There’s never enough of anything in a new business. Time, energy, capital, resources. And in the face of perceived scarcity, an entrepreneur is faced with decisions at every turn: how much financing do we need, and where best to get it? In what order should we stage our priorities? Bricks-and-mortar establishment, or can we operate virtually? What should be in-house versus outsourced? Which vendors will be the best for my business in the long run? How do I meet my industry’s regulatory requirements?
Can I afford seven hours of sleep tonight, or only four?
In start-up phase, it’s easy even for optimistic personalities to start seeing barriers. Here are some thoughts to consider.
Think bigger.
Too often, new entrepreneurs make decisions based on where they are today – not where they might be in six months, two years, or five years.
The problem with this is that infrastructure and workflow processes geared for start-up may buckle under the demands of growth. Then, right when energy could be spent taking the business to the next level, it has to be redirected to an operational overhaul.
You can avoid this by considering not just cost, but scalability. Faced with different operational choices, which will accommodate growth more gracefully? Vendor A may give the lowest bid on materials, but do they have the throughput to come through with large, last-minute orders when you need it? If your business is providing services, is your staff and workflow ready to respond to increased demand without compromising quality?
From the very beginning, think like the established business you want to become. Art – and business – imitates life.
Clone yourself.
It takes a special personality to start a new endeavor from the ground up. Someone who plunges in with total dedication. Who knows a little – or, most likely, a lot – about many fields. Someone who has passion and humility in equal measure.
But beware. Being indispensible is not, in fact, a good thing.
If all the key knowledge essential to your business resides in you alone, or just a handful of people, this puts the entire endeavor at tremendous risk. To paraphrase John Lennon, “Life happens when you’re making other plans.”
As an entrepreneur, you’re investing time, money, and sweat to bring an idea to reality. What a loss it would be if it all came to a screeching halt because you or another key individual is so unlucky as to fall ill. Or if Employee #3 had to relocate for personal reasons, or – worse yet – joined a competitor.
Even if you’re a one-person shop, think about how to meet customers’ needs – particularly when you can’t. Develop contingency plans. Perhaps this means establishing a back-up relationship with another trusted business owner who could step during an emergency. Perhaps this even means taking out a life insurance policy naming your business partners as beneficiaries.
And most definitely – get all that essential knowledge out of heads and documented properly.
Be aware of the decisions you are putting off – and take care of them.
Everyone has an Achilles heel. Often it is a task that seems detailed, thankless, and boring. Or expensive.
For example, legal services and insurance are tempting to put on the back-burner due to perceived up-front costs. And because they are complex, specialized topics, it’s relatively easy to justify the issues as too incongruous to deal with immediately.
But initial costs pale in comparison to what an absence of action now could cost in the future. Can’t afford to register your most important trademarks? Calculate what it could cost to change packaging, logos, letterhead, and branding strategy in the future. No funds to purchase equipment or liability insurance? Develop a plan for the day when your key piece of equipment breaks – which could well coincide with the same day you land the big client account. Can’t afford a freedom-to-operate analysis? Consider whether legal costs of battling an infringement suit would bring your company under. Bored to tears with accounting? An IRS audit may provide plenty of entertainment value.
Don’t let initial costs lull you into inaction. Be proactive.
Appreciate limitations as a competitive advantage.
The truth is that having limited resources is a good thing. The need to make choices provides focus and context, and creates a crucible for new ideas.
Wise business owners cultivate positivity in themselves and their employees, even when – and particularly when – faced with challenges. Bemoaning scarcity consumes energy, creating heat but no light. Instead, be thankful for problems as they arise. Each one presents an opportunity for a new solution.
And lastly, remember that decision-making from a perspective of abundance not only has immediate, internal benefits. The effects will also be apparent to everyone that comes into contact with your business – including potential investors.
About the Author:
Robyn M. Perrin is a freelance writer based in Madison, WI, where she is a registered patent agent at the law firm of Casimir Jones, S.C. She is also a co-owner and writer for Focal Flame Photography, LLC.
Opinions expressed in this article are those of the author alone, and do not constitute legal advice.
Hi Robyn, in my business I have – I think – all the time I need, and I think it’s because i am not in a hurry, I know what I am doing and I know I will get there.
May I suggets reading Jeff Olson “the slight edge”