It is true. Unless you have started a business it is hard to understand what it is like. The effort. The passion. The challenges. Sure, others can empathize with you but unless you have taken the risk, applied for a loan and opened the door you do not feel the weight of the endeavor. That […]
It is true. Unless you have started a business it is hard to understand what it is like. The effort. The passion. The challenges. Sure, others can empathize with you but unless you have taken the risk, applied for a loan and opened the door you do not feel the weight of the endeavor. That is why I believe start-up businesses, and for that matter, all business owners need outside resources, some you find through networks, and others are paid. So, gear up and find the support you need.
I am fortunate to have found peer groups through a number of business organizations over the years. These groups are not hard to find depending upon where you are. In my state, the Small Business Association of Michigan (SBAM) has statewide efforts to connect small business owners, but also smaller Owner-to-Owner meetings in locations around the state. At small business group gatherings, you get to meet and share stories with others. You might not connect with everyone, but I have rarely walked away without meeting someone that offered a great story of their start-up, or valuable advice.
A couple of words of caution when finding the right small business group. Find a group that is only open to the business owner. Otherwise, you end up in the room with lots of sales and marketing people. Don’t get me wrong, I love these people, but they are more interested in selling you something and not as likely to discuss the big-picture challenges that small business owners experience. Finding individuals who will be honest and share their constructive feedback and “think” with you as a support for start-up business owners and experienced ones is invaluable.
Every start-up needs trusted small business advisors on a regular or as-needed basis. These are the individuals that guide you throughout the life of your organization. This is not a place to skimp because you get what you pay for. I believe you should look for those who have experience working with small businesses. Why? Small businesses have very different needs than big businesses, which often have people on staff with specific expertise. For example, most small business owners don’t have a human resources department or in-house IT. It goes without saying that having an attorney and accountant can keep you out of trouble- trouble you don’t even know about because regulations today are complicated and constantly changing.
One thing to note, some of your paid professionals may stay with you long after the start-up phase. Others can provide specific short-term expertise to jump-start your efforts but are not needed long-term. Who are these small business advisors and how do you find them? This is a great time to leverage your small business peer groups. I have found my best advisors through word of mouth. Business owners are not shy about recommending those that have been instrumental in their success. They also won’t hesitate to steer you away from those that did not perform.
In business, it is always best to seek out partners who have similar values and cultures. Famous examples of partnerships are Uber and Spotify or Pottery Barn and Sherwin Williams. For small businesses, a partnership can get you noticed or bring you more business. For example, a partner that can help round out your product offering without you having to build the capacity in-house. Or provide a service until your start-up can do it in-house.
Start-up partnerships, and business partnerships in general, can be beneficial for lots of reasons as Fundid explains. You can increase your visibility and cut costs. But be incredibly careful in choosing a start-up partner. There are formal partnerships and informal ones. Start with businesses that you know and trust. Ones that have complimentary products or services. Many companies say they want to collaborate with you, but what they really want is access to your customers for their own benefit.
Starting a business is not easy but support from others through peer groups and partnerships can help drive success and a more positive experience. So, start building those business relationships.