All Articles Tagged "entrepreneurship"
Technology entrepreneurship offers an extensive amount of opportunities. But flip through most magazines and websites that delve into the space and, at times, it seems as though the content isn’t speaking to you, more so at you…and in another language. It’s a concern that The Phat Startup (TPS) team—Anthony Frasier, James Lopez, Jesal Trivedi and Jahde—recognized and aimed to disrupt.
Influenced by Lean Startup methodology and hip-hop culture, The Phat Startup is an integrated media company that develops premium content for new to serial entrepreneurs. Known for their well-attended NYC events, where they’ve brought tech heavyweights such as Reddit founder and serial investor Alexis Ohanian, VaynerMedia founder and social media expert Gary Vaynerchuk, and Ben Horowitz (a.k.a Nas’ bestie), co-founder and general partner of the venture capital fund, Andreessen Horowitz, the Phat Startup is entering a new chapter, hosting their inaugural Tech808 conference on November 21 at New York University. The conference, which is in partnership with the Clive Davis Institute, will explore the world of entrepreneurship through the view of those who are grinding and hustling to make power moves.
MadameNoire caught up with The Phat Startup co-founders to discuss tech entrepreneurship, starting your own venture and why Tech808 is a must-attend conference.
Lopez: I was inspired to start TPS because I noticed that the similarities between hip-hop and lean were a perfect way to educate aspiring entrepreneurs that resonated with the hip-hop culture. Buzzwords are cool, but if you don’t understand them you cant learn from them, or apply those lessons.
Frasier: What played a big part of me jumping into The Phat Startup is being constantly asked questions about becoming an entrepreneur. When I got together with James, and we began to see we could use the culture as a way to get entrepreneurs interested and informed, it was magic.
How did The Phat Startup go from an idea to a platform to a movement, which entails events and now your conference, Tech808?
Frasier: The blog was the first step. The content was the second. The content played a huge part in our journey. When we wrote resource guides and conducted interviews, we weren’t talking to a white kid at Stanford. Sure, anyone could relate and benefit from our content, but we had a certain demographic in mind. We wanted to ask questions a single mother in Newark, NJ could relate to. I wanted to create a guide that a college dropout in Oakland would vibe with.
As a result, it helped us gain a following. The largest reason people follow us is because we present the same resourceful, quality information you would get anywhere else, but with a cooler voice. It’s less intimidating, and people love that. We love hip-hop, so when we wave our flags we do it like any hip-hop movement would. We wear our T-shirts; we make sure the logo is visible on our products. It makes people want to join the squad and be part of something. Hip-hop taught us that.
What can attendees expect from your inaugural conference?
Lopez: For Tech808, we decided that having people talk about the come up wasn’t as valuable as them telling you how to create your own come up or movement. We wanted to get off the usual background information and have all speakers leave the community with executable advice that they can start implementing the day of in a TEDx style conversation.
We want to educate our community, so Tech808 is pure executable advice, no self-promotion.
Talk to me about the inspiration behind the name Tech808
Frasier: The Tech808 name came from our founding members: Jesal Trivedi and Jahde. The 808 is the most famous bass sound in hip-hop. It has a boom to it that is unmatched. Bringing tech together with that represents the convergence of the two cultures. It also means we not playing games out here!
How will Tech 808 be different from a lot of the other technology conferences happening in other tech hubs such as San Francisco, Austin, Atlanta and New York?
Lopez: Tech808 is different because we wanted to focus on the lessons learned from founders in the trenches right now. People like Mark Zuckerburg are super special, but the tactics they use now can’t be used by a company that is just launching. All of our speakers are building their empires from an early stage and their tactics are the ones our community needs to implement now.
Frasier: I agree with James. What also makes us different are the same reasons we were able to attract our audience. It’s the culture. It’s the comfort level [of] people asking questions and not feeling dumb, or left out. We are for the people. You don’t get that vibe when attending a larger, more popular conference.
For those aspiring to be tech entrepreneurs, what advice would you give them about starting a business in the tech space?
