THE ENTREPRENEURIAL ITCH

Deborah Cole on Navigating the Entrepreneurial Journey

From time to time, I am asked to mentor individuals who, for one reason or another, believe it is time to make a professional change (a BIG one). The leap from employee to employer/owner is a big one and not for the faint of heart. There are many reasons to make the move, but the timing should be right and the preparation should be meticulous.

As an owner of a commercial maintenance and construction company, I always encouraged employees to follow their dreams, whether it be to grow within our company or to launch one of their own. I wanted to provide encouragement, as well as education, to be sure they were prepared for the ride of their lives. Only one individual did I discourage. When I asked why he believed he should leave our organization to start his own business, his answer was that he wanted to work less hours and make more money. I could easily sense that failure was in his future if this was his purpose. He did leave and he did make it through one season before joining another landscape company in their field operations department.

Here are some of the most important questions and considerations when planning to start your business:

What is the purpose for leaving employment? Is this move for personal fulfillment? Is it because you believe you can provide a better product/service? Is it to have more free time (this will not happen in the short term)? Is it for financial gain?

What are the goals (short-term and long-term) for the business and for you personally?

Do you have the resources to endure six months of operations before there is revenue? Three months? Do you have a contingency plan?

Do you have the capital to get started? Do you know exactly what will be needed and how you will obtain it?

Have you developed a detailed business plan? Have you had it reviewed by trusted advisors?

Do you know how your business will be structured? As a sole proprietor, it is easy to do this. With a partner(s), it is imperative to have a detailed agreement in writing.

Do you have an exit plan for all situations that could include death, sale, insolvency, change of mind?

Do you have a board of directors/ advisors who are more than friends and have the expertise to give you sound advice?

Have you done a thorough market analysis in your proposed locations to determine ability to create revenue

Do you have a reliable source of employees?

Do you have a reasonably priced leased space for operations?

Do you understand the laws/rules/ taxes of your local area?

Are you aware of insurance requirements for the services you will provide?

Have you obtained all of the necessary licenses and certifications for the business and industry?

Are you familiar with state and local labor laws and pay scales?

Are you familiar with budgeting and financial reporting? Can you read and understand a balance sheet and financial statement?

Do you have a team that includes an accountant, lawyer and banker?

Do you understand bidding, proposals, contracts?

Do you LOVE working with people (staff or customers), because there will be a lot of this and you MUST be great at it in order to succeed.

Do you have personal attributes of patience, impeccable ethics, self control in tough situations, persistence, a strong work ethic?

Are you willing to continue education formally and informally? Will you be a member of any trade organizations that can provide this?

Have you defined your market and your services to be offered?

Are you familiar with technology for bookkeeping, social media, daily operations, scheduling, etc.?

The questions above are only a few that need answers or at least consideration before you file for a business name, buy business cards or choose company colors and buy crew T-shirts.

I know you want to succeed, and succeed you will, if you plan. As the old adage goes, if you fail to plan, you plan to fail, and we do not want that. We want more successful entrepreneurs pursuing and achieving their dreams.

About Deborah Cole