The Index of "Why Didn`t They Tell Me?"
There`s nothing like advice from people who have been there! There is certainly
a lot of advice floating around these boards. What I want to do is have one
centralized thread to sort of index the best of it. Please please please, if
there is a piece of experience that you have that is missing from here, add it
in a reply!Banks don`t like you as much as you think.Banks don`t care very much about your business plan or your projections.
They care about your personal credit (it`s on the line because you have no
business credit yet), and the assets that you can put up as collateral. It`s
the same as any other type of loan. If they do happen to give you a credit line
or a loan, because you`re a high risk, you`re going to get a high interest
Angels are rare.Unless you have a rich uncle or lots of personal connections, you probably aren`t
going to find a stranger with $250,000 to give you. Sites like the Go Big
Network are useless because they are full of agents and no real investors.
The Law of 2x.
Everything you do will take twice as long and cost twice as
much as you had expected.
You will fail.
Deadlines will be missed, checks will bounce and you will be
This does NOT mean
that YOU are a failure.
Everyone has failed at one time or another. It doesn’t mean
that you or your business model is a failure. One of the partners in Second Cup
Coffee was once homeless, now his company hauls in $23 million a year.
Keep your day job.
I know a lot of people who made the mistake of jumping ship too early. I
did it myself. This goes back to The Law of 2x. I predicted that I would have
clients in my second month, but it took me six months to become grounded enough
to accept clients.
Credit is fragile.
It only takes a few late invoices before you start losing credit
It really is about who
Relevant personal connections are possibly your most important tool and you
can’t buy them. You have to earn them.
It isn’t below you to subcontract for larger companies in your field. I know a
guy who owns a courier business and he was barely breaking even with his own
clients. He now exclusively subcontracts for a larger courier and he makes
$150,000 a year.
You won’t always be
The archetypical entrepreneur works 25 hour days and 8 day
weeks. This certainly isn’t always the case. As a matter of fact, you may find
yourself bored at times.
st8ic10/31/2008 3:11 PM
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