Starting a new business after work obliges you to take on a similar mindset as an alternate individual.
Theo has been finance professional for most of his career. He is a qualified accountant and rose up to the level of CFO (Chief Financial Officer) in his last job in a multinational manufacturing company. Theo resigned three months ago and is looking at starting a financial advisory firm. He thinks there is a gap to offer objective financial advice as an external party to companies like the one he recently worked for.
As you can expect, with the level he had achieved, Theo has an entirely decent way of life. He lives in an incredible neighborhood,his children are in international schools and he definitely has the ability to entertain himself very well. With this sort of life additionally came desires from everyone around him – colleagues, friends, social circle and even relatives.
Theo left work since he needed a change; he needed to give his own particular business a shot. He has great systems and has been going for gatherings, pitching his thought. So far nothing concrete has appeared yet. Theo is getting stressed. It’s been three months and he has begun seeing the level of his investment funds drop. Watching and observing other individuals get up and go to work, and appear to be beneficial is beginning to trouble him. Theo chose to get some advise from his companion Sam. Sam started a new business five years back and can understand things from with a better point of view. These are the tips Sam gave Theo. Things that Theo had neglected when he began this adventure. Maybe its things that will help you and you can also relate to if you are in this particular transition
- Be set up to give it time. In Sam’s opinion the first lesson in business is patience because it will be applied in so many areas. Patience with clients, receiving payments, suppliers, employees, sales etc. There is no shortcut to it; you just have to go through it. This does not mean you while away twiddling thumbs. Do what is needed to the best of your ability. Do what is practical. Even if the business you hoped for has not borne fruit, as you would like, make sure you find something to do everyday. Wake up with an objective. Make calls, see clients, do your research, have a conversation with those who can help, see your bankers. Prepare for what you hope will materialize.
- Get ready to rebuild your brand and networks. A lot of people that Theo was going to see knew him in relation to his previous job. He was Theo, the CFO of XYZ Company. That was his brand. There are people within those networks, and as nice as they want to be with you, will loose association with you because the title does not exist anymore. They may even take the meeting but they will not do business with you simply because of that. And it’s OK. Life does continue. Armed with that insight, you can free up your time to develop other networks that you will find are actually more aligned with what you want to do. Be prepared to rebuild your profile. This will also require that you personally stop identifying with the title you used to carry and maybe the status, attention and open doors that it used to provide for you. Time to really dig deep and understand who you are without the title, your strengths and what you have to offer. That is what needs to come out and be sold.
- Strikingly, when you drop the past character you have and quit attempting to make up for lost time to who you used to be, you may likewise see opportunities in a different way. So far Theo has thought about the potential for his business through his qualifications and professional experience. He has a concept that he thinks he would sell to his “peers” in the industry i.e. he has been knocking on doors of finance managers, people at his level so to speak. He is trying to import himself into a business that is somewhat similar to what he used to do. That is what is called completely thinking inside the box. Entrepreneurship requires you completely re-engineer yourself to be able to think outside the box. Sam is a lawyer who now does construction. It’s about matching your unique skills (not paper qualifications) to the opportunity. His negotiation skills really help him in his line of work. Theo has often given financial insight to SME’s in informal settings. Random conversations in social settings. Maybe that’s where his golden opportunity lies and not large multinational companies. It may sound nice to have these companies as your clients, but you may find it makes more business sense to work with SME’s. Just an example to prompt different thinking.
- Last but not least be practical with cash. Since you need to give it time, you might not have pay for some time. Furthermore, it could be quite a while to get regular income at the level Theo had at his past job. Cut down unnecessary spending. You’ve probably accumulated enough things to last a lifetime anyway. You don’t need more. What real difference is buying the next version of your phone going to make in your life?People who will call you remain the same. No new business will come because of a new phone. You are now training yourself to develop the ability to spend on the right things. This will also help you when the business makes money, because without this discipline, when you do get money you will spend to prove a point to yourself and others. To declare you have made it. This is not necessary!
We generally hear insights about what number of business come up short and fail. I think the last one I heard was three out of every five. It Would be interesting if we knew how many failed because the founders held on to the same way of doing things. Changing your mindset is half the battle won.