WANT TO START THE NEXT DAVIDsTEA? HERE’S WHERE TO START

Lots of things happened to me when the company I co-founded, DAVIDsTEA, became successful. But by far the most interesting is the opportunity that it afforded me to talk to other ambitious entrepreneurs about their individual dreams. I meet with people at all stages of building all kinds of businesses - and many of their questions are the same - what did you learn? what would you do differently? Here’s what I tell them. 

1) Success is dynamic

As an entrepreneur, it’s easy to mistake a milestone for the finish line. I remember when we opened our first store, on Queen Street in Toronto. By any measure, it was a huge success, but really, it was just the start of a whole new phase in our business. Our team had developed strong skill sets in their respective areas to get that store open, but we needed completely new skills to scale from that single store to 50, and then to 100, and then beyond. A great business is in a constant state of change. And a great leader needs to focus on anticipating what the business needs next - how your skills and infrastructure needs will adjust as you grow. Celebrate your milestones, but realize that success is a moving target.

2) Don’t let your ego hold you back

Working with exceptionally talented people is far more important and fulfilling than being able to call every shot. It doesn’t matter how smart you are, or how much experience you have; teachers are all around you, and the best ideas are often the ones you didn’t think of. Give talented people opportunities to make significant contributions, to shape your business, and to make it theirs - and then recognize them for it. You won’t regret it.

3) Stay lean until you have a proven business model

I see too many entrepreneurs raising money before they know how to spend it. At DAVIDsTEA, we opened two stores, and made sure those stores were set up to generate at least 20% store profit before we started to scale. Significant money should support a business model that has been tested and can be replicated. Don’t waste lots of money doubling down on approaches that aren’t proven; stay lean while you test, learn, apply those learnings, and then make your big move.

4) Be greedy on talent, not money

It sounds cliche, but your business is nothing without your people, and they should be your single-minded focus. Understand who produces for your company and reward them. And choose investors - when the time comes - who can provide access to the most talented people, not the one that ponies up the highest valuation. 

5) To know yourself is to know your business

Understand how much your personality affects your business. Too many businesses stagnate because its leaders don’t know their strengths and their limits. When DAVIDsTEA was a 70 store company, I agreed to step aside as CEO and work as part of a first-class executive team. It wasn’t easy to leave the helm of the company I had started, but I learned more than I ever thought I would, and I became a better leader and businessman because of it. Both the company and I excelled. Be honest with yourself: what do you do that is most valuable and where do you need to improve? What do you really want out of life and business? What does success look like for you? How will you continue to grow as a human being if you achieve what you’ve set out to achieve? Answering profound personal questions can provide unique clarity to your business.