Lopez: As Nike would say, just do it. There will never be a perfect time to start. Start now and learn how to overcome the obstacles that you’ll face. There isn’t a blueprint to follow, but you can learn from how others over came adversity. Do that and grind!
Frasier: My biggest piece of advice for aspiring tech entrepreneurs is to learn and build as much as you can. Learn how to code. Don’t have the time to learn how to code? Learn how to prototype! Learn how to build wire frames. Learn how to communicate your vision to a technical person. But, as much time as you spend learning, you have to start building and making mistakes. Making mistakes is how we get better and, trust me, you will learn to love making mistakes in the tech world. Making mistakes is actually better than reading articles and books.
Based in New York City, Janel Martinez is a multimedia journalist who covers technology and entrepreneurship. She is the founder of “Ain’t I Latina?” an online destination geared toward Afro-Latinas. You can follow her up-to-the-minute musings on Twitter @janelmwrites.
When consumers visit Sneakah Boutique, Nailah Wright wants them to discover “original, fresh and modern” products but also feel “the retro lifestyle.”
The online boutique retailer, founded in 2013, is owned by Wright, 29, along with partners Whitney Bryant, 25 and Ernest Freeman, 22. The New Jersey company specializes in international street wear, footwear and accessories that echo what Bryant refers to as “a skateboard life.”
In just over a year, Sneakah Boutique has found its niche in the fashion world and has already launched its exclusive Bee Dope capsule line with Cross Colours, the leading street wear brand, which was founded by Carl Jones in 1989. The collaboration will allow the two entities to put out a five-piece collection, which will all be available this fall.
As Wright, Bryant and Freeman continue to branch their brand internationally, Freeman said the company will continue to “bring about retro brand awareness.”
With Wright’s background in business, sales, media, photography and film; Freeman’s expertise in finance and investment; and Bryant’s experience in the entertainment and fashion fields, the partners feel they have what it takes to make Sneakah Boutique the future of retro.
MN: How did the three of you come together to launch Sneakah Boutique?
Wright: The Sneakah Boutique concept came around in the summer of 2013. I was working for a Fortune 250 company and I’ve always liked fashion and art and I wanted to come out with a retro-style sneaker store. So one day when I was driving home, I came up with an idea and a concept and I brought it to Whitney and Ernest’s attention. They liked the business plan and the concept so we went forward with it.
MN: In just over a year, you have taken great strides in the street wear industry. How have you maintained your focus?
Bryant: Everything goes hand in hand and I think how we are branding, how we are doing our marketing plays a big part in success. For us, there has been this driving force behind how we have been able to make our presence known and how we have chosen to brand ourselves and that is what is behind some of the creative alliances that we are making. We were able to pigeon-hole and target the industry that we wanted and we went after it aggressively.
Her last name may be Smalls, but if you pull the curtain back on Tionna’s growing empire, you’ll notice just how big she’s doing it.
The megawatt personality got her start with a small investment from her mother to self-publish her first book, Girl, Get Your Mind Right!, at 22 and the rest, as they say, has been history in the making.
In the eight years since she became a published author, Smalls has added television personality (What Chilli Wants, Girl, Get Your Mind Right), relationship expert and columnist (Gawker), boutique owner (Tasty) and screenwriter (Brooklyn Bred) to her growing resume.
I recently caught up with Tionna to learn more about how she launched her various businesses, what it’s been like navigating the entertainment industry and how she’s been able to consistently reinvent herself while ultimately staying true to who she is.
MadameNoire (MN): We know you as an author, television personality, retail shop owner, and soon as a screenplay writer with Brooklyn Bred. With so much on your plate, how would you define Tionna Smalls?
Tionna Smalls (Smalls): I like to say that I’m the ‘Tionna’ of all trades. I can do a lot of things well. I am a serial entrepreneur and I have a lot of interests in things and I’ve always been someone who believes that you should go after the things you want in life no matter what. I’ve never listened to people’s opinions of what they thought I was capable of because I’m too busy grinding. I may not be the master of every industry that I [have a business in] but the one thing that I am the master of for sure is knowing how to grind and get [stuff] done.
