Coming together is a beginning. Keeping together is progress. Working together is success.
—Henry Ford
Early in my career as an entrepreneur, I faced one of the battles no one ever wants to fight, let alone someone trying to keep a business airborne. A contractor I had used for a new project filed a frivolous lawsuit against my company in hope of cashing in on my rapidly accelerating ascent as both a businessman and pastor.
I suspect this adversary believed I would settle quietly, despite having done nothing wrong, in order to avoid the inevitable publicity that comes from criminal accusations, no matter how unsubstantiated they may be. But they didn’t know who they were dealing with! I was not about to let my budding enterprise be hijacked by someone attempting to eject me from the cockpit.
As the court date approached, I prepared for the skirmish armed with my own attorneys and personal knowledge of the situation. I had already prayed for the peace that passeth understanding so that I wouldn’t strangle anyone making false accusations in the courtroom! So I mentally and spiritually defended myself, clinging to the honesty and integrity I had worked so hard to establish in my business dealings as well as my ministry. Anticipating something out of a John Grisham novel, or at least an old episode of Perry Mason, I was surprised that, when the court hearing occurred, it was actually anticlimactic.
An even bigger surprise was my impression of the lawyer representing my opponent, the plaintiff in this suit the contractor had filed. The opposing counsel wasn’t impressive because of his eloquence or any glamorous, star qualities in his performance. His appearance was professional but not flashy. In fact, there was nothing slick about this gentleman—he simply knew the law and had a clear strategy for presenting his client’s case. He obviously had anticipated all questions thrown at his client and was prepared with the right answers.
Weeks later, after the matter had been resolved and the dust settled, I called this attorney, complimented his courtroom demeanor, and asked him to lunch. Surprised to hear from me, he nonetheless agreed to meet, and over lunch we got better acquainted. Finally, I shared with him my observations about his professional abilities in the courtroom and revealed why I had asked to meet with him: to offer him a job!
Shocked that I would make such an offer, he asked several astute follow-up questions before requesting time to think about it, pray about it, as well as discuss it with his wife and family. The next day I was delighted when he called and accepted my offer, and he began working for me two weeks later. This gentleman went on to represent all of my businesses for more than a decade, proving my judgment about him accurate as he exceeded my expectations time and time again. Despite being on opposite sides in that initial legal proceeding, we went on to work together successfully in numerous entrepreneurial endeavors.
You’re Hired
Now it may appear that I hired this man rather impulsively, but nothing could be further from the truth. Yes, my initial impression of him triggered my interest in his abilities and how he might fit into my organization. But during the interval between when our case ended and when I asked him to lunch that day, I had done my due diligence. I had researched his background, his educational training, and his professional reputation among his peers as well as his clients. Every piece of research confirmed my hunch that he would be an asset for TDJ Enterprises.
There was still risk involved, of course, because there is risk with any new hire no matter how well you think you know the person. But I had done everything in my power to maximize the likelihood of this man’s success as my employee. While it was tempting to dismiss the possibility of hiring him because of his adversarial role in the context of our first meeting, allowing that context to block my hiring him would have been a mistake. Indeed, seeing him operate in such a situation told me volumes more about his character and credentials than any interview could have ever provided.
Sometimes our adversaries can become some of our greatest allies. Keep in mind that you don’t have to like someone or want to be friends with them in order to hire them. If they’re good at their job and share the same dedication to excellence that you have, it doesn’t matter if you like the same sports teams or share similar backgrounds. You don’t have to have them over for Sunday dinner, but you do have to be able to rely on them to fulfill the responsibilities for which you hired them.
Hiring friends (and family—but more about relatives in a moment) is often dangerous and can kill your business faster than lightning hitting your plane’s engine. When you hire a friend, you automatically make it harder on yourself to push this person to their best performance. In theory, you might think it’s easier because of the rapport you have already established. You already know each other and know how to communicate, right?
But here’s the problem: usually you want your friends to keep on being your friends, and so ultimately the friendship gets in the way of the entrepreneurship. You let things slide because you don’t want to risk hurting their feelings or stepping on their toes. You don’t hold them accountable to the same standard as an employee who’s not a friend, and as a result your business suffers.
