Lessons Learned: Would I Re-Study My Path to Entrepreneurship?

Reflecting on my journey in entrepreneurship, I often wonder if there are anything I could have done differently when I first started my small business. When my business partner and I quit our well-paid corporate jobs to launch our bootstrapped startup, we had naively believed that a VC fund we had spoken to would secure a million-dollar financing round within a few months. However, hindsight shows us that this decision, while seemingly risky, taught us invaluable lessons that we wouldn't have learned the same way if we had been funded earlier.

Lessons from Not Choosing Venture Capital

Had we known that the VC fund would change their minds six months later, we might not have left our well-paying corporate jobs. The experience of navigating our business without external funding provided us with a robust foundation for sustainability and growth. Our ability to avoid the pitfalls that come with VC-pressure ensured that we built a profitable business that we eventually sold for $215 million. If we had chosen the VC route, we would likely have been forced to exit too early, where the high failure rate for startups would have been a real concern.

The Trial and Error of Startup Life

Our journey was filled with hurdles and close encounters with failure. Often, luck and creativity were our most significant assets. There were many times when we were on the brink of disaster, but with a little ingenuity, we found a way to overcome the challenges. Learning to survive the startup phase and grow a successful business is an incredibly difficult task, and I personally doubt if I would have pursued the corporate route had I known the realities of entrepreneurship.

Nonetheless, now that I have the benefit of hindsight, I can see that the experience of growing a small business without external funding was invaluable. The lessons I learned about managing resources, problem-solving, and building a sustainable business model have been instrumental in my later success. It wasn't a straightforward path, but the learning curve was steep and rewarding.

The Value of Professional Guidance

Reflecting on my past decisions, I believe that having a business coach or dedicating more time to a program like SCORE (Service Corps of Retired Executives) could have made a difference. I knew the services our business provided, but I lacked the knowledge on how to run a business effectively. Professional advice and training could have streamlined the process and prepared us better for the realities of the startup world.

The Importance of Risk Management

The best advice I received was that launching a new business is inherently risky. Several different risks combine into one enormous entrepreneurial risk, making typical failure rates very high. To reduce these risks, it's essential to remove, reduce, or prepare for them before launching the business. By accumulating resources and confirming the viability of the idea, we can take steps to mitigate these risks. After founding and selling three businesses, I can attest to the value of this advice and pass it on to those looking to start their own ventures.

In the end, while hindsight is a wonderful tool, a little naivety can be a good thing if it is accompanied by creativity, drive, and skill. So, when embarking on your entrepreneurial journey, be prepared for the ups and downs, and most importantly, believe in your vision. Good luck!