I launched Merchant Advance Capital at the age of 22 from the den of my apartment in Vancouver. Random fact: people who work in finance are not just spreadsheet junkies \u2013 at the same time as starting my business, I was also the drummer in a rock band, Head of the Herd.<\/p>\n
The pinnacle of my music career was when my band opened for Guns N\u2019 Roses in 2013. We also opened for Alice in Chains, The Trews, Mother Mother, The Sheepdogs and I Mother Earth, among many others.<\/p>\n
Naturally, I learned a lot about managing time while juggling a new venture alongside performing. In retrospect, there were a number of other lessons I took away from my experience in the band that I have since applied to my business.<\/p>\n
Here are some takeaways:<\/p>\n
Identify a niche<\/strong><\/p>\n I started Merchant Advance Capital by identifying a niche in Canada\u2019s financing market, and have been working to make it thrive ever since. How do you carve out a niche business? The answer is to decide which industry you\u2019ll specialize in; become a subject matter expert in this industry, and know all about the possible products and services; then target a gap in the market by identifying what\u2019s missing or what could be better.<\/p>\n What does this have to do with drumming? My idea for changing the way small businesses are funded in Canada stems back to my younger days drumming in punk bands. Punk music is about turning a culture on its head and not accepting the status quo. In this case, the status quo is taking out a loan from a traditional bank. My business doesn\u2019t accept that this is the only way to get financed. We\u2019re turning traditional banking upside down. I\u2019m kind of like the Tommy Ramone of small business funding (but not).<\/p>\n Know your crowd<\/strong><\/p>\n While the benefits of failing might be fashionable among tech and business gurus nowadays, but the only thing that\u2019s better than failing is succeeding.<\/p>\n Before going on stage as a drummer, I\u2019d always try to get a glance at the crowd so I could mentally prepare. As performers we\u2019d want to deliver on the crowd\u2019s expectations and put on a killer show.<\/p>\n If you do fail, showing strong leadership and accountability to your team is vital. As with drummers, who often keep the band together and on task, if you miss a beat as a business leader, the whole company can be negatively affected.<\/p>\n Talk it out<\/strong><\/p>\n In any economic climate, it is challenging to find funds to start a business. When you do it, set realistic expectations with your early investors and be transparent in your communications \u2013 don\u2019t sugarcoat anything.<\/p>\n Keep investors updated with both good and bad news. As with drumming, consistency is key here. Of course there are times for drum solos, but playing steady tempos is essential to becoming a sought-after drummer \u2013 and it works the same in business. Reliable and honest communications with investors will set you up for a long-standing business relationship.<\/p>\n If given the chance to give my 22-year-old self \u2013 or another entrepreneur \u2013 advice, I\u2019d recommend having a shareholder agreement with your co-founders from the start. Lawyers may seem like an unnecessary expense so early on in a business, but this cost will offset issues that can arise in the future \u2013 and minimize financial pressures. Think of the founder agreement as a form of prenuptial agreement that clearly defines roles and responsibilities.<\/p>\n