Generally in business it’s better if you separate your personal relationships from your professional ones, but I’m convinced it’s absolutely crucial for entrepreneurs. You’re hiring someone for their abilities, talents, and the overall value they bring to your company—not their favorite jokes and family recipes. When you want your car fixed, you don’t care whether the mechanic is friendly or not—you just want someone who knows how to solve your problem at a fair price. The same goes for finding a doctor. You might like her and you might not, but what matters is how knowledgeable and skilled she is at treating your particular ailment or condition.
If you like an employee and end up being friends without it affecting their performance, then count yourself blessed and enjoy this rare feat. But most of the time, your business will benefit and grow more quickly if you keep communications clear and boundaries firm. Hire the best person for the role you need filled and to do the job you need done as effectively as possible. Do the due diligence required to see if their past performance, job history, and education equip them for your company’s needs. Again, this does not guarantee that they will be as strong as you expect, but it increases the odds.
And if the person doesn’t work out after adequate training and multiple opportunities to improve, then don’t waste time—yours or theirs. The old adage “slow to hire and quick to fire” holds up in my experience. So take your time to find the best people in whom you can invest as leaders within your business. Get to know them professionally and if at all possible see them in action doing what you need them to do.
Many entrepreneurs hire people because they have a sudden need due to unexpected growth or increased business. As a result, they hire someone who is immediately available instead of using temps or finding other solutions for their short-term need. This kind of hiring rarely produces a quality employee who grows with the company over the long haul. So you end up having to fire those hires and start over again, which may not seem like a big deal, but it surely can be when your business is small and just starting out.
When you’re building something from scratch, those first few hires are crucial if you are to continue flying successfully. You want team members who not only understand your products, services, and customers, but ones who also grasp your vision for success. They don’t have to know how you built your plane or how to fly it, but they do need to know how their contribution affects the rest of your passengers.
Cast Your Net
My mother used to say, “If you see a turtle sitting on a fence post, you can always know he didn’t get there by himself!” She was right! And if you see an entrepreneur interviewed about the success of his or her business, then you can be certain that many others contributed to their journey.
You can’t do mighty deeds by yourself in isolation. If you have a vision to build a venture that will fly and sustain its journey through the clouds, you will not be able to do it alone. Drawing on your existing network of relationships as well as cultivating the new and necessary relationships you need ensures you have the flight crew you need to soar.
While it may be tempting to be a Superman or Wonder Woman and try to launch your business by yourself, it doesn’t take long to realize the limitations of your superpowers. In fact, people who see themselves as the be-all and end-all in their spheres of influence nose-dive and crash a long way from their potential. They view themselves as solo pilots but forget that even Charles Lindbergh only made one solo transatlantic flight! Never forget that defying gravity and reaching your destination is a journey you cannot make alone.
If you try to do everything your business requires, then you’re guaranteed to crash and burn. Real superpowers require a variety of complementary talents and abilities working in harmony to achieve results beyond what you could achieve by sheer talent or hard work alone. As one person, you are limited by a finite amount of time, energy, and ability. You have only two hands and can only accomplish what two hands are capable of accomplishing. You must assemble the best team possible to support, sustain, and soar with your new venture.
I like to remind the business leaders I’m privileged to coach never to forget the “net” in networking. Nets are woven strands of roped fibers designed to contain certain items while letting others pass through. Nets provide a flexible filter to help anglers, athletes, and entomologists snare their fish, field goals, and fireflies!
Similarly, our business networks are most effective when we extend our interests and engage with entrepreneurs, consumers, and other business leaders going in directions different than our own. I’m convinced the most dynamic, resourceful networks are built on strands of connectivity that cross barriers and integrate diverse perspectives. They increase the size and depth of the pool from which you can draw supporters, investors, employees, and customers.
Ground Crew
Everyone needs encouragement and support, especially as they embark on a new voyage of personal and professional discovery. Ideally, every new entrepreneur would enjoy the benefit of three different kinds of ground crew members: supporters, advisers, and mentors. These relationships are not essential to your endeavor’s success but they usually lay the groundwork for the smooth runway you need in order to take flight. While these roles may overlap, let’s consider each of these encouragers and the unique contributions they make to your overall achievement.
