As you know we are five this week. I’ve already blogged about why engaging on pensions is still relevant. This blog summarises how we got started.
I’d never run a business before and never really had any particular desire to. I’d worked in the pensions sector since leaving school, had many technical and managerial roles but nothing about running a business.
I’d reached a point where I was unhappy with my role and some of the office politics which kept presenting themselves. I worked away from home for 4/5 days for five years. I was tired. I could see areas which needed addressing and where I could help pension scheme members and employers. But I couldn’t help because of business processes and red tape.
So I hit a wall, resigned and set up Pen-gage. I learnt many things along the way and here are my top five:
1. Prepare for the emotional pendulum
This is very apparent in the early days. Emotions flitting from ‘this is the best thing I have ever done’ to ‘what the hell am I doing’ every few seconds. Don’t resist it, you need it. The combination of elation and doubt will be what keeps you focused whilst remaining realistic, objective and so on. It does get easier. I still have the pendulum, but the frequency settles down and is much further apart now.
2. Seek input from elsewhere
My husband knows nothing about pensions and has never run a business. He does however know me. He has experience in the world, and he is quite often my first point of contact when I am reviewing, considering, assessing something. The insight he has provided has been invaluable and significant to some of the decisions I have made. I also have a business adviser who was available in the beginning and has been a godsend when it comes to business matters – grants, free courses, networks, sounding board and so on. You as one person will not know everything, doesn’t matter how good you are.
3. Trust your people
We now have people. We are a team of five. My first squad member was Nigel. This was very exciting and terrifying. I suddenly had to hand over some of my business to someone else. I also, suddenly had responsibility for other people. Had to pay them, and other grown-up things. That focusses the mind. Nigel has been very aware of this since day one and was the person who flagged it up. It is hard but you have to let go. I employed this team, and I employed them because they are good people who know what they are doing and have great knowledge and skills. Lots of things, they are better at than I am. So yeah, trust in your squad.
4. You must have a life
I cannot stress how many times I see business owners working 24/7. It is hard and you do need to put the work in to build your company up. However, you should not be doing this at the detriment to yourself. Not working for someone means you control your work life balance. I work a 4-day week when I can. I am not lazy. I just know me. I have my own anxieties and issues and things I need and want to do outside of my work life. When I am at work I want to be at my very best. So, I draw lines and try as best as possible to stick to them. You cannot run an amazing business if you are so tired you can hardly think and have no time to brush your hair. You just cannot, it’s not sustainable.
5. Cashflow is not an indication of success
I had a massive thing when I started Pen-gage about money. Mainly because I was worried, I would fail to meet my financial obligations to my household which is reasonable. But for ages I resisted any sort of business credit. I had it built into my head that I could not take out an overdraft as it would mean I was failing and running at a loss.
No. Do your numbers and take sensible financial decisions. In particular, you cannot legislate for when people pay you. It’s a sad but sorry affair sometimes for small businesses. This is where cashflow can be tricky. The banks know this. You know your numbers. An overdraft or other suitable options can be the bridge you need because of other people, not because of you. The more established you get, the more you can build up reserves and this may become less of an issue. I have had to wait 6 MONTHS sometimes to be paid…which is shocking but I know we are not alone here.
This is my story. No doubt it will have changed again when/if I do it again next year. It’s been a great adventure and it still keeps me on my toes. It’s been very rewarding and the feedback we get from clients illustrates this. It’s what has made it all worthwhile. We have made a difference.