Should You Build Your Own Company Instead of Joining One?

The allure of entrepreneurship is undeniable. The thought of becoming your own boss, pursuing a passion, and potentially revolutionizing an industry is a dream for many. However, the path to successful entrepreneurship isn't just about a good idea; it's about a clear vision, resilience, and the right strategies. Liz Elting, a seasoned entrepreneur, recently shared her guidance about starting a business in Dream Big and Win: Translating Passion into Purpose and Creating a Billion-Dollar Business.

Liz knows quite a bit about that topic. She founded TransPerfect out of her NYU dorm room in 1992. The company has over $1 billion in revenue and offices in more than 100 cities around the world. Liz served as co-CEO until 2018. In addition to an incredible list of honors, she has been among one of Forbes’ Richest Self-Made Women every year since the list’s inception.

Liz sat down with me to share the lessons she learned founding a business and developing it into a powerhouse.

The Essence of Entrepreneurship

Starting a business isn't merely about the thrill or escaping a 9-5 job. It's a journey filled with challenges, learning, and immense satisfaction. "It's a wonderful time to start a company," Elting says. "The entrepreneurship journey, it's exciting, it's a ton of hard work, but it's fun and you can really achieve your dreams that way." 

She also emphasizes flexibility in one's approach, suggesting that entrepreneurship doesn't have to be a forever decision. "It's not a lifelong decision if it wasn't the right choice. And it's fine to try it. And if it doesn't work out, you learn something."

Spot the Gap, Don’t Necessarily Invent It

Innovation is at the heart of many entrepreneurial ventures. Yet, it's essential to understand that you don't always have to invent something groundbreaking. 

"Don't confuse being an entrepreneur with being an inventor because you still can be wildly successful without inventing something entirely new," Elting says. Often, the key lies in identifying and filling market gaps. "Working in the industry made me realize there's a real gap between what clients need and what's available in the industry."

A Proactive Ownership Mindset is Key

While many focus on the technicalities of starting a business, the underlying mindset is equally crucial. Elting speaks of a "proactive ownership mentality" where entrepreneurs think like owners, irrespective of their previous roles. This mentality leads to unmatched customer service, a vital business growth driver. "It was to spoil the client with service," she says.

Financial Prudence and Sales Focus

The early days of your business are not for lavish spending but for careful reinvestment. "You find a way," says Elting. "And it's worth it because if you take almost no money out in the early days and just keep reinvesting in the company, it pays off long term." 

Moreover, the importance of sales cannot be stressed enough. Instead of getting bogged down with intricate business plans, focus on generating sales. "It's all about sales," she adds. "Instead of focusing on writing the detailed business plan and then getting investors, instead, focus on sales, sales, sales."

Scaling Through a Strong Sales Team

Once your business is off the ground, the next step is scaling. To do this, Elting suggests you shouldn’t be the sole salesperson. "The way you scale a company is not by being the only salesperson or the main salesperson." Instead, investing in building a strong sales team should be a priority. "Focus on hiring salespeople and making that really what your focus is, building ideally a world-class sales organization, but making that the goal."

If you're a job seeker considering starting your own business instead of joining someone else's organization, the path can be thrilling but challenging. By understanding the true nature of entrepreneurship, identifying market gaps, adopting a proactive ownership mindset, focusing on sales, and scaling wisely, you can set yourself up for success. 

You can listen to my full conversation with Liz about her book by clicking here.

People often talk themselves out of taking risks in their job searches and careers. Ginnie Carlier, the Americas vice chair of talent at Ernst & Young — also known as EY, knows a thing or two about being bold when it comes to career journeys. She has traveled the globe while climbing one of the most prestigious corporate ladders in the world. Ginnie sat down with me on the latest episode of Get Hired to explain how you can lean into uncertainty and be bold. You can listen to the conversation at the top of this newsletter. You can also find a transcript of the conversation by clicking here.

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