Supporters tend to be the people you consider your greatest fans, the ones who celebrate your triumphs with you as well as pick up the pieces when you fall. For many entrepreneurs, their families provide this kind of support and personal care. Family members not only encourage your endeavors and serve as a sounding board, they also provide practical support in the form of picking up your kids from school, cooking a meal from time to time, or offering to help out with household chores.
More than just cheerleaders, supporters understand the cost required for you to be fully invested in your new business, and they care about you and will do what they can to help you succeed. They believe in you even if they don’t understand what your business is about or why you feel compelled to launch it. They provide personal, emotional support through the grueling process of starting your business.
Advisers, on the other hand, give you professional, intellectual support, usually in the form of their counsel and wisdom. They may care about you personally but have more to offer you in the form of their best business practices. They are often entrepreneurs themselves and have already experienced many of the initial challenges you are facing. They want to help you avoid the same mistakes they made so that you can make your business more successful.
Their advice may be specific and practical: you should order supplies from this wholesaler and not that one; or it may be more general and conceptual: always take one day off each week no matter how busy you are. The most effective advisers usually have some knowledge or experience with your kind of product, service, and customer base. They know firsthand how to sell cakes or start a dry cleaner because they’ve done it before.
Mentors combine both of these roles, the supporter and the adviser, and offer comprehensive insight into how to juggle your life’s demands as an entrepreneur with those of being a spouse, parent, caregiver, or student. They want you to succeed professionally but not at the expense of your personal life and family coherence. They know that in order to truly succeed you must never lose sight of life balance and the priority of loving those most important in your life.
Of these three supporting roles, mentors are typically the most difficult to find and to sustain. It can also be difficult to define your expectations and have another busy, successful individual agree to commit to mentoring you. Don’t presume that the person is always going to be older than you or a grizzled veteran nearing retirement age. While mentors are often wiser and more experienced than you, this may or may not correspond with their chronological age. They may have started working in your field at a young age while you are only now switching careers, or they may have come from a family that owned a business in your industry.
No matter what you call them, these people in supporting roles, what I like to think of as your ground crew, help prepare you for flight and refuel you in between your journeys. They are essential to your success, so never underestimate their importance. Don’t be afraid to ask for what you need in order to succeed!
Flight Crew
In addition to your ground crew, you will need people willing to invest more than just emotional support, personal encouragement, and inspiring advice. You need a flight crew to fund your new venture and get it off the ground. And this team must begin with you as the captain piloting the process. You must be willing to invest your own financial resources into your business if you expect others to risk theirs. So before you print copies of your business plan and rehearse your pitch for banks, backers, and venture capitalists, you should have already lined up your own investment.
Deciding how much you can invest in your new business is tricky. If you can’t afford to lose your investment, then you need to wait until you have saved enough to properly stake your business. Many entrepreneurs, fueled by the adrenaline thrill and excitement of starting their new venture, recklessly deplete all their savings, their retirement fund, and their home equity.
While I admire such dedication and willingness to go “all in,” I must caution you not to allow your passion to override practicality. I have never gambled on games of chance, but others who apparently enjoy such activities tell me they consider their wagers recreational. The key, so they tell me, is never to bet more than you can afford to lose.
The same holds true for entrepreneurs betting on their new business. Risk is a necessity, but you must also consider worst-case scenarios. Don’t invest all you have in something that hasn’t yet proved it can fly. Only invest what you can reasonably afford, making sure you have a contingency plan for how you will survive and pay your bills if the business fails before it becomes profitable. The best entrepreneurs assume it will take several attempts, including several infusions of capital, before their business takes flight and remains airborne, and they plan accordingly.
So be smart about what you can invest. Write down your assets and liabilities and see what makes sense. Discuss what you want to invest with your spouse or others directly affected by your investment. Consult your accountant to provide objective perspective as well as to help you think through the various tax implications.
Once you’ve determined what your investment will be, then you can more confidently pitch others who may be interested in funding your business. If you’ve ever watched Shark Tank, you know this is often the first question the panel of professional investors asks the would-be entrepreneur making a pitch. They want to know how much skin this person has in the game in order to gauge the individual’s level of commitment and threshold for risk.