MN: You wrote your first book, Girl, Get Your Mind Right! at the age of 22 and was cast as the relationship expert along side Chili from TLC not too long after that. How did that opportunity come about?
Smalls: The book was the catalyst for everything. Back in 2006/07 my friends and I were all single and dating in New York when I started noticing a trend with the way guys were moving and dealing with women, so I wrote about it. Once the book came out, I reached out to several media outlets, including Gawker who eventually hired me to be a columnist, and many of the critics who reviewed the book started calling me a relationship expert and the title just stuck. From there, I guess the producers for the What Chili Wants show learned about me and thought I’d be the perfect person to help her get her love life back on track. At that time, giving relationship advice was something that came natural as a hobby, but now almost 10 years later I can definitely say that I am an expert.
MN: Where did you work prior to publishing your book?
Smalls: I’ve always been a worker and I’ve always felt that before you can be a boss you have to be a worker. I started working when I was 17 at Burger King and I had a sales job. I’ve also had jobs in the nonprofit space before I became an author and entrepreneur. As I was working these different jobs, I realized that the ‘9 to 5’ life wasn’t for me; I craved freedom.
You’re never going to get to your dreams if you’re just working a job, unless your dream is to help someone else achieve their dreams.
MN: How did you finance your businesses? Did you take on any outside investment?
Smalls: With my first book my parents gave me the money to publish it. And after the book, I ended up getting a job at Gawker [as a relationship advice columnist] and I was doing marketing on the side. I invested every cent that I made into the pursuit of my goals. And then once the TV show opportunity came, I was able to finance everything else that I wanted to do at that time.
With some of the bigger things that I want to do now, I know that I need investors but it’s a difficult process because everyone wants a return right away. And then you have those people who could pour resources into your ventures but they’re hesitant because deep down they don’t want you to become bigger than they are. My advice and approach has always been to finance your business yourself. You’ll get more respect that way and may attract the right type of people to you.
MN: What was one of the most surprising things you learned about the entertainment industry?
Smalls: The thing that surprised me the most was that the people who you may have grown up with or who look like you are the ones who don’t necessarily want to see you succeed. In the industry it seems as if no one wants to help anyone else, and in a sense it’s a little bit like the drug game where everyone wants to make sure you’re not ‘selling’ on their block. Learning how to navigate the business can be depressing but ultimately you have to get to a position where you have the money and resources to afford the freedom to focus on the projects that are important to you. When you’re dependent on other people, they’ll try to tell you what’s best for you and what’s best for the culture, even when they’re not living it.
Toni Murray is CEO and co-Founder of Haute Kinky Hair, a naturally-textured premium virgin kinky hair extension line founded in 2012 with the purpose of helping professional woman find a protective style that suits their lifestyle and resembles their natural hair texture. With a growing social media following (over 10,000 Instagram followers), Haute Kinky Hair is a brand to watch in the kinky hair extension space.
Murray has over 10 years of experience in banking and real estate and holds a bachelor’s in business administration and an MBA in finance and real estate development. Murray currently runs Haute Kinky Hair while managing several business and pursuing a doctorate in natural medicine. We stole a few minutes to find out how she manages it all.
MadameNoire (MN):What inspired you to start Haute Kinky Hair (HKH)?
Toni Murray (TM): I used to wear protective styles that did not recognize who I was as a person working in the corporate world. Instead of doing the straight or wavy wigs, which clearly wasn’t me, I wanted my hair to be naturally textured. When I came to work with my naturally textured hair, it became a question as to, “What did I do to my hair?” I wanted to maintain my hair without having to manipulate it too much. I wanted a texture that actually looked like naturally textured hair and acted like it.
MN: What did you have to do to get Haute Kinky Hair off the ground?
TM: Because I had businesses before and they did not do so well, I learned from my mistakes which was a good thing. People feel that if they start one business and it doesn’t work out that the next one won’t work out but actually it’s a stepping stone for what to do right the next time.
When I started Haute Kinky Hair, I did a lot of research on the hair industry. Before I launched, I would wear each line, manipulate it, and figure out what worked and what didn’t work so that we could also figure out what kind of instructions to give people when they got the hair. I also traveled to Thailand, China, and Brazil to talk to suppliers.
