How I Took a Leap of Faith — and Launched My Own Business

In this series, professionals share how they embrace the entrepreneurial mindset. See the stories here, then write your own (use #BetheBoss in the post).

Tears rolled down my checks as I heard the news... Within a pivotal moment, my plans were disrupted and I found my future unraveling. All from a simple announcement....

As I sat through the meeting, I reflected on my plans for the future. As my current CEO spoke of selling the company where I was currently employed, my plan to work five more years and retire from the company was no longer viable. I didn't want to start my own company, but I felt that I had no choice. 

The CEO wanted out. He was selling the company and gaining $40M from the sale. My equity was small. He kept reiterating that I still had a job; but I swallowed hard, it was no longer a position that I wanted. Why? When I stand up and speak before clients, I have to believe in the content. Since I did not believe in the methodology of the acquiring company,  I felt that I would no longer have the leadership influence to do the right thing for customers. For me, it was a matter of ethics. A lump formed in my neck and I swallowed hard again. I saw no alternative, but to cash in my 401(K) and start my own firm. 

My family pushed back. "Couldn't I suck it up and be more flexible and make the new ownership structure work? How can we afford the risk?" asked my husband. "Why would you consider starting a business at the age of 60?" asked my only daughter. With her hands on her hips, her blue eyes pierced mine. She retorted with a declarative statement, "You should be talking to me about retiring now, not starting your own business. Remember, you are not 30... Why can't you be like everyone else?" Starting my business took an enormous toll on my family life. 

No doubt about it. Starting your own business is not for the faint of heart. It takes courage. The journey is a lonely one that continually tears at your soul. You must go on when you question "What will happen tomorrow?" and believe in yourself when things don't go as planned. It is the kind of courage that stretches from your big toe through the muscles of your legs through your torso into your arms to sign your name to the documents to initiate a Limited Liability Corporation (LLC). You must swallow despite the lump in your throat.

I did not want to do it, but I felt that I had no choice. When I started my career, if someone had told me that I would start my own business, I would have laughed. I was comfortable working for someone else, getting a regular check, and having someone else pay for my benefits. Scraping together payroll for the past four years would not have been on my radar. However, at my core, I must believe in what I am doing. It is in my DNA. When this principle was severed, I felt that there was no viable choice. I needed to venture out on my own. The business was started in February 2012. Soon, we will celebrate the company's fourth-year anniversary.

Starting my Own Business

How do you take a winning idea and turn it into reality? Your first objective is to determine if it is a winning idea. The first questions at the top of the list always need to be: "Is there a market? Will people buy what you are selling? And, if so, will the rate of sales exceed expenses while you build a business?"

For me, these questions were easy to ask, but difficult to answer as the regular cadence of commitments — payroll, healthcare, taxes — continued in the face of a lumpy, but promising pipeline of sales. I have a vision. Each day I work my pipeline. There are good days and bad days. I must go forward by going forward. It is not easy. In fitful sleep — tossing and turning and asking myself will my receivables meet my payables commitments — I have to remind myself that I like the freedom of working for myself.  In my core, I have passion for what I do and I like building a team.

Developing a new business model and tapping into the power of social media to build a B2B business is exhilarating. I still marvel that I can pen a post from my kitchen table and reach thousands of readers. I like the fact that I am able to help business leaders around the world make their supply chain organizations better, but it is taking me longer to build the business than I would have liked. Patience is key. Celebrating the small wins is essential. You must never waver from your purpose. 

I have not figured it all out, but here are my seven tips for others.

1. Focus on Building a Team. My employees are virtual. They are comfortable working for a startup company with small pockets. I try to find people that want to be creative, contribute to new business model, and shun tradition. I look for bright employees who want to push the envelope. I encourage them to own their own areas and take risks. As a result, the conversations are not always pretty. I tend to attract bright people with strong skills and sharp edges. In the process, I have to manage my own emotions. If I want people to own what they do, I have to guide and facilitate, but step back and let it happen. I may not like every conversation and the way that sentences are phrased; but I need to be sure that I never undermine two principles: that the employees have ownership and they feel valued. This is essential, but not easy.
2. Avoid Fixed Cost Outlays. Many new companies make the mistake of committing to fixed costs that burden the company. I have no office, and I shun software costs. I have no car or large payments. I embrace open code and shun software costs.  One of the best things that I did was not committing the business to a heavy burden of debt or fixed cost commitments. 
3. Relationships Matter. Some of my best clients come from helping others to find jobs. It's true. What goes around comes around. Networking and relationships matter. Take time to network and to build a support group. I accept every LinkedIn invitation and try to never eat alone.  When people reach out for jobs, I always help them. 
4. Shed Your Thin Skin. When you are swimming with the sharks, there is no place for thin skin. Ask for feedback often and regularly, and embrace it, and know that it is not always comfortable. Starting a business is no place for thin skin. You must continually learn, and stretch. By definition, it is uncomfortable. 
5. Build Scaleable, Repeatable Models. In a services business, like mine, people need to know how to buy. There is only one me, and my time is finite. As a result, my focus is on building scalable, repeatable models centered on providing content through many-to-many connections. This includes a new community, an annual event, and public training. In building products on one-to-many and many-to-many models, we don't get it right the first time, but we learn from the mistakes. 
6. 

   Stay True to the Mission.

   There are many ways to make money. Each opportunity needs to be weighed against the mission. My advice for the startup leader is to stay true to the mission even when it hurts. My goal is to help the supply chain business leader through new insights based on research, content and networking. When someone presents me with a new opportunity, I reject one-off projects not central to the core of the business.
7. Remind Myself that I am Lucky. I try to walk an hour each day. It can be on the way to ballet or to a meeting. When I do, many times, my mind is busily working a problem. Lately, I have tried to smile more, take a deep breath, and remind myself that I am lucky. I am doing what I love to do with people that I enjoy. My final point is that the journey is consuming, but pull-up and enjoy it. Even on the tough days, smile, and remind yourself that you are incredibly lucky...

I welcome your thoughts.... I would like to compare notes and learn from your startup journey.

About the Author:

Lora Cecere is the Founder of Supply Chain Insights. She is trying to redefine the industry analyst model to make it friendlier and more useful for supply chain leaders. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter, and is currently working on her third book, Leadership Matters. She also actively blogs on her Supply Chain Insights website, at the Supply Chain Shaman blog, and for Forbes. When not writing or running her company, Lora is training for a triathlon, taking classes for her DBA degree in research, knitting and quilting for her new granddaughter, and doing tendu (s) and Dégagé (s) to dome her feet for pointe work at the ballet barre. Lora thinks that we are never too old to learn or to push for excellence.