5 Years on the River
5 years ago this week, I became self-employed. In reflecting on the past 5 years, I thought about just doing a general musings post; waxing poetic about the journey. Instead, I decided to talk about some things that might help/inspire others. So here are the 5 biggest lessons I’ve learned over the past 5 years of self-employment (with some mountain man analogies at end!):
- Your first investor is your spouse. My wife and I didn’t go in to business together. We have a very equal relationship and a business partnership seemed likely to upset the great chemistry we have. But my being a business owner has obviously had a big impact on her. I found that the best way to address her concerns and expectations was to treat her like an investor. While not investing actual dollars, she was investing time and trust. In many ways I failed at this; vacillating wildly between unreasonable optimism and dark lows. Like any investor, she just wanted the truth. So I’ve had her meet with our contracted business manager, I talk about new customers, I give her any details she wants, etc. Mostly I just fill her in on my day - running through the various appointments, anecdotes, etc. It has been a much bigger test on our marriage than I thought it would be - but the result is a much stronger, battle-tested relationship. In short, I couldn’t have done it without her - and would have made less mistakes if I had listened to her more.
- Choose Your Partners Carefully. Business partners are like your foxhole-mates in war time. They need to have your back at all times. You need to be able to trust them when the bullets start flying. They say adversity doesn’t create character, it reveals. I have found this to be so true. It is also essential that your business partner(s) compliment your weaknesses. If you have a partner with the same personality and/or strengths, you will likely just talk yourselves in to doing something stupid.
- There is no “Hope” in business. One of the biggest mistakes I have made is making decisions based off of “hoping” things will turn out. As I have learned from our business coach, business models boil down to 5 key numbers (I will let him tell you what they are!), and then building processes to influence those numbers. This is really it - numbers and processes; two things that I suck at but am learning. This is why ego is so poisonous in a business. It makes you think you are smarter than the math.
- Passion keeps the lights on. Passion may not pay the bills, but I believe it is the driving force of any successful business owner. It is what gets you through months and months of 16 hour days. It is felt by your customers and friends. Often, passion has been the only thing keeping me from saying the heck with it and getting a job. Closely related to this is having the conviction or faith that this is your purpose; that you were born to do this. Of course, tt is important to have a healthy balance between the numbers and the passion. Ownership is supposed to be fun!
- Get some smart kids. When I started out, my point of reference was being in high-level commissioned sales, and watching the successes/failings of other business owners. I initially relied on the points of reference of my business partners, but they didn’t have much more experience than me. It wasn’t until I surrounded myself with “smart kids” that I began to expand my knowledge. I’ve done this in two ways. First, having solid business advisors. We have a contracted business manager, a business coach, an accountant, and an attorney. In essence, this is our Board of Advisors; something I recommend every business have. Second, I surrounded myself with business owners that became personal advisors. They are all older than me, with much more real world experience. They are all successful. They all have high integrity. And they all care about me as a person.
I get asked a lot if I would have done things differently. The only thing I would have done differently is implement these 5 lessons sooner. But like early explorers, you just “follow the river”; picking up lessons and experiences along the way and creating new points of reference. Sometimes you eat like kings, and sometimes you have to boil your moccasins.
So I guess the real answer is “No - I wouldn’t do it different” … although my “investor” might not like that answer
Final thought: success without scars is just good luck.