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For a lot of entrepreneurs, their first enterprise is sort of a little one. They pour their ardour and dedication into its development, and when the time involves exit, the sense of loss and uncertainty is palpable. This sense will not final perpetually, although, and as Richard Branson as soon as mentioned, “Enterprise alternatives are like buses — there’s all the time one other one coming alongside.”
The problem is making a hit of your second enterprise, swerving the dreaded “troublesome second album” syndrome — that method, while you go on to your third, fourth or fifth enterprise and past, you proceed to develop your entrepreneurial talents.
Younger entrepreneurs who’ve made a fortune from their first enterprise usually wonder if they have 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 over again?
The one method to show oneself is to repeat the method. That is what I did, alongside my enterprise companion Chris Lord, promoting our follow-up enterprise for greater than double the worth of the primary. This wasn’t straightforward, however I imagine that each founder thrives on objective — and should you’ve nailed it as soon as, you clearly have the expertise, abilities and sources to create one thing wonderful once more. Listed below are seven high suggestions for making a hit of your entrepreneurial sequel.
Associated: From Thought to Profitable Exit — 8 Classes Realized From Constructing and Promoting a Startup
1. Replicate in your previous expertise
Earlier than beginning your subsequent enterprise, take a while to replicate in your previous expertise and analyze the components that contributed to the highs and lows of your earlier enterprise. What labored nicely and what might you’ve gotten executed higher? What abilities and data did you achieve that can 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 greater or go house
Having gained useful insights out of your preliminary enterprise, it is time to increase the bar and goal larger. Undertake a bullish and impressive mindset, and do not be afraid to fail.
You will seemingly face elevated competitors from different firms making an attempt to capitalize in your success. To remain forward of the curve, you want to be ready to blow them away with a game-changing new concept or method.
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 be taught from others and stay open to their knowledge and experiences.
3. Begin together with your exit
Contemplating an exit technique from the beginning is important, as nearly each entrepreneur finally strikes on. Beginning with a view of the top helps you give attention to constructing an organization that’s useful and engaging to potential consumers, 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 — offers readability and guides selections. Whether or not promoting, going public or passing it on, a transparent technique enhances worth and attraction.
Associated: 4 Suggestions for a Blissful 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 development and ROI. When setting out in your second entrepreneurial enterprise, it is sensible additionally to leverage your earlier enterprise success by investing a number of the revenue.
When 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 observe report of transitioning from a dangerous wager 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, have been pulling down the door after we introduced our second outing.
5. Get an concept
Use the data 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 data are invaluable, however you’ll be able to’t do all the things alone. Construct a robust, numerous group of gifted people — beginning with an skilled govt assistant — who share your ardour and might help obtain your targets. Encompass your self with extraordinary individuals who complement your abilities and expertise, and if you want to supply fairness, or a mixture of fairness and wage, to draw the perfect expertise, do not hesitate.
7. Do it quick
After promoting our first firm, my enterprise companion and I began our second on the two-hour prepare journey house. We mirrored on what went nicely and what might have been improved in our preliminary enterprise and used that to develop a brand new concept that we have been enthusiastic about. We have been keen to adapt to adjustments out there and our enterprise atmosphere, and we have 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 Elements to Contemplate 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 will have what it takes to do it once more.
Maintain your eyes on the prize, maintain your resolve robust and do not draw back from challenges. With an excellent concept, a strong plan and a drive to behave quick, you’ll be able to 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.
