Posted by JuJuan Buford Entrepreneur & Author @JSBUFORD
After almost two decades of interviewing professionals, heads of households, serial entrepreneurs, and business owners, I’ve learned a couple things really, really well.
- People are schizophrenic when it comes down to desiring financial independence versus how they spend their time.
- Most really don’t understand what it means to be financially independent.
Wikipedia’s definition of financial independence: is generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities.[1] For financially independent people, their assets generate income that is greater than their expenses.
It is for the aforementioned reasons that the successful pursuit of entrepreneurship has always been of supreme interest to me…like the way breathing oxygen is. That being said, not everyone is cut out to be a #1, or a #2….. which is an article for another day. Still, with the right people around you, the right system, and a firm grasp on what it takes to win financially as an entrepreneur, I firmly believe that everyone can leverage entrepreneurial activity. However, there are land mines, and anyone who has ever endeavored to start a business has stepped on one, two, or perhaps all of them. Here are a handful that can be easily avoided.
YOU HAVE TO FIND WORK, LIFE, BALANCE
What is that? It means different things to different people, is what it is. If you grew up in a household where dad and or mom were entrepreneurs 24/7, 365 days a week, however when they took their foot off the pedal for vacations or life’s milestones, they made that time count. That’s what it means for some. If you grew up in a household where dad and or mom clocked in at the factory at 8am and returned home at 6pm, and plunked themselves on the couch, leaving work at the door until the following morning. That’s what it means to some.
In the beginning of the launch of your business, work, life, balance doesn’t exist. You’re going to have to give up to go up. Consider this for a moment. You attended 12 years of elementary and secondary school, another 3-5 years of undergraduate school, and perhaps another 3-5 years of post-undergrad, to land a job that doesn’t compensate you in excess of $60,000 to $75,000. Yet, some envision themselves starting, operating, and steering a business successfully, enjoying the lifestyles of the rich and famous within their first couple years without burning the midnight oil.
If you are earning in excess of $250,000.00 in net income, you are elite. Meaning top 1% elite of the millions of citizens that wake up each morning, regardless of profession, to pursue whatever their thing may be. Meaning, you’re going to have to put in your 10,000 hours just like all the other elites (become elite) to earn an elite lifestyle.
In other words, sit down with your spouse, your children, and other parties that really, really matter, and have a serious discussion about work ethic, result, and rewards. And Just Do It.
WHERE’S THE MARKETING PLAN?
You have a really wonderful business plan or a proven business model behind you. And? A sound business plan or proven system (synonymous, often times) is imperative if you’re going to avoid the uber-majority of challenges that befall entrepreneurs. However, most startups fail to spend an adequate amount of time understanding how they are going to secure clients. What’s really scary, especially in the big leagues (companies receiving 100,000,000 dollar evaluations on up), is that some do it purposely. The business plan is simply a means to acquire more and more funding, without securing clients.
Entrepreneur #1 has a sparkling business plan, an attractive web presence, perhaps an inheritance or support from mommy and daddy, has the right connections, etc.,. etc., They smell good, communicate well, and look the part. Perhaps they’ve enjoyed success in a previous venture or enterprise. They have an opinion about everything. But have yet to secure 100 yeses or clients, or perhaps even one!
Entrepreneur #2 has been working day and night spreading the word among his or her warm market (the quickest route to a destination is a straight line), acquiring referrals, discovering affinity partners, and securing yeses and purchasing clients. They’re wearing $100 suits, the soles of their shoes are wearing out, they’re pitching their product or service at least 3-5 times a day. They’re making less and less mistakes every day, and are engulfed in personal and professional development. And they have a business plan.
Who would you bet on?
Failure to launch is perhaps one of the biggest errors that first time entrepreneurs make. Spending too much time trying to be perfect (it doesn’t exist), caring what people may think of them (if they aren’t willing to pay the price of admission, they don’t belong in your head), and failing to understand that the takeoff necessitates turbulence. Fashion and execute a marketing plan that requires your company’s story being told to as many people as possible, in the shortest amount of time possible.
Learn where you're eyeballs (potential clients) are.
FAILURE TO SECURE PROFESSIONAL ADVICE.
I have an attorney. I have an accountant. I have a marketing plan. Your family member that is an attorney, specializing in criminal and or family law, but not a practitioner of business law doesn’t count. Your friend that works at a seasonal tax filing company (Jan to April), but knows nothing about emotional purchasing behavior or has no experience with growing a fledgling organization doesn’t count either. You googled it. Read one, maybe two books. You’re super, super intelligent at basket weaving and because of that, you are competent to pilot a fighter jet across the Atlantic. Really good attorneys and marketing professionals spend 1000s of hours learning their craft academically and professionally on a yearly basis.
Acquire a team of professionals who specialize in your area of least experience and competence. Spend your time securing clients and building your brand. The primary difference between successful and unsuccessful business owners is information; work ethic and ability (willingness) to learn being a given. Better information results in better decisions and outcomes. The best professionals have the best information. If you put oil in your gas tank, what happens?
Is access expensive? That depends.
IF EVERYONE IS DOING IT. DON’T DO IT.
I’m not dismissing disruptive business models. I’m not arguing against finding a competitive advantage or simply outworking your competition.
What I’m stating in rudimentary terms is this. If you look to the left and there are four salons or shirt stores or print shops or deli’s serving the same food items with different names… And you look to your right and there are four salons or shirt stores or print shops or deli’s serving the same food items with different names….
There may be an opportunity to net some market share, but you’re bloodying each other up going after the same fish. You may be able to make a significant amount of income, but it’s going to be exceedingly difficult to actually build an asset that operates independently of you, and has long term growth potential. If the market is not expanding, if there is not enough oxygen in the room, you’re enterprise is going to hit a lid and eventually suffocate.
If you desire your small business to grow into a big enterprise, capable of helping you achieve an above average lifestyle, look for blue seas. Or go where your competition is not.