One of my great joys in life is sitting down with budding entrepreneurs and helping them get the ball rolling on their own business... One of our companies, Von eCommerce, focuses on helping the average Joe/Jill start a small business online using an eCommerce platform that we know is tried and tested. Basically leveraging large company's desire to increase web business by harvesting social networks. What I love about this is that I know the platform works and that all it really takes is consistency and determination on the part of the entrepreneur.
Having said that, when it comes to more inventive entrepreneurship, I see a lot of great ideas and an equal number of zany ideas (and half thought out business plans). Many months ago I sat down with a number of recent MBA grads bent on turning their final project into a reality. What perplexed me was that firstly they thought they could build a tech company on 400K of investors dollars, and secondly that they were taking their lead from one member of the foursome with no previous entrepreneurial experience (and who was clearly finding it hard to accept the reality that she's no longer working with her multi-million dollar corporate budget). Last I heard, they had run out of money... Surprise, surprise...
Now, I love entrepreneurship and the idea that one person can start something that may one day create a legacy is what makes our system of free enterprise particularly appealing. So, after having started not one, but three successful ventures with my business partner and wife, here are my tips to the budding dreamer / entrepreneur that I have learned through a great deal of trial and error / listening and learning:
1) Don't create a problem to solve, but rather, identify an actual problem that requires a solution.
2) Add value to the marketplace.
3) No matter what the economic climate, never, ever take your clients for granted.
4) Guard your reputation with your life... when push comes to shove, it's all you have.
5) Work on your business, not in it... Its your job to get paying customers. For the technical expertise hire the mathletes that used to make you feel dumb in high school. On this note, there was a great article written in Time Magazine called 'why the world is ruled by C+ students'. Basic premise, people skills beat technical skills when shooting for the CEO's seat.
6) Don't outsource your brain by taking what the 'experts' say as gospel... Remember the current economic climate was created by 'experts'.
7) When in the trenches of a startup, forget everything you used to know as a corporate 'exec' with a big budget... Lean, lean, lean... focus money on key elements that generate revenue.
8) You will always need more money than you think, and be making less than you forcasted... Keep this in mind and you will live in the world of the real...
9) When it comes to your 'one of a kind' idea... Remember the golden rule of inventive entrepreneurship, 12 people have thought of it, 4 people are working on it. What will make all the difference is your ability to bring it to market. Right now Von is working on a billion dollar idea that will basically solve one of the biggest problems confounding clothing retailers online. We know we aren't the first to think of it, but we do think we might be the best equipped to take it successfully to market by knowing what market this existing technology will add the most value to...
10) When in doubt... Follow your gut.
Cheers,
P
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