Only in America can a 19-year-old kid launch a million-dollar
music business from his dorm room and two 17-year-old twins own a
media empire worth close to $1 billion. And while it's easy to
watch with envy as young entrepreneurs continue to grow up around
you and fulfill your entrepreneurial dreams, you really have two
choices: You can seethe at their success, or you can put jealousy
aside and listen to the advice they have to offer.
Scott Smigler, 22, is one young entrepreneur who has learned
some important lessons from his pursuit of entrepreneurship.
Smigler started Exclusive Concepts Inc., a company that provides
professional Web design and online marketing solutions to growing
businesses, when he was only a freshman in high school. Smigler ran
the company by himself at first, slowly building a reputation with
his clients and gaining more business through word of mouth. As he
put himself through college, he ran the business out of his dorm
room until May 2002. Now, he has offices in Burlington,
Massachusetts, and a staff of five, and expects to bring in sales
of $300,000 in 2003. Between working full-time on his business,
maintaining a 3.7 GPA as a finance major at Bentley College in
Waltham, Massachusetts, and running the Entrepreneurship Society he
co-founded at his school, Smigler took some time out of his 90-hour
week to offer entrepreneurs-of any age-some advice: ten of the most
important lessons he's learned from starting and running his
own business.
1. It's all about perseverance. Implementing your
dream is never as easy as you think it will be-it can take years to
develop. Make sure you're organized and stay focused. And
understand that you can't reach the highest levels of success
without taking risks and maintaining the strength of mind needed to
persevere through the difficult times.
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"I know there are so many people right now, especially my
age, who are looking to start and develop their own business,"
says Smigler. "It's such an intimidating process once
you've broken through the first layer and you have to worry
about insurance and payroll and making sure your accounting is
perfect. So many people allow themselves to get intimidated by
it&$151;they're not willing to follow their dreams.
It's very important for people to really sit down and recognize
exactly what they want out of life-and their business life-and just
go for it."
2. Understand the value of mentorship and teamwork. A
small company doesn't have all the resources it will need
internally. So it's essential to have a network of advisors,
mentors and other people who can help you work through the problems
you encounter-whether those problems are related to finances,
marketing, whatever.
3. Stick to your niche. "I've learned that I can
only make money when I stay focused on what my company does
best," Smigler says. "This isn't to say I don't
pursue avenues where I can expand my business. Ultimately, the
needs of my customers will dictate the services I offer.
"Everything I do has to be based on a very strong
customer-service focus. We know a lot about our clients because we
spend a lot of time knowing exactly what they need."
4. Stay on top of news that affects your clients. Major
events happen almost every day that will affect your customers. In
order to ensure the best for them, you must be up-to-date on the
latest market trends and implement them so your company
consistently offers the best services and your clients receive the
best there is to offer. "Even on the busiest of days,"
says Smigler, "my entire staff and I are required to monitor
late-breaking news. Knowledge separates you from your
competitors."
5. Communication is key. While you think your clients
understand what you say, often they don't. Be sure to always
speak clearly and follow up with concise e-mails. You must also
pace their expectations with the reality of the project. Part of
the communication process involves documenting the understanding
between your company and the client so that in the event of a
misunderstanding, you have an agreement to fall back on. Not only
does the client need to know what they can expect from you,
it's essential that the client understands your expectations of
them. Success is a two-way street.
"Search-engine marketing and Web development can be very
intimidating to a lot of people," says Smigler. "My
clients tell me over and over again that what makes a huge
difference to them is that I take the time to explain things
clearly and that I'm patient with them. They know they're
not just getting a cookie-cutter solution."
6. Capitalization is crucial. Everything is more
expensive than you'll anticipate. In your budgeting process,
you need to plan for things you haven't anticipated but that
will more than likely happen. In addition, don't be a
penny-pincher: Don't be afraid to spend money when you believe
the return will warrant the risk.
7. Communicate unwavering honesty and integrity. Above
everything else, you must be truthful. Dishonesty is a sign of
weakness, not to mention a poor business strategy. If your clients
know you'll always be truthful with them and "tell it like
it is," they'll never have any reason to doubt you. Your
reputation as an excellent service provider takes years to
develop-but it can be destroyed in a minute.
"My family pushes the simplicity of life that comes from
honesty and character and integrity," Smigler says. "One
of the big things that makes [our company] different is our clients
really do trust us."
8. Stay on top of the curve. The environment of business
changes rapidly, and education is a critical factor to success.
"There was a time when I was tempted to drop out of college
and devote all my time to managing my growing company,"
Smigler says. "I recognized that it wouldn't be a smart
strategy for the long term. It's possible to grow a company
while being successful in school."
9. Take ownership in your clients' success. When you
undertake the commitment to provide products or services for a
company, you must work at it as diligently as they expect you to.
Keep your customers' needs in mind at all times. And remember:
If you're able to help your clients become successful, they
will make you successful because what goes around, comes
around.
10. Never stop marketing. Never forget that anyone can be
a prospective client. Constantly look to build on your existing
relationships, as well as acquire new ones. You need to catch the
customer at the moment they have a need. By staying in front of
them on a regular basis, you become known to them, so when they do
have a need, they'll be more inclined to give you the business
without shopping around. The value of a referral is always more
than the value of a cold lead.
And finally, Smigler offers these final words of advice:
Don't forget to find the correct balance of work and play.
Although starting and running your own company requires much focus,
dedication and time, you must strive to maintain a balance in your
life. As much as you want your business to succeed, you have to
recognize that it doesn't have to be at the expense of not
having a life outside of it. Being properly structured in your
business also means being structured enough to allow yourself some
personal time off.
And those are wise words whether you're old or
young.
Sarah Pierce is a freelance writer living in Southern
California.