Business
Entrepreneur
The Secret of Success for Beginner Entrepreneurs
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The success secrets of entrepreneurs actually aren't as secret as you think. You can be a successful entrepreneur if you really want to be. Take your startup to the next level and make a history of entrepreneurial success.
Few experiences are as exciting, rewarding and, yes, terrifying as
starting and running your own business. Many people in their late 40s,
50s, and early 60s are learning that first hand: the economy has led
them to take the plunge into entrepreneurship, either because they were
laid off or because they just want more control over their work lives.
It’s a question I’ve asked myself often over the past two decades as
I’ve worked with, written about and studied entrepreneurs. It’s also a
question that my Next Avenue weekly blog posts will address frequently,
unearthing resources to help your business succeed. And I'll be sharing
“How I Did It” stories of people who’ve recently opened shop. Whether
your goal is to be the next Silicon Valley sensation, run a bed and
breakfast, or start a consulting business from your spare bedroom,
you’ll find advice to help you do it.
One of the most important indicators of business success is one I’ve
heard from hundreds of venture capitalists, angel investors and small
business lenders: The need to have a stellar team.
When Profit Dynamics Inc. a research and consulting firm in Forest
Hills, Ariz., asked 500 venture capital firms about their key criteria
for investing in a new business, 52 percent ranked “quality of the
management team” as critical.
Once potential financiers see friction in the business or find that no
one is spearheading key roles (operations, technology, finances and
sales), they won’t help the firm get off the ground. And without money,
the business is doomed.
So don’t try to go it alone. Finding employees, business partners, or
independent contractors whose skills complement your own will make your
company stronger and grow faster. This requires admitting there are
areas of running a business that you don’t know or skills that you lack.
Yes, it’s painful to admit this. Being honest with yourself can,
however, save you heartache — not to mention boatloads of time and
money.
Here are the types of people you’ll need to succeed, and how to find them:
Operations Master: This is the person who’ll oversee what your
business does and how the work gets done. Although the entrepreneur
often takes on this role, you can also seek operations help from
suppliers. A courier service can help you manage shipping and logistics.
Equipment and materials suppliers can provide advice to help you better
coordinate manufacturing, inventory, and other day-to-day challenges.
Tech Guru: Your technology expert is a critical part of the
team, even if your company isn’t a tech-based business. After all,
virtually every business relies on technology in some way today — from
its website to its social media presence to its computers, smart phones
and other gizmos.
Technology is also an area that prospective lenders look at closely. So
if your tech talent isn’t up to snuff, you could find yourself short on
cash. Either make sure you have someone in-house who’s great with
technology, or find someone. Ask your financial adviser, friends and
former colleagues for recommendations.
Financial Whiz: This person controls the ebb and flow of cash,
monitoring what comes in and goes out on a daily or weekly basis, as
well as tax planning, hiring, and reinvestment in the business.
Your accountant could probably fill this role. But over the past few
years, a cottage industry of part-time and independent chief financial
officers “for hire” has emerged. To find one, search online for
“part-time CFOs,” then start interviewing the most promising candidates.
Ideally, you’ll want a certified public accountant.
Legal Counsel: You’ll want to have an ace attorney on your team to ensure that you’re abiding by industry regulations and that you’re protecting yourself and your brand from liability. Find a lawyer who specializes in working with startups. Keep in mind that smaller law firms may be more responsive to your needs than megafirms with dozens of partners.
Sales and Marketing Superstar: How are you getting your products or services to market? You need at least one sharpie in charge of those activities. Consult local advertising and marketing groups to find the best freelance help, which can save you a bundle. Your regional Small Business Development Center — a partnership between government and local colleges, run by the U.S. Small Business Administration — is a good place to get direction on effective sales and marketing strategies.
Mentor: Having someone who has run a business successfully can
be invaluable for shortening your learning curve. If you don’t have a
friend or colleague who can provide guidance, look for a free adviser
from the SCORE,
a nonprofit that partners with the U.S. Small Business Administration.
SCORE matches you up with people who have experience in your field.
CEO Peer Group: A chief executive peer group is a
collection of local people who own businesses. When I ran a small PR
agency, I found it extremely helpful to have this group of fellow
business owners to brainstorm ideas and to give me feedback on issues I
was facing. And, sometimes, blowing off a bit of steam in a safe
environment with people who understand the challenges you’re facing can
relieve stress better than a deep tissue massage. (Just make sure there
are no competitors in your group or you’ll be reluctant to share.)
Find a local CEO peer group by asking other business owners or by
contacting business groups like your local Chamber of Commerce. You can
also form your own group by inviting business owners you respect to meet
monthly or quarterly. This executive roundtable, along with the rest of
your team, is likely to up your odds of being a small business winner.
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