Seventeen years ago three money managers at Goldman, Sachs & Company left their positions to start their own venture. Entrust Capital Inc. would be their newly created business that would manage the money of their clients. Many people today are leaving their successful jobs for a chance to become entrepreneurs. Very few succeed, but for Michael E. Horowitz, Mark S. Fife and Gregg Hymowitz this was not the case. They produced a power house money management firm, but what steps did they take that lead them to their success?
Always Get a Running Start
A common mistake of entrepreneurs is to dive in the pool without knowing if there is any water. Entrust began business already with a healthy client base of 125 clients totaling over $750 million in assets. A person that is truly dedicated to becoming a successful entrepreneur doesn’t mind working where they are at while they build the pieces necessary to leave their job.
All Star Performance Shows in Business
When chasing the dream of becoming an entrepreneur, many people will lose sight of the skills required to run their newly formed businesses. Before leaving their businesses to start Entrust, the trio reported that they made about $15 million in commissions in their last year. This wasn’t just a one off effort either, they repeatedly produced annual internal rates of returns of 30.8% for six years in a row. If a person does not perform at the top of their game they will not be able to make it as an entrepreneur. A businesses success or failure is determined by the work ethic and skill level of the ones driving it.
Trust in Own Ventures
A person can take a business nowhere if they do not believe in what they do. When Entrust was formed all of the founders had their own personal fortunes managed by the company. This not only helped develop growth with the business, but built trust with any potential customers.
Consistent Hard Work Pays Off
As of today Entrust has boomed their business up to approximately $4.8 billion worth in assets. That is a 640% growth since they have opened up their doors and there is no sign in slowing. Any person can start a business, but very few can run one to become a success like this trio has. Applying the strategies that they used to become successful will get any business off to the right start.