Stage of life matters when starting a business

Is the right temperament important for entrepreneurs...

For me personally and for my consulting clients I would define it not by temperament but by stage of life; single, married, number of kids, one or two incomes...

I've heard this argument before from one of my partners. We did a radio show together on small business that led to a series of consulting projects. I was always struggling with my schedule to fit everything in. He would say, "If you focus on one thing and do that well you would receive the rewards."

The reality is sometimes life doesn't allow that. Mortgage, children, the need to sleep a little every night, a lifestyle that my family has come to enjoy all add to my decision that in order for those like me to move full time to any one venture it has to replace the combined income from all of them. And I can tell you having raised VC money for a few of my ventures as well as others, investors are not happy paying salaries.

Here's what I recommend to my clients.

1) Define stability - it means something different to everyone. But as an entrepreneur you need to know what this is for yourself and your family

2) Know what your greed/risk ratio is. Here's how it works. I'm willing to assume some degree of risk for some return of reward. Logically, the more risk I assume the more reward I should receive. Based on your business model where is the ratio if you are looking for supplemental income versus replacing your income entirely. I often use this as a starting point to see how much I'm willing to give up.

3) All boats rise in a rising tide. Look for help early on. Trading 20% of your company may be worth it to get the company off the ground. Remember 100% of nothing is still nothing.

4) Try licensing your invention. You may end up giving away more of your company than you want and may have to pay a little up front fee but it is worth it if it takes off and you really don't want to take it to the next level. One word of advice - patent what you have before you talk to anyone.

I'm not trying to imply that being an entrepreneur is not hard work; it is. There are alternative ways for passionate people to feel the sense of starting and growing a business and still sleep at night.

check out my web site http://www.stagesofinnovation.com for more information about getting your invention or business off the ground.

Rob Goldberg 2009