Featured image by Mary Eiloha Varquez
Let’s assume you have found a great opportunity for starting a new business. How should you evaluate it? Or, perhaps more importantly, how will a potential investor or business specialist rates your chances of success? The odds of survival appear to be stacked against you, because according to small business folklore, only 1 business in 10 will reach its 10th anniversary.
But, survival may not spell success. Too many entrepreneurs find that they could not earn a satisfactory living with their businesses nor get out of them easily because they have too much of their personal assets tied up with them. What George Bernard Shaw said about a love affair is also apt for a business:
Any fool can start one, but it takes a genius to end one successfully
So, let’s get it on!
There are three essential components for asuccessful business venture:
Opportunity – what, when and how
Successful business venture would generate from a unique business idea. But, take note, the idea in itself is not what is important. Ideas in business world are dime a dozen. So, developing it, implementing it and building a business venture are the important things.
Yes, indeed you were able to develop your unique idea, but were you able to identify a market need? Would-be entrepreneurs who are unable to name a customer are not ready to start a business. Mere idea couldn’t make you successful, of course. You should have a very specific market need to make available you products and services. There is no market unless customers have a real proven need for the product.
Time plays a crucial role in many potential opportunities as well. Introducing your products anytime is not a good strategy; the time to open one is during a recovering or booming economy.
Entrepreneur and your Management Team
The crucial driving force of any new venture is the lead entrepreneur and the funding management team. Regardless of how magical your idea and opportunity may seem to be, a person with strong entrepreneurial and management skills must be present to successfully establish your business. What are the necessary skills?
Initially, you and your team should have a credible and reliable experience in the same industry or a similar one. If you don’t have the right experience in starting your new venture, you should either get one or find partners who have an exceptional experience.
Next is management experience, you must at least have experience in financial management, or else you might end up losing your investments or even your personal assets. Employee management, sales and marketing management, count as well. Without relevant experience, the odds are stacked against the neophyte in any business venture and your team members.
It is necessary that you utilize your resources available right. Successful entrepreneurs are frugal with their scarce resources. Your responsibility is to maintain overheads low, productivity high and ownership of capital assets to a minimum. By doing so, you could minimize the amount of your capital you need to start your business and make it grow.
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