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.
