MCBRIDE FOR BUSINESS BLOG

McBride for Business Blog

Starting a Business After Working for Others

November 28, 2017 // R. Shawn McBride // No Comments »

Many of our clients show similar characteristics. One of the characteristics we often see is that our clients are people that are starting businesses after working for others. It can happen a couple of different ways.

One, they work for somebody else and now they’re taking an executive role, which means for the first time they’re going to have a significant ownership and direct control over a company, so they’re becoming a business owner by dipping their toe in the water, by becoming a minority holder in exchange for executive services. Another class of client we often see is one that has worked for other people and now wants to do something entrepreneurial. They understand the business game. They want to build it better. They want to build something that reflects them and they think can service the market. These are both great.

What do we see from these clients? They bring their years of skill and experience to the table, and they apply it to a very, very specific situation. They make things work, but where are the weak spots? Where are the blind spots? Well, working with all of our clients, we know that they do have a few areas they need to focus more on. They need to focus on diversifying their skills. They typically have very, very valuable skills in a particular area which they refined and honed while working for other people, but they may not have seen the entire operation, and there are probably portions of the operation they’re not nearly as strong at, so we’re going to want to look at that. We’re going to want to make sure that we’re filling that hole.

We also need to get a team built, and this is very, very tricky for many new companies. You need to have everybody doing different things. Thankfully, we’re starting to live in an economy where it’s very service-based, and you can buy people’s time on a fractional basis. You can buy years of expertise just for one or two particular projects, but you need to be accessing this market. You need to be aware of it, and you’re going to need to use it. It’s much more efficient to buy a few hours of somebody’s expertise than to try to reinvent the wheel yourself. The biggest issue is going to be the learning curve.

For many of these new businesses the key is pulling all this information, all this knowledge, and all these different expertise together quickly so the business can get off the ground, so the product or service has a chance of making it. We want to build the teams early rather than later. This typically means a financial investment, typically means money is going to go out to build all these pieces before the revenue is really going to start coming in, and that’s a real challenge. It’s hard today to build a business without capital, to build one that really is correct. You can bootstrap it and you can eventually learn all these things, but if you invest some capital and really have a solid business plan, you’re going to get there a lot faster. What’s been your experience with business growth? How have you worked your plan? What would you do differently in the future? Let us know in the comments below.

Make sure you download our free checklist to assess your business.  

 

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. FreeImages.com/photographer Keigirl. 

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.

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Posted In: Business, Strategy



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