8 Cardinal Rules to Succeed as an
Entrepreneur
by Linda Descano
Over the past two years, I’ve had the pleasure of speaking with
100+ business owners from different industries and at different stages of
growth about what it takes to succeed as an entrepreneur. I first shared what I
learned at a National Association of Women Business Owners Leadership Conference in Philadelphia last
year, and recently dusted off my take-aways, in the form of eight cardinal
rules, for a presentation last week. So, here goes in no particular order:
1.
Work on your business, not
just in your business. Time and time again, I heard
stories from entrepreneurs about how they were so focused on their product or
service that they overlooked something important in their finances, in the fine
print in legal documents, or in the marketplace. Their lesson learned? Make
sure you understand the “business of being in business,” which means to invest
your time and energy on the management side of running a business. And, while
you definitely should tap experts in accounting, finance, and the law, you need
to educate yourself on those issues so that you can provide appropriate
oversight.
2.
Keep your personal and business
wallets separate. The old adage that business and
pleasure don’t mix also holds true when it comes to your business finances.
Make sure you set up separate accounts for your business, and handle your
business finances in an organized ― not haphazard ― way. When it comes to
money, have some in savings and a credit line available to get you through the
tough times.
3.
Form an advisory board. Most of the business
owners that I spoke with view an advisory board as essential to their success.
They use their board compliment their “weak areas” and provide an ongoing,
structured means of soliciting feedback. To be effective, make sure your
advisory board is made up on people who have different disciplines, backgrounds
and life experiences.
4.
Network with intent. Networking is an important activity whether you are a business
owner or corporate executive. However, it is particularly relevant for
entrepreneurs. Successful business owners view attending functions and joining
business organizations as part of the job — it helps you build awareness for
your business. And the stronger your personal and professional networks, the
easier it will be to deal with decisions and challenges.
5.
Find your “business Iowa”. One of the people I
spoke with is Betsy Myers, a successful entrepreneur who today is the
Founding Director of Bentley University’s Center for Women and Business. In her
book Take the Lead, Betsy shared how a relentless focus
on "winning Iowa" by the 2008 Obama for President campaign brought
clarity to an organization "under siege" and provided a strategic
"filter" for deciding what to do as well as what not to do. So try
having a focusing question to create clarity. For the Obama campaign, it was
“Will this help us win Iowa?” Then, it becomes easier to make trade-offs. Keep
distractions at bay and keep your eye on the ball.
6.
Remember that not all money is
created equal. You need to know when and how to raise capital, (both equity and
debt), and how to wisely put your money to work on things that adds value. You
should be spending as much time researching what investors and lenders want as
you spend understanding what your customers want. Understand the approach that
angel investors take versus mezzanine debt investors. The more you know, the
better positioned you will be to tap the capital markets and make the
appropriate asks.
7.
Plan, plan, and then plan some more. Most business
owners spend a lot of time planning before they take the plunge and start a
business. That makes sense. But, the need to plan doesn't stop when your
business is up and running. You need to still need to plan for business cycles,
life events, retirement, and more.
8.
Evolve and adapt to thrive. The business owners
I spoke with were always doing research and speaking to customers, partners,
and more. They leverage all types of resources to stay inspired and bring a
fresh perspective to their work. A great business starts with a solid business
plan and a clear picture of what you bring to the market and what problem you
are solving for your client or customer. Then, a great business keeps evolving
and adapting.
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