Entrepreneurship is a thrilling game. I started my own adverting and idea agency almost two years ago. Building my business has been the most fun and exciting chapter in a career full of fun and exciting chapters. If you think you’d like to play entrepreneur, I have a few insights to share. But I should warn you, I don’t have an MBA. My business philosophies come from life.
Creating your own business requires four elements:
- Vision to see what you want to build.
- Optimism to believe you can do it.
- Will Power to keep you moving forward.
- Money to pay the bills.
The first three inputs are about attitude. If you have a great attitude, you have 75% of the requirements covered. Then there is number four. It has ruined many a good business. It’s the proverbial turd in the punch bowl. And there is no way around it.
Money, Money, Money, Money
It isn’t enough simply to have money. The real challenge is that you have to invest your money at the proper pace. If you spend too little you don’t grow, you don’t mature, and you don’t get closer to your ultimate vision. But if you spend too much, you die.
In order to thrive, you need to find the sweet spot between these two pitfalls. This is the game of business finance in a nutshell. And if you remember your shell history, the nutshell beat out both the eggshell and the clamshell as the perfect container for simple summations.
So how do you know when to save and when to spend? I have developed an approach to spending money that influences every purchase, every hire, and financial commitment we make at The Weaponry.
The Kite Flying Method.
I think of spending money like flying a kite. Once you get a kite in the air, you have to decide if you are satisfied flying it ten feet above the ground. If you are not, and I hope you are not, you have to let out more string.
You let out more string when the wind increases. Not before. This sounds simple enough. But the key is knowing the difference between winds and gusts. A gust is temporary. If you let out string because of a gust, you are in trouble. Because when the gust stops, your line will go slack, and the kite will plummet to the ground. This is bad.
The wind is your income. The string is your outgo. If you want your business to soar to impressive heights, you have to let out string. But always let out less string than the wind can support. That tension you feel is profitability. It is what keeps you in control. Always maintain that. It will keep you soaring for as long as you want to play.