Navigating Entrepreneurship: Lessons from a Seasoned Businessman

A respected businessman generously shared some valuable lessons from his entrepreneurial journey with me. Many of these lessons were acquired through pain and sacrifice, yet he reflects on them today with gratitude. In this discussion, I’ll delve into a few of these insights, reserving others for a future conversation.

One crucial piece of advice he emphasized was, “Your business is not you.” Frequently, I observe business owners intertwining their personal identity with that of their businesses. While there might be a natural inclination to associate personal success with business achievements, especially when the business shares the owner’s name, like Dangote or a foundation, it is imperative to establish a distinct separation. While it may contribute positively to public relations, maintaining this separation requires a level of maturity to avoid complications.

According to the U.S. Bureau of Labor Statistics (BLS), around 20% of new businesses fail within the first two years, 45% within the first five years, and 65% within the initial 10 years. A mere 25% of new businesses manage to surpass the 15-year mark.

The experienced businessman further expounds, “The reason behind my earlier statement is that many people mistakenly believe the money they make in business is exclusively theirs. They spend it for personal reasons, and before they realize, they encounter problems.” He adds, “I learned this the hard way.”

Whether it’s ego, lack of discipline, or inadequate knowledge, this businessman’s revelation came when he decided to engage an accountant. Prior to this, the business he was diligently building suffered financially. He strongly advocates for business owners to assign themselves a fixed salary and exert effort to live within their means. Although your business may be thriving, it is crucial to allow it room to grow. “Unless you’re building a mediocre business, refrain from personalizing the money your business generates.”

He emphasizes the importance of implementing structures that shield your business from your ego and the temptation of immediate self-gratification. Many businesses meet premature demises not just due to unfavorable government policies but also because of a lack of discipline in leadership.