Episode 21: The Entrepreneur's Journey
Andy Smith 🚀
Leading, Advising, & Co-Founding Scalable, High-Impact Ventures ▪️ 20+ Years of Launching, Growing, & Exiting Businesses ▪️ Big Believer in Faith, Family, Fitness, Freedom
This week's thumbnail teases a question that I think we have to ask ourselves at various stages of our journey.
Launch: Ideas are everywhere, but great ideas need vetting, customer buy-in, and big visions. Once you have that you encounter DECISION #1: Do I start that business?
Grow: Once you've got traction and maybe you're heading into momentum phase, you've got the 2nd major decision: DECISION #2: Do I grow and/or scale my business (those are different by the way).
Exit: Then one day, whether you are ready or not, you find DECISION #3: How do I exit my business. The stats say that 70% of small business owners will be able to exit! This means that if you are looking to unlock your financial freedom and highest value for your business, you need a plan. As my friend Heath Henderson says, "Exit planning is good business planning".
Let's dive into...
In Today's Newsletter:
Weekly Wins/Lessons/Thoughts from the week:
The Entrepreneur's Journey: Are You Ready for The Leap of Faith?
I'm writing this section at 8pm on a Friday night as we transition from one city to another so I'll keep it brief, but reach out if you need help, advice, or an introduction.
This week's focus is on a crucial question that entrepreneurs need to ask themselves at various stages of their journey. Let's explore the three major decisions that can define your entrepreneurial path:
Launch: The First Big Decision
Ideas are everywhere, but transforming a great idea into a successful business requires rigorous vetting, customer buy-in, and a big vision. This brings us to DECISION #1: Do I start this business? It's about more than just having an idea; it's about committing to the journey, understanding the market, and having a clear vision for the future. This stage sets the foundation for everything that follows.
Key P's in this step: People, Partnerships, and Profits
Grow: The Momentum Phase
Once you've gained traction and are moving towards momentum, you face DECISION #2: Do I grow and/or scale my business? It's essential to understand that growth and scaling are not the same. Growth is about increasing revenue and resources, while scaling is about increasing revenue without a substantial increase in costs. Deciding which path to take requires a deep understanding of your business model, market conditions, and long-term goals.
Key P's in this step: People, Purpose, Processes, Partnerships, and Profits
Yep, you'll need all five (5) Ps.
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Exit: Planning for the Future
Eventually, whether you are ready or not, you will encounter DECISION #3: How do I exit my business? Statistics show that 70% of small business owners will face an exit. To unlock your financial freedom and achieve the highest value for your business, you need a well-crafted exit plan. As my friend Heath Henderson aptly puts it, "Exit planning is good business planning." This decision is about ensuring that all your hard work culminates in a successful transition, whether through a sale, merger, or succession.
This step has five Ds instead of Ps:
Death, Divorce, Disease, Disagreement, and/or Disaster
Wherever you are on your journey is unique to YOU. You have your own set of challenges, situations, and problems. This is just a high level note that the journey will require unique skill sets along the way that change as your business changes.
Stay openminded and remember that your mindset and resourcefulness will determine how fast you move through the stages.
Weekly Take-Away: 👉 The Power of an Entrepreneurial Ecosystem 👈
Posting daily on social media has opened up a world of amazing people that I would have never met before. Reaching out directly to interesting people has done the same.
Every major "step function" forward in my life has been because of other people who helped me take that step.
Find your community.
It may just unlock the next major moment in your life.
Thank you for being here this week and I hope you have an amazing weekend. I'm heading from b'ball in Louisville, KY to lacrosse in Baltimore, Maryland. The basketball team got an amazing private tour of the facilities from some rock star football players. Incredible place. Passed the Entrepreneurial Center on our way out... Always a fan of that.
If you're looking to learn more about anything we're doing in our ecosystem, check it out here. <-- Click Link -->
Till next week, keep rocking it...
You Got This,
-Andy
Senior Vice President - Investments at Wells Fargo Advisors
4moVery good stuff, as always Andy Smith 🚀! Really like reminding founders/entrepreneurs - as you do in this note - "your journey is unique to YOU!" This is why it's so important to have advisors around you who have helped others walk these paths...most founders/owners get one shot!