Sit-down with Mark Zweig, Author of “Confessions of an Entrepreneur: Simple Wisdom for Starting, Building, and Running a Business”
Mark Zweig’s LinkedIn Profile says it all: “Founder of Inc. 500/5000 companies — Entrepreneur, Teacher, Author, Speaker, Outside Director, Consultant, Designer, Podcaster, AEC Industry Expert, and Automobile and Motorcycle enthusiast who loves small business!”
Zweig’s entrepreneurial spirit has certainly been evident within the AEC industry. For example, in his role as Chairman and Founder of Zweig Group, which he started in 1988, Zweig has worked with several thousand CEOs and managers of AEC firms throughout the United States as well as foreign countries. He has helped them with every problem from strategic planning, to ownership and leadership transition, to mergers and acquisitions, marketing, and more. In 2005, he started Mark Zweig, Inc., a design/build/development company, which grew rapidly throughout the real estate recession.
Zweig has written several thousand articles and authored numerous books. He still writes his weekly editorial for The Zweig Letter, read by owners and managers of AEC firms worldwide, and has done so for more than 30 years.
GroundBreak Carolinas recently caught up with Zweig to talk about his latest book, Confessions of an Entrepreneur: Simple Wisdom for Starting, Building, and Running a Business. We talked about why he wrote the book and discussed some of the book’s key takeaways for new and seasoned business leaders alike.
What inspired you to write Confessions of an Entrepreneur at this stage in your career?
I have written a bunch of books over the years, but everything was aimed at the architecture and engineering industry, and nothing at the general public. Because I have had so many different experiences and started, bought, or been a minority owner or board member in lots of different private companies, I thought it was time I did something for the general public who either owns or wants to own their own business. I wanted to share my experiences and philosophy about business and get the idea across that it really is an option for everyone. Plus, there is so much bad information out there and so many misconceptions about entrepreneurship, I felt it was my duty to give people the truth.
Can you share one of the most challenging moments you faced as an entrepreneur and how you overcame it?
One of the most challenging moments I ever had as an entrepreneur was in 2010 — when I came back to my company that I started in 1988, got on the Inc. 500 List of Fastest-Growing Private Companies twice, and sold in 2004. The company was in terrible financial condition and a shell of what it once was, and we had to turn it around quickly. We overcame it by doing about 20 different things — too many to list here — but they included getting some new people in key roles, rehiring some people who had worked there in the past, revamping all of our products and services, inundating our client base with marketing emails (as many as three a day), relentlessly watching our cash flow forecast, and much more! The firm got back on what is now the Inc. 500/5000 list in 2013 and then again this year (2024!).
In your book, you emphasize the importance of “simple wisdom.” Can you elaborate on what this means and why it’s crucial for business success?
“Simple wisdom” to me means avoiding all the cliches, buzzwords, and trendy panacea programs out there (EOS is one example) that tend to dominate the entrepreneurship topic in pop culture and social media. This stuff isn’t really that complicated. Anyone can master it. The book is written in short, easy-to-read chapters in language any reasonably intelligent person can understand.
What common mistakes do you see new entrepreneurs make, and how can they avoid them?
One big one is trying to raise equity capital too soon. To start with, I am going to avoid selling equity to anyone outside the company for as long as possible because if someone else puts all the money in, you — as the entrepreneur — are now working for them. But another big reason is you will give away a lot less if you can go out and sell whatever it is your business is supposed to do. Proof of viability puts you in a much stronger position with any potential investor.
Another one is thinking you must invent something new to be an entrepreneur. Not the case. You will need to grow your business significantly to create value you can extract upon exit — but many entrepreneurs work in very mature and established markets and their businesses don’t do anything that hasn’t been done before.
I could go on here. Hiring family members (nepotism), buying stuff you could instead lease or rent, not watching your cashflow, doing nothing marketing-wise — there are many mistakes entrepreneurs can make!
How has the landscape of entrepreneurship changed over the past 50 years, and what timeless principles do you believe still apply today?
Fifty years ago, companies were typically valued as a multiple of EBIT (earnings before interest and taxes). Today, revenue growth rate is considered much more important when it comes to maximizing value. Also, 50 years ago, tech and software companies were just getting started. Today, most of the venture capital money out there is going into those kinds of businesses.
Timeless principles that don’t change include “being an entrepreneur is a demanding job” and “hard work pays off.” Also, the client or customer is who you need to please and always has been. And anyone can do this stuff.
Can you discuss a time when you faced failure in your business journey and how that experience shaped your approach to future ventures?
This whole idea that everyone who is successful must have failed a million times is BS. The goal is to learn from your experience and from others who preceded you to avoid failure. No one who has any sense does anything that they don’t think will work out. I guess I have been a pretty good judge of what risks were worth taking for most of my adult life and haven’t had a lot of failures.
You’ve mentioned the joys and challenges of life as an entrepreneur — how do you balance these aspects, and what advice do you have for maintaining resilience?
Get up early every day. Do what you least want to do first and get it out of the way. Find a good partner who understands you and that you can talk to. Have hobbies and friends outside of your work. Don’t be one-dimensional and only have work because if something goes wrong there, you will be devastated.
Which of the stories shared in your book do you believe offers the most valuable lesson for aspiring entrepreneurs?
The short blurb titled, “Living on less,” on page 65 is something everyone could benefit from, even if not surprising or profound in any way.
What roles do personal values and ethics play in the success of a business, according to your experience?
They are primary to your reputation and success. Word gets around if you mistreat customers or employees, cut corners on quality, or do things that are unethical. If your reputation is intact, you can recover from any setbacks you may encounter. If it is bad, things are going to be a whole lot tougher!
If you could give one piece of advice to someone just starting their entrepreneurial journey, what would it be?
Be careful who you associate with. If you hang out with successful people who are working hard to build something, odds are some of that is going to rub off on you. But if you hang out with those who are negative and cynical, odds are some of that will rub off on you also. Don’t be afraid to follow your gut. Your intuition could be more valuable than any “data” you can find. But at the same time, seek out other people who have been there before for their input on problems or opportunities you are facing.
About Mark Zweig | Contact: mzweig@zweiggroup.com.
Entrepreneur in-Residence, Sam M. Walton College of Business, University of Arkansas
Chairman & Founder, Zweig Group http://www.zweiggroup.com
CFO/Director, Janus Motorcycles http://www.janusmotorcycles.com
Co-founder, Mid-Century Modern Glassware http://www.midcenturymodernglassware.com
Co-founder, Big Talk About Small Business, LLC http://www.bigtalkaboutsmallbusiness.com
President, Mark Zweig, Inc. http://www.markzweig.com
