The journey of an entrepreneur is seldom in a straight line; you have an idea and you decide how you are going to commercialise it. You have come up with a plan however in those quiet moments, the 1am “I can’t sleep” moments (you know the ones), it’s hard to
- Refine where to start
- Know what to focus your energy on the most
- Know who to talk to and where to begin
We see on social media every day the success stories, the ones that looked like it was easy; you know the ones…
“I scaled my business to £50m and exited and now I am on to the next one.”
Do these posts make you feel motivated? More ambitious and determined? If they can do it then why can’t I? Or do they bring concern about your path? Your next steps and how you will achieve your business goals?
One thing you can be sure of is that whatever you see on social media, there is an entire story of highs, lows, challenges and stress that sits behind the grand statements and marketing.
I have been wondering if our obsession with “The Exit” is driven by a new generation of entrepreneurs whose focus is to drive themselves at whatever cost to build, scale, exit, build scale exit rather than create something longer term.
40 years ago, the motivations of someone who started a business were different; it seemed more about building something for themselves and their families, potentially for future generations to take on and develop, and many businesses’ names ended with “and sons” or “and daughters.” The sense of purpose was different but at the core the entrepreneurial drive was likely very similar, the principles of building something that is really you, of bringing your vision or idea to reality.
Much of this change is driven by the wider availability of funding and seed investment through private equity, angel investors, crowd funding and venture capital, as well as market consolidation, particularly in new and exciting markets like AI – the invest, grow and exit model we all know and love.
But have we lost something or has business just changed? When receiving your exit money, do you have the same feeling of having achieved an ambition and created something for yourself that those 40 years ago would have had when handing the business over to a son or daughter? Perhaps we will never know.
What is clear however is that the journeys, pain points and challenges are the same.
The:
- Finding the right people who understand your vision
- Securing funding
- Refining your product
- Finding a cost-effective supply chain
- Finding the right market and building your customer relationships
- Cash flow, cash flow, cash flow and the challenges that come with managing it
Do you think the list was any different in the 80’s and 90’s? Let me know what you think.
I have titled this article ‘From seed to growth and the fertiliser you might need in between’ because no entrepreneur throughout time has ever done it on their own, everyone has needed some help. However, ‘some help’ isn’t always ‘good help,’ and it is often challenging for entrepreneurs to navigate through the noise to get to the good stuff, the fertiliser that helps you at each stage to grow to the next, to meet your ambitions and to reach the goals you have set.
Therefore, here are a few tips for if you are embarking on a new business adventure, just starting out or starting on a new project; I hope they give you something to think about and perhaps even change your perspective on how you approach the next challenge.
- Focus
Don’t get distracted by shiny things; no matter what someone says to you about your product and its future valuation you cannot successfully profit from an exit if you do not do the foundation work first, the long days, the sleepless nights the navigation of what it means to build and scale a business.
- Always have a detailed financial plan – I call it “knowing your onions”
Businesses live and die on cash flow; you don’t have people if you cannot pay those people; you cannot set a valuation unless you know how your metrics work; there is no point in generating sales if you have no margin or if you spend all your money. Business isn’t just about the idea; it must make money and must make commercial sense.
- Get the right people and get rid of the wrong ones
Never underestimate the importance of having a team around you that can support you, advise you, stop you making the wrong decisions; the ones that see your vision and are motivated to help you get there. It doesn’t always work out and that is okay – there will always be someone else.
- Always consider your brand
In every conversation, every interaction with investors, customers / clients, suppliers, your brand is what makes you and your product. Damage the brand, you damage the business; make good decisions early on about who you want to be in the market. This is not to say don’t be agile, just be who you are and stay grounded; your brand collateral has value.
These are just four of many, many “fertilisers” you will need to help you grow. If you are an early-stage entrepreneur or a later stage owner thinking about your exit, then consider who is going to help you on your journey.
At Michael Glanville Executive Coaching we work one-to-one with business leaders from start-up founders to seasoned CEOs, helping them to build confidence and resilience, to develop strengths and to deliver personal and professional goals while growing the business. We also offer advisory, M and A, growth planning and raising investment. So if you need a little fertiliser to help your seeds grow you can find out more about my executive coaching and career coaching programmes at www.michaelglanville-executive-coaching.com
Email: Michael@michaelglanville-executive-coaching.com to arrange a meeting.
