Build a business, not a job

When you’re starting your own company….

1. It’s necessary to wear MANY hats.  That’s great for the company and it makes you a better entrepreneur.  But, be sure to do all of your “jobs” in a way that is repeatable by others (i.e. future employees).  Document what you do and how you do it so that in the future, when someone else is (finally!) doing that work for you, they can do it better than you did quickly.  Always think in terms of being your own employee.
2. Be strategic on the name.  It’s tempting to name the company after yourself.  “Joe’s lawn service”.  I’m not 100% against this as it usually means more public commitment with your name TRULY on the line, but there is a downside as well.  If you’d ever be interested in selling the company, it gets tougher when it’s named after you.  Remember, the buyer will think of what it’s like without you around (also applies to rule 1 above!)
3. Once profitable, etc….pay yourself a salary equal to what it would cost to pay a great manager to run the company.  The point of this is to be realistic about what it takes for THE COMPANY to function well without you.  By putting your company in this situation, you’re able to accurately “feel” what it would be like to fire yourself and let someone else run the operations.
4. Think of yourself as a shareholder.  Again, this goes back to separating the business from the person.  If you do #3 right above, then hopefully there are extra profits at the end of each quarter.  Is it best for the company to distribute those profits via dividends to shareholders, or put them into new technology/marketing/salesperson?   Think of yourself as a shareholder and stop thinking about “taking $15k out of the company to get that new waverunner”

Bottom line….the company comes first.  Your most important job is to MAXIMIZE SHAREHOLDER VALUE…and it doesn’t matter if you’re the only shareholder right now.

Don’t find yourself 10 years down the road in a situation where the business will fail or have a dramatic reduction in value if you leave.

Understand that you are being FORCED into multiple roles that could have conflicts of interest in the future.  One day, if you do this well, you won’t be there to do any of them. Prepare for that.

Win.