and growing a top business is all about. 🙂
Finally, get to work! Set milestones and develop a weekly, monthly, quarterly plan to accomplish your goals and start crossing milestones off the list.
Last note: Beyond market development, product development and setting pricing structure, I encourage you to think more about your client Onboarding process early. Set world-class expectations so you don’t churn through your earliest clients with bad service or an unclear path. Find ways to up-sell, cross-sell and develop these initial clients into raving fans of your business.
Considering leaving your current company to start your own business? Schedule a time to chat with us.
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The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.
If you live in a state with it’s own form of state AMT, this further complicates the matter. AMT calculations can be difficult and you may need professional help, such as that of an accountant, tax attorney, or someone experienced in complex tax returns.
