Council Post: Five Benefits Of Transitioning From Executive To Entrepreneur

Lori A. Torres, CEO and Founder of Parcel Pending, the nation’s leading provider of package management solutions.

Walking away from a senior executive position to start a business might seem like a wild idea to some, but that is exactly what I did. And I don’t regret it. In fact, serving in an executive position before becoming an entrepreneur helped my company succeed.

Before founding Parcel Pending in 2013, I worked for 13 years at a leading real estate investment company. I oversaw the company’s entire multifamily portfolio, which generated $1 billion in annual revenue.

I was in an executive position that gave me an intimate, first-hand look at the major pain points impacting the multifamily industry. One of these pain points was package management. In 2012, e-commerce sales in North America were up by 13.9%, with a “world-leading” $364.66 billion in sales, according to eMarketer. The overwhelming volume of resident packages was greatly hindering properties’ operational efficiencies.

Suddenly, properties were burdened with increased labor hours and costs in an attempt to manage the booming resident package volume. I felt there had to be a solution and set out to start my business, Parcel Pending, a provider of package management solutions that includes self-service electronic lockers and other solutions related to package management.

The transition from executive to entrepreneur played a major role in helping to define the success of my company. I discovered five primary benefits of transitioning from being an executive to an entrepreneur. I’ve listed those benefits below, as well as offered a few tips on how entrepreneurs can realize them on their own:

Perfecting Your People Management Skills

Managing people is one of the most important qualities an entrepreneur needs to succeed. Why? Because you need to know how to effectively communicate and delegate to your team. Constant communication is key as an entrepreneur.

One of the biggest mistakes you can make as an entrepreneur is not clearly articulating what you need from your team. You need to be candid, upfront and laser-focused when it comes to the deliverables you expect from them. For example, if you have a certain sales figure you need to hit, then you need to make sure everyone is on the same page and understands how they can put their personal skills into action to help the company achieve this goal. And you need to regularly host — I’m talking daily — check-ins with these team members to ensure they understand what’s being asked of them to help the company obtain the sales goal.

To create good communication habits in the workplace, you also need to have an open-door policy and ask for feedback. I often say to my team members, “If you were handed the CEO card, what would you do that I’m not doing? What can make us better?” I also believe that being as transparent as possible helps create a culture where people love where they work. I’m OK sharing the good, the bad and the ugly. We’re all in this together.

Sharpening Your Leadership Talents

I suggest mentoring young professionals to sharpen your leadership skills. I personally work with a program that supports the leadership development of entrepreneurs worldwide by pairing them with leaders who can serve as coaches, peers, investors and resources. I believe everyone needs mentorship. I had some great mentors who helped me grow my company, and I’m forever grateful for those people who played a huge role in my professional career.

Learning To Be Resourceful

One of the first things you’ll realize as an entrepreneur is that you need to be resourceful in order to succeed. You’d be surprised how many people — be it other entrepreneurs, teachers, mentors and more — are willing to help you out (for free, no less) if you ask.

Also, don’t forget to ask questions. Be open to asking questions within your professional networks, among family members, friends and former colleagues, as well as vendors. There really is an opportunity to learn and gain insight from every question you ask. I’ve been called the “interrogator” by my kids and a few others. Asking questions and listening closely to answers really does help you see the full picture and grow.

My other piece of advice is to be honest with yourself when it comes to where you spend your time. Being mindful of where you are spending your time and resources has many great advantages. I often ask myself, “Is what I’m doing helping to grow the company?” If the answer is no, I probably shouldn’t be doing it, so I either need to bag it or delegate it.

Managing Your Motivation

You can stay motivated by reading inspirational stories of other entrepreneurs. I’m so inspired when I hear stories of other entrepreneurs who have had great success. Be humble when it comes to learning more, and be sure your team members are aligned on business goals. This helps everyone stay motivated.

Stay motivated by staying curious. Be curious about how you can achieve better outcomes. You can only achieve excellence if you stay motivated.

Yes, starting and growing a company is really hard. Yes, there are days when you feel beat up. And no, there isn’t an easy button that you can use. But if you love what you are doing, I believe it feels like a hobby and not a job.

Attracting Top Talent

Emphasize the potential of the company, not the product or idea you’re trying to sell. In my experience, top talent will be eager to work with you if they have a clear understanding of the short- and long-term potential of the company. People coming in for interviews also have to feel the passion the CEO has for the business.

Stay in touch with former colleagues, networking and following local startup blogs, groups and reading your local business newspapers for potential leads.

Coming from an executive background can be beneficial to your entrepreneurial journey. Don’t ever doubt your capabilities as an entrepreneur. Starting a business is tough, but you can do this.

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