We encourage you to tap into the wealth of information around starting your first business and the people willing to help guide you along the way. Gary Bizzo is one of those people and here are a few key insights from Gary that he wished someone would have given him.
Cash Flow – One of the biggest issues with entrepreneurs is how to deal with money – most manage money poorly. Be sensible, get a bookkeeper rather than doing it yourself and have a look at your books often so you will know how your business is doing at any moment. A hasty purchase can be deadly to a start-up.
Good People (Your employees) – My friend has a gem of a secretary. She has been with him through thick and thin and is indispensable. He chose wisely. Hiring staff is not rocket science but it can be difficult. I suggest a 2-3-person team to do interviews to get different viewpoints, which will keep bad hires down. Bad hires need to be disposed of quickly; there are no second chances in a start-up.
Partners – We need partners for a couple of reasons. Firstly, to fulfill a weakness we have that they can mitigate and secondly, often they are a source of capital. Can be the boon to your startup business but it can be your downfall. I had a client who had a partner. They attended meetings together ran the business well together but rarely socialized. IT worked for them, unfortunately most partners are bound at the hip and fall into the issues most relationships have, namely staleness, over exposure and more. It sounds like a marriage and it is of sorts so it must be nurtured like any relationship.
SWOT Analysis – A client opened a restaurant without looking at the neighborhood, his competition and the market. He got into almost immediate trouble and by the time he got to me for help the business was too far-gone for anything to help. Know your weaknesses, your threats and always have a Plan B and C
Responsibility Does Not Mean Micromanaging – Many entrepreneurs are not great managers of people. I know this by the incredible number of micromanaging business owners out there who think they are the only person in the company who knows ‘how it should be done’. Give your hires a chance and delegate but make them accountable. That will separate the good from the bad and you might be surprised when they rise to the challenge. Consider getting a coach or mentor on board to help.
Why didn’t someone tell me all this when I started my first business? Growing a business can be hard work and rewarding but it also needs to be fun. Planning, e.g. a business plan, budget, marketing plan and SWOT will go a long way to making things easier.
Also shared on Garry Bizzo.
