This article features hand-picked entrepreneurship experts who will present at Utah Business Forward. With five distinct tracks covering entrepreneurship, international business, marketing, people & culture and strategy, this dynamic event will take place on November 16, 2023, at the Grand America Hotel in Salt Lake City. Click here to learn more about the event.

 

Utah has clinched the title as the nation’s top state for launching and nurturing businesses, according to a 2023 WalletHub study. With a business-friendly environment and boundless growth opportunities, the state has attracted over 313,500 small business owners. 

More broadly, the United States has witnessed a surge in entrepreneurial spirit comprising a staggering 31 million entrepreneurs, and newcomers to the entrepreneurial world may feel daunted by the sheer saturation of startups. Among the countless tales of challenges and triumphs, successful founders have managed to steer their ventures toward unprecedented success—and offer words of wisdom for those who dare to follow in their footsteps.

1. Prepare to take the leap

Embarking on an entrepreneurial journey is an exhilarating decision that carries risks, but taking the leap doesn’t have to mean risking everything, says entrepreneur, advisor and investor Marc Chenn. According to Chenn, recognizing an entrepreneurial mindset, amassing relevant experiences, adeptly managing risks and wholeheartedly embracing personal growth are all essential steps before taking the leap into entrepreneurship.

“If you frequently find yourself contemplating new ways to solve problems or envisioning innovative solutions, you may possess the [entrepreneurial] mindset,” says Chenn, who built a career in the corporate world before eventually founding Saltstack at the age of 40. Chenn believes entrepreneurship often begins with a mindset primed for innovation and problem-solving. The ability to identify gaps and visualize better processes or products is a promising indicator of entrepreneurial potential, he says.

While education is valuable, it may not always lead to the discovery of true passions and career paths. Chenn advises aspiring entrepreneurs to explore experiences beyond academia by engaging in hobbies, traveling and exploring different job opportunities. Because the transition into entrepreneurship requires a solid foundation of knowledge and expertise, Chenn advises gaining domain expertise and a deep understanding of a specific industry or field before beginning a startup.

“As individuals grow older, they often become more risk-averse and comfortable in their current circumstances,” Chenn says, adding that a great entrepreneur will avoid a fixed mindset and embrace growth. By continually seeking new challenges and opportunities, burgeoning founders can overcome complacency and maintain the entrepreneurial spirit. 

Chenn also recommends saving money and creating a financial safety net before taking the leap, as entrepreneurship inherently involves risks. “[This safety net] offers security during the early stages,” he says.

Evaluating your emotional resilience and understanding your risk tolerance will help you navigate the inevitable ups and downs of entrepreneurship, Chenn says, stipulating that not everyone needs to be the founder of a startup to gain valuable entrepreneurial experience. Supporting roles in startups provide excellent opportunities to learn and grow within the dynamic startup ecosystem, and joining established startups at various stages of development allows prospective founders to gain firsthand experience and insights while preparing for their own entrepreneurial journeys. 

Taking the leap doesn’t have to mean risking everything, Chenn explains. “It’s about finding the right [balance].”

2. Build a top-performing team

“Hire better than you, and let them own it,” advises Shawn D. Nelson, the founder and CEO of LoveSac. To craft a high-performing team, he continues, entrepreneurs should hire people who are outstanding and extremely knowledgeable in the domain of the new company. 

“A company is nothing more than a company of people,” Nelson explains. “Hiring top talent is still not enough. You must also be courageous enough to let them hold the reins. Trust them. Let them call the shots. It took me a long time to learn that even though some leaders might do things very differently than I would in their situation, that doesn’t make their way wrong.”

Business leaders must treat team members with the respect they deserve and credit them when they earn it, Nelson says. A good founder won’t take accolades for the work accomplished by their top employees.

Finally, when hiring, Nelson recommends leaders should “choose people you like” and avoid hiring friends. Not all of the time spent at work is going to be easy, he continues, and at times, not everyone will get along. When this happens, understand it is normal for there to be moments of fighting and frustration within companies.

Ultimately, “Top talent and top teams, operating without too much dysfunction, deliver top results. End of story,” Nelson says.

3. Utilize available resources

Entrepreneurship is not just about having a unique idea or even passion; it’s about the ecosystem that nurtures its growth. The entrepreneurial journey is strewn with pitfalls, but access to resources can help bridge the gap between budding entrepreneurs and opportunities. 

Entrepreneur-in-Residence for the State of Utah Brad Bonham believes that, had he been aware of these available resources during his initial days, his trajectory would have been marked by faster growth and fewer mistakes. As the founder of the furniture company Walker Edison, Bonham understands the challenges of building and sustaining a company while nurturing ambitions of exponential growth.

