The myths you need to know about business start-ups
Posted by Dr. Earl R. Smith II in Guest Articles, tags: adviser, advisory board, angel investor, board of directors, CEO, chairman, coaching, consulting, director, dr earl r smith, dr earl r smith ii, earl r smith ii, earl smith, Executive Coaching, federal circle, federal contracting, funding, Governance, government contractor, investing, investment, investor, Leadership, leadership assessment, leadership coaching, leadership development, leadership styles, management assessment, managing partner, Personal Growth, the federal circle, turnaround, Turnaround Management, Venture CapitalOn Forbes.com, Shaun Rein exposes what he believes to be three myths regarding starting your own business.
Rein establishes his credentials by saying: “I’ve started three businesses, and I’ve invested in others as an angel investor and venture capitalist. I’ve often struggled and failed… I’ve learned a lot from my experiences.”
However, he admits there are three myths he wishes he’d known about before he began.
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The first of these, he says, is that you should spend a great deal of time preparing business plans.
Rein says: “Far too many entrepreneurs lock themselves up for six months to labour away creating the perfect plan. The problem is that markets change so quickly that you don’t really know how consumers will view your product. Those six months would be better spent better developing a product and trying to sell it.”
The author recommends writing out five or ten bullet points listing what you hope to accomplish and referring to them every three months to see what you need to change. “A business plan should serve as a guide, not a bible,” he advises.
The second myth is that entrepreneurs have to develop “the coolest, most innovative product”.
Rein says: “Entrepreneurs are often dreamers and inventors. Many get so caught up in the coolness of their products that they forget they need to see if anyone will actually pay money for them.”
Entrepreneurs should concentrate on getting their product to market as quickly as possible in order to generate revenue and garner customer feedback. Then they can adjust the product and plan accordingly.
The third myth is that you can “fob off difficult and unwanted work on lieutenants”.
Rein says: “People think being the boss means you can leave work early or take long vacations. In reality the opposite is true. Entrepreneurs can never really get away.”
He adds: “Setting up your own company is an exciting adventure, but it’s never easy… expect to work longer and harder than those around you.”
Dr. Earl R. Smith II
Managing Partner, The Federal Circle
DrSmith@Dr-Smith.com
Dr-Smith.com
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