5 Things I Wish I Knew Before Founding My Company
I Founded My Company 37 Years Ago. Here Are Five Lessons I’ve Learned That Would’ve Been Helpful in Those Earliest Days.
With graduation season just behind us and back-to-school on the horizon, we’re now in a period marked by new beginnings. There’s nothing like the promise of a fresh start to make one wax philosophical and think about their own choices and paths.
I founded my company, Parsec Automation, 37 years ago. Like any business, we’ve experienced both successes and setbacks along the way. If I could go back, I’m not sure whether I would do too many things differently per se, but there are some lessons I’ve learned that would’ve been helpful in those earliest days, and I’d like to share them with you.
1. Financial Aptitude Is a Must
This likely goes without saying, but finance can make or break a budding business. Understanding the complex web of financial rules and regulations that may apply to a business isn’t always a founder’s strong suit. If that’s you, that’s okay. To be successful, founders and entrepreneurs don’t need to be finance experts themselves. They just need to recognize when they aren’t and connect with someone who is.
If you have a great business idea, step one is developing a basic understanding of corporate finance, funding methods, tax requirements, etc. Then, find someone with financial expertise to provide counsel along the way. The first step ensures you know what questions to ask, and the latter ensures you get the right answers.
Early in my company’s journey, since we were not externally funded, effectively managing the cash flow was a real challenge despite having a promising business. It wasn’t until we brought in a financial expert who helped us restructure our funding strategy and streamline our expenses that we could stabilize and grow. This experience underscored the importance of having sound financial advice.
2. Learn to Ask for Help
There’s a lot to be said for putting in the work and figuring things out on your own; it’s a great skill to have and one that all leaders must hone. However, there will probably come a time when the best course of action is to ask others with specific expertise. Knowing when and how to do this is also a skill worth sharpening.
When we first started expanding internationally, we realized that trying to serve local customers overseas from California wasn’t practical. Customers were concerned with the level of support, timing, language barriers, and cost. Instead of insisting on taking care of this directly, we decided to establish a partner network and seek assistance from qualified local companies: a win for all parties involved.
3. Success Is Incremental
True success cannot happen overnight. It is built step by step and with an eye toward longevity, not instant results. For better or worse, failure is a key (and often visited) stop along the road. It’s important to set clear goals for yourself with defined outcomes, but things rarely work out the way you expect. Equally important is the need to regroup with your team after a failure, analyze what went wrong, and determine how you’ll try again.
Acknowledging and celebrating key milestones is critical to maintaining momentum. Each achievement, no matter how small, is a testament to your team’s hard work and dedication. It’s these incremental successes that build momentum and lead to the larger successes you aspire to achieve.
We had to work our way up to where we are now. One of our first major milestones was securing a contract with a mid-sized manufacturing company. It wasn’t a massive deal, but it proved our concept and gave us the confidence and credibility to approach larger clients. Each subsequent success, no matter how small, built on the previous ones, eventually leading us to partner with some of the industry’s biggest players.
4. Build a Strong Company Culture
A strong, positive culture is a competitive advantage. Invest time in understanding the kind of environment you want to build and take intentional steps to foster it. After all, your company culture will inform how your team interacts with one another, solves problems, and innovates.
When considering the workplace you want to create, start with big-picture concepts—like clear communication, mutual respect, and shared values—and then build the company’s policies and procedures to support those ideals. If a rule or strategy feels at odds with those goals, refine it. It’s also important to remember that culture can’t be built from the top down; it requires input and commitment from every level of the organization.
We work hard to maintain a culture of community, continuity, and learning at Parsec. Our business is dependent on the knowledge and experience of our team members. It’s all about our people. Building a strong team culture allowed us to create trust, open knowledge transfer, continuous learning, and long and productive tenures.
5. Adaptability Is Key
The business landscape is constantly changing, and the ability to adapt is crucial for long-term success. Encouraging a mindset of continuous learning and improvement within your team will help your business adapt. Whether it’s shifting market trends, technological advancements, or unexpected challenges, staying flexible and open to change can make the difference between thriving and failing.
Keep in mind, though, that adaptability cannot come at the expense of your core values or mission. The key is being willing to adjust your strategies and approaches to stay relevant and effective while continuing to operate in a way that stays true to your founding principles.
When the COVID-19 pandemic hit, our traditional methods of operation were severely disrupted. Like many other businesses, we had to pivot quickly to a remote work model. Although it was challenging, by staying adaptable and open to new technologies, we managed to maintain productivity and even improve certain processes.
These are just a few of the lessons I’ve learned over the years. Founding and running a company is a challenging journey, but it’s also incredibly rewarding. If you’re embarking on this path, I hope these insights help you navigate it a little more smoothly.
