One Minute HR Consultant

With the surge of interest in entrepreneurship, HR professionals are not immune nor exempt from feeling the “entrepreneurial bug” and desiring to pursue the goal (with accompanying joy and trails) of business ownership.  Many of you are thinking about starting your own contracting or consulting businesses, which is great.  However, before you put the “shingle” out, you must not only plan, but execute – to the hilt.  In developing your business plan, you will quickly notice that there is a wealth of information out there providing advice on how to start your new business.  Upon further research and study, you will also note common themes such as developing a business plan, marketing your services, defining your niche, etc.  However, there are many skills and activities-tasks that are rarely discussed, but are critical to your business.  I am going to share FIVE of these activities and skills with you right now that if not followed will put your business in jeopardy, before it even starts – to earn money.

1) Secure a Lawyer/Attorney: Ideally, you are going to be negotiating and securing clients with real businesses and real customers/clients.  In a perfect world, you will negotiate the requirements, define the project, and implement.  However, in the real-world there will be gray-areas regarding intellectual property ownership, process ownership, and disputes regarding service delivery.  You must get a lawyer that specializes in these matters.  Interview several, get creditable recommendations, and secure a lawyer.  If you are working on a shoe-string budget, work out reasonable payment plan and payment option, and stick to it.  No one likes to work for free and your attorney will work her heart out, but you must pay her.

2) Secure an Accountant: Many will venture into bookkeeping services if they keep financial records at all.  I will tell you right now that without a knowledgeable accountant on your team, you are putting your business in jeopardy.  Your accountant will provide such valuable advice and services that include the dangers of commingling fund/capital, capturing depreciation on office equipment, amortizing loans, writing down bad debt, capturing interest on loans, and many other valuable services.  Consistent with my advice on obtaining a lawyer, interview several accountants, work out a payment plan, and stick to it.

3) Trademark and Register Intellectual Property: Many will be tempted to go the cheap route and think that inserting “TM” and “R” symbols within unique business processes, concepts, slogans, graphics, etc. provide them common law ownership of intellectual property.  Don’t make it hard.  Register your intellectual property, unique processes, and systems.  Protect yourself.  Don’t get caught in ligation counting on common law or assumptions.  Protect your ideas, concepts, and property with a vengeance.  As a business owner that specializes in services, your intellectual property distinguishes you,  distinguishes your business, and offer a competitive advantage. Don’t put your business model at risk.

4) Review Your Financials Regularly:  As I share in interviews and in speaking engagements, it’s not your lack of expertise that will put you out of business, it’s the absence of running your business like a business that will put you out of business.  You must know where you stand financially at all times.  In addition to having an accountant, ensure that you keep your books (back-up or primary – your choice) and can pull up the financial state of your business at the click of a button.  Look for trends: Are you bleeding?  Are you profitable?  What services are making you money?  What services are you lagging?  Knowing your financials is equivalent to keeping tabs on your health.  You neglect it, your business will neglect you.

5) Know the Difference Between Staying Productive vs. Staying Busy: Here is where many new entrepreneurs get in trouble.  They proclaim their independence, develop business and marketing plans, and work on securing clients.  However, in most cases, the new entrepreneur rarely distinguishes between staying productive and staying busy.  Working on a website for 30 days is not productive.  You are not meeting with prospects that will become clients.  You are not working on requirements that will fulfill a client’s needs.  You are are in essence “marking time.”  Designing logos, going to print shops, and developing newsletters and business cards are important, but do not bring in the revenue – at least directly.  As a matter of fact, these activities may prevent you from making money because you may feel productive when in fact you are just staying busy.  You have to (no MUST) “beat the street,” schedule and meet with those interested in your services, and know how to distinguish “tire-kickers” from organizations  that are willing to utilize and pay for your services.  Don’t get caught into the mad cycle that spending 8-14 hours a day behind your computer is making you money.  You have value to add to organizations and your services are not free.  In other words: Your business has to make money.  You have to stay productive; you have to have paying clients.  Do not feel guilty that you are charging money for your valuable services.  As simple as that sounds, many new entrepreneurs just don’t get it.

All-and-all, many of you may cringe at my advice or assume that you can do workarounds.  However, and truthfully, you are an entrepreneur first if you decide to freelance, contract for services, and/or consult.  You have to think like an entrepreneur; act like an entrepreneur, and earn revenue like an entrepreneur.

Best of Luck!