Many corporate employees are becoming corporate refugees, opting for the
entrepreneurial life. And why not? Starting your own business is exciting and
worthwhile. And the glamour of being your own boss is appealing.
But as you contemplate your venture into entrepreneurship, or evaluate your
success to date, it is important to understand that the entrepreneurial working
environment is different from the corporate working environment.
You have to be cautious about bringing your corporate baggage with you. That
baggage consists of the behaviors, beliefs and practices that made you
successful in your corporate job. Those behaviors don't necessarily work well
for an entrepreneur and can actually hinder you. What was tolerated, and even
rewarded, in the corporate world might be the key reason you fail dramatically
in your new world.
We often see people who leave a corporation to start a small business
continue to behave the way they behaved in the corporation they just left. Among
these behaviors, which are position- and culture-dependent, are:
- Arriving late for meetings
- Slow return of e-mails and voice mails
- Not tolerating disagreement or objections
- Hubris
- Relying on others to get their work done, and taking credit for it
- Not spending time working directly with clients
- Dismissive or unavailable to others when they need something
- A resistance (known or unknown) to leaving the trappings and privileges
of the position and role they left
As an entrepreneur starting your own business, you are not the director, vice
president or senior vice president of a large organization. You no longer have
the trappings, esteem and support your former role gave you. You are a solo
entrepreneur (or part of a partnership) who is starting out from ground zero. It
is best to forget what was and to focus on what is--and where you are going.
When you make your first sales call or pitch for funding, the fact that you
were once a corporate executive will go only so far (if anyone cares about your
background at all). You must demonstrate credibility that you are capable of
starting and building your own business.
When making a sales call, it's about the value you bring to the prospect. To
the funding agency, it's about your ability to convince them that you can do
what you say you are going to do, and that there's a market to support it. It's
about the results you personally can deliver now.
A colleague of ours, who was in her early 50s, decided to leave her position
as chief financial officer of a midsize manufacturing company to start her own
company advising small companies on financial issues. Twelve months into her
solo-practice consulting company, and after securing only one client, she took a
director of finance job at a larger service organization. What happened?
Our colleague never fully realized she was not only in the financial business
but in the marketing business, as well. As a solo practitioner, she was
responsible for finding clients and convincing them that her services would
improve their business. In her previous job as CFO, she didn't have to market to
anyone. Staff came to her and were available to her as she needed. Vendors
courted her. She was aloof. She did not have to build relationships; others had
to build relationships with her. This all changed when she became a solo
practitioner. What had worked for her in the corporate environment now sabotaged
her chance for success running her own business.
So as you make your transition, consider how to discard your corporate
baggage to increase your chance of success as an entrepreneur and small-business
owner.
There are four inflection points to be aware of as a new entrepreneur:
- Owning a business is about being in the marketing and sales business. No
money comes until a sale is made. You must market, and this is a sticking
point for many. - Initially, you will see your entire staff in the mirror every morning,
and you really don't want to be looking at your worst-ever boss. - Friends and colleagues you had in the prior company may not return your
calls. (Don't fret, as your past influence may no longer register as
important for them. If this is the case, move on and invest in new friends
and colleagues.) - Vendors and contractors who pampered you may not return your calls. You
might need these folks for your new business, so do your best to reach out
to them and re-establish your relationship by adding value first. That means
you have to give something of value rather than ask for something.
Here are 10 to-dos to set yourself up for success in your own business:
- Learn as much as you can from successful entrepreneurs about what
they did and are doing to be successful. Network and participate in
professional development activities specifically targeted for entrepreneurs.
Other entrepreneurs' experience and support will be of tremendous help to
you. If you decide to invest in a professional mentor or coach to help
smooth your transition, make sure your choice is a successful entrepreneur.
- Read about successful startups. Identify the core elements of
successful startups and replicate them.
- Find a trusted friend or a trusted advisor who isn't intimidated by
you and will give you honest feedback regarding your positive traits and
those that could inhibit your performance as an entrepreneur. Also, a
business personality and performance profile can be valuable in
enabling you to better identify and understand your performance attributes,
potential performance risk areas and your career motivations.
- Have a well-thought-out plan. We find that the two biggest
business success factors for women entrepreneurs are financial soundness and
strategic vision. Strategic vision is the direction the business will take
and serves as a guidepost in your plan. A good plan will build your
foundation and support your growth. Besides strategic vision, key elements
in such a plan include financing, sales and marketing strategy, delivery
tools and processes, technology, and perhaps even staffing, depending on the
size of your company.
- Understand that, initially, you will be doing it all.
Self-discipline is essential for an entrepreneur when it comes to getting
things done. Create a work schedule that includes regular identification of
priorities and assignment of those to time. Give yourself a deadline and
pencil in an actual time that you will be working on a project so it gets
done. Sticking to it is the challenge. In managing multiple demands, it's
easy to get pulled away by distractions. If you need help, get it sooner
rather than later, as it will make a tremendous difference in your output
and results, not to mention your level of stress.
- You are now in the marketing business: You must sell--and the first
sale is to yourself. If marketing and sales make you uncomfortable, then
learn more about relationship building and networking skills, two
fundamentals for sales success.
- It is critical to build relationships with your prospective
buyers/clients. People buy from people they like and trust. So
relationship building is the cornerstone of marketing and sales. You can
learn how to do it, but you have to be sincere. Real relationships are not
one-way streets. They are built on mutuality and reciprocity.
- Responsiveness (especially rapid responsiveness) sends a powerful
message to your prospect. Don't accept the useless advice that
responding too quickly makes you look desperate. It makes you look
responsive, and it will have a positive influence on prospects and within
your professional network. One day to respond should be your practice
(unless, of course, you are working on an agreed-upon timeline).
- It's fine to take advice from your lawyer and your accountant, but
balance it with advice from successful people who are doing what
you want to do to ensure perspective and relevance to small business and
your market.
- Do not accept (or take too personally) unsolicited advice.
Everybody has an opinion--and too often that opinion is about someone's
personal beliefs or what's best for her, not what's best for you.
Be careful not to make the same mistakes so many others have made before you.
You are leaving a highly structured, hierarchical, politically charged
environment where a meritocracy might exist. Hubris, cunning and political skill
may have gotten you the rewards you sought. Not so in the entrepreneurial
environment.
In the entrepreneurial world, it's about the value you bring, how you can
find ways to make your customers or clients better, building real relationships,
and personally and consistently doing what you say you are going to do when you
say you are going to do it.
Starting your own business can be highly rewarding--from both a financial and
personal perspective--if you think it through and act accordingly.
Sara LaForest and Tony Kubica of
Kubica
LaForest Consulting are management consultants, executive coaches and
business performance improvement specialists. They have more than 50 years of
combined experience in helping small and large women-owned entrepreneurial
businesses accelerate their business growth.
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