Small Talk

May 15, 2011 »

What The FAA Knows About Entrepreneurship

Last night, my wife and I had dinner with some friends who we hadn’t seen in a while.  My friend Chris was asking me about my business, and wanted to hear about my experiences over the past few years since I had started HealthTalker.  As I reflected on my entrepreneurial journey, I realized that there are quite a few similarities to what travelers hear from flight attendants before their plane departs from the gate.  So in homage to the FAA and their infinite wisdom, here are four important pieces of advice for running a small business.

As we get ready to depart, please fasten your seat belt low and tight across your waist.  In other words, buckle up, pal, and be forewarned!  This flight - this little business you’d like to start because you don’t want to work in corporate anymore - can get kind of bumpy so you better plan accordingly.  Over the past five years, I’ve had to endure my share of turbulence - from crafting the business plan, to dealing with rejection from potential clients over and over again, to running short on cash, and managing the complexities of a full-time staff.  I am forever grateful to my amazing wife in particular, and to the fantastic support system I have in my parents, siblings, extended family and friends who have buoyed my spirits whenever times got tough.  No one promised me it would be easy, and sure, it’s been a bit bumpy in spots - but overall, it’s been a heck of a fun ride. 

Take note of the nearest emergency exit, realizing that the closest one may be behind you.  I don’t think anyone starts a business already planning on how to exit, but it is useful advice to both plan for that hopeful future, but more importantly, understand how you can avoid an emergency escape.  With small businesses, cash is king, and having enough money to meet payroll every two weeks (while paying all of your other bills!) can be pretty stressful.  I found the American Express Small Business Card to be a huge lifeline for me.  At the time, I benefited from a $50,000 line of credit with12-months no payment, no interest.  It was a great deal for me, providing the equivalent of an interest-free loan for a whole year.  I also relied on an SBA loan that in a pinch provided me with just enough to make it through payroll before two client checks arrived in the mail.  Further along into my flight, two angel investors provided an additional source of funding for me, and I feel so fortunate that there were some early believers in the HealthTalker idea to help provide much-needed runway for the business to take hold. 

Don’t use electronic devices until we’ve reached 10,000 feet.  From a business perspective, what I hear them saying is, “Don’t lose focus until you’re sure you’re safely underway.”  I think that much of our success comes from staying laser-focused on doing just one thing really well.  I am very proud of the fact that we’ve stayed true to the business plan I wrote in February 2007, and resisted the tendency to chase dollars or shift our business model when no one quite understood our approach.  Instead, we persevered, and have been teaching the market how to do something new.  I guess that just takes time.  I’m pleased to say that we’re above that magical 10,000 foot elevation mark now, and we’re in an excellent place to improve and positively alter the path of our flight with greater innovation.    

In case we lose cabin pressure, put your oxygen mask on first before helping others.  There have been plenty of days when I would have gladly welcomed an oxygen mask of sorts to help get through challenging times when it almost felt hard to breathe.  Fortunately, I’m now surrounded by a very talented and dedicated staff who help me handle the pressures of running the business, and who execute on our program requirements on a consistent basis.  Our business is thriving, and we’re making a meaningful difference for our clients.  And now, we’re in an exciting position to start helping others.  For starters, a group of us at HealthTalker will be biking 25 miles this September to support my sister-in-law’s incredible foundation called Beyond the 11th.  We’ve set a goal of raising and contributing $7,500 to this worthy cause.  We’ll also be announcing details about a new pro bono concept sometime this summer that will be our way of giving back to select non-profit organizations around the world.

It seems like our economy is picking up, and as a result, there may be a stronger job market out there for employees.  But remember that playing it safe is actually a risky proposition.  So for those of you who have the interest in starting your own business, I highly encourage you to take the plunge (just like our good friend and former employee @RalphShao did two months ago!).  Just remember to buckle up!

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