Entrepreneurship, there's no time like the present!

Entrepreneurs, a story of Innovation and rebirth!!..

Our economic outlook after the epically acclaimed banking crises along with subsequent economic “recessions” is finally looking like it’s changing with a positive growth trajectories ahead in key macroeconomic indicators across the globe. Business wheels of all sizes are starting to move a little easier and positivity is creeping back albeit cautiously given the state of our world today.

Many successful people whom I respect in business for their vision and achievements like Richard

Branson, Jeff Weiner, Warren Buffet et Al are all saying the same thing. Now is the time for entrepreneurs to launch their business ideas. They correctly state the economy is dependant on a rash of new ideas turning into new business success stories. They cite many economic factors, which are undeniably favourable for the successful start-ups with impressive upward trajectories for the right guy/gal with the right idea in the right place at the right time! I agree noting the entrepreneur faces enormous challenges in ‘climbing the mountain’ of business success that if surmounted brings enormous rewards to match the hard work and clever thinking behind that success. If I had an idea worth pursuing as an entrepreneur today, I would think about the following:

• a     Feasibility.  Is my idea, product or service one that is commercially developable in a specific market niche? Is there a market for my end product? Am I a market disruptor? Is my product susceptible to market disruption?
• b     Component parts of success. Is my business idea going to be ‘successful to market’ in the start up phase and if so, how? Will my success be based on what I put in place, or is circumstance affording me a lucky break? The former bodes well for a sustainable success story if predominant in ones conclusions. The latter will always feature in a success story, but if the predominant element, the story may well be short lived if successful changes/timely additions are not made/added to the business.
• c    Internal engine. What will be the business model for my idea? Do I have a business plan detailing the product plan(s), organisational structures and business processes both now and into the future as the business grows? Are my growth projection metrics comparing reasonably to my competitors?
• d     External structure. What will my enterprise look like 5 years from now? On envisioning size, will it be just 10 others, and/or just me or shall it be a national operation or international operation? The reasoning being that if one start’s with the end in mind, they will have chartered a journey that is a vision to be shared with those they bring on board. Early employ’s are critical to the success of a growing business especially when you share your vision.
• e     Risk Management. Is there a clear understanding of internal risks, financial and non-financial along with external risks such as market risks, country risks, political risks, etc? A detailed and comprehensive risk register should be established in the planning stages, which should influence the strategy, internal structures and operational processes of the enterprise.
• f      Values. Will what I am translate into a set of values for my enterprise? Only if one proactively thinks about it and maps it out. What values are kernel/core thus should be inserted as unchangeable into the business. I would also think about values in three areas, firstly the core/kernel ones that will guide the business to success or failure but will never change. The second being values that are not core or challenge core values thus are changeable to facilitate sustainable market success. Finally, one should consider how one imports new values and discards existing ones along the way. The two layers of values along with the process should form part of the enterprise mission statement.
• g     Finance. What financing is best? A kernel question for the entrepreneur who should consider very carefully the above points and drill down into the detail identifying contingencies for funding along the way. In this process, one should think about all the elements (business size, scalability, product demand, market access, market penetration, organisational structure, future plans) and then look at the cost/supply side of the enterprise seeing what finance is needed, how it will be got (loans/overdrafts/government agency backing/ equity from operations/venture capital/private equity/etc.) achieving the best “financial fit” for the organisation. When dealing with finance, be very aware of the trade offs for finance both now and into future on the basis of what will it cost in finance and non finance terms like cost of finance through future growth phases, FX risk, loss of business decision making control, etc. Your conclusions should be compatible with your overall business model, values, strategic plans and approach to market both present and future.

Finally, the entrepreneur has many well-documented hurdles to get over. Recent initiatives in the UK and other countries have made progress in giving a “little security” to start up entrepreneurs which is great.

However, failure comes at a price, and if new entrepreneurs are to be successful, their minds need to focus on the success of their venture, not the absence of the familiar social security net they enjoyed as payroll employees to their decision to ‘go it alone’. I think government can help here with a programme as part of the assistance package that delivers social security benefits to transitioning entrepreneurs for a period of time allowing more and more talented people to float brilliant new business ideas more freely. It’s a brave new world, which for the budding entrepreneur is even truer a saying. They also say an entrepreneur should “prepare to learn from failure in order to succeed” but maybe a more methodological approach could increase the success rate and longevity of the new enterprise in the market place.