What to Expect as an Entrepreneur
by Brent Beshore
Congrats on deciding to take the leap. You know it's "not going to be easy," but really, how hard can it be? You just need to get some customers, hire some people, and "manage" the process, right? Well, err, kind of. In reality, it's complicated. Here are some things I didn't expect, to which you might want to pay attention.
Your "Idea" Will Evolve, Radically: All businesses start with an idea, a hypothesis about what a potential customer group might want. I thought I might tweak the idea as I got feedback, but I never considered where the path would lead me. The entrepreneurial journey is a winding one, and you should be prepared to continuously alter your offering, change directions, or even pivot into new sectors based on your experiences.
Lack of Resources: A startling realization for first-time entrepreneurs is how much stuff must be done that had always just "been taken care of" for them with their previous employers. Who's handling the phone system, server, or Internet installation? That would be you. How about payroll, accounting, or compliance? Yep, that's you. Who worries about some weird letter you got from the Department of Revenue about a previously-unknown tax? You guessed it - it's you. Who's responsible for hanging the sexual harassment posters in the "common area?" You get the idea.
Emotional Swings: When so much hinges on seemingly every meeting, sale, or deliverable, the highs are higher and the lows are lower. When something breaks your way, you'll feel invincible and exhilarated - until an hour later, when something bad happens and all you want to do is close the door and cry. A good thing to remember is that nothing is ever as good or bad as it appears.
Rule of Three: Most people assume a business failed because the core concept was flawed. Not so from my experience. The fatal flaw usually lies in planning, or a lack thereof. The business starts off under-resourced, with unrealistic timelines, and impossible sales projections. As a rule of thumb, take your best guess at expenses and timelines and triple it, then plan accordingly.
Path to Profitability: You will not make a dime (profit) for at least three years. Obviously, there are exceptions to every rule, but you're probably not one of them. Every choice you make has an opportunity cost, and in small companies, it usually comes down to the owner getting paid or a much-needed expenditure being taken care of. Truly sustainable and consistent profits take an incredible amount of momentum and margin. There's always another big expense just hiding around the corner, so be prepared.
HR is Rough: People (including you) are deeply flawed and extremely complex. I thought if I only hired "great people," all the typical HR problems would magically go away. Not so much. Even great people are still people, and people have issues. I've watched employees battle with addiction, psychological problems, bankruptcy, and abuse. At the office, I've dealt with fraud, embezzlement, and sabotage. Oh, and then there are performance issues. Don't underestimate the emotional or time commitment of HR.
You'll Get Too Much Credit, Either Way: When things go well, you'll be heralded a genius. If things go poorly, you'll be derided as a loser and an idiot. The truth is always somewhere in between. Don't buy into your own BS or other people's ridiculous notions of who you are or what you've done. Only you will know the truth.
There are plenty more surprises, realizations, and epiphanies that I've encountered, and so will you. Be thoughtful about your experience and continually learn. That's the real path to success. |
