I met an entrepreneur who is in the early stages of building a business. They asked whether I had any tips for them. I had to decline, as I’ve learned to avoid tips since my Entrepreneurs Organization initiation a decade ago. I learned that business advice can cause unintended problems. Instead, we were taught to share relevant experiences, leaving the listener to choose what they take away.
The entrepreneur didn’t relent, asking instead what I had learned that I’d apply for my own next venture. They made it past my filter and I had an answer: I’ll be more deliberate about how I nurture the health of my partner relationships. I went through a co-founder divorce and I believe I learned a lot from that process.
The question came back to mind later in the day, along with another answer. I’ll avoid being undercapitalized. I once carried our scrappy start and existence as a badge of honor. I now understand that we had to solve a lot of extra problems because I failed to see and solve a fundamental one. When our acquirer removed the balance sheet constraint to our business, not only did it become easier to operate but it also became more profitable.