In February of 1999, Jill Biesma was informed that the regional office where she had been working for the last 12 years was to be closed.  As part of an overall company restructuring plan, smaller regional offices were to be phased out and work under contract in these offices was to be transferred to larger "hub" offices.  However, to Jill’s surprise the company was not interested in retaining the clients she and her colleagues had helped to grow and currently managed.  Instead, the company offered to help transfer these local-based clients to a new company.  After careful consideration, Jill and co-founder Rob Bens made a decision to form a new corporation: Environmental Advisors and Engineers (EAE).  They relied on the clients and projects their former employer was willing to transfer to them to launch their business.

After a year of start-up, I asked Ms. Biesma to reflect on the lessons she has learned in starting a new business.  She offered many tips and considerations for starting a small consulting business, and these are outlined below.  In the upcoming weeks, Ms. Biesma will highlight many of these topics.

• Set Your Short-Term and Long-Term Goals
• Seek the Divinely Lit Path
• Define Your Priorities Before You Start and Check Your Progress Often
• Start Early in Preparing to Capitalize on Future Opportunities
• Consider the Impacts on Your Family in Your Decisions
• Be Prepared to Work Feverishly the First Year
• Ask Your Family and Friends for Understanding and Grace

• Prepare a Financial Plan for the First 2 Years of Business
• Develop a Monthly Cash Flow Plan
• Forecast Workload and Accounts Receivable in Cash Flow Planning
• Prepare for Simultaneous Start-up Costs and Loss of Income for a Year
• Obtain a Corporate Line of Credit

• Scrutinize Prospective Partners and Their Families
• Objectively Evaluate Your Strengths and Weaknesses
• Select Partners that Have Strengths Where You are Weak and Balance Your Outlook and Style
• Prepare Individual Financial Reports and Share Among Partners

• Learn and Honor Your Partners’ Priorities
• Execute a Partnership Agreement
• Be Honest at All Times
• Ask for Concurrence Before Acting on Decisions and Spending Funds
• Seek Compromise Whenever Feasible
• Give 110 Percent of Your Share
• Thank Your Partners for Their Contributions
• Allow for Individual Freedom

• Establish a Steady Client Base Before Venturing Out on Your Own
• Don’t Burn Bridges as You Leave
• Develop Your Prototypes Early and Use Them for Marketing
• Develop Your Contracts and Subcontracts Early
• Diversify Your Clients and Services as Soon as Possible

• If Feasible, Omit the Lease and Pocket the Rent
• Do Your Own Accounting and Administrative Tasks for the First Year
• Limit Purchases to Necessities at First
• Prioritize Function Over Style
• Use Extended Credit Options During Start-up
• Look for Bargains in Every Purchase
• Utilize Available Tools and Resources
• Design and Print Your Own Professional Business Cards and Letterhead
• Build a Large Cushion for the Valleys and Slow Payments
• Set up a Corporate Money Market Account
• Track Business Expenses and Payments in Detail
• Take Steps to Maximize Quick Payment by Clients
• Use Discount Services and Memberships to Cut Costs and Reward Employees
• Design and Use Cost-Capturing Tracking Tools
• Train Your Staff on Detailed Cost Tracking and Reporting
• Include Cost Tracking in Employee Performance Criteria
• Add Administrative Staff to Allow You to Focus on Priority Tasks

• Insure Your Partners and the Business
• Start Early to Procure Insurance
• Sharpen Your Image and Pay Less

• Be Very Accessible
• Don’t Scrimp on Communications
• Create a Professional Image Early

• Rely on Specialists for Advice and Training
• Consult with a Financial Planner Experienced with Small Business Start-up
• Select Mentors and Learn from Them
• Read, Ask Questions, Observe, Apply

• Prepare Report Outlines or Shells for Various Reporting Types
• Develop Detailed Instructions for Reference and Training
• Design Cost Estimating Shells for Proposal Development
• Prepare Checklists and Forms to Increase Efficiency and Ensure Completeness

• Be Creative to Hire the Best
• Review Hiring and Administrative Laws
• Consider Motivational Fit Early in Screening Applicants
• Cross-Train Employees to Give Depth and Flexibility to Your Staff

• Learn Your Employees’ Priorities
• Respect Your Employees’ Family and Personal Commitments
• Involve Employees in Decision Making and Leadership
• Provide Frequent Feedback
• Conduct Performance Appraisals on Time
• Thank Your Employees for Their Efforts
• Be Flexible Whenever Feasible
• Strive to Exceed Your Employees’ Expectations
• Be Creative in Rewarding Your Employees

• Focus on Daily and Weekly Goals
• Don’t Give Up When You Hit Roadblocks
• Expect to Make a Few Mistakes and Hit a Few Bumps
• Focus on the Big Picture

• Celebrate Milestones!
• Enjoy the Creativity and Liberation!
• Reflect on How Much You Have Learned!
• Mentor Others to Return the Favors!

You can e-mail Jill Biesma at jbiesma@eaei.com.