Depending on the amount of capital you need, one investor may be enough to stake your venture. More than likely, however, you will need several key investors to fuel your flight. These investors are often successful business owners and experienced entrepreneurs already. They hear many pitches from the full spectrum of would-be entrepreneurs looking for cash, and as a result, these investors say no much more frequently than yes.
So be prepared to be turned down a few times and use the experience to improve your pitch. Respectfully ask all declining investors why they’re unwilling to invest in your venture at this time. Some may not be willing to comment, but others will provide you with honest feedback about their concerns.
Listen carefully to their words and the reasoning behind their decision to decline. If they have doubts about your location, ask them for suggestions about where to relocate. If they struggle to understand the product or service you’re selling, then sharpen and clarify your pitch. Use the opportunity to turn that investor’s no into the next investor’s yes!
Get It in Writing
When you finally find investors willing to back your venture, then you must discuss the details of how their investment will be repaid and their specific share of your profits. While handshakes are good, you should both require a written contract spelling out the particulars of your agreement. If you aren’t clear on the exact commitment such a contract requires of you, then consult an attorney, financial expert, or accountant to review the document and explain it to you. Never sign something you haven’t read! No matter how much you trust the other party, mistakes get made and misunderstandings occur.
Finally, make sure you and your investors discuss the extent of their role beyond providing funds. Will they have any authority to make decisions or influence directions for your business? Do you need to have their approval before making major decisions? There’s a big difference between an investor, who is usually just risking capital in hope of profiting from your future success, and a partner, director, or stakeholder.
People who want a role in your business and a chance to fly the plane every now and then can be huge assets. If they believe in you, share your vision, and have the skill set and availability to participate beyond merely investing, they become your copilots. They not only have a stake in your profits, they also participate on a daily basis to shape the company and run operations.
With such stakeholders, it is even more imperative to determine their role and job responsibilities before the business is off the ground. Clarify each other’s expectations and delegate the specific areas of responsibility within the venture. Establish trust with open, honest communication that respects one another and values collaborative efforts. Decide how conflicts will be handled and final decisions made before the heat of the moment when new orders are coming in and directions have to be chosen.
Collaborations can be challenging for new entrepreneurs used to being a solo act. They may not initially appreciate having someone else question, challenge, or overturn their decisions. But being overly possessive of your “baby” may deprive you of precious opportunities for dynamic new directions. So make sure you work only with partners whom you respect and are willing to listen to. Nothing is worse than having a shareholder in your business play backseat driver when you’re in the pilot’s seat.
On the other hand, allowing stakeholders to participate in the process of your business provides a richer, more multifaceted perspective. You also have others to share the workload and provide you with support when you stumble. The Bible says, “Two are better than one, because they have a good return for their labor” and “A cord of three strands is not quickly broken” (Ecc. 4:9; 4:12). So put your ego aside if necessary and enjoy the opportunity to launch your business with others as invested in its success as you are.
All in the Family
Aside from banks, professional investors, and venture capitalists, many new entrepreneurs turn to family and friends for funding. While it’s natural to assume those who know and love you the most would want to invest in your new venture, the reality is often more complicated and challenging. First and foremost, there is absolutely no way for you or those closest to you to remain objective about the investment.
Try as you may, it’s difficult to separate family dynamics from business practices. Aunt Ruth and Uncle Boaz may know that you’re an adult with a degree and ten years’ experience as a chef, but when they invest in your catering business, they still see you as their little niece selling Girl Scout cookies.
Don’t get caught in the trap of past perceptions. Discuss the specifics with relatives just as you would with any investor you just met. Set clear boundaries and establish realistic expectations. Discuss what happens if the business fails and they lose their investment. How will they handle such a loss and how might that change the dynamic of your relationship? Don’t wait until no one will pass the turkey to you at Thanksgiving to realize they have a problem with you!
Always have a contract, but when family or close friends invest in your business, it’s even more essential. It may feel awkward or uncomfortable at first, but if both of you seriously want to make the relationship work, then you must write out the details. Don’t just smile and hug and act like everything’s okay and assume because they’re family they would never withdraw their investment or even enter into litigation! We’ve all heard of dozens of situations where once-close siblings, or even parents and adult children, no longer speak to one another because of the emotions wrapped around a failed family business.
