Wharton Career Advisor
 Can Corporate Experience Be Distilled Into a Startup?

A marketing product manager at a major financial services firm who would like to start a distillery writes:

It is a very competitive and difficult industry, but my challenge is to be adequately prepared to take on the task education-wise and business-wise. I've been thinking about this idea for some time: I want to run my own business, but not just any business. I believe my personality has a tendency to want to be involved in a craft trade. I derive huge satisfaction in developing, crafting, and seeing the results of an end product that I've created.

The problem that I see is my lack of experience in the industry, and this could possibly be a complete start over for me. I think the true career challenge here is finding a way to gain the craft distilling experience. I've been able to find a few dedicated distilling programs in the E.U. but they are very difficult to enter without being an E.U. citizen. Surprisingly, there is very little in the U.S. in the form of a distilling school. There's plenty for brewing, but nothing for distilling. I've solicited smaller distilleries for some help, but it simply makes no sense liability-wise for anyone to take a risk showing someone the ropes.

Given your experience in observing other business ideas, some advice on this would be greatly appreciated.

Peter Cappelli
George W. Taylor Professor of Management
Director, Center for Human Resources

It's difficult to imagine anything more challenging than what you propose. The type of tasks you will perform, moving from product management in banking to running a distillery, may have some aspects in common, but it's hard to think of fields with much less in common. And the biggest change is from being an employee in a large organization to being a business owner in what will at least initially be a very small venture.

A distillery is not a small operation like a bed-and-breakfast. It is capital intensive, requires extensive technical knowledge about distilling operations, and will ultimately involve every functional area of business. And, as you say, it is a very competitive business where success will be tricky. So, a reality check is in order.

What are your true priorities and interests? If the attraction is working in the distillery business, that does not require starting your own distillery. Your background in product management in banking, where skills are quite sophisticated, could be very useful in that industry. If the attraction is running your own business, is it the independence (there are other ways of having that, such as being a consultant), the power and influence (only comes after success), or something else? Many of your goals might be met by running any business, not just a distillery. And it is infinitely easier to do so in an industry that you already know.

If you decide that distilling is absolutely for you, then the best approach is to go work for a distiller to learn the business. Even if you have to volunteer and do it for free, it will be far cheaper than making business mistakes with your own money. Remember, you know nothing about what the day-to-day work is like in this industry, and you may hate it. If you could run this experiment without quitting your day job (e.g., volunteering on weekends and evenings) all the better. If you really like the work, then look for a full-time job in the industry. Your goal could then be taking over a small distillery or at least getting far enough into leadership to have the influence you desire. Remember that even your ultimate goal of running a distillery does not require starting one from scratch.

Thérèse Flaherty
Director, Wharton Small Business Development Center

At the Wharton Small Business Development Center, we ask would-be entrepreneurs to undertake a brutally honest self-assessment before they commit to starting their business. That includes, among other factors, examining their:

  • Professional strengths and weaknesses
  • Experience (and lack of) for the particular business
  • Personal energy and willingness to sacrifice

Entrepreneurs who ultimately succeed often find they are driven to start their business by factors such as passion, creativity, and discipline and focus. Those who have more difficulty starting a business find they are driven by factors such as:

  • Wanting to be the boss
  • Want to get rich quick
  • Not wanting to work so hard

Which factors are driving your desire to start this business? While there may not be much training in the specifics of the distilling industry, there is education and support for small business development. If you are starting a business, small business development centers can help. The U.S. Small Business Administration funds over 500 SBDCs throughout the U.S. to provide assistance to entrepreneurs starting and growing small businesses. For example, in Pennsylvania, our Wharton SBDC, a unit of the Sol C. Snider Entrepreneurial Research Center, provides entrepreneurs customized advice, referrals, and information without charge, and education for a modest fee. Good luck!

Monica McGrath
Executive Coach and Wharton Adjunct Associate Professor of Management
Faculty Associate, Center for Leadership and Change Management

Technical knowledge is fundamental to success; and since it appears there are no formal sources of acquiring the know-how in this field, you'll need to get creative and design a course of your own. We can learn almost as much from the experts working in the field as we can from the classroom, so start your coursework by identifying the leading gurus in the field of distilling.

Focus on anyone you might read about, anyone who writes in an industry journal, and create a target list for interviews. Everyone may not welcome you, but you will probably find a surprising number of people willing to talk and teach. You should also explore industry chat rooms, technical journals, articles, electronic networks, lobbying groups for the industry to find all and every possible knowledge source. And, study both the success stories and the failures; we learn from both. Approach the learning task much as you might approach a course, except in this you will be both the student and the teacher. Design a plan of action, some learning goals, and target points for reviewing the lessons learned. At some point, you will have at least enough technical knowledge to know the challenges of the business and determine if you should take a job somewhere in the industry or write your business plan.

You are right to consider whether you have the required business acumen for a job like this, but real "startovers" require more than the business knowledge. Have you taken ample time to consider how you will manage the emotional toll of a startup venture in a completely new field?

Building a business, even with a million-dollar angel on your shoulder, can test the strongest ego. There are many successful and competent business executives who find themselves daunted once they are alone and lose the corporate mantle of power and prestige. Ask some of your closest supporters for feedback: Do others think you have the kind of energy and commitment it will take?

If you take a somewhat rigorous approach to your dream idea, create innovative ways to learn the technical aspects of the business, and create a strong support network for the tougher moments, I think you will be well prepared for this exciting challenge.

Remember, there are no sure things in either business or life, and you will never remove every uncertainty; so set a time goal for action. At this point, you will either decide to take the leap or change the dream; either way you win. Best of luck.

Recommended Wharton Programs:

Send Us Your Career Challenge
Are you at a turning point in your career? Need advice from an impartial and experienced advisor? Send us your career challenge and, if we select your case, we’ll offer advice from a team of Wharton faculty, executive coaches, and outside advisors on possible options. We’ll publish your case anonymously in a future issue of the newsletter along with the suggested solutions.

 

    

This month's articles: