For another, somewhat more scholarly take on the question, What kind of company do I want to build? see Beyond Entrepreneurship, by two Stanford business professors. They revisit firmly established companies such as Nike, L.L. Bean, Wal-Mart, Federal Express, and Sony, and attempt to discover which seeds, planted at the start, ensured long-term health and success.
Read all six books; think of them as touchstones. They'll help you know what you don't know. And help you know more than when you began.
New Venture Creation, by Jeffry Timmons (Richard D. Irwin, 1985, $46.95).
Growing a Business, by Paul Hawken (Fireside, 1987, $9.95).
The Practice of Management, by Peter Drucker (Harper & Row, 1954, $10.95).
Honest Business, by Michael Phillips and Salli Rasberry (Clear Glass Publishing, 1981, $9).
Our Wildest Dreams: Women Entrepreneurs Making Money, Having Fun, Doing Good, by Joline Godfrey (HarperCollins, 1992, $20).
Beyond Entrepreneurship: Turning Your Business into an Enduring Great Company, by James Collins and William Lazier (Prentice Hall, 1992, $19.95).
Inc. Reprints
The Big Picture
"The Truth About Start-ups" ([Article link], April 1991): Why new businesses succeed or fail.
"Second Thoughts on Growth" ([Article link], March 1991): Are cautious companies more durable?
"The Turnaround" (August 1986): In-depth story of innovative management.
OUTSIDE ADVISERS
The Start-up Resource Catalog
Perspective, ideas, and feedback, provided in the flesh and addressed specifically to your own business and its unique concerns -- that's what outsiders can offer. few company builders seek enough of such advice. Here are the best places to look for it .
Friends and colleagues. They're more useful than you probably imagine. If they pick up flaws in your thinking, think some more and try to answer their objections.
Suppliers/vendors. Companies connected with your industry are often willing to lend an ear and dispense advice (whether you end up doing business with them or not). Dan Elasky, founder of Quintilian Design, in Fredericksburg, Va., is trying to bring several games to market. He's learned a lot by talking to retailers, printers, and suppliers of game parts. "Even if these aren't the people I'll deal with, they've given me lots of 'nuts and bolts' about games."
Small-business-development centers, on college campuses in most states, regularly offer seminars on market research and business plans. They're about the best resource the Small Business Administration has to offer, but some SBDCs are better than others. To get the names of several, call the SBDC Connection (800-633-6450), which operates as a clearinghouse for all the centers. Private, nonprofit, government-funded industrial-development corporations operate like SBDCs but, their directors claim, without the government red tape. With names like the Greater Burlington Industrial Corp., they're hard to find in the phone book; ask your local or state chamber of commerce, which may operate a small-business division, as Nashville and Cleveland do -- and the trend is growing.
Outside professionals. Identify companies you admire and find out what firms they use for advertising, legal, or accounting services. "By seeking the same or similar counsel, you'll find people who know how things get done in that industry," says Judy Drinka, a lawyer at Case, Drinka & Diel, in Milwaukee, who advises start-ups.
Trade groups. Unfortunately, these are often short on start-up companies and long on big corporations. But don't overlook them. Besides being a decent source of industry statistics (see "Bootstrap Market Research," page 5), trade groups can be fertile ground for finding a mentor (someone older and wiser who knows your industry inside and out but doesn't compete head on).
Professional/venture groups. One of the best sources of outside advice, because (ideally) members are in the same boat. Groups range from informal networking clubs in the neighborhood to local branches of national organizations like the National Federation of Independent Business (202-554-9000), based in Washington, D.C. The most helpful organization, suggests one CEO, is usually one whose members are just one step ahead of you in company-building experience. Annual dues for some groups can add up. Consider only groups that allow you to "sample" a meeting for free.
Once you've got your company up and running, check out Creating Effective Boards for Private Enterprise, by John Ward (Jossey-Bass, 1991, $25.95). Ward devotes a whole chapter to the truths and myths about boards, and offers concrete suggestions about when to create a board (sooner than you might think), how to select members, and how to get the most out of a board.
Inc. Reprints
Outside Advice
"Words from the Wise" ([Article link], June 1991): How can mentors help you? National Leisure's founders turned theirs into a competitive advantage.
"With a Little Help from His Friends" ([Article link], April 1989): A long-shot start-up doesn't have to go it alone.
"Unlimited Partners" ([Article link], April 1990): How three CEOs make good use of their outside boards.
NETWORKING 101
Today there's no shortage of organizations, consul-tants, accountants, and lawyers ready to help aspiring entrepreneurs. So whom should you turn to for help? Begin by contacting your city or state department of development; your state university system (ask for "business outreach"); and your local Small Business Administration office.
