Self-Awareness
In what is sometimes called “the paradox of leadership,” effective leaders must balance humility and confidence. These two character attributes are often seen as opposites that are incompatible with one another, but that assessment leaves out a critical component of the equation—self-awareness. The Stoic philosopher Epictetus sums up the need for humility thusly: It is impossible for a man to learn what he thinks he already knows.
A healthy level of humility and self-awareness helps you to understand your strengths and weaknesses. Life in general is a long learning process, and the undertaking of starting your own business even more so. Humility is an expression of self-awareness that allows us to say, “I do not yet know enough.” Humility is what allows us to be willing to ask for and accept help when needed. No one does anything significant in life alone. We all need help and support along the way.
Successful entrepreneurs know that they don’t have all the answers, and they actively seek out advice and good ideas. The worst characteristic for an entrepreneur to have is suspicion and paranoia that everyone is out to get them and steal their great ideas. Not only is this behavior unbecoming, it also reflects another major misconception regarding ideas and opportunities. As discussed in the previous chapter, ideas do not have inherent worth. Only when they evolve into actionable opportunities do they develop a value, and this evolution is due in no small part to the composition of your entrepreneurial thumbprint.
Confidence is also an expression of self-awareness. Not to be confused with arrogance, recklessness, or egotism, confidence is the side of self-awareness that allows us to say, “Knowing the challenge in front of me, and knowing my experience, learning, and skills, I think I have a good chance of overcoming this challenge.” If self-awareness is something that you haven’t thought about before picking up this book, that’s okay. Self-awareness—and by extension humility and confidence—are not hardwired character traits. They are aspects of the dialogue you have with yourself and elements of the frame through which you see the world. As with any other skill, self-aware living can be cultivated through intent and practice.
Interpersonal Skills
Interpersonal skills such as communication, listening, empathy, and conflict resolution often get lumped into the category of “soft skills.” Soft skills are often seen as less valuable than “hard skills,” or the explicit skill sets required to execute a professional role. This book is not a debate about the relationship between hard and soft skills, but in the realm of entrepreneurship, traditionally “soft” interpersonal skills become essential hard skills for success.
Dealing with people and making connections is an unavoidable part of being a successful entrepreneur. Successful entrepreneurs are assiduous networkers and connection-makers. This doesn’t mean that you have to be an extreme extrovert or super salesperson. What it does mean is that business is done by people, with people, and for people. Avoiding contact with humans is not a recipe for entrepreneurial success. At times it may feel as though interpersonal skills are impossible to teach someone who doesn’t have a knack for communication. Either you’re born being comfortable talking to strangers or you simply aren’t, right? Not really. Unlike hard skills such as computer programming or accounting, interpersonal skills are tough to measure and evaluate, but that doesn’t mean that someone who isn’t a strong communicator is doomed to never improve.
I Don’t Have Enough Money to Start a Business.
Twenty years ago, this wasn’t just a self-limiting belief—it was a reality for the vast majority of entrepreneurs. There were tremendous fixed costs in starting a business, such as leasing and equipping office space, purchasing plant and equipment assets, covering material and inventory costs, and hiring employees, not to mention numerous legal and regulatory hurdles.
In the last two decades or so, these costs have been either eliminated or largely mitigated. The typical twenty-first century startup doesn’t require any of the above items. There are many businesses you can literally start right from your laptop while sitting in your local Starbucks.
This doesn’t mean that you won’t require any funds. There are certainly costs associated with the startup process. Depending on the type of business you want to operate, your startup costs can run into a few thousand dollars, spread over time. Your baseline needs will include the following:
1 ConnectivityA laptop, cell phone, and good internet connection are a must. (You probably already have these anyway, right?)
2 RegistrationIncorporation, along with state registration, incurs some basic legal fees. A lawyer is usually not necessary for a startup in the earliest stages, but if you are unsure about your needs or the specifics of your industry, contact a lawyer who specializes in incorporation and business law.
3 A Web PresenceA web presence has never been easier to establish or more necessary for modern businesses. Collectively, your web presence refers to your domain name, web hosting, and website. Vendors who offer these services make it easy to establish a web presence for your business even if you have no technical experience.
4 A Graphic IdentityThe graphic identity of a business is the sum of that business’s visual design elements such as logos, business cards, visual messaging, color palette, and visual themes.
5 A Social PresenceYour web presence can be a two-way communication tool, but nothing beats social media for creating a dialogue with your customers. Now more than ever, consumers expect that the brands they do business with will have a social presence. This is true even if your business doesn’t sell a “sexy” product. Social media accounts for businesses are usually free, but they can incur cost in the form of content production, management, and management software that reduces the time requirements that an active social media presence can produce.
Here are some things you think you will need, but probably won’t:
1 A phone service or answering service
2 A lawyer, accountant, marketing agency, or other high-priced professional service provider
3 A retail storefront, inventory, or storage space
4 Employees
Of course, there are many businesses, such as restaurants, retail stores, gyms, etc., that will require significant up-front funding. In the case of those types of businesses, you need to think carefully about where this money will come from and whether this is the right kind of business for you. This will be discussed at much greater length in chapter 4.
Now Is Not the Right Time
An internet search will provide you with the “scientific” answer to the question “what is the best age at which to start a business?” The answer is 39. I have no idea how that age was arrived at, but the internet believes it, so it must be true!
The fact is, there is no right time. Younger people have less experience in business and in life, but also fewer family and professional obligations holding them back. Older folks have wisdom, networks, and experience, but also may have a lot of other demands on their time. The fact is, there is no “best” time. Any time you choose to jump in is going to lead to a lot of hard work and demands on your time. If you know that you’re passionate about your venture, and your strategic analysis leads you to believe the opportunity is there, go for it!
This doesn’t mean you should throw caution to the wind, quit your job, and hope for the best. Careful planning is in order, and you’re going to have to cover all of your other obligations as well. The topic of work-life balance will be explored in greater detail, but suffice it to say it will be a strain for the foreseeable future. You probably won’t be able to quit your day job right away, which means you’ll have to deal with two jobs. You’ll have to do a lot of juggling to keep all the balls in the air.