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“Twenty years from now you'll be more disappointed by the things you didn't do than by the things you did. So throw away your ropes and set sail from safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
While this pithy statement may sound like the words of a modern podcaster, it was actually the words of 19th century English poet Samuel Clemens, aka Mark Twain.Number Novelist and essayist of the century.
Much of Twain's advice has surprising longevity, and his advice seems perfectly suited to today's growing number of entrepreneurs: For a myriad of reasons, more and more people are leaving the world of working for others and striking out on their own.
Cynthia Kay is going to be one of their new best friends. She Small Business, Big Success: Proven Strategies for Overcoming Challenges and Growing a Great Business.
Founder of an award-winning media production and communications consulting firm, Kay serves a wide range of clients from Global Fortune 100 companies to small businesses and non-profits. She has served as board chair for the National Small Business Association.
The workplace disruption caused by the coronavirus pandemic appears to have prompted many people to turn to entrepreneurship, and Kay has some tips for those looking to start their own businesses.
“It's not enough to have a great idea for a product or service,” she says. “You need to find out whether that idea is commercially viable. Doing your own research will tell you if the idea is worth pursuing. And timing is important too. If you want to be far ahead of others and enter or create a new market, make sure you have the resources to create demand. If you're entering a competitive field, it's important to look at your competitors and see how your offering compares to them. Is it different, more valuable, more useful? “
Cynthia Kay
Kay says business owners need to be passionate about what they do and have the drive to keep at it. “There's a direct relationship between passion and success,” she says. “The more passionate you are, the more likely you are to be successful. Owning a business is all-consuming, especially in the first five years. You have to be prepared to miss family events, give up vacations, and possibly struggle financially. If you're passionate and willing to work hard, go for it.”
Finally, create an exit strategy before you even open your doors. “In the rush to start, many people miss this important step,” says Kay. “Most business owners love their business – why start or buy a business otherwise? The answer is simple: knowing how you want your exit strategy will help you determine how you build, run, and grow your business. Building a lifestyle business is very different from a business that you want to grow quickly and then sell.”
Without a clear understanding, a partnership can falter, so Kay advocates creating a “business prenuptial agreement.”
“Many aspiring entrepreneurs enter into partnerships without having the conversations that are essential to a business relationship,” she says. “They spend time on typical business issues like structure, ownership percentages, acquisition agreements, etc., but never get to the personal stuff.”
A business prenuptial agreement will explore work styles, values and other personality traits that may cause friction, she says. “You need to take the time to ask each other some questions: What is your work-life balance like? Do you have complementary personalities? This isn't a one-time conversation, it's a series of conversations.”
Kay recommends taking careful notes: “That way, you can look back at your notes after the discussion to see if they resonated with you. The truth is, you never really know someone until you've worked together. But not discussing business and personal topics in your business prenuptial agreement could land you in a business divorce.”
Hiring the right staff is one of the most important jobs for a business owner, and Kay has some advice on this too.
“The key to hiring the right people is to have a clear understanding of your company's style and culture. For example, the talent that suits a small organisation where everyone is on-site will be very different to the talent that suits a larger organisation with more support and infrastructure.”
Employers often have a list of skills and requirements when recruiting, she says. “I think more broadly and focus on things like creativity, motivation, problem-solving, communication and attitude. You can teach specific skills, but you can't teach these things that are essential to the success of an individual or a company.”
What are some of the most common mistakes aspiring entrepreneurs make?
A big problem, according to Kay, is underestimating how much money it will take to launch a business: Aspiring entrepreneurs budget for staff and equipment, but often forget to factor in funding for IT, marketing and other key activities.
Another mistake, she says, is thinking you don't need legal or other professional services: trying to launch a business without an outside team can be very costly down the line if things go wrong.
The third problem, according to Kay, is not being able to clearly identify the ideal customer profile for your business: “Many entrepreneurs accept whatever comes their way, which is often a client or job that doesn't suit their core competencies, so they don't take the time to build a client list that will steer their company in the right direction.”
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When it comes to operations, Kay suggests thinking like a “big business.”
“Small businesses often don't take the time to document their processes and procedures,” she says. “The knowledge lives in the owner's head. Larger companies collect tons of data, but simply writing out step-by-step procedures ensures consistency and accuracy, and improves customer satisfaction. Of course, it goes without saying that documentation needs to be in a central place where everyone can access it.”
Kay points out that digitalization is impacting every aspect of the world: “Some people think they're too small to 'go digital,' but even small organisations can use technology to improve their operations, sell on e-commerce platforms and move from paper-based systems to the cloud.”
Another thing to consider is safety and security. Kaye says smaller organisations don't think of themselves as cybersecurity targets. “Nothing could be further from the truth.
They are an easy target and need protection, just like any large business.”
Kay, do you have any regrets about your entrepreneurial journey?
“I wish I had started my own business sooner,” she says. “I worked for other people for 13 years. I learned a lot, but I worked about five years too long.”
Kay would probably agree: “Entrepreneurship is about living a few years that most people don't and then living the rest of your life in a way that most people don't.”