Equally essential is determining the role these familiar investors will have in your business. Will they have access to all your operations, practices, and records? Do they have a voice in the decisions? Because whether they have one on paper or not, most family members automatically consider themselves stakeholders. If you welcome their input or can at least tolerate it, then there will be no surprises down the line. But if you’ve always thought your mother-in-law was up in your business before, just wait until she’s invested in your new venture!
Who’s the Boss?
While we’re discussing family as investors, we should also consider the complications that arise when you employ family members. The problem is that you will expect more from them while they may assume they can give less. Because you’re related, share past history, or have a close relationship, you may assume that they will give 110 percent just like you will be giving. These loved ones, however, may expect to collect a salary without having to work as hard as they might for a boss they don’t know in any other role.
Personally, I have employed family members in a number of ventures with mostly positive results. I’ve tried to make my expectations clear to them up front and asked them outright if they can contribute what the business needs. Depending on their talents and experience, I’ve done my best to challenge them without burdening them. As I would with any employee, I want them to grow and stretch their abilities and become more proficient at making the business successful.
I’ve also separated their role as my employee from our relationship as parent and child or whatever the connection might be. When we’re working and focusing on business, then we’re not discussing their cousin’s new car or who was voted off their favorite reality show the night before. And when we’re having a family dinner, event, or holiday, then we’re not going to talk shop.
When hiring family members, make it clear beforehand that their job responsibilities will likely change over time and that their position may be eliminated, depending on the pace of sales, economic climate, and other business variables. Ask them not to go behind your back and discuss problems at work with other family members outside the business, which means of course that you commit to doing the same. Try to remind each other that your relationship comes before your roles so that if it’s clear one has to change, you both know ahead of time that it will be the role.
I would caution you to think carefully before hiring a family member and to make sure the potential benefits are worth the risk. Never pull in a family member just for a short-term solution to your staffing needs—that’s what temp agencies are for. Once again, you’re setting yourself up to be disappointed and potentially damaging your relationship over something that’s not worth it.
When it works well and the business thrives, there’s nothing better than sharing your joy, as well as your profits, with family. The flipside, though, is just as true. There’s no greater threat to killing your passion, purpose, and profits than when the business comes between loved ones. So don’t risk losing the very people you love and are motivated to share your success with if you, or they, have reservations.
What They Really Want
The relationships you establish with your clients and customers will ultimately determine whether your business soars. They are the lifeblood of your business and can dramatically influence its overall health and profitability. And you must realize that you are selling and providing much more than just your product or service. As we’ve already discussed, you are solving a problem for your customer. You’re selling them a solution, plain and simple.
In many cases, you’re not only solving their problem but you’re also providing something intangible they want or need. I recall shopping in a high-end men’s clothing store in New York once. The manager, who turned out to also be the owner, was absolutely perfect in assisting customers. He was attentive without hovering, helpful without being pushy, honest in his opinions regardless of how they might tilt a potential purchase. Whether waiting on a construction worker in dirty coveralls, a Wall Street banker, or a soccer mom shopping for her teenaged son, the owner treated everyone with courtesy, respect, and genuine interest.
After browsing and observing him in action, I complimented him on his attitude and demeanor and asked about the secret to his success. He smiled and said, “With every customer, I ask myself what I can do to make sure they have a pleasant experience that will make them want to come back. Even if they don’t buy something today, how can I influence them to return when they need to purchase something here in the future? Obviously, it’s not the same for every customer so the real key is listening to and engaging with what each customer tells you they need.”
This gentleman was absolutely right. In his business, some customers come in and buy a suit, but what they’re really buying is confidence for that job interview that’s coming up. The older businessman browsing new cuff links and ties is actually looking for a way to show he’s made it. The woman shopping for socks and underwear for her husband isn’t there to buy socks and underwear—she’s there to show her man how special he is, how much she recognizes and appreciates his uniqueness. If she just wanted socks and underwear for him, she could go to any department store at the mall!
The manager at this men’s store realized the psychology of his particular clientele. He understood that not only is quality merchandise important for the people willing to pay more for men’s clothing and accessories, but the atmosphere and experience must also be compelling. Everyone longs to be treated like a person of value and respected as a fellow human being. We’ve all been in shops, stores, or restaurants where we felt mistreated or neglected. And most of us have not returned!
