Looking Back: What Have You Learned?

From the MBT Blog – published by MBT More Business Today LLC

In a few months, it will be the 30th anniversary of the launch of my first business. Well, I put on shows for the neighborhood and sold tickets as a kid, but I am not counting that bit of entrepreneurship. I refer to the musical theatre-in-the-round business that began with so much excitement in 1995. Right about now, at the end of a cold winter 30 years ago, I decided to take the leap. I said “yes” to my new business partner with all of the hopes and dreams anyone conjures at the start of an adventure.

I left the business after five years and started a job in the corporate world because my husband was ill and we needed real health insurance. Ten years ago, I still raged a bit inside at my stupidity (now I would say naivete) regarding that business. Twenty years ago, I raged a bit more at my previous business partner than at myself. Even then I acknowledged it was my idiocy (now I would say ignorance) that let my guard down back then.

With this anniversary coming up, I am reminding myself of the lessons that experience taught me. Jump in, read along, and consider sharing your experiences with someone this week. Whether your “learning opportunities” came from failed business ventures or leadership issues in a former job, they undoubtedly taught you some valuable lessons.

Nothing Replaces Experience
I jumped into my situation with no experience running a business. The only business classes I had taken in college were Business Writing 101, Communications (not sure of the number, but it was a higher level class), and Statistics. I knew plenty about singing, writing, art, movies, and reporting. However, the art history, literature, and movie criticism classes fell short of preparing me to manage a business.

As a newspaper reporter for ten years, I had developed skills in one area, public relations, that proved valuable to promoting the theatre. I understood how to get your item into the newspaper by pitching a story with a good hook. I knew what made a good story. I also knew many of the local reporters and could address the pitch to a specific person rather than info@soandsonews. Actually, back then I reached out directly by phone most of the time. Most importantly, I had learned how to interview people, ask questions, and listen well. That skill is needed in business and everyday life, well, every day.

I did not know the big stuff. Questions like – what were the terms of the lease for the space we rented, who do we consult if an actor accuses other actors of sexual misconduct while on stage, what happens when you never get a quorum at your board meeting? – I left to my business partner. He ran a business before and it seemed to be quite successful. Big mistake!

Lesson #1: Understand the experience you bring to the table and that of your partner(s). Then, determine how to fill in the holes for the skills you are missing like legal, human resources, insurance, etc. This concept also applies to those leading a team. As you build your team, consider the balance of knowledge. Ask yourself, “What are we missing?”

Look Before You Leap
The third delivery of wood had arrived at our basement theatre location before I realized my business partner expected us to completely remodel the space and pay for it ourselves. Big Surprise! “So, that is why he asked me how much disposable income I had after I paid off my car,” I suddenly realized.

In addition to the wood and a carpenter he had hired to remodel, expenses quickly piled up. Costumes, lights, a lighting board, a piano, the rights to all of the shows we planned to perform. The list goes on, but you get my drift. I worked a number of jobs at that time freelancing for various newspapers. My days generally began at 6 a.m. and ended at 8 p.m. I thought the theatre company was a small thing, something to do on the weekends. I thought our “season” for the first year consisted of two shows. I thought we were putting a toe in the water. I thought the theatre would be an amusing and fun hobby. My partner planned a six-show show season. We were rehearsing one show while another one was up and running for a full five years.

Lesson #2 Make sure you have a contract. Friends quickly become enemies when money and disagreement enter the relationship. My business partner’s vision did not align with mine. I thought we had talked it out. He thought we had talked it out. Neither of us had heard the other, obviously. I wish I had sat down with my colleague and written out our plan for that first year. I also wish I had talked to a lawyer about the endeavor.

This lesson applies to leaders within an organization, too. Make sure everyone is on the same page at the start of a project. Each must understand their role and know the expectations.

Understand your “why.”
I agreed to start that business for a plethora of reasons, but the major reason was because I was bored. And, I had just turned 30. I wanted to do something interesting. So, the sixth or seventh time my business partner asked me to join him as the general manager of the theatre, I said, “Yes. Why not?”

Now, his list of reasons for starting the business was quite long and compelling. He dreamed about it since he was a kid in the choir at the Metropolitan Opera in New York City. He knew every single show he wanted to stage.

Additionally, he felt the city (Milwaukee) needed another children’s theatre with lower-priced tickets. Giving children in our community the opportunity to see live musical theatre was also important to me. Here was the primary uniting vision. This purpose drove us to marginal success for five years.

Lesson #3: Grab a journal and write down all they “why’s” and “why nots” of a new venture before making a commitment to it. What expectations do you have? What results indicate you succeeded? Is this the right time for you?

If I had focused on the self-awareness, I would not have blamed my business partner for the woes of the business problems. And, I would now have a better sense of what I achieved at that time of my life.

Looking back, I feel nostalgia for those times. I learned so much about running a business. I learned how to work with an accountant, keep track of the books, hire people, fire people, and how to keep my cool during a wardrobe malfunction onstage.

What memories do you have of past business ventures? Please share the lessons you learned.