Better yet, the vast majority of these folks started businesses to pursue opportunity, rather than out of necessity. A whopping 43 percent of Americans believe there are good opportunities for entrepreneurship, up by more than 20 percent since 2011 and the highest level recorded in the history of the study, called the Global Entrepreneurship Monitor U.S. report.2
Every year, I have been besieged by literally hundreds of prospective buyers, inventors, and other individuals seeking to start, own, or obtain an equity position in a smaller enterprise. Oftentimes my team views their drive for ownership with deep concern as many exhibit the lack of skill sets or understanding of market dynamics to become successful. To the vast majority of wannabes, we greatly discourage their quest, as most end in disaster. Though we admire their pluck, we see disaster looming for the under-funded and idealistic-driven dreams of owning your own business. Like the newborn turtles scuttling for the sea amid a gauntlet of perils, for these potential entrepreneurs, danger looms with every step.
Winning at Entrepreneurship is a guide to avoid these perils and maximize your ability to realize your dream of owning and eventually selling your business for a personal bonanza. Our business world is now geared to give individuals all the tools needed to realize their dreams. Banks, angel groups, and upward through the great industrial feeding chain are thousands of organizations that can assist and partner with entrepreneurs in their drive to own their own business
Eight major experts in the industry have shared their wisdom with me, and now with you; each has written a chapter in this book. All these contributors are in the field of play and have salient advice and information for the novice and experienced players alike.
Learning through the great deeds of others and clinically understanding the downfall of unfortunates can greatly assist entrepreneurs in their quest. This book exposes you to both through real life experiences while outlining thought processes to guide you in obtaining your dreams. But reading will take you only so far. In the end, your direct experience and connecting to the right sources will be keys to entering the winner’s circle.
NOTES
1 Whitney Johnson, “Entrepreneurs Get Better with Age,” Harvard Business Review, June 27, 2013.
2 Elaine Pofeldt, “U.S. Entrepreneurship Hits Record High,” Forbes, May 27, 2013.
AHEARTFELT THANKS to my eight contributing scribes—Rebecca Hicks, Glenn Hanson, Russ Robb, Dan Murphy, Marsha Friedman, Nancy Parsons, Bill Mahony, and Alfred Nadoff.
ROD ROBERTSON IS THE MANAGING PARTNER of Briggs Capital, a Boston-based mergers-and-acquisitions firm (www.briggscapital.com) that he has managed since 2001. Rod has personally directed over fifty of the firm’s transactions in raising cash and leading buy-or-sell-side assignments for the firm’s clients. Briggs Capital’s deals typically range from one million to thirty million dollars in enterprise value, and Briggs has established itself as a leading transaction firm in New England for entrepreneurs and the small-business market.
While at Briggs, Rod has enjoyed traveling the globe and being involved in multiple transactions as a principal and broker in developing countries. Rod spends considerable time in Panama, where Briggs has an office, performing numerous roles as business owner and intermediary. He is a motivational and guest speaker on a wide range of topics domestically and abroad and is a regular speaker at the Harvard Business School and the Babson MBA program, among other venues.
Before Briggs, Rod owned or was an equity partner in three businesses in the consumer products, technology, and real estate sectors. In all three, Rod led the successful sale of the businesses. Rod’s fascinating life style has had him visiting over fifty-five countries, and he is a collector of eclectic military antiques from around the globe. Most recently, Rod has been gallivanting through Romania and Moldova and has led a trade delegation to the Ukraine, sharing America’s best practices in business.
Chapter 1
THE PAINFUL TRUTH is that the majority of first-time entrepreneurs who take the plunge into business ownership fail early and often. The seeds of their downfall are sown early as the entrepreneur’s blind ambition and belief in their personal quest often leaves logic and sound planning in the compost pile. In this day and age, virtually all businesses’ strategies are to grow quickly with alliances and other strategic partners. Gone are the days of building a business one brick at a time and taking pride in 5 to 10 percent annual corporate growth.
Over the last two decades, I have tracked and interacted with approximately 315 firms. Of these, approximately 22 percent, or seventy, of the firms reached the minimum baseline of success they had set out for themselves. About thirty-three of these baseline firms have truly built or sold the business of their dreams, and thirteen of these firms would be considered a smashing success. These sobering facts—those thirteen successful ones represent barely 4 percent of those that began— should warn the players in the arena, as well as those ready to leap in, that you must be prepared more than ever for launching correctly and being able to execute quickly. These numbers are reflective of national averages so caveat emptor, or buyer beware!
The following charts emphasize this point, that entrepreneurs have a hard road to travel. And some industries make for an especially challenging route.
The chart below shows the overall failure rate of businesses, no matter the sector or industry.
LEADING MANAGEMENT MISTAKES
Going into business for the wrong reasons
Advice from family and friends
Being in the wrong place at the wrong time
Entrepreneur gets worn-out and/or underestimated the time requirements
Family pressure on time and money commitments Pride
Lack of market awareness
The entrepreneur falls in love with the product/ business
Lack of financial responsibility and awareness
Lack of a clear focus
Too much money
Optimistic/Realistic/Pessimistic
BUSINESSES WITH BEST RATE OF SUCCESS AFTER FIFTH YEAR
Religious Organizations
Apartment Building Operators
Vegetable Crop Productions
Offices & Clinics of Medical Doctors
Child Day Care Services
BUSINESS WITH WORST RATE OF SUCCESS AFTER FIFTH YEAR
Plumbing, Heating, Air Conditioning
Single-family Housing Construction
Grocery