Wells Fargo’s Bob Marshall: Five Things You Need When You Launch A Business or Startup

An Interview With Doug Noll

I see business owners all the time who seem to have it all together and whose business is taking off successfully. What few people realize however, is those successful business owners aren’t so different than the rest. They aren’t supernatural beings — just people who happen to be really good at what they do. But the number one difference between an entrepreneur who succeeds and one who doesn’t is the passion and effort they put into their work. Successful entrepreneurs have to be diligently focused, work hard, have the ability to take risks, and innovate. Also, in talking to successful entrepreneurs, most often they refer to their failures as the foundation for their best learning experiences. Through their failures, they have grown to understand the importance of building an ecosystem of trusted advisors, who have walked in their shoes or has specific expertise that they do not.

We had the pleasure of interviewing Bob Marshall. Bob is the Business Growth Strategy Executive with Wells Fargo Bank for the Small Business Development Group. He is responsible for leading a team of Business Development and Healthcare Leaders across the footprint that is charged with acquiring new customers with sales ranging from $1 — $10 million. Prior to his current role, Mr. Marshall has held several banking management positions including Area Business Banking Manager (for Northern Virginia, Washington, D.C. and Maryland), Community Bank Executive for the Wholesale Banking Group (Wachovia Bank, NA), Corporate Retail Sales & Service Strategy Team Leader, and Corporate Retail Bank Sales Strategy Leader.

Prior to joining Wachovia Bank, he held various roles within financial services and commercial finance. Mr. Marshall began his banking career in the Management Development Program at Nat West Bank, NA. Mr. Marshall graduated from Boston College Carroll School of Management with a Bachelor of Science degree, majoring in Finance and Human Resource Management. He also holds an Executive MBA degree from Queens University’s McColl School of Business in Charlotte.

Mr. Marshall was recognized as one of the Washington Business Journal’s 2017 Minority Business Leaders and the featured speaker on the inaugural Executive Speakers Series of the Thurgood Marshall College Fund “Rules of the Road in Corporate America” webinar. In 2018, he received the “Chairman and Presidents Award of Commendation” for his service as a member of the Board of Trustees of Livingstone College. Most recently, September 2022, Bob was awarded with the President’s Lifetime Achievement Award at the Congressional Black Caucus African & Caribbean International Leadership Conference and Presidential Awards Gala during 51st Congressional Black

Caucus Foundation Annual Legislative Conference, held at the National Press Club in Washington, D. C.

Thank you so much for joining us in this interview series Bob! Can you tell us a story about what brought you to this specific career path?

During my senior year at Boston College, my Strategy & Policy professor (Dr. Hassell Mclenan) talked to me at length about the value of pursuing a career in commercial lending. My first role out of college was that of a commercial auditor. I had the opportunity to engage with several businesses, interact with various departments within the business, understand how each of those businesses made money, and see firsthand the challenges and opportunities they faced. It fascinated me and became what is now a professional passion. I realized that these businesses played an important role in the community and collectively provided the economic engine for our country.

Bob, thanks for providing some big picture context to the personal stories/insights from your work small business owners and founders. You’ve worked with many people who have embarked upon the journey of starting a small business. From that bird’s eye view, what are some of the most common mistakes people make when they are launching a business?

• Neglecting to make a solid and executable business plan
• Inadequate financial preparation and resources
• Avoiding outside help and mentorship
• Failing to create a process to monitor progress and having the ability adjusting accordingly when necessary

What are the top challenges startups face and how can they overcome them?

In the first few years of business, small companies come up against a lot of different challenges. Some are harder than others to overcome — and, according to the U.S. Bureau of Labor Statistics, about 20% of small businesses fail by the end of their first year. By the end of their fifth year, 50% go under; and by the tenth year, that number rises to 80%. But, many common business problems and challenges are actually fixable. Many times, small business owners will find they need to take a step back, assess their pain points, and rethink their strategy. But here are a few of the biggest challenges I see and some key solutions to overcome them:

Challenge #1: Not having the right business idea outlined in a plan with a clear strategy and plan of execution

Solution: Create a business plan, socialize it with other key partners for feedback, and revisit it regularly to make changes. Your business plan should reflect changes in your business, the industry or the market. Make changes as necessary to incorporate the changing needs of customers or changing economic conditions in order to keep your plan current.

Challenge #2: Financial planning

Solution: Many small businesses report that a lack of capital or cash flow is their number one challenge. Every business will be different, but owners will want to use business credit wisely, cut costs where possible, and manage cash flow by staying on top of invoices, accounts receivable and bookkeeping. A Business Banker can help review financing needs, options and work with you to strategize ways to build your credit profile. It’s also a good idea to pay down any personal debt and work with your business banker to refine your cash flow projections so you have a realistic financial picture.

Challenge #3: Where to find trustworthy information and mentorship

Solution: Many business owners may not know where to turn for trustworthy information to support them with starting a business or making critical business decisions. Having an initial conversation with your banker is a great first step. There are also many free resources and tools to help educate business owners around many topics like how to write a business plan, tips for building your network, how to scale your business competitively, and so much more. There’s also free mentorship opportunities available where business owners can get hands-on help setting and reaching business goals from peer-mentors and industry experts.

What are the top “five things” that every business owner should do before starting a business? Please share a story or an example for each if you can.

Start with a business plan: Creating a solid business plan is an important first step for anyone starting a business. A well-thought-out business plan can help you establish and stay focused on company goals and objectives. To get started, Wells Fargo offers free business planning resources, including a step-by-step business plan tool to create and maintain your own written business plan.

