Starting a Business - Year One

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.

www.orbisec.com