One of the best ways to learn about entrepreneurism, I believe, is from a family member who has successfully built an enterprise.
It doesn’t matter if it is a mother, father, uncle or distant cousin; a relative who is forthcoming about challenges and requirements can help you avoid some costly learning experiences. This individual can also serve as a personal example to follow as you set out to build your own company.
For me, that person was my father, Farris Craig. Right after World War II ended, he and my mother, Alice Craig, founded Craig Distributing, a snack food wholesaler. Dad began with a panel truck and several peanut vending machines, and he grew it to a much larger business. In 1986, he sold his company to Kraft Foods.
Taking Dad’s Advice to Heart
Craig Distributing’s business offices were located next to our home in Salem, Mo., and I spent many days somewhere in the offices or warehouse. There were constant business discussions at dinner and in the car. I saw the day-to-day workings of what was required to build relationships with thousands of small business owners in central and southern Missouri.
Dad was very wise in regard to money management. Because he had to bootstrap his company, he understood the importance of financial stability in the early stages of growth. To quote Dad directly, “When you start a business, be certain you are capitalized from the beginning. As it grows, your business will require more and more capital.”
I took his advice to heart when I decided to launch my first business, Craig Safety, setting aside sufficient funds to cover expenses for 12 to 18 months. And I was glad I did. It took more time than I anticipated to secure the clients needed to achieve a steady cash flow.
I always urge beginning entrepreneurs to secure a substantial cash reserve of money to cover expenses for 12 months or more.
This financial cushion often adds another layer of security, giving you the peace of mind and the security you need to focus on securing customers and building your business. The less time spent seeking funding, or worrying about financial issues, the more productive you can be as a leader.
An Enduring Example
Luckily, both of my parents were able to see me start my own company. Dad, who passed away in 2006, was not excited at first when I told him I wanted to follow his lead and start my own business. He told me he thought I would face greater challenges than he did because of increased legal and government compliance standards for business.
By applying the insights I learned from him, though, my company has not only survived, but attained new levels of success. His advice and his example have helped me become the entrepreneur I am today.
