3 Essential Lessons for First-Time Entrepreneurs

After almost two decades of being an entrepreneur and running a successful transcription company, I’ve learned several valuable lessons. Included in those “teaching moments” are a handful of mistakes. I once heard them described as “do-overs, mulligans.”

It’s often said that wisdom is reserved only for the most experienced. While that statement is true, there is no reason for young or inexperienced entrepreneurs to waste valuable time when more experienced business leaders are willing to share their insights and knowledge.

I was fortunate to grow up around many entrepreneurs. I had a front row seat to numerous successful and profitable ventures. I also witnessed several failures that resulted not only in financial losses but also in fraud and deceit.

While my attention remained focused on the strategies used to create and manage a profitable enterprise, I wish I had paid more attention to when a company’s strategy didn’t work or why choosing the wrong partners can produce disastrous results. Time is our most valuable asset. Below are my suggestions, which I believe will help young or beginning entrepreneurs.

Don’t repeat your mistakes

My first piece of advice is obvious. Don’t keep repeating the same mistakes. It sounds simplistic and trivial. However, I watch young or new entrepreneurs make the same mistakes, not once, but sometimes multiple times.

My first transcription company involved a business partner. Don’t get me wrong, business partnerships can work extremely well under the right circumstances. The first step is making certain that you and your partner(s) share the same vision and values.

Far too often, I see partnerships fail because of unaligned values. You may share the goal of profitability, but if the partnership’s values are not in sync, trouble will soon follow.

Fortunately, it only took a few short years for me to discover my business partnership wasn’t a good fit. Dissolving a partnership can get messy regardless of the company’s legal structure. Make certain you protect yourself by consulting business attorneys and tax professionals to develop appropriate strategies. The last thing you need is restrictive prohibitions that prevent you from operating the same or similar businesses.

Everyone should understand that it’s cheaper to keep a client than to obtain a new one. I don’t like customer churn for this very reason. My secret to keeping clients is listening to and understanding their needs and requests.

As in sports, I find that focusing on and implementing basic fundamentals helps our company keep clients. First, we personally answer phone calls and return client emails the same business day if possible.

I can’t imagine starting a business where I couldn’t answer customer phone calls. I guess that’s why I’m not in the cable TV or cellular service industry.

Along these same lines, I see young entrepreneurs lose customers because they fail to understand or follow basic client instructions. For example, our legal and law enforcement clients have very specific requirements. Not only must we comply with and meet Criminal Justice Information Services (CJIS) guidelines for sensitive information, but these clients also need their final transcriptions in a specific format.

It didn’t take but a couple of times to understand that following and meeting client expectations was critical to keeping and growing revenue. Even when you aren’t able to meet a certain requirement, it’s imperative that you quickly communicate any reason, quickly and professionally.

Clients are usually understanding if you explain why you can’t accommodate a particular request. Remember, good communication keeps customers happy and engaged.

Get as much good PR as possible

Free, or “earned” media, is an entrepreneur’s best friend. It doesn’t matter how good your product or service is; unless you can reach potential customers efficiently and inexpensively, your company will flounder or fail.

One of the first lessons I learned was the difference between advertising and public relations (PR).

Simply put, advertising is the practice of purchasing space or time in print publications, social media platforms or through TV or radio. An effective advertising strategy can help ensure that your message reaches the correct audience consistently and clearly.

Public relations primarily focuses on boosting a brand’s reputation and image. Unlike a specific advertising campaign, PR uses news stories and articles written by professionals, experts or influencers to promote you or your company.

There are multiple ways to develop a successful PR strategy. Unless you are starting a PR firm, you may not have the knowledge or skill set to develop your own PR plan. If that’s the case, don’t panic. I’ve found that most entrepreneurs can learn the PR fundamentals to achieve their specific objectives.

I’ve spent tens of thousands of dollars on PR firms and obtained little or nothing in return. Every five years or so, I fell into the trap of hiring another firm, only to get the same outcome. However, when I focused on and implemented the PR techniques that work in my industry, I saw immediate results.

Remember, no one can purchase your product or service unless they know about you. One of the strategies that’s worked for me is learning how to effectively write and post articles on LinkedIn that highlight our services and how they benefit our clients.

For example, working with organizations that offer cooperative price agreements for state and local government procurement professionals has increased our business. By posting articles on how these cooperative agreements work, I was able to share these insights with potential clients. More importantly, when industry professionals share this information with their peers, we saw our inquiries increase, leading to new clients.

Understanding your business and your customer base is essential. Only then can you identify which social media, print or digital platforms will benefit your business.

Hire a coach/mentor as soon as you can

In case you haven’t figured it out already, being an entrepreneur is not only challenging, but can quickly overwhelm even the most organized individual. Surrounding yourself with the right people should be an immediate goal. That’s why I recommend hiring a qualified business coach as quickly as possible.

As entrepreneurs, we sometimes think that we know everything and can do everything ourselves. Take it from me, you don’t and can’t.

Bill Treadwell, one of my early mentors, helped me focus on the key issues to grow my business. He also helped me understand the discipline needed to focus on and achieve my professional and personal goals.

Additionally, I’m a member of several CEO groups where entrepreneurs like me can share ideas and insight on challenging business issues. It took a few years to find the right groups, so I recommend asking experienced entrepreneurs for recommendations. All of the groups I participate in involve CEOs from various industries. Their ideas and suggestions have helped me think “outside the box” and have added substantial value to my business skills.

Finding the right coach or mentor takes time, so spend time researching and evaluating coaching services. The dividends you’ll receive from the right coach or mentor will make a real impact in your business.

Becoming a successful entrepreneur involves a lot of dedication and hard work. Entrepreneurship is also one of the best decisions I’ve made. Hopefully, the lessons that I’ve learned and highlighted in this article can help you grow a profitable and successful business.

After almost two decades of being an entrepreneur and running a successful transcription company, I’ve learned several valuable lessons. Included in those “teaching moments” are a handful of mistakes. I once heard them described as “do-overs, mulligans.”

It’s often said that wisdom is reserved only for the most experienced. While that statement is true, there is no reason for young or inexperienced entrepreneurs to waste valuable time when more experienced business leaders are willing to share their insights and knowledge.

I was fortunate to grow up around many entrepreneurs. I had a front row seat to numerous successful and profitable ventures. I also witnessed several failures that resulted not only in financial losses but also in fraud and deceit.