Entrepreneurship Advice from Marc Hedlund, CEO of Wesabe

A couple weeks ago, J.D. had a conversation with some friends about starting a small business. I liked a lot of what was said, but I've had some different experiences, and would like to offer my perspective. Here are some things I've learned from my entrepreneurial endeavors.

Starting a business with friends can be fantastic
Both of the companies I've co-founded have been with long-time friends, and while of course there were hard parts about it, in many ways it was a huge help.  We knew each other well enough to figure out how the other would react in a lot of situations, and had a base level of trust that is always helpful.  Of course there are plenty of counterexamples, but it can work.

What matters is that you have a partner with whom you can communicate — if that person is a friend, great.

Write someone and ask them for help every day
It's amazing how well this works.  Just make a habit of coming up with one person each day that might be able to help you in some way — with an introduction, an idea, a conversation, anything. If you think of someone you already know, then it's easy to ask for help, but don't be bashful about asking people you don't know for help.

When you tell people you're working on starting your own business, many of them will get excited or interested, and be willing to offer a hand. Don't be discouraged if you don't hear back — just try someone else the next day. When you're starting a new business no one knows what you're up to, so reaching out and asking for help very often can do an enormous amount to get things rolling.

People matter more than anything
When you're looking for partners, employees, attorneys, accountants, or anyone else to be a part of your business, find someone you really get excited about working with, or just keep waiting and looking.  Don't get caught up thinking you need someone, just anyone, to support you.  It's far better to wait for a star.

The early people in any company shape everything about it — its enthusiasm, public face, ethics, and quality. You can't afford to have any of those aspects be anything less than stellar when you're starting your own business. (If you're not sure about a person, try using them as a contractor first, and bring them on full-time when you've had more time to evaluate them.)

Don't worry about the idea
Entrepreneurs often get all worked up — or hung up — on The Idea; that is, what business exactly they're going to pursue. Don't worry so much about The Idea. Choose something you know a lot about and see a need for, and go for it.

The people you work with matter more than The Idea; hardworking, talented people working on the wrong idea will figure that out and adjust, while the wrong people on the right idea are likely doomed anyways.

The only thing that really matters about The Idea is how you (and your partners) feel about it.  If you can't stop thinking about it for weeks on end, get up out of bed to write down brainstorms about it, and don't get tired of working on it, that's the right idea.  If you have to convince yourself to keep going on The Idea, that's the wrong one.

Take money from other people as an absolute last resort
Many entrepreneurs get an idea, write up a presentation about it, and hit the road looking for angel or venture capital investors.  Don't do that.

First, investors will always prefer to invest in running, growing businesses, not ideas; and second, you will immediately give up control of your business to people you likely don't know very well.  Supportive, patient investors definitely do exist, but they are the rare exceptions.

Take investment only to accomplish a specific goal for your existing business that you know you can't achieve any other way.

Know your customers
Do everything you can to put yourself in direct, frequent contact with the people who will be giving you money — your market.  When selling to consumers, make sure you're talking to someone who would actually have a pressing need for whatever you're selling; when selling to companies, make sure you're talking to the person who could actually authorize a purchase of whatever you're selling.

Anyone in your company shaping its products or services should be in direct, frequent contact with your market, too.  Listen to your market.  Talk to them all the time.  Ask them if what you sell is working for them, and take everything they say seriously.

Most importantly: ignore every other source of “feedback” — competitors, reviewers, two-bit commentators, whatever.  If what these other sources have to say matters, you'll hear it from your market directly.  If you don't, what the other sources say is irrelevant.

Have confidence in yourself
Things are going to suck for a while, pretty often.  You'll win sometimes and lose sometimes, often on the same day.  Take care of your home life, make sure you have great support from your family and friends, and listen to your gut.  These simple, basic steps will get you through the dark times that inevitably come, and lead you to the rewards that can follow.

Treat people well
Most entrepreneurs fail several times before they have a success.  If you can fail with your integrity intact, you'll build a network of people ready to help you when you're ready to try again.

More about...Side Hustles

Become A Money Boss And Join 15,000 Others

Subscribe to the GRS Insider (FREE) and we’ll give you a copy of the Money Boss Manifesto (also FREE)

Yes! Sign up and get your free gift
Become A Money Boss And Join 15,000 Others
guest
8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Eric J. Nisall
Eric J. Nisall
12 years ago

From a social standpoint these are some really good points. Unfortunately, I disagree with the need to find people with whom you are excited to work with. I think it is more important to find people that are proficient and reliable, and if you are excited about working with them it is a bonus. There are many people who make everything seem like fun and excitement, but can be flaky (to be kind). When it comes to lawyers and accountants, people whom you rely on for financial and legal support, the ability to come through when they say they will… Read more »

Shanel Yang
Shanel Yang
12 years ago

Your own personality type is a big factor on whether you are cut out to be a successful entrepreneur. Another big factor IS your big idea for the business. That’s why I failed at my first two attempts, though I count those “failures” well within the category of extremely valuable mistakes, w/o which I could not be succeeding currently in my blog. How do you know if you have what it takes — both the personality and the big idea? Take this quick “Future Entrepreneurs Test” at http://shanelyang.com/2008/07/04/future-enterpreneurs-test/

Tabs
Tabs
11 years ago

I am going to give the “ask someone for help” portion a try, I may not do it everyday to start but I will give it a shot. Having an issue asking for help, I have taken on the task of facing that fear this last month, so now it is me taking it up a notch. Thanks for the post.

-Tabs

C.O.A.S.D.
C.O.A.S.D.
11 years ago

Like Tabs, I’m going to try and act on the “ask someone for help” advice. I try and solve all problems myself. Most of the time people actually like to help.

I’ve posted a response to this post on my blog.

http://confessionsofasoftwaredeveloper.blogspot.com/2008/08/people-matter-more-than-anything.html

Chandoo
Chandoo
11 years ago

Marc, that is a really wonderful advice. Having started one partnership venture and putting together prototypes for a web business idea, this article really gives me practical tips.

Especially the “don’t worry about the idea” part, it is not only true with start ups but with most things in life. Often we wait too much for the idea, the moment, the day, the something that we forget to deliver, launch or write.

Thanks alot JD for sharing this article with us.

The Happy Rock
The Happy Rock
11 years ago

WOW, an entrepreneur that breaks the mold and says it can and should be done with cash, that alone is priceless and encouraging. I enjoyed the read because these tips feel gritty and real, not like the lists that often get promoted for entrepreneurial success. The overall tone of respect and loving not only what you do but how you do it is great. I also agree that people get so hung up on ideas. Good ideas are easy to come by. Listen to you friends and co-workers and family with a notebook in hand for a month and you… Read more »

Alison Wiley
Alison Wiley
11 years ago

Good, solid advice. As a former entrepreneur of 12 years experience I would add a few things Marc did not happen to mention. http://www.diamondcutlife.org/top-ten-tips-for-entrepeneurs-part-i/

DebtKid
DebtKid
11 years ago

Marc,

Wow, I swear you wrote this just for me. I love the wesabe forums by the way, great conversations about finance happening there.

I agree 100% on finding great people. I have one employee star who I wouldn’t trade for anything. I also wish I hadn’t taken $$ before building my first business. Lesson learned! Good luck with Wesabe!

DebtKid

shares