MN: What is it important to travel and talk to hair suppliers in person when starting a hair business?
TM: If you are really invested in your business, seeing your suppliers and making sure that they are doing the correct thing for the extensions that you are going to sell and learning the process they use is essential. You want to be able to provide your customer service team information about how to address hair issues. If you don’t know what is going on with the hair, you can end up with a lot of inventory with a lot of issues.
MN: How long did the research stage take before you took the product to market?
TM: One year. I actually wanted to make it last two years but I had to bring it up by six months. I gave the extensions to YouTube bloggers Iknowlee, KyssMyHair, and Ambrosia Malbrough to test and to see how they liked it. Since they started posting pictures and doing YouTube videos on it, people started requesting it earlier than I planned for. I had to launch three months ahead of schedule.
MN: How did launching ahead of time impact the business?
TM: It was a good decision. If I waited any longer, the customer would have wanted to know what kind of business this is. People don’t like waiting for something if others are approving it. The fact that they are willing to do preorders and get their extensions three weeks later, I knew I was on to something. They trusted the brand. I had people who knew how to wear extensions and were a voice for them in terms of natural hair and protective styling that they trusted.
It’s not too often these days that you hear about an entrepreneur expanding with brick-and-mortar outlets, but that’s exactly what Dawn Fitch has done. The founder of Pooka Pure and Simple, a 13-year-old line of natural bath and body products, just announced a new store in Newark.
“There is so much development and so many new initiatives going on in the City; especially for the business owners on Halsey Street,” Fitch said in a press release statement about the expansion. Pooka Pure products are also available online and at more than 40 Whole Foods markets.
Black women are building businesses faster than any other demographic in the US. But it’s not just about launching a company. For many, it’s about taking it to the next level, growing the brand and making more money and a bigger name of your product.
With this latest expansion, we asked Fitch for three tips to share with aspiring entrepreneurs on the rise who are also looking to make their business flourish further. Here’s what she told us via email:
I feel like there are 3 things you need: Faith, so that you know and believe your business is going to make it; Perseverance for when it seems like its taking forever; and Support, it’s hard to make it alone
Start your business on the right track.
1. Go to your local college or university and visit their small business department, I’m pretty sure they all have one. The appointments are usually free, they will help you register your business, set up your business entity and file any paper work you need.
2. Keep good records. Even if you aren’t ready for an accountant, make sure you use Quickbooks or Excel spreadsheets to keep track of your finances.
3. Protect yourself and your ideas. Get your trademarks done early so that when your business takes off there are no issues.
If you’re still on the ground floor in the startup stage, you might want to begin with these bits of advice from Delisha Grant, an attorney with her own law firm who launched The WeBelieve Initiative to help others launch their businesses. During a panel discussion at the most recent National Action Network Annual Conference, she also talked about the importance of trademarking your idea and gave a few tips for starting a business with a partner.
When you’re starting a business, every conversation begins with capital — idea, information and investment. However for African Americans, accessing that crucial element can be a struggle. Fortunately, three Black female businesswomen shared their insight with a full room at the Tow-Knight Center for Entrepreneurial Journalism at CUNY, and I was there to get the details. The event, held in conjunction with the New York Association of Black Journalists and the CUNY Journalism School, featured solopreneur Andaiye Smith, journalist, author and professor Linda Villarosa and media entrepreneur Kelly Virella highlighting best practices to getting a new venture vested and monetized.
The speakers all began their projects with a similar goal in mind. Each undertaking is aimed at filling a gap in the market, making the ideas themselves assets. For Villarosa it was a hyperlocal blog with a dual purpose: enhancing the long-running Black periodical New York Amsterdam News and getting her students published. Virella analyzed the reading habits of herself and her friends, noting that she and her peers — even those who looked like her and worked in her field — didn’t support Black magazines. This inspired her to launch the first African-American narrative journalism magazine, Longview. Not leaving the concept to stand on its own, Virella conducted her own market research — information capital — to pinpoint her product.