Understand your financial picture: Every business has different startup costs, but they all have one thing in common — having a financial cushion. While most small businesses are initially financed by personal savings and credit, your business will likely face a need for additional financing at some point. It’s important to have savings to fall back on as you focus on ramping up your business operations. To get yourself in the best position to obtain financing before you need it, establish a relationship with a business banker who can help you understand your initial financing needs and options, and strategize ways to build your credit profile.

Determine your hiring needs: Many businesses start out as sole proprietorships, while others require support staff and employees from the get-go. If you intend to hire full- or part-time employees right away, make sure you’re comfortable with and can afford the costs associated with hiring staff. Take time to understand what type of employee is right for your business. For example, contractors can be a great alternative to full-time employees for newly established businesses.

Build a strong network: Running a small business is no small feat, and having a strong support system in place can make the difference between thriving and failing. Take time to establish relationships and build a network of other professionals who can help you. In addition to a business banker, you should also establish a relationship with a lawyer, a CPA and any other professionals pertinent to your industry. It’s also a great idea to network with other small businesses by joining your local Chamber, or other business and industry organizations.

Is there a common denominator that successful small business owners share? If so, what is it?

I see business owners all the time who seem to have it all together and whose business is taking off successfully. What few people realize however, is those successful business owners aren’t so different than the rest. They aren’t supernatural beings — just people who happen to be really good at what they do. But the number one difference between an entrepreneur who succeeds and one who doesn’t is the passion and effort they put into their work. Successful entrepreneurs have to be diligently focused, work hard, have the ability to take risks, and innovate. Also, in talking to successful entrepreneurs, most often they refer to their failures as the foundation for their best learning experiences. Through their failures, they have grown to understand the importance of building an ecosystem of trusted advisors, who have walked in their shoes or has specific expertise that they do not.

Building a start-up or launching a small business is already filled with challenges and pitfalls. Given the economic uncertainty that we face today, what are some tips for those business owners who are just starting out?

Small businesses are still experiencing the aftermath of COVID-19 challenges. Most have seen the cost of supplies or services to run their business increase since the pandemic started — and it continues to increase. Some have increased their prices to counter inflation and supply chain shortages or reduce inventory and employees. However, while some business owners are reducing employees, the struggle to find good talent is also a real challenge right now. Business owners are also grappling with the higher real estate market and whether they should continue to lease or purchase the building they operate in. Also, when the economy is hurting, we’re also seeing an increase in fraudulent behavior and activity. Here are six tips for small business owners starting out:

• Develop your business plan in pencil and revisit regularly
• Know your path forward — and your customers
• Understand the foundation of your business
• Be vigilant of fraud
• Connect with your banker
• Create a network of experts

*See this article for more observations and tips for managing inflation and rising interest rates.

When you reflect upon the portfolio of small businesses you’ve helped nurture, which successes stand out as being the most inspiring and why?

Those small business/entrepreneurial success stories that stand out to me the most are those situations where passion, opportunity, and perseverance come together. What I mean is that the small business owner had a passion to fulfill a need. They worked diligently to understand the buying behavior of the potential customer and interacted with anyone who could provide substantive information about the business and/or industry. This enabled them to learn all they could before setting up shop and moving their business forward. In some cases, this process took months and in other cases I recall they were on this journey for close to three years. In all cases, their desire pushed them and perseverance kept them in the game, even if their dreams of small business ownership was delayed.

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

This is truly such a profound question because all of us have tremendous influence within our personal ecosystems. For me, I attempt to serve the community by engaging with non-profits that feed my passions (education, the arts, social services). As a board member of the DC Jazz Festival, we are collaborating with musicians to help them gain the small business literacy they need to be successful entrepreneurs, because musicians are small business owners too. As a board member of Building Hope, we support the organization’s efforts to provide financial and technical support to Charter School boards and administrators, so they can have the resources they need to provide school choices to communities that need it most. The movement I would start would undoubtedly be linked to personal and business financial literacy. Personal financial literacy helps create a sense of wholeness and wellness for a person. Small business financial literacy is critical because businesses are the lifeblood of our communities. They collectively are our countries largest employer, and are literally the heartbeat of our economy.

This was very inspiring. Thank you so much for joining us!

About the Interviewer: Douglas E. Noll, JD, MA was born nearly blind, crippled with club feet, partially deaf, and left-handed. He overcame all of these obstacles to become a successful civil trial lawyer. In 2000, he abandoned his law practice to become a peacemaker. His calling is to serve humanity, and he executes his calling at many levels. He is an award-winning author, teacher, and trainer. He is a highly experienced mediator. Doug’s work carries him from international work to helping people resolve deep interpersonal and ideological conflicts. Doug teaches his innovative de-escalation skill that calms any angry person in 90 seconds or less. With Laurel Kaufer, Doug founded Prison of Peace in 2009. The Prison of Peace project trains life and long terms incarcerated people to be powerful peacemakers and mediators. He has been deeply moved by inmates who have learned and applied deep, empathic listening skills, leadership skills, and problem-solving skills to reduce violence in their prison communities. Their dedication to learning, improving, and serving their communities motivates him to expand the principles of Prison of Peace so that every human wanting to learn the skills of peace may do so. Doug’s awards include California Lawyer Magazine Lawyer of the Year, Best Lawyers in America Lawyer of the Year, Purpose Prize Fellow, International Academy of Mediators Syd Leezak Award of Excellence, National Academy of Distinguished Neutrals Neutral of the Year. His four books have won a number of awards and commendations. Doug’s podcast, Listen With Leaders, is now accepting guests. Click on this link to learn more and apply.