So
you want to be an entrepreneur. Here's how to make the jump
Entrepreneurship
can be a powerful lure and a rewarding opportunity. But what
happens if you are already on a traditional corporate path and
want to make the jump into starting your own venture? How do
you increase the odds of success? We put the questions to some
Kellogg experts.
"Understand
your strengths and shortcomings because both will be totally
exposed [if you become an entrepreneur]. Evaluate lots of
opportunities even if a potential venture may not immediately
excite you. ... The corporate skills that aided me in my entrepreneurial
pursuits were managing and leading people — vital to
the entrepreneur. Gaining that experience through a corporate
opportunity is ideal. Learn on somebody else's dime."
— Doug Cook '98, CEO
of Chicagoland window replacement company Feldco
"Sales,
negotiation and communication skills — you will use
these constantly with employees, vendors, investors, etc. ...
Get in shape, physically and mentally, before starting a business.
Your performance is everything, and your business will only
be as good as you are ... You also need a solid tolerance for
risk. If you don't have this, invest in other startups as a
passive investor." — Julia
Stamberger '02, co-founder of GoPicnic
"You need to have a realistic business
plan and the value proposition must be valid. You can't
be afraid of the unknown, or of failure. Identify outcomes
that you can live with in the event of failure ... Focus on
the end-game and don't be distracted by other opportunities
that may come your way. These will take you away from your
business plan." Corporate skills that can help: "Recruiting
talent that can turn 'your' vision into 'our' success; experience
managing a budget or resources." — Venita
Fields '88, senior managing director of Smith Whiley &
Co.
"There
is no one 'down the hall.' In the typical entrepreneurial
setting, expert consultants are not readily available, so the
entrepreneur must get resourceful to garner affordable necessary
talent." Get rid of certain "corporate" skills:
"Corporate managers often measure risk and reward as life
or death considerations. Few risks are worth taking when the
price for failure could mean being pushed off the corporate
ladder. One reason U.S. big business is losing world dominance
is the reluctance of many companies to do serious R&D. What
CEO would take such a risk, the costs of which adversely affect
the bottom line, with direct impact on the CEO's bonus, options,
and even job? Entrepreneurs, conversely, accept the need to
make mistakes, learn from them, try again and ultimately be
graded on the final outcome."
— Lloyd
Shefsky, clinical professor of managerial economics and
decision sciences |
