Lessons learned

I have started two businesses, a large restaurant and a computer services firm.  The first was successful and the second wasn’t.  Both were tremendously challenging.

While I learned a lot from each business, most of what I learned came from my failed business.  Here’s a laundry list of those learnings:

• Manage cash flow
• Pick great people
• The buck stops with me
• Most people want to be led
• Not everone wants to be an owner
• It doesn’t need to be perfect
• Negotiate well
• There are dishonest people out there, my gut is right most of the time
• Never know what will happen if you ask
• Find effective and interested mentors
• Do what you love and the money will follow
• You can make money doing anything
• Make a plan
• Financial projections are just that, projections
• Understand financial statements
• Hire slowly, fire quickly
• Competition is good
• A day spent on competitive research is not a day wasted
• Don’t lose focus on your own business
• Being scared is okay
• Hire a good accountant
• Find a trusted advisor
• Treat critical feedback as a gift
• Persistence pays
• An “A” team is more important than an “A” idea
• Ideas are meaningless if you can’t execute
• You don’t have to have a professional skill
• Entrepreneurship is a lot of work….and a lot of fun
• People are self interested
• It is not that hard to be exceptional
• Make raving fans out of your customers – they’ll sell you
• Help your staff accomplish their personal and professional goals
• Have wide open lines of communication
• It’s okay to tell your team how the company is doing
• Communicate early, often and honestly
• It’s okay to ask for help

This list is only a very partial list.  Had I known some of these things before I started my second business, I’m convinced it would have been a successful company (in fact, had I known these things, particularly the “do what you love” piece, I would never have started my second company).

As I go through the process of finding my next opportunity, I keep these things top of mind.  In fact, I’ve turned down at least two business opportunities as a direct result of some of these learnings.  Now the trick is to make sure I don’t miss the “right” opportunity because of this learning!