Solo Startup

How much longer can you bear living in Dilbert-land? How many more TPS Reports are you going to have to fill out before you go off the deep end? I feel your pain. It was a period of about four years from the point I first started dreaming of owning my own business until I finally ventured out and every day of that long wait was a struggle. My body was in my cube but my mind and my heart were elsewhere.

Looking back I need to confess that most days I did not want to go in to work. I felt a certain amount of guilt (and rightfully so) for not giving my employer 100%. And yet we were going through a long period of uncertainty with extremely high turnover and the constant threat of layoffs. During that four years I reported to eight different managers, under four different department heads, three CIOs and three CEOs.

But the time finally came when I turned in my resignation letter and became a solo entrepreneur. It has been an adjustment not to have a steady paycheck and I have had to work harder than ever but I am happy that I made the decision.

So, how do you know when it is the right time to Just Do It? Here are just a few nuggets of wisdom from my rather short experience.

Don’t Be Stupid

So you have a dream, a vision, a breakthrough idea. Excellent. That’s where it all begins. After you wake up from your dream you need to start working on a plan. Don’t get suckered into thinking you need a slick business plan. Just start putting your ideas down on paper and more importantly start working on the numbers. That’s right, you ARE starting a business right? If you are going to stay in business you need to have some cash flow and there better be more flow coming in than going out.

Then comes the hard part. You need to get a second opinion. I recommend two. First, someone very close to you, say a spouse, family member or very close friend; someone who knows your temperament, your strengths and more importantly, your weaknesses. Secondly, you need a mentor; preferably someone who has started their own business who can help you uncover the pitfalls, traps and blind spots.

Don’t Be Dishonest

As I mentioned there were occasions during “the dark years” when I did not give my employer 100%. I have surfed for ideas, written emails and worked on my business plan on my employer’s time. That was wrong and I stopped. I realized that I was doing was wrong. Everybody was doing it but I couldn’t do it any more.

If you’re going to be prepared before you start up you are going to have to work doubly hard. That means you will need to do your day job and your moonlighting as an entrepreneur. Consider it a rehearsal for what life will be like after you launch.

Don’t Be a Jerk

“Don’t burn your bridges” is good advice. I am saddened by how many sour, hurt, bitter individuals at my former company made the foolish decision to blame and slander others during their official company exit interview. Since I’m dishing out clichés, here’s another one. “If you don’t have anything good to say then don’t say it.” One of my favorite proverbs from the Scriptures is Proverbs 17:28, ” Even fools are thought to be wise when they keep silent; when they keep their mouths shut, they seem intelligent.” Amen.

Don’t Gamble

I’m not going to be popular for saying this and you have every right to disagree with me. We have all heard the success stories of the entrepreneur who maxed out every credit card or used a home equity loan to fund a startup. I’m not saying that you should not incur ANY debt; it’s almost impossible to start a business nowadays without doing so. However, since lending institutions today are all too willing to let you become their slave, you are going to have to be the one to use some prudence. If your startup is not showing signs of health then you need to adjust. Don’t try to fix problems by throwing more funny money at the problem.

My situation may be unique but I will share it nonetheless. My wife and I had been financially frugal for many years. We avoided consumer debt, we steadily paid down our mortgage and lived on a budget. During the real estate boom we sold our home (which had significantly appreciated in value) and “downsized” our family of four into a two bedroom condo. There’s a lot more to the story but to get to the point we were able to buy the condo, pay off our mortgage and significantly reduce our monthly living expenses. We could have done like many others and “upsized” or used most of the gains from the sale to fund the business. However, we were motivated to go the other way and pay down our debt, give to charitable organizations and simplify our lives. You cannot put a price tag on freedom and peace of mind.

So, after getting debt free and simplifying our lives I ventured out as a solo entrepreneur. We took a portion of our returns and set it aside as a contingency fund to make up for any income shortfalls, if necessary up to six months. If the business did not get into the black by then I would go back to Dilbert-land (NO!). I haven’t gone back yet.

Bottom line: Be financially prepared to start your new venture. Simplify your life and live on a budget before you lose the steady paycheck. Save to build up your startup fund rather than going into debt.

Don’t Be Afraid

So, you have a plan and you’ve been working hard and you are financially ready to make the leap. Well then, now it’s time to Just Do It. Don’t be afraid. If you avoided all the Don’ts that I just mentioned then it’s time to Do!

And remember, you are not alone. If you are wise you will maintain healthy relationships with family, friends and co-workers and you will trust God to help you with your Solo Startup.

rt