VENTURES AFRICA – I believe many would argue with me on the above caption but instead of putting forth a defence for the caption why don’t you read till the end before you do so!
Today’s post is borne out of my experience as an employee with two different entrepreneurial-type organisations. Both had one singular trait in common – they both believed they could start a business from the very scratch and beat the market-leaders in their line of business hands down in a short term (say 6months to 2 years). The 6-month term is similar to the ‘probation period’ given to new employees.
Did I hear you say, it’s not the same for businesses, is that possible or that it’s too early a time to judge the success of any start-up business? I thought so too but the two businesses under my review gave an opposite picture. How do I mean? Please stay with me.
The following 3 reasons taught me otherwise:
They started their business based on mere mental projections: The MD for both businesses were part of a successfully run business and felt they had worked to a point where they could start their own businesses and they resigned. This decision was based on a mental projection that once they start it would be smiles all the way to the bank. But, the hard reality of this assumption soon became evident to them. Please, contemplating starting a business? Please never start a business based on mere mental projections alone, do your homework!
They started with the hope to cut overhead cost to the point of cutting short their survival: Yes, I choose my words correctly, it was not an error. There are a few overhead cost of doing business that are non-negotiable and holds irrespective of the line of business. But you cannot operate minimizing these cost even to cutting down the essential operational costs that are must have!
They started with the hope of running the business on a ‘me-mentality’ and forgot business continuity: When you build a business on a ‘me-mentality’, every part of the business runs on you alone, without you moving nothing does. While this maybe beneficial at the early stage of a start-up, it becomes a minus on the long run. Only businesses that are built on structure outlast those that are not!
The above views are based on my experience and I’m not sure if anyone shares my view in any way or at best has a different view. Please do well to drop it in the comment section.