Getting What You Paid For

Some of the Day One stuff you’ll learn as an entrepreneur is that everyone is lined up to give you their advice. In fact, you can observe this no matter what your profession is. Perhaps it’s just easier to notice when you’re running a start-up.

Everyone is ready to tell you why your idea won’t work or why it’s too risky or what corporate structure you should use or not use. All of this advice, of course, is free. But beware. Don’t forget the phrase: “You get what you pay for” which in this case, is nothing.

This is not to say, however, that all free advice is worthless. If that were the case, then the life of an entrepreneur is therefore made infinitely easier by definition. However, what makes our day to day (especially in the beginning stages) so difficult and in need of good discernment is the attempt to decipher what advice is actually good wisdom and which of it is garbage (though a good amount of the “garbage” is meant by good intentions). And, to add insult to injury, not all paid-for advice is gold. Sorry to make a complex issue even more so!

This is, in fact, one of my biggest concerns on a daily bases. Who do I listen to? My parents? My investors? My marketing consultant? My employees? My wife? My associates? My attorney?

Not that all of these sets of people represent a different view from any other… that just depends on the subject at hand. I have, of course, discovered a way to practice a form of “process of elimination” in terms of which message to listen to and which to cast aside.

Consider the source. This may seem like common sense, but in practice is often isn’t as easy. When you’re getting multiple sets of opinions at any given moment on any given issue, often (in what seems to be an easy solution) we as humans tend to lean towards those we’re closer to or towards those we simply perceive as smarter or more respectable. Every person more than likely has a specific area that they’re good at and others that they’re not good at. However, many people attempt to lay claim to knowing about subjects that they in fact do not. Is someone giving you financial advice? Are they where you want to be financially? If not, then perhaps they’re not best suited for giving such advice. Is a person giving you marital advice? Are they a 3-time divorcee? There may be something wrong there as well (granted, it’s never wrong to learn from someone else’s mistakes!).

Be prepared for it. Get your mind ready to receive the most ridiculous advice you can imagine. Not only that, but the more successful you become, the more advice is thrown at you. Get good at nodding and smiling. My former mentor actually advised me not to pursue the real estate location I wanted for my newest unit because he had some misconceived view of the leasing company. However, not only was this one of the most sought-after spaces in the market, but they were very accommodating to us and took a chance on a very young company and concept. Good thing I didn’t listen to that one.
Grow your advisor team. Do this one by one. Don’t expect to get your team complete over night. Sometimes, certain people won’t work out as expected. See this and act on it. Don’t drag your feet. Advisors are the most crucial part to any successful business. But remember, they’re just advisors, not decision makers. Unless you have given up 51% of the company, you are still the end of the road, which brings me to my next (and last) tip…

No matter what, you still pull the trigger. This is something that’s been difficult for me to grasp. Perhaps it’s lack of confidence (since I’m fairly inexperienced), but I tend to have a hard time carrying all the weight of decision-making responsibility. But that comes from fear. More specifically, a fear of failure. But failure is inevitable. And failure is not a bad thing… fear and pride are. Regardless, you have to become comfortable with the thought that the ultimate fate of your company lies directly on your shoulders. There are others (like your investors and board of directors) who share that risk with you, but if you still own a majority, then the final decision is on you. Don’t let this paralyze you, though. The worst decision is no decision.