Every venture is a project – It has a start, middle and an end. If you don’t identify all the potential ends (including you selling out to your partners and doing something new) your venture is more than likely to end in tears. Nothing lasts forever, so knowing how the story ends puts you ahead of the game and stops you investing unwisely.
Brendan Lewis
Not that I am a country and music fan, but the words of the Kenny Rodgers song “The Gambler” take on a whole new meaning in a small business scenario. Too often new business operators are unable to make rational (as opposed to emotional) assessments about the viability (or otherwise) of their enterprise.
Like Rodgers says: “You’ve got to know when to hold ’em, know when to fold ‘em, know when to walk away, and know when to run….”
Jason Gehrke
Many say, ‘Never work with friends or family.’ I’m sad to say, there’s merit in that.
Friends enter commercial arrangements with good intentions but believe the friendship allows them to cut-corners in the process. Having taken this approach, I can attest – it is a recipe for disaster. Friend or not, in business the same risks and rewards apply, so invest in the right advice and legal structures that protect all parties in all scenarios, then proceed with caution.
If you are going into business with a friend, the costs are even greater if things go wrong. You have to consider the downside, in detail. If the partnership, working arrangement, or investment goes pear-shaped, are you prepared to lose a friend as a consequence?
The most costly business mistakes I have made are the result of hiring and working with friends. Nearly every time, the relationship has ended in frustration. In business, you need people around that support you and friends provide this support, but make sure you’re looking at the arrangement from every angle before proceeding down this path. Some things in life are sacred and friendship is right up there.
Trent Leyshan
Reflecting back on when I first started to work on the company I had in London the strongest memory is about diving in and just getting on with it. I had the benefit of a business partner to share the journey which helped a lot. The things that I did that helped me get started were:
If I had the benefit of the experience I now have I would certainly have spent more time on my vision, plan and goals for the business. Writing them down and having a plan. I would have invested more time in training myself in areas that were not a strength for me, as this would have built capability and skills that I didn’t have at the time.
If you are starting out, the most important thing for me is to do what you love, then create a vision and plan to make it happen. Get support, be it mentors or professionals. and have fun.
Pollyanna Lenkic
Don’t get distracted by the marketing hoopla of image. No company ever has a brand out of the gate – there are just too many things that change when you are starting out for the first few years.
Focus on identifying the beliefs you aspire to and developing a solid positioning (encompassing what you are doing, why you are doing it and how you are doing it). These two things are the charter for your developing brand, and as you reflect your ideas and beliefs in all your actions you will be building a strong, aligned brand.
Michel Hogan
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
