What Advice do you Wish You Received When You Started Your Business?

I am constantly having conversations with CEOs of privately held businesses, often 3 to 4 times each week. I ask a range of questions during my visits and in this post I am providing one of my favorites, “What bit of advice do you wish someone had given you prior to starting your business?”

Here are some of my favorite answers:

“Don’t dive in without a plan and don’t plan without anticipating it may need to be completely re-written within 6-12 months of starting your business. Planning is just critical thinking that lays out a path to follow established on the best information at the time you wrote the plan. Since the value of planning and your plan are paramount, your plan needs to be based in the realities of the day, so seek advice from those in your industry and industry experts supporting your industry”
CEO Government Contractor, Gaithersburg, Maryland

“My business is not about the product, or the technology, or even the management.  It is about picking the right market at the right time – and then having the product, technology and management to ride the market wave.”
CEO Technology Firm, Reston, Virginia

“Don’t be embarrassed about asking for advice . . . often! Getting your business launched and your first product onto the market will take you twice as long, and cost you twice as much, as you think it will. Having a few trusted experts to guide you along the way is critical. Consider either a formal or informal board of directors or advisors filled with industry experts, legal and accounting professionals and close contacts that can provide financial investment.” 
CEO Real Estate Developer, Potomac, Maryland

“Don’t get stuck in the past and don’t expect the future to look anything like the past. It is too easy to ride the way of a successful business that is cash flowing without concern for changes in the future. Look at the number of companies that go out of business not able to adopt to changing times. We now focus at least once a year on future planning and look for industry trends that could help or hurt us in the near future.” 
CEO Building Supply Distributor, Rockville, Maryland

“Never confuse activity with progress. Manage, manage and manage your people especially as your business is in its early years. Decide early on what you need from each of your employees and have weekly progress meetings to make sure everyone is on goal. Small businesses can burn through their cash flow so quickly that having employees who are not focused on the end-goals of the organization can cripple your efforts.”
President, Community Bank, Washington, DC Market

“You can’t be the best at everything and you can’t afford to try. You need to Focus.  It’s so easy to say, ‘With our fantastic team, we can solve any problem at any time.’  But if you do that, your efforts will be diluted.  Instead, by first focusing on a market niche you can become truly great at addressing, your startup has the best shot at success.”
CEO Government Contractor, Defense Sector, Fairfax, Virginia

“The customer may be always right, however, focusing on their needs rather than what they say can bring big benefits. Too often we have created products or services that catered to what our customers told us that they wanted. Remember the customer is always right. The problem was they didn’t want to pay for what they said they wanted. Less expensive alternatives ended up solving their needs and were easier to facilitate.”
President, Regional Design/Build Architectural Firm, Bethesda, Maryland

Here is another take on the “Customer is Always Right” adage: “The customer is always right—even when they’re not.  As business owners, we’re immersed in our industry’s products and services. We inevitably know more than our customers and feel that they should accept our advice. But in the end, it just doesn’t make a difference what we want. It is what they will buy and we need to cater to their buying instincts”
CEO, $25MM Revenue Pool & Spa installer, Maryland

“Think about the long term consequences of a “fast cash” deal. One of favorite CEOs had the following insight: “The devil always arrives carrying cash.  Translation: The things that can distract startups away from their originally-intended mission are often business deals that tempt the management team with short-term cash.”
President, $65MM revenue General Contractor, Washington, DC Region

“The success of a business and its character is defined by the clarity and focus of its mission, and then by how well the business’s leaders stay true to that focus and steer clear of distractions. In a way, a company defines itself by what it says ‘no’ to.”
Executive Director, Management Consulting Firm, Chevy Chase, Maryland

“The best advice I received when I bought my first company was: Get lots of advice.  Surround yourself with great advisors, and a great network.  Don’t be afraid to ask lots of questions, and be willing to pay for good advice.”
CEO $35MM revenue Cabinetry Wholesaler, Northern Virginia

“Hire a great attorney from the beginning – someone who knows how to set up your company correctly.  Also engage a startup-savvy accountant, and team up with a banker who understands early-stage businesses.  Early on, these are the three people you need to rely on and trust the most.”
Owner, Successful Restaurants in Maryland and Virginia

“Keep customer focused, watch what your competitors are doing and do it better. Never stop examining how you do things and how you can do them more effectively. Never, never lose focus on your customers.”
General Partner, Multi-Office Title Company, Washington, DC region