From a right brainier like me, this is even hard to write down. It hurts like getting root canal. What the hell do you mean John "Prepare to Fail" Who the hell starts a business with the idea of failing?
I know, I know this goes against every motivational book you read and all the tapes you listened to preparing yourself for your business launch. It's not about that! Motivation is important, I am not knocking the power of a positive attitude! I never went into any business without 100% believing that I could achieve anything with it! If you don't believe in yourself and your product their is no point of going forward. This goes beyond the motivation and allows you to keep the positive attitude for many years ahead.
Remember, we are in pre-production mode right now. This is the preparation of the business launch and you are getting everything set up both your books, your business plan and more importantly your mind and attitude!
It is imperative that you listen to this lesson and any good attorney will tell you the same. Look, if you start from the bottom the only way you can go is up, right? And each success puts you further up the ladder. More importantly you are protecting yourself from day one.
"Prepare to Fail" begins with the initial setup of the business. From day one, you should you have your business set up correctly by seeking the advice of a smart attorney and either start out as a Corporation, an LLC, or some identity that will protect you and your family if something happens with your business. This is basic but often overlooked.
Build a loyal family!
It's true every vendor you work with, every friend or family member you seek capital from all of them should be looked at not just with eyes of motivation and positive thoughts but what would happen if this business fails.
Tell them its a startup! Write it down that your friendship, family mean much more then this business! Put it in writing that you agree to work as hard as possible to make it work but you are not personally liable if it doesn't.
If you look at the statistics.. take a hard look at them even before this economy and 4 out of 5 new business will fail the first year! Think about that! America has the greatest Capital system in the world, and it is America's Small Business that is the backbone of our economy but the figures remain the same and you, who are starting a new business need to put the "Positive Motivation" behind during the setting up the business and be realistic, and balance the energy along with common sense when bringing people into your venture.
If you use this basis in all your dealing with investors, every contract you put together is protecting you if your business doesn't succeed. You will be thankful many times over that you did.
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Copyright 2009 John DeTitta