At the very core, there are four things you will need as a starting point in order to be successful as an entrepreneur, especially if you are willing to invest no time and no money in building your business. They are not rocket science, they are really just the only four things that cannot, and should not, be outsourced at the onset of a new business venture.
- A basic understanding of accounting. The ability to read and interpret P&L statements, balance sheets and statements of cash flow. If you cannot interpret these 3 sets of information, there is no way to determine the real health of any business. They are what will enable you to hold your vendors accountable and spot any inconsistencies before they become a problem. I feel I have a grasp on basic accounting. I’d also estimate that anyone in corporate America who has held a middle management job with any budgetary or P&L control should also have a grasp on these basic principles. If you have an accountant you can truly trust, how well you are able to interpret these statements becomes a little less important as they will interpret them with you.
- Leadership. You can’t go at it alone, even if you are using Other People’s Time, you will need to be able to find the right people for what you need to get done and convey the mission, vision and values of your company. A recent study showed that a vast majority of leaders feel they are above average, while their direct reports beg to differ. Knowing this, I’ll refrain to comment on my own level of competence! I will say that this has been a major area of study for me for the last few years.
- The ability to communicate. Communication falls into a couple areas for entrepreneurs, arguably most importantly having to do with sales and marketing. In my experiment external sales and marketing will be the responsibility of someone else. However, in order to attract Other People’s Money I will need to be able to communicate why my product or business is something worth giving me money for and why I think investors or creditors will get their money back, plus interest or capital gains.
- A product, or at least an Idea for a product. Many people starting out think the product is the most important aspect of your new business. I disagree. Preparing yourself mentally by building up my knowledge of basic accounting, leadership abilities and communication (sales & marketing) abilities will be far more of a determining factor of an entrepreneur’s success. To be completely honest, I have yet to decide what I plan on selling. I’m literally starting this experiment from nothing. No money, no time, no idea. The focus of many future posts will be how I will narrow down what I will be selling.
