5 years of entrepreneurship: Some valuable lessons
As Spex Asia turned 5 earlier this year, I took some time to reflect on this exciting journey of being an entrepreneur and business owner, and some of the valuable lessons and insights that have helped me (in hindsight) to build and grow a successful company, that has been able to weather all sorts of challenges (including during the pandemic).
My journey as an entrepreneur keeps evolving as I’m balancing my focus between the day-to-day operations, as well as looking ahead, to see what new opportunities may come our way.
For those who are considering a journey of entrepreneurship (or who have already started it) will hopefully find the following insights useful:
1 Find the right business partner.
This is probably the most important learning point in my journey. The number of active partners in a business is an important factor as well (at points, everyone will have different ideas and thoughts about the direction of the company), so having too many captains on a ship may make it difficult to navigate.
Personality wise, its best to partner with someone who complements you, rather than someone who is similar to you. You want to expand your own thoughts and cover different angles you would not think of by yourself.
All partners should feel comfortable to speak out if they disagree and share their thoughts. At the same time, you should be open to listen to each other and try to come to a unified conclusion.
2 Be prepared to work hard and to constantly upgrade and learn new skills.
Business will not come easy. To set a good example, and to maintain or grow a team, you’ll have to show the right example and work harder than all your staff but also than your competitors!
To set up good processes, you’ll have to learn new skills and through trial and error and decide on the structure and processes.
If you’re on the right track, business will pick up and as you’re growing the team, you can start delegating tasks.
3 Write things down!
Things like your slogan, mission and vision statements, business plan and goals, meeting notes and team discussions. Visualize and capture all this by writing it down and review or adjust it regularly / constantly.
4 Be aware of all the (hidden) costs in running a business.
Everything you do or use, comes at a cost. CPF, office space + furniture, electric and phone bills. Also, maintaining a certain amount in your bank accounts (to avoid paying fees). Converting currencies, can cost a lot (be smart about which currency to collect money in).
Using quick payment providers is good to get quick money, but it can cost you up to 4% of the invoice. Setting up and maintaining a website costs. Using office software costs. Using EDM and other marketing tools – also costs.
Make sure you are aware of all the monthly costs you can expect and what you are willing to spend. Don’t be afraid to try things out or to get things wrong. There’s going to be some trial and error involved with all the services out there.
5 Invest in having solid contracts.
Or invest in a legal specialist to review them for you. Don’t be afraid to take a more formal business stance, even with people you know well. Be very clear on payment terms, cancellation policy, late payment policy, and also on what you will deliver. Contracts are a fallback in case anything does not go as expected, and best is to have these contingencies agreed beforehand.
At the same time, you have to prepared to be flexible, especially with large clients, as they will have the experience and expertise to run things their way. No point to argue too much with them, just make sure you are clear on the details and will be able to manage the order accordinlgy.
Starting my own business was a risky decision. The one constant during this journey has been that unexpected things always come up that need to be taken care off (there’s no one else but you to take care of it). But overall, I find the journey very rewarding.
The number of hours I’ve worked, went up significantly, but the sense of freedom is very empowering, and the accountability of building a team who depend on my decisions and actions is both daunting and very rewarding at the same time. Looking forward to the next 5 years with Spex Asia!