Photo Credit

I’ve written before that being an entrepreneur sometimes sucks, but not always. You need to be strategic, take calculated risks, and handle stress thrown at you from multiple angles. Don’t let me discourage you though. If you’ve got the chops to go out on your own then go for it. I have, a few times. Here’s some of what I’ve learned. I hope that it can help you avoid some of the mistakes I’ve made.

Save your money

There’s an old stat kicked around that 50% of all new businesses fail in the first year. I think it’s larger than that. The main reason that new companies fail is lack of capital. Make sure that you have a good chunk of money saved up before you jump ship and go off on your own. This will ensure that you can eat more than ramen for your first year in business. Expect to make either no money, or at least no profit. Breaking even the first year is a lot better than many do. Also, if you have no collateral then the bank won’t talk to you. And take it from me, financing your business with credit cards is very risky, and can cost a lot depending on how good your credit score, and your idea, are.

Have car, don’t travel

In the first iteration of Atlantic Dominion Solutions I was by myself, and running all over D.C., Maryland, and Virginia fixing computers. The sheer amount of driving cut into potential billable time. This left limited time for networking and other social functions. Once I got home I had to do all of the business-ey stuff like sending invoices, doing the accounting, creating marketing materials, and much more. I highly suggest setting yourself up where so you don’t have to travel to get paid. This is one of the main reasons that ADS is now a software shop. As Jim Collins said, “Work is infinite. Time is finite.” Make the best use of your time.

Get a partner, or two

I’ll admit that I’m a bit of a control freak. I like to control my own schedule, make my own decisions, and determine the direction of my business. I’ve learned though that this doesn’t work. I don’t have all the answers, and I can’t do everything, as much as I wish I could. What do you do best? What do you want to spend 12+ hours a day doing? When looking for a partner (or two), look for people you trust, that share your same work ethic and passion, and have complimentary skills. If everyone can code but no one can sell, you’re going to have a problem. Also, don’t make everyone an equal partner. Crowdsourcing works great a majority of the time, but not when it comes to making some serious business decisions. One person has got to have final say.

Go outside, sometimes

It’s good to go outside every once in a while. It’s good for the brain. Trust me on this one.

Think lean

Ah lean, what a great buzzword going around these days. And with good reason. Lean philosophy is all about reducing waste. As a startup you can start lean. Think of the bare minimum you need to operate. If you’re building a SaaS app, here’s everything you need:

• Laptop (I suggest a Mac)
• Open source software (Rails + Postgres is my suggestion, but whatever suits your fancy)
• Staging server (such as Slicehost or Morph)
• Production server (again, Slicehost or Morph)

Internet you can get for free if you can live at a Panera without them kicking you out, or go to a coworking place. Software doesn’t take up physical space, and most can be downloaded. Many free apps exist to help you as well, including Google Apps. You can track projects using Scrum’d (did I say we’ll have a free version available soon?), track expenses with Expens’d, and manage all of your tasks with Prioritiz’d. Keep everything as digital as possible. Once you move into the physical world, things cost.

Find a mentor

Find someone that’s been there and done that. Establish a relationship with this person, and tell them everything that’s going on. Ask for their advice and listen to it. This is invaluable and should go without saying.

Form a support group

Your support group can be parents, siblings, friends, whoever. Get a supportive group of people around you who will encourage you and kick your ass when you start to get into the “poor me” stages. Trust me, it’ll happen, and your support group will pull you out of that crap lickety split.

Age and the singularity

There is no age limit or minimum to be an entrepreneur. It does help though if you’re single or set up. There will be less stress. But if you can handle it  and your significant other is on board, who cares?

Be patient

I quote Jim Collins a lot. He’s a super smart guy and knows his stuff. He also has teams of people helping him with research, lucky devil. Anyhow, Jim recently said that many overnight successes were 20 years in the making. The companies that go big quick are rare, and some don’t last the test of time. Do you want to come and go, or do you want to build something lasting?

Embrace the flame

It’s exciting to start a business. It can be stressful at times, but nothing worth doing is easy. If anything, you’ll learn a hell of a lot, and have a great time doing it. I’ll leave you with the immortal words of Dennis Leary, “Life isn’t fair, get a f***ing helmet.” Remember to not take yourself to seriously. Keep a sense of humor and life will be good.