Q. Why start a business in the current economic climate?  Isn’t this a terrible time to do this?
JG:  This is the perfect time to start a business, if you build it the right way. In this economy, many people have lost their jobs.  While this is painful for so many people, it also liberates some to do exactly what they always wanted to do—start a business. They ask themselves, ‘if I don’t to do it now, when will I ever do it?’ Many others have no choice. They’re out of a job and can’t find one.

I started my own firm under similar circumstances.  I had been with one firm for a long time, and then went to work with a friend. I loved the friend, but I didn’t love the job. So I was faced with either working at someone else’s dysfunctional law firm, or creating my own—the right way. I decided if I ever was going to do it, this was the time.

Some of the strongest and most influential American businesses were started during downturns. Hewlett Packard was created in a garage at the end of the Great Depression. Thomas Edison started General Electric during the Panic of 1873, a six-year recession. Proctor and Gamble, IBM, GM all came out of the throes of a recession or depression. Times like these clarify what works and what doesn’t. If you can succeed now, you can succeed under any conditions.

Q.  Can you really sell a business for millions, now that we are in a recession?
JG:   Buyers are pickier in tough economic times, but they’re still clamoring for good businesses. Still, you don’t necessarily want to sell in a recession, because you won’t get your best price. But this recession isn’t going to last forever. In the not-too-distant future, it will be a great time to sell. If you build your company now, or if you take your broken business and fix it now, you’ll be ready to sell at an ideal time.

If your company makes money, it will sell. If it makes a lot of money, it will sell for a lot. You need to follow the book, and make sure your business is profitable, scalable, sustainable, has a competitive edge and the right value system. Then at the right time, it will certainly sell—for tens of millions of dollars or more.

Q. What are some of the top mistakes entrepreneurs make?
JG:  There are two mistakes owners frequently make at the very beginning and another down the road. The first is they don’t start with enough money, so they can’t achieve much of anything. They doom themselves to failure because they can’t hire the right people, buy the right equipment and market themselves properly. They fail not because they don’t have a good idea, but because they can’t or didn’t wait to get enough capital to do it the right way. It’s like a fantastic rocket ship crashing because it doesn’t have enough fuel.

The other fatal start-up problem is failing to figure out if your business will reliably make money. They just open their doors because they think they have a good idea. Too often, though, if they follow their plan, they will lose money. They overestimate the amount they’re going to make and underestimate how much it all costs. They forget they’re going to need to sit on chairs at work. They don’t realize customers fall behind on their payments, or just stop paying altogether. They forget they need electricity, insurance and stationery. They don’t realize that even if their plan is brilliant, they still need to advertise—and once they do, it’s still going to take a while for people to buy they products.

But let’s say they start with enough money, and run the numbers properly—and the business actually does take off. The next problem I see all too frequently is what I call the Founder’s Dilemma. The founders trap themselves into thinking they must do it all. They become so involved in everything that they create a bottle-neck.  Nothing gets done unless the founder does it or approves it. The company can never break through from a small to a medium-sized company. 

Q. What is the craziest/most unusual business idea you have come across?
JG:  Hands down, the craziest idea anyone ever brought me was CAT TV. I talk about it in the book. A client thought they could make a fortune by putting dials and knobs on aquariums, so cats can “watch fish on TV.” Seriously, the idea just shouts "bankruptcy". It’s exactly what I’m talking about by “entrepreneurs” not doing their homework. Fortunately, they changed their mind when I ask them if they would jump out of an airplane without first checking to see if they have a working parachute. That seems to get their attention and make the point.

CAT TV was one of the reasons I wrote the book. In part, I see it as a rescue manual. The information is based on countless real life examples where people ran their companies either the right way or the wrong way. Both scenarios provide valuable lessons.

Q. What advice would you give to a cubicle-worker dreaming of starting their own business?
JG: You need a plan, and you need to listen more to the people who don’t like it than the ones who do. You’re going to learn more from the critics who pick it apart than the ones who pat you on the back. It may not be easy to hear, but it pays off in the long run. We all like atta-boys and atta-girls, but business is hard.

A plan forces you to look at your business and all the challenges it’s going to face. Having people look at it helps you figure out what you missed so you can protect against it instead of falling prey to it. More people start businesses and fail because of what they didn’t think about than what they did. The skeptics make you stronger.

Q. Why do you say the American dream is to sell your business, rather than to run it?
JG: I say it’s both. I say building it, running it, selling it—they’re all great. But for many people, the financial freedom they crave will only be realized when they cash out. Usually when you’re running a business, you’re really tethered to it. There’s so much of the world that you’re not seeing. When you do sell, you have the financial freedom to enjoy all those things you had put on hold.

The thing to remember is you don’t need to sell your company, but you need to have a business you can sell. It means that you’ve built something that other people want—desperately.  People don’t buy businesses that don’t work. If they want it, then you’ve done it right—and that’s an impressive accomplishment on its own.

Q. What distinguishes your book from others on the subject?
JG: I’m in the trenches every day, working with people to start, fix and sell their companies. I’m writing from those trenches. The book is not just readable; it’s packed with real life lessons. Why not learn from those who have been there?

Q: What was the inspiration for your book?
JG: For more than 20 years, I’ve followed the successes and failures of my clients and their opponents. I closely watched those who made a fortune, and learned how they did it—and studied those who failed, and why. Over and over, I saw what worked and what didn’t.

I have countless examples of people who seemed to have a virtual printing press for money. In business, they knew how to put the parts together. But others could be handed a briefcase full of gold bars and still end up broke.

Q: To whom do you think the book appeals most?
JG: The book is for everyone affected by the current economy. It’s for business owners who are working hard, but find they’re just beating their heads against a wall. It’s also for people who are starting a business—and want to get it right the first time. Often, the solutions are hard. But not solving the problems is much harder.