Although these women are targeting what could be considered niche markets, they have two things undeniably in common: ambition and a creative approach to securing capital.
Smith, a Newark native, created Brick City Live to combat the alarming amount of negative Black-focused news in her hometown. Seeing a worthwhile long-term investment, Smith built her website on her own. Villarosa tapped into human capital; she staffed her first business with the very people it was helping — her students — and her second with her family. She also partnered with her employers, Amsterdam News and City College, which considerably reduced her need for investors to support hiring.
Smith and Virella have also taken proactive approaches to monetization. BrickCityLive.com is billed as a service that connects people to information and other resources, a bundle of jargon that broaden her ability to generate revenue. Smith also created a loyalty program that incentivizes support of local business through her brand and charges the owners, rather than the consumers, a fee for inclusion in the program. Both allow independence from the typical web income ads supply. Virella carefully outlined a handful of earning opportunities inherent to her project that she can present to potential investors as returns.
Once the women finished detailing creative paths to capital, Chris Rabb, an entrepreneurship and media consultant, expounded on the simplest form of capital. Money. Entrepreneurs need money, and according to Rabb, usually much more than calculated. He imparted that sufficient access to capital and relevant work experience are enormous boons to launching a business.
Together the panel effectively conveyed that entrepreneurs need to know exactly what capital they have already tapped. But more than that, enterprising business owners should anticipate needing more and create a strategy to guarantee it.
Mark Cuban said in an interview with Inc. recently that he knew he didn’t want to work for someone else anymore after working for a bank right after college. Enthusiastic about the job and how to help the company improve and move up the ladder, he started a “rookies club” with all the new employees where they would go out for drinks and invite some of the executives along to network. Well, Cuban’s boss wasn’t too impressed. In fact, he was upset.
“He just started screaming and said you have to run everything through me,” recalls Cuban. Obviously, his manager didn’t like employee initiative — even during off hours.
Whatever prompts your entrepreneurial drive, you should be prepared for the trials and tribulations of entrepreneurship. Adeshola Akintobi got the work-for-myself bug and started Best Face Forward Makeup Studio, a luxury makeup concierge in Brooklyn, New York.
Akintobi suggests envisioning what you want. “Close your eyes and think about what your ideal life would be like. How do you want to spend your day? If your ideal life would be spent outdoors or traveling, don’t go into the restaurant business (unless it’s a food truck) as you will spend an exorbitant amount time in one place. Speak to someone who is doing what you want to do. Find out the advantages of running that type of business but pay attention to the drawbacks,” Akintobi tells MadameNoire.
Minority women-owned businesses are the fastest-growing segment of small businesses in the United States. And African-American female-owned firms grew the fastest than any other group of firms in number of firms by 67 percent, says the Minority Business Development Agency.
According to the National Women’s Business Council, in 2007 there were 911,728 African-American women-owned businesses in the United States, a huge 66.7 percent increase in number since 2002. And African-American women-owned firms nationwide have total receipts of $36.8 billion, a growth of 78.1 percent since 2002.
If this is the route you too want to take, know clearly what you want to pursue. “You first must identify your passion and does it have retail value,” author and lifestyle coach Qwana Reynolds says. “Once you zero in on what you want to sell and share with the world you should get organized.” Also know your skills and the areas you will need help in. If you are venturing into retail but are not a good salesperson, sales will be an area you should seek help.
Also examine your motives. Don’t venture into business for the wrong reasons. “Are you ready to leave your job because of your calling, family, time, finances, or are you seeking more leadership?” asks Reynolds. “Your calling should trump all of the above otherwise you will lose your desire just like you have lost your job.”
Do an entrepreneurial check list. Make sure ask yourself these questions, says Jean Kristensen of Jean Kristensen Associates, a minority- and woman-owned business consultancy.
–Do I have adequate financial resources to pursue entrepreneurship full time?
–Do I have the support needed to start and grow a business?
–What are my unique talents and how can I incorporate them into a strategy to start and grow a business?
–Is there a need for my service?
–Who will I be selling to? How will I communicate with them?
