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I know that you've all thought about it. Maybe, deep down, you know you will do it one day. I know that I had been thinking about it for years before I finally started my own business. Perhaps I'd be driving home, late at night after another 14 hour day at work. Or maybe I was stuck at another airport, a long way from home, saying goodnight to my children over a dodgy mobile phone connection. Especially after a conversation with the boss! "Why am I doing it…?" I would find myself asking. I'm slogging my guts out for this company! I don't mind working hard, but I just wish I was doing it for myself… running my own show. If I was working for myself I'd happily work even harder, but at least I'd have something more to show for it. Oh I know I've got the big salary, the share options, the BUPA, the pension… but if I started my own company, I could have even more; I'd be building something for the future that would be worth something, and maybe I'd enjoy it more too. Taking the step from corporate life to starting and running your own business can be terrifying. Apart from the obvious issues of losing all that security, and especially the regular salary, there is one overriding fear; the fear of failure. I don't care if you have had terrific success to date; even if you have run major global operations, led them to unheard of success, never missing a target. I'm certain that the biggest reason for not striking out on your own is the possibility, however slight, that at some point you might have to admit to yourself and to others that you didn't make it. I had exactly this concern. I had always had great success in my career. I had never been out of a job, my references were impeccable, I was confident in my abilities; indeed, people I respected positively encouraged me. But still, there was this nagging doubt. What if I threw caution to the winds, severed the umbilical cord that attached me firmly to corporate-land, and, instead of treating other people's money like it was my own, took my own money and started treating that like it was someone else's? And what if I ran out of money before enough came in? What if I lost everything I had worked for all these years? Well (I argued to myself) I could always go back and get a job again. I'd be no worse off. I could pretend it never happened, tell everyone that I took a year off and tried, and get back on the treadmill again. Of course I knew that I never would actually go back once I stepped off into space, but it was comforting to feel that there was a safety net of sorts. I finally plucked up the courage to do it. I tried to convince myself that the fact that I had just celebrated my 40th birthday had nothing to do with it. All my colleagues on the executive team and the CEO said I was crazy; he offered me all that I had been asking for if I just changed my mind and stayed, but my mind was made up. And I had been preparing, I had set up a company, found some partners, raised a little money, we even had a little revenue coming in from our first sale! I thought to myself that if I didn't go now, I never would. I even liked the name of the business: Strength5. Apart from being a good strong word, this was the internationally recognised radio signal check terminology used by pilots and sailors; "…reading you strength 5..." means "…I can hear you loud and clear…" For a technology company specialising in marketing communication applications, it seemed perfect. I set myself a time limit. If it hadn't worked in 6 months, I'd go back and find another job. Maybe I could get consultancy work. I could always be an interim manager or something. The important thing was ensuring that I had enough money for my children, and I really didn't want to sell my house. I liked living there! In the end, I negotiated a leaving contract, where I would work for my employer for a few days every month if I wanted to, with the option to return to full employment with all my shares intact after 3 months. This gave me even more comfort, and of course confidence in my abilities. Trust me; running your own business requires never ending supplies of self-belief. Anything that helps to top-up supplies of this extraordinary but very rare and quickly depleted commodity is to be welcomed. The first 3 months went better than we ever dreamed it could. We closed twice as much business as we had forecast, one of which was a large project which was a stretch for us but, if it paid off, could be huge. Our original customer, a well known motor insurance company, appeared to be delivering regular monthly revenue we could count on as a cash-cow to support the business as we looked for more complex and profitable opportunities. My partners and I weren't millionaires yet, but it was surely just a matter of time! Everyone in business will tell you that if you haven't experienced almost a total loss, or gone so close to the wire that you don't know if you can get back again, it's just not happened to you yet. I had even been involved in businesses that I knew had sailed very close to the wind, and I remember having had concerns then about my future with those companies. But I always received my salary, every month. In the middle of the first year things took a downturn. After our initial successes, we had spent more than we ought to on development. We even paid out for a consultancy to help us refine our business plan so that when we needed to go to the market to raise money we would be ready. When our key sponsor at our main customer left, I wasn't overly worried; I had built up relationships to cover this eventuality. Soon however, the steady revenue started to dwindle, and then dried up altogether. The large project was still happening, but was taking longer than anticipated to deliver. Money was short. I gave myself a pay cut, then another. I worked harder on collecting overdue invoices than selling to new customers. I was running out of money and worse; I was running out of self-belief. The 6 month limit I had set for the venture came and went. Things were no better but I just couldn't bring myself to give up. The kids were OK, but I had missed a mortgage payment, the first time ever. I had no idea how I was going to make the next one. I had enough money for food, but only just. I stopped going out other than to customer appointments. I was in colossal debt, and was living hand to mouth, literally. These were dark days, I thought I had failed. The end came when I had to borrow some cash from a friend to put enough fuel in my car to allow me to visit a customer. This had to stop. Finally, after 11 months, I went job hunting, and within a few weeks I had agreed a lucrative 6 month contract to set up the UK division of a small New Zealand based company that was expanding in Europe. At around the same time, the sales started to come in for Strength5. The large project had finally been delivered, and was proving immensely successful. The customer paid their invoices on time and new business came in on the back of the project. More customers signed up. I was flushed with success, money, and confidence. My self-belief returned, but this time, it was different. It had an edge. I had learned to be careful. I also had the knowledge that I had been to the edge, looked over the abyss, and managed to pull myself back. Two and a half years on, Strength5 is now stable, profitable, and growing. We have a headcount of 11 (some part-time) and major corporate customers in both the UK and Ireland. Organisations are looking at us as a potential acquisition target. I supplement my income from the business by consulting for overseas businesses setting up in the UK and doing some sales coaching. This relieves pressure on the business and keeps it highly profitable. I look back at the dark days of that summer with some pride. I learned valuable lessons that will stay with me. I am still not a millionaire, but I am comfortable, having at least re-attained the income levels that I was at prior to resigning from corporate life. I am much happier now than I have ever been. Key Lessons:
Andrew Humphries is 42. Prior to setting up Strength5 he had a corporate career in sales and marketing spanning nearly 20 years, working at director level for Siemens Computer Systems (now Fujitsu Siemens Computers), Globix Corporation and Digital Equipment Corporation (DEC). He has 5 children, drives a 1971 Jensen Interceptor (he always wanted one), sings in a rock band, flies gliders and sails yachts.
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