10 amazing business lessons from a famous entrepreneur

Today we will talk about business with Larry Kim . He got an incredible experience from his business. And at the moment I was able to learn the following ten lessons from it , which I am ready to share with us.

Preface: Looking for something more

One day, one person hired you to do the work. And you did it - and did it well.
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Successful strategies have been developed. All projects completed on time. Customers are happy with the results. The company grew and increased capital. But still, something was wrong ... there was a lack of a sense of completeness.

Were your witty ideas ignored and forgotten? Are your zeal and skills fully exploited? Do the managers of your company have the necessary qualities inherent in real businessmen?

I know this feeling when you want more.

At one stage in my life, I felt a push. As if an invisible magnet dragged me in a new direction. But where did he direct me?

The year was 2007. I still had to start my own award-winning company, WordStream , which later according to Inc. Magazine has been considered the fastest growing company in the country for three years in a row.

Then I didn’t even suspect that my life will be cool.

1. Call to action

Every entrepreneur in life has a moment of enlightenment, when an idea crystallizes, and everything makes sense. I had such a moment after I developed a program to solve one problem.

My work as a marketing consultant required more time and repetitive actions than was necessary. Unfortunately, there was no suitable program on the market to solve this problem.

Therefore, I created it myself. At some point, I realized that for many my PPP automation program would be very valuable. Many small businesses do not have the time or resources to capitalize on paid search, so I decided to present my idea on the market.

I also realized that the software business has more potential than working in the service sector.
As soon as I had a product and service for sale, I realized that the time had come for decisive action. I began to present the project in venture capital firms and eventually raised several million dollars.

Lesson: come up with a few business ideas and test them, before choosing the best one and go all-in.

2. Face fear

In life, it is always easier to go with the flow and keep your goals and achievements with you, and with it failures on the way to them. This way you avoid embarrassment and criticism.

However, when you open a case, you need to promote it. You will have to put yourself on public display.

About 80% of all new companies are closed in the first year, so the circumstances are not on your side. And, even sadder, many people will hope that you will fail, even some of your partners.

The lesson is: don't hang your nose, ignore skeptics and learn from your own mistakes , so that you can succeed next time. Some people open several cases, establish different companies and regard each attempt as an invaluable experience, not a defeat.

3. Look for good consultants

In truth, the opening and promotion of my own business was in many ways a shocking experience for me. And in this case it is vital to find good consultants.

My company had consultants, including Carol Meyers from Rapid7 , Chris Letster from Constant Contact and Janet Holian, CEO at Gemvara. I consult several startups in Boston, including Curata and ThriveHive.

If you have the opportunity, probably in a mentoring program or business incubator. This is a great way to make less mistakes. Plus, among other things, you will benefit directly by gaining strong connections that will help you throughout your career.

Also in the field of marketing, Rand Fishkin created a large community that openly shares its knowledge and experience. I learned a lot from his publications and communication with him at industry events.

The lesson: I believe that every entrepreneur who wants to become a leader and business in the process of growth is important to have access to external knowledge and experience.

4. Invest profits back into business

Your new business needs to eat to grow.

At the beginning of my business, I fell in love with the sole proprietorship; I could deduct the necessary expenses, demand a high percentage as a supplier and take on numerous clients. I paid myself generously, bought a new car and, in fact, behaved irresponsibly with my new-found "wealth."

In short, I treated my company as a personal piggy bank. Big mistake.

In the end, I began to think more maturely - I cut my salary and invested the rest of my profits back into business. It’s hard to change your worldview, start to control yourself , and force yourself to spend “your own money” on other employees or marketing, but it’s still necessary for business promotion.

The lesson: Growth from the average worker to the entrepreneur can be profitable, but nonetheless dangerous, especially if you have succeeded in the initial stage. Do not let your salary increase (through sales) cloud your mind or slow down the growth of the company.

5. Creation of a team

At the initial stage, you open a case, following your hobby - what you are good at or interested in. But with the growth of the business you will be less and less engaged in what you started.

You will see that your attention will shift to finding people who are smarter than you or can do your job better.
The most important aspect of your business as a company founder is to do less of what you like and work more to create a team.

It is very important to give workers training and provide them with tools for self-development, as well as to support them along the way. Sincerity and transparency are essential for Wordstream - we expect our colleagues to be honest, ethical, and open to dialogue.

In addition, other key values ​​for us are active and successful cooperation. Our industry is moving so fast that it is just necessary to count on each other and find support from colleagues. Employees should be authorized to take a considered risk, even if it sometimes leads to failure.

