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For a lot of entrepreneurs, their first enterprise is sort of a baby. They pour their ardour and dedication into its progress, and when the time involves exit, the sense of loss and uncertainty is palpable. This sense will not final ceaselessly, although, and as Richard Branson as soon as stated, “Enterprise alternatives are like buses — there’s at all times one other one coming alongside.”
The problem is making successful of your second enterprise, swerving the dreaded “tough second album” syndrome — that approach, whenever you go on to your third, fourth or fifth enterprise and past, you proceed to develop your entrepreneurial skills.
Younger entrepreneurs who’ve made a fortune from their first enterprise typically wonder if they had been simply fortunate; whether or not they occurred to catch a wave on the proper second. They know they’re good, however are they nice? Did they actually earn their acquisition accomplishment — and crucially, can they do it yet again?
The one technique to show oneself is to repeat the method. That is what I did, alongside my enterprise accomplice Chris Lord, promoting our follow-up enterprise for greater than double the worth of the primary. This wasn’t simple, however I imagine that each founder thrives on goal — and if you happen to’ve nailed it as soon as, you clearly have the expertise, abilities and assets to create one thing wonderful once more. Listed here are seven prime ideas for making successful of your entrepreneurial sequel.
Associated: From Concept to Profitable Exit — 8 Classes Discovered From Constructing and Promoting a Startup
1. Replicate in your previous expertise
Earlier than beginning your subsequent enterprise, take a while to mirror in your previous expertise and analyze the components that contributed to the highs and lows of your earlier enterprise. What labored properly and what may you might have achieved higher? What abilities and information did you achieve that shall be helpful in your subsequent entrepreneurial outing? Use this deliberation to set life like expectations and to develop a plan for second-time success.
2. Go larger or go residence
Having gained invaluable insights out of your preliminary enterprise, it is time to increase the bar and purpose greater. Undertake a bullish and bold mindset, and do not be afraid to fail.
You will seemingly face elevated competitors from different corporations making an attempt to capitalize in your success. To remain forward of the curve, it is advisable be ready to blow them away with a game-changing new thought or strategy.
Whereas aiming excessive, it is essential to keep up humility and keep grounded in actuality. Previous victories shouldn’t be taken as ensures for future success. Embrace the chance to study from others and stay open to their knowledge and experiences.
3. Begin along with your exit
Contemplating an exit technique from the beginning is significant, as nearly each entrepreneur finally strikes on. Beginning with a view of the tip helps you give attention to constructing an organization that’s invaluable and enticing to potential patrons, and helps you set the groundwork for a future departure.
For second companies significantly, prioritizing the exit course of — one thing you’ve got skilled earlier than — gives readability and guides choices. Whether or not promoting, going public or passing it on, a transparent technique enhances worth and enchantment.
Associated: 4 Ideas for a Joyful Exit From the Firm You Based and Love
4. Safe funding
A well-defined exit technique can be key to attracting monetary backers, showcasing a sensible and attainable plan for enterprise progress and ROI. When setting out in your second entrepreneurial enterprise, it is clever additionally to leverage your earlier enterprise success by investing among the revenue.
Whilst you will not be the only real investor, splashing the money demonstrates confidence and helps calm any ‘second album’ considerations third-party backers might need. Moreover, your monitor document of transitioning from a dangerous guess to a much less dangerous one bolsters investor confidence. For example, Chris and I’s first enterprise yielded a 22 instances return — keen buyers, unsurprisingly, had been pulling down the door after we introduced our second outing.
5. Get an thought
Use the information and expertise out of your earlier enterprise to your benefit when beginning a brand new one. Do your analysis, determine your core competencies and focus in your strengths. Do not be afraid to take calculated dangers or attempt new issues (I pivoted from the world of e-cigarettes to sportswear remarkably easily). Most significantly, nonetheless, determine a transparent market want and create a services or products that’s really in demand.
6. Set up a successful management group
As a post-exit founder, your expertise and information are invaluable, however you may’t do all the pieces alone. Construct a sturdy, various group of proficient people — beginning with an skilled government assistant — who share your ardour and might help obtain your objectives. Encompass your self with extraordinary individuals who complement your abilities and expertise, and if it is advisable provide fairness, or a mixture of fairness and wage, to draw the very best expertise, do not hesitate.
7. Do it quick
After promoting our first firm, my enterprise accomplice and I began our second on the two-hour prepare experience residence. We mirrored on what went properly and what may have been improved in our preliminary enterprise and used that to develop a brand new concept that we had been captivated with. We had been keen to adapt to modifications available in the market and our enterprise atmosphere, and we had been open to suggestions from our clients and group, however we knew we needed to act quick. And we did, with nice outcomes.
Associated: 3 Components to Take into account Earlier than Exiting Your Startup
An distinctive entrepreneurial future
Having endured the psychological and emotional pressure of promoting their first, beloved enterprise, it is pure that post-exit founders ought to discover the prospect of beginning afresh scary. However let me let you know this: You may have what it takes to do it once more.
Preserve your eyes on the prize, maintain your resolve sturdy and do not shrink back from challenges. With an excellent thought, a stable plan and a drive to behave quick, you may obtain enterprise success for the second time, banishing the specter of second album syndrome and paving the best way for an distinctive entrepreneurial journey sooner or later.