Be aware you may try and fail. “Entrepreneurship is awesome but it is not for all,” says Reynolds. Adds Akintobi, “Don’t be discouraged. Finding out what you aren’t cut out for is helpful and vital to your success. Being an entrepreneur takes commitment (time and financial) and endurance through adversity. Knowing that running a business isn’t for you can save you time, money and a lot of heartache.”
Bottom line, going into business for yourself will most likely involve some struggles, you have to be willing to ride them out. Entrepreneurship is for you if you are “comfortable with: lack of sleep, putting your finances towards your business as opposed to wasteful spending, tons of self motivation, and have an eye for marketing.”
If you think you have what it takes, go for it. Says Akintobi, “If you have a strong desire to work for yourself and you can except the uncertainty that comes along with running a business, then by all means throw your hat into the entrepreneurial ring.”
After years of working for Nintendo both she and her husband, Derick Pearson, were let go from their marketing jobs in 2008. Although Hatcher, 30, worked in the corporate world she has a history as an entrepreneur. She is the author of The ‘C’ Students Guide to Scholarships and How to Start a Business on a Ramen Noodle Budget. Prior to joining Ninetendo, she launched two companies.
And besides Feverish Pops she is also teaching young people ages 10 to 21 to code through Code Fever, which she founded in April 2013. The program offers weekend trainings for kids and their parents and winter bootcamp sessions. Eventually it will include a full-fledged six-week program in Miami schools.
When venturing back into the entrepreneural world, Hatcher decided use $2,000 and try out her idea. She bought an ice cream cart from Craigslist, came up with fun and funky popsicle flavors and hit the streets. But Hatcher wasn’t taking her cart just anywhere. She took her Feverish Pops cart only to places where adults hung out–in front of night clubs, at weddings, etc.
Now, her boutique gourmet pop company even has a store in Midtown Miami. Hatcher uses organic and natural ingredients sweetened with organic evaporated cane juice for her unique pops. And her flavor menu has expanded to include Pineapple Basil, Mango, Strawberry Balsamic, and Chocolate Salted Coconut. She also has a line “boozy pops” with alcohol: Mango Bourbon, Watermelon Ginger Vodka and Strawberry Mojito.
Feverish Pops has catered events for such A-list clients as Google, Forever 21, Live Nation, J. Crew, Universal Music, Cirque de Soleil, Playboy, Bacardi and even the US Census Bureau. And Hatcher has been honored by the White House as one of the Top 100 Entrepreneurs under 30.
The ice cream business was a good choice. Annually, an estimated 1.53 billion gallons of ice cream and related desserts are made, generating about $10 billion annual revenue.
MadameNoire: Why the name Feverish Pops?
Felecia Hatcher: If you feel hot, you can cool down with ice cream. Ice cream and pops make people feel good and we wanted to create a brand that didn’t sound like an old-fashioned ice cream company. Plus I love dessert! I even got married in a donut shop.
MN: You and your husband were both working at Nintendo and you were both laid off. Why did you go the entrepreneurial route instead of getting another corporate position?
FH: It’s not that I didn’t look. I looked at a lot of places. I realized I could be depressed or do this crazy idea. So I picked the crazy idea.
MN: Was it a major transition to go from the corporate world to being a small business owner?
FH: I think entrepreneurism is in my blood. I started my first business when I was a teenager. Despite being a “C” student I was able to land more than $130,000 in scholarships because I knew how to market myself. People started asking me for advice and it was my mother who first said I should charge for the advice. So I started my first company, Urban Excellence. We were a college prep company and we were doing really well. I was speaking all over the country and running the business from my dorm room as a college freshman. We created college prep programs for companies like DeVry University, MECA, AMPS Institute, the YMCA, TED Center, and the Urban League. But there came a point when I asked another person to take over an account, only to find out he took the account for himself. I felt so betrayed. I stopped working on the project and swore I would never go into business again. But later on I realized it was available lesson, one that has helped me today.
Now I am very careful who I trust with Feverish Pops. At 24, I started a public relations company but I didn’t put in the effort to take it to places it could have gone. But we did create marketing and social media campaigns for such companies as Nintendo, Sony, Wells Fargo, Microsoft and Little Debbie.
