Starting a business.
A classic narrative beginning
with someone spending nights and weekends working on an idea alone in their
garage, basement or dorm room. You can even imagine this person being rejected
by banks over and over again until one finally decides to take a chance, and
then despite the doubts of friends and family, the company finally becomes
real, and sends the entrepreneur on down the road toward the American Dream.
The actual story is different and
more complicated.
Our company, Orbis Environmental Consulting, provides a niche service to clients who need to manage sensitive
environmental or cultural resources, but many of the experiences of our first
year are not unique to our industry and might have happened to any startup
firm. I’d like to share some of what we learned.
First, plan very carefully – establish
the systems you need to conduct your business before rushing out and actually
starting. This should include your legal
entity status, basic marketing materials, your web presence, and equipment. The
last thing you need is to fall short on your first piece of business because you
lack a key piece of equipment or system. But if you wait until you’re 100%
ready you’ll never start. Ensure the 80% you need is in place when you begin. You
can fill in the rest as you go. If you’re currently employed, you can work on
this after hours or on the weekends. Don’t use another company’s time or
equipment to work on your business – it’s unethical and could earn you a
lawsuit. If your new business will be in the same field as your former
employer, don’t try to steal clients. If you provide them real value, they will
know where to find you. Most businesses are based on relationships – if you
handle this transition well, your employer may be sorry to see you go, but
could very well be your first client.
Secure financing to cover your
expenses for a reasonable time – at least six months, but preferably a year.
Sure, money can be a motivating factor, but you don’t want to have the wolves
knocking on the door just as you’re getting started. The number one reason
small businesses fail is lack of cash. You need to be comfortable with taking
some risk – just be smart about it.
Some small business owners will
say you don’t need to incorporate, or that you can wait until you’re a certain
size. That’s taking a huge risk. Incorporating your business protects your personal
assets from any legal action brought against your company. Legal entities can
also raise money, borrow money and own property. There are several available
options depending on the needs of your company. Don’t ignore this.
Tell everyone you know – everyone:
friends, family, colleagues, neighbors, and other professionals. You’ll be
amazed at how many contacts you have, and at how many of them know someone who
needs the services you provide. Explain what you’re doing and the value you offer. The natural reaction might be to feel like you’re “bothering” these
people, or “trying to sell them something”. Get over it. You’re providing value
and trying to help. You’ve referred people to your doctor, accountant, or hair
dresser, and they would be happy to refer clients to you – if they only knew
what you do.
You might be surprised how many referrals you gain this way. If you don’t believe you can help others, no
one else will either. Work on your self-esteem if necessary. It's an important part of your toolkit. There
may be some grim days, especially early on – find outlets with professional
associations, colleagues, or volunteer groups in your field. Also don’t be
afraid to ask others who have succeeded in your field for advice. But don’t simply
copy them, take some time to learn what makes them successful and incorporate it into what you do.
Don’t waste time doing what you
don’t do well. This is tough since entrepreneurs tend to have an attitude of “if
you want things done right…” . Hire professional help for your marketing
materials, bookkeeping and web design. Sure this brings upfront costs, but you’re
guaranteed to spend more time, make more mistakes and likely end up with an
inferior product if you try to do these things on your own. Moreover, any time
you spend on these tasks takes away from working on your core business.
It may seem obvious, but be very
aware of your company culture. Once the initial enthusiasm of starting out
wears off, everyone has to understand and share the values and goals of the
organization. The day-to-day roles for each person must align with their
personal goals, up through the overall company goals. Company culture is
incredibly critical when hiring, particularly at the early stages of your
growth, when you’re first expanding beyond the “original” roster. Hiring the
wrong person will at best, cost you time and money, setting your organization
back. At worst it could cause irreparable damage to the company.
Communicate effectively. This is essential to the internal health of your organization and your relationship with
your clients or customers. Choose the correct tools from among the many
devices, apps, and other options, and use what works for you and your
organization. In the early days of your company everyone understands what needs
to be done, and is laser focused on doing it, but as time goes on and you begin
to grow, effective internal communication is critical to ensure everyone is on
the same page. Effective communication with those outside your organization is
equally important. Acknowledge and follow up as appropriate based on the nature
of the communication. Respond to emails within 24 hours, return calls if
possible within the same business day. This should go without saying, but it
can’t. Doing this well will differentiate you from most of your competitors
right off the bat.
But don’t let this capacity for
availability be a curse. It’s your responsibility to manage your personal time
- respond when it’s convenient for you to do so – but within a reasonable
timeframe. If you’re busy, acknowledge the message and ask the caller to
schedule a more convenient time to follow up.
Some will tell you to expect to
work long hours and travel extensively. Why would you work so hard to build
your skills and open a business to work at a sweatshop? Don’t get me wrong, you
need to be serious and focus on your craft, but not to the exclusion of
everything else in your life. Stop thinking in terms of “work-life balance” and
just think of your life.
Time is the ultimate level
playing field. Everyone has the same amount, but most think of their time in
terms of resources when they should be thinking in terms of priority. It may
sound harsh, but if you don’t have time to spend on training that would improve
your skills, or to spend time with your family, you’re simply choosing not to.
You’re prioritizing other tasks above these.
Sure, sometimes you may need to
work long hours or on the weekends; in fact, my first day working for Orbis was
a Saturday, one member of our staff was out of town for 27 days straight, and
another worked a couple of 20-hour days. But balance this by working when it
makes sense. Sometimes I miss events when I’m out of town, but I also have
flexibility others in the corporate world lack - I’m having lunch with my
daughter at her school today.
There are several established
time management systems – choose one that works for you. But here are a few
tips to get started.
- Establish
priorities and goals for your personal and professional life. Review these
daily and establish milestones for achieving them.
- Don’t waste
time with low priority decisions or on tasks outside your skill set.
- Work when it
makes sense – don’t feel trapped by the 8-5 corporate work day. Measure success
by your results, not the hours you work.
- Allow for
occasional down time – Keeping some time open on your schedule enables you to
address inevitable emergencies or contingencies.
Looking back, it’s hard to
believe that a year has gone by, and at the same time, that first day seems so
long ago. Over the past year we have had
some success and made some mistakes, but we have learned that starting a business
requires proper planning, a financial base, careful time management, efficient
communication, confidence, and prudent risk tolerance.
Like many things, the process of going
into business may not follow a tidy narrative. There is certainly no one “right
way” do this and ours is only one example. But, by taking the time to establish
the systems and framework your business needs, you can begin writing your own
story.
Copyright J
Ryan Duddleson 2015. All rights reserved.