As entrepreneur-in-residence, Bonham is now charged with helping Utah entrepreneurs with these resources—and there are plenty. He suggests tapping into major events like 1 Million Cups, which convenes in Salt Lake City, Provo and Ogden to offer entrepreneurs a community to support one another. On Wednesdays, 1 Million Cups offers a welcoming and inclusive environment for entrepreneurs and their communities to come together and establish connections, allowing them to address business hurdles and discover potential prospects. Other events like the Silicon Slopes Summit, One Utah Summit and Utah Business Forward are platforms that aim to inspire future and current entrepreneurs with insights from successful business leaders.

Entrepreneurs should utilize resources like RevRoad and Saltmine, hubs where entrepreneurs can congregate, brainstorm and turn visions into reality, Bonham suggests. BoomStartup and the Lassonde Entrepreneur Institute offer a unique blend of resources tailored for startups. Silicon Slopes and the Women Tech Council offer invaluable resources for tech-driven startups. Competitions like the Utah Entrepreneur Challenge and the New Venture Challenge offer potential for capital.

“I’ve been in the trenches. I know what it’s like to pour everything into your business and see it struggle,” Bonham says. “I’ve also experienced tremendous success. Looking back, I could have started and/or scaled several of my businesses faster and more effectively had I known about the local, state and federal resources available to entrepreneurs.”

4. Master the art of fundraising

As CEO of Blue Sky Energy and co-founder of Mercato Partners, Alan E. Hall seeks to help demystify the funding process for up-and-coming entrepreneurs. 

“I will spend 60 to 90 days in due diligence activities,” Hall says of his own funding decision process. “On average, I will invest in 5 percent of the companies I evaluate.”

When deciding whether to fund a company, Hall seeks to understand where a company resides in its business life cycle. Is it at the pre-revenue stage, still in the ideation phase, demonstrating proof of concept, actively launching, experiencing revenue growth, in the midst of scaling operations, poised for high growth, or potentially an acquisition target? Each stage presents distinct challenges and opportunities. 

“I want to know [the team members’] backgrounds, experiences in the marketplace, the lessons they have learned and what successes they have had,” Hall says. “I want them to explain their vision, strategies, goals and timelines to be profitable and what risks they must overcome.”

Hall looks for a clear articulation of an entrepreneur’s vision, strategies, goals and timelines for achieving profitability, along with a candid assessment of the risks they must navigate. He seeks to understand customer needs, desires and pain points. Once these foundational questions are answered, Hall turns his attention to the solutions offered by the company to meet customer demands. He seeks to know the specifics of the product or service, including its specifications, competitive advantages and vision. Distinguishing the business from competitors is another critical factor, and Hall seeks information on unique technologies, intellectual property or pricing advantages. 

Financial matters come under close scrutiny, Hall says. He examines past financial results and evaluates new financial projections, paying special attention to cash flows, timing and funding needs. 

“I will want to know specifically how funding will be used, when, in what amounts, and how it will contribute to the company’s growth,” Hall says. He also seeks clarity on the expected return on his investment and potential exit strategies, whether through an IPO, merger or acquisition. Hall reviews licenses, regulatory requirements, permits, contracts and other legal documents while assessing potential risks and how they can be mitigated. 

Ultimately, “I will want to know if the entrepreneur is willing to accept my advice and recommendations,” Hall explains. “The answer to this question will determine if I will invest in the company.” 

5. Prioritize physical and mental health

The world of entrepreneurship often paints a glittering tapestry of success stories and tales of innovative minds reaping rich rewards after conquering challenges. Yet beneath this tapestry lies the harsh reality of entrepreneurial difficulties riddled with immense challenges, deep valleys and, often, loneliness. 

“I think it’s important that in addition to the incredible stories shared about company successes, we also share the stories of the hard times [in a founder’s journey],” says Sunny Washington, co-founder and CEO of Seer. “The highs are incredibly high, and the lows are really low.” 

There’s an unspoken pressure on founders to perpetually exude positivity, Washington says, which can sometimes veil the genuine struggles and fears lurking beneath. She believes it’s essential to recognize that embracing vulnerability isn’t a sign of weakness. On the contrary, it fosters a sense of community among founders. By acknowledging these challenges, entrepreneurs can derive strength from shared experiences and insights.

Starting a venture is an exciting—albeit isolating—journey. Even with co-founders on board, founders often find themselves alone, grappling with weighty responsibilities. “Even with a co-founder, the weight isn’t always equally distributed,” Washington says. This disparity becomes pronounced when one founder shoulders the primary financial burdens. Money-related stresses are especially taxing, as they’re intertwined with the livelihoods of the team. 

Washington advises business leaders to prioritize connection with others in the community. She recalls a pivotal moment from her previous venture: “I was looking at this spreadsheet of 100 investors that I had met with and had gotten rejection from. I thought, ‘What if I had spent all that time talking to 100 customers? What would my business look like?’” It was a poignant reminder of where real business value lies.

Though entrepreneurship can be challenging, Washington believes the eventual taste of success makes the journey worthwhile. 

“There’s something so satisfying in building and bringing a team around you, solving a problem that needs to be solved,” she says.