MN: You have a unique marketing strategy for Feverish Pops.
FH: Yes, we didn’t want just to sell ice cream. We knew our target market was adults. Adults like ice cream too, so we wanted to give them some sophisticated flavors. And honestly I took the pops to places I wanted to hang out — nightclubs, etc. We wanted to branch out to catering but I didn’t have any contacts so I would go set up outside of the events and eventually people started hiring us. It’s all about positioning. We recently did an event for Adidas and they wanted us to do 5,000 blue pops to go along with their logo and we had the carts wrapped in the Adidas logo.
MN: What’s next for Feverish Pops?
FH: We want to start offering licensing opportunities within the next five years. This will expand our brand. We already have a program were he help young entrepreneurs set up their own Feverish Pop carts. We have a lot going on, so it’s going to be a fun 2014.
MN: Tell me about Code Fever?
FH: We are teaching underserved kids about coding. There are a lot of opportunities out there but some communities are being left behind. We want to change this. We also get the parents involved. I hope to open innovation centers soon. I think that it is everyone’s responsibility to give back. I would not be where I am today if I didn’t have help. I was a knucklehead student in high school and I want to help those same types of kids.
It’s not unusual for friends to think alike, have similar tastes and like many of the same things. And sometimes such relationships can spark incredible business ideas. But going into business with a friend can either strain a relationship to its breaking point or be the best move ever.
But before even considering going into a joint venture with your BFF there are some steps to take to insure the venture will run smoothly and the relationship will remain in tact.
Here are nine tips for going into business with a friend.
Recently Aaron McGruder, creator and executive producer of The Boondocks, was allegedly forced out of his own project. After a four-year hiatus the show will return for a fourth season on Adult Swim without McGruder. While McGruder isn’t too happy — going as far as saying on The Boondocks webpage that the cartoon had been “hijacked”–sometimes in business, founders have to step aside and let someone else take control.
Take a close look at the state of your company and your approach. Has the company been suffering under your leadership? “When you look deep inside of yourself and with a realistic assessment you discover you are not the best person for the job,” Chantay Bridges, business coach and realtor tells MadameNoire. “When your customers, consumers, friends, colleagues all bluntly communicate this is not your niche, consider hiring someone else to run the organization.”
When you are making the transition, try to do it as smoothly as possible so as not panic your clients or employees. “Create a celebratory atmosphere,” says Bridges. “Invite your colleagues to congratulate the advancement and tools the organization is putting in place to grow to higher plateaus. Depending on the size of the company, it may require you hire a team to facilitate a smooth transition.”
Entrepreneurial coach Carol Sankar agrees. “The transition needs to always be subtle, yet fast in an effort not to disrupt productivity within the company or with employees who may have personal attachments (or dislikes),” she tells us.
But letting go can be difficult, especially if you have built the company from the bottom up. It’s your baby. But like children, when they grow up there comes a time when you must give them some freedom. “There is no way that any CEO or president of a company will not take it personally. However, from an emotional standpoint, if you are doing what is best for the company, finding a replacement is better than losing it all, so take pride in the accomplishment of acknowledging change,” says Shankar.
Step away from the process if possible to make it easier for yourself. “Separate yourself from it, see it as a smart business move,” notes Bridges. “Remind yourself, part of being a good leader, is being able to follow.”
Have a strategy in place who can take over whenever you need — imagine a medical emergency that takes you out of commission. Delegate responsibility and decision-making duties. When business owners need to give final approval at every level bogs down staff, reports The Globe & Mail. And when business owners hire “do-ers” instead of leaders, they don’t feel they have competent staff to make major decisions. Avoid this.
Have a succession plan in mind. Don’t do everything yourself. “Bring in people who can do about 80 percent of the work in the company. Let your team do what they do best,” reports The Globe & Mail. Then you handle 20 percent and use your time to focus on the big picture.
Start your company with the end in mind. Face reality: most likely your business won’t be run by you forever. Whether family takes over or not, someone else will eventually step into your corner office. If you are just starting your company, think ahead 10 years and start planning now how to prepare for a time when you will step away.