If you listen to your customers and engage with what they really want from your business, then you will grow. You don’t have to make a change based on every customer suggestion, but you should consider it. Even if what a customer requests is too expensive, too unrealistic, or too impossible, listen to the message below their request. What’s behind their request or suggestion? What are they really wanting? More value for their money, lower prices, better service, a more convenient location, or longer store hours? Some customers merely want to be heard, to be recognized as having an opinion.
Race to the Top
The final relationship you must cultivate is with your competition. Many entrepreneurs overlook this crucial relationship, erroneously assuming that because they’re competing for the same customers they should avoid any kind of interaction. As the old saying goes, “Keep your friends close and your enemies closer.”
While competitors aren’t your enemies, they are still important to know and to watch closely. In many ways, having competition forces you to bring your A game and hold nothing back. Seeing the way others market, promote, and sell their products and services can often inspire you as well. Coke and Pepsi need each other to stretch and strive to exceed the other in sales. Similarly with McDonald’s and Burger King, Walmart and Target, Apple and Samsung.
I don’t recommend simply imitating what your competitors are doing, but learning from their methods and mistakes can often save you valuable time and money. Knowing what customers like about their customer service, shipping, or returns can help you adjust and improve your own systems. When you know your competition, then you can also be more specific about what sets you apart from them. You can attempt to offer a distinctive approach, proprietary product, or unique service that other, similar businesses do not.
If you approach other, similar entrepreneurs with courtesy and respect instead of hostility and envy, you might be surprised how you can help each other. Every business needs to be able to refer customers to a similar one at times when they have reached capacity and cannot serve their customers. I’m always especially grateful when a restaurant or hotel provides me with another comparable suggestion when they cannot book my reservation for the date and time needed.
It might seem like a strange kind of customer service, but it truly works in your favor because you’re still being helpful to a potential customer. If you can’t serve them with your business, then you can at least help them with your attitude and information. You might recall in the classic movie Miracle on 34th Street the way Santa Claus, employed by Macy’s during the holiday season, refers busy moms to other stores to find the best deals on toys. At first, Santa is fired for losing potential customers, but then the unselfish attitude and goodwill generated by his referrals prove to be a brilliant promotional move. Hundreds of new customers flock to the store, eager to support a store seemingly more committed to the Christmas spirit than to profit.
Building solid relationships with your competitors and other entrepreneurs can also help you when it’s time to expand, adjust, or sell your business. How many mergers have taken place between rival companies that joined forces to become a giant in their industry? Depending on changes and advancements with your product or service, you may also discover that the playing field expands so rapidly that there is more than enough room for numerous competitors.
Just look at the number of cell phone carriers going head-to-head these days. When mobile phone technology was new, only a couple of companies handled most consumers. But as the technology becomes less expensive and more accessible, there’s room for more companies to target the millions of users in any given area, region, or country. And as a result, service has generally gotten better for all customers.
Competitors can also help you expand your network and extend your reach into new neighborhoods and communities, building relationships that can support and sustain your business long after you’re airborne. And if you want to soar, your entrepreneurial relationships must extend beyond your customers, employees, coworkers, and competitors.
In order to reach new heights, you will need to cultivate relationships from a wide spectrum of professional and personal endeavors. If you network only with people who do what you do, buy what you sell, and have what you have, then there’s no opportunity for your chemistry to ignite and catalyze in new, creative ways. You might sell your new and improved mop or wig, but you won’t have the flight crew needed to land, refuel, and continue to your ultimate destination of success.
I’ve been inspired in my business practices by seeing native women in Nairobi weaving baskets, Australian Aborigines carving boomerangs, and sidewalk vendors in Times Square hawking knockoffs. I’ve also been blessed to encounter a wide and diverse population of creative thinkers, artists, leaders, ministers, inventors, and innovators. At first glance, their field of study or line of work may seem to have nothing to do with my endeavors. But once we begin talking and comparing notes, my mind begins turning in new directions and looking for transferable traits and mirrored methods. Remaining open to a wide body of relationships enables me to replenish my creativity and to hone my problem-solving skills.
If you want to be a successful entrepreneur, you are who you know!