Lesson: Even the best hobby can become a job if it takes a full-time job and brings a piece of bread. Train and inspire your team - employees are more interested in results if their ideas are listened to and their work is encouraged.

6. Deciding not only money

Want to make tons of money? Expand and sell business.

I will not hide: it was one of my goals.

One thing to remember is always - most entrepreneurs do not get richer too quickly. You hope that wealth will gradually come, but for this you need to firmly tune in to the fact that you need to stay in the saddle as long as possible.

Thus, in the race for tons of money, curious things happen. For example, in the process of building a business, its value becomes not only monetary.

One of the most important moments in creating your own business is the social capital and useful experience that is gained along the way. I, for example, had invaluable opportunities to meet other novice businessmen and discuss their wild ideas with them.

Lesson: Although you may well make tons of money, make sure you do not lose all the experience you have gained and use it to avoid mistakes later on.

7. Anxious Faith Faith

Moments of weakness are an integral part of the path of entrepreneurship. At the same time, when hard times come and the future of the company seems gray, you may want to give up on everything and go to work for a more successful company.

This is normal. You can think about it as much as you like.

However, casting doubt on the words, you chop your company in the bud. Entrepreneurs with limited funds equally need the continued support of investors, staff and strategic partners.

Lesson: Transparency is cool, yes. But you can not give your doubts to get the best of determination, otherwise you can easily lose faith in success. In almost all cases, it is vital to keep your doubts to yourself.

8. Chase your unicorns.

Being impatient, I often find unusual solutions to my problems. Hacking the system entails absurdly incredible results that contribute to business growth.

Do not confuse activity with progress - 99% of the work that people do consists of trying to make small changes. Instead, you should chase the unicorns.

The unicorn principle leads us to the law that one percent is better than ninety-nine. This one percent can put unicorns in an unfavorable light. But when you understand the work of this principle, you will stop chasing small changes and concentrate on more significant goals.

I believe that entrepreneurs can create their unicorns (and not wait for their sudden appearance). There is a repeatable sequence of actions. It may look like an attempt to score a goal from the other side of the field, which seems ridiculous, but still doable!

Lesson: Even minor efforts will give results. Use the available information to find out the levers of influence and find the one percent that will bring huge marketing benefits. A little math and analysis - and you can achieve significant results.

9. You (in some way) boss!

One of the most typical reasons to start your own business is the desire to be your own boss. But basically, if you engage investors (like me), you will lose sole control over the company.

Even if you do not have to resort to the help of investors, your customers will become your new boss, and they will be much more demanding than the former boss!

When you open a business — and, especially when it is in the process of growth, you depend on many people. You need to think about your employees, customers, investors and partners (external and internal) while making any decision.

Lesson: Compared to normal work with the foundation of their own business, there is less freedom and responsibility.

10. Achieving Success

I dreamed that my big idea would become a reality. But he greatly underestimated how cool it is to come to work and see your dream in action.

It is impossible to predict or describe what it is, to live in your first office, then move into a larger room, in a “real” office, celebrate your success on corporate events, be awarded an industry award, or just get really happy customers.

Every day, my employees at WordStream inspire me with their brilliant work, which makes our company so successful. I am extremely grateful for such incredible and loyal people, as well as for the opportunity to work with them. They inspire me to work harder.

Lesson: Success is great. True, when everything goes smoothly, the ground may develop for negligence; such an environment is rarely suitable for innovation.

The question is: how to remain inventive and successful?

Great lesson for aspiring entrepreneurs

“Should I open a case?”

This is a simple question that is hard to give a simple answer.

Every year I watch friends, many of whom are engaged in marketing and are thinking of plunging into the wonderful world of entrepreneurship. If you are thinking of starting your own business - be it an agency, supplier company or publishing house - think carefully about everything that has been said in this article. Creating a company from scratch will require a willingness to invest in it all your money and time.

Entrepreneurial activity is fundamentally different from any other. You must persevere the ideal. You need a mad passion for business. You will need the ability to adapt to crazy and incredible things. And among other things, you have to offer your customers or audiences something completely out of the ordinary.

Managing your own business will most likely not be what you imagine it to be, but this does not mean that it cannot exceed your expectations many times!

PS We recommend another useful article on the topic of work on yourself - 10 things that you should think about before quitting .

The author of the translation is Vyacheslav Davidenko, the founder of the TESTutor company.