An Entrepreneur’s Journey
Monday, 27th November 2023
Many people have great ideas they believe can become great business opportunities. These initial thoughts are often genuine beliefs that something good will come from them. With their bright minds budding entrepreneurs come in all shapes and sizes with wide ranging areas of expertise and the self-confidence they think can become a real success using their knowledge and expertise. One of the biggest draws towards Entrepreneurship is the desire to work for themselves rather that the steady routine of working for others. This has become even more popular since the pandemic created the space for more people to reassess their lives in such a massive uncertain environment. Many actually do go on to achieve great things.
Sadly many more do not reach such heights as the failure rate of those starting a business is very high.
There are multiple reasons for not succeeding. Perhaps the product or service was the wrong fit for the market, competition was very high, financial resources were too challenging and an individual cannot deal with all aspects of a business. However, one of the biggest reasons for failure is understanding the commercial realities of business and failing to plan for this.
According to the Association of Chartered Certified Accountants (ACC) in a 2021 survey over 65% of SMEs (with less than 250 employees) don’t have a business plan.
The well-worn cliche “fail to plan, plan to fail” says it all.
If you don’t have a plan no financial institution, banks, investors or others will take you seriously if you need funding to develop and grow your business. Unless you have the personal financial means to run the business independently of seeking extra financial resources, a business plan is the most critical aspect of bring an idea to fruition and growing the business.
Another big reason for failure is the entrepreneur themselves. They may be a highly regarded expert in their own field, e.g. scientist, technologist, engineer etc with that excellent concept. However, they may have no notion of understanding the commercial realities of the business world. In other words, create a plan, develop it, keep reviewing it and build in a mindset of constant iteration rather than a static document that is left void of meaning beyond its initial concept.
The business plan and flexible mindset of the Entrepreneurs is one of the major aspects that allow them to stand out from the heard. Many other factors come into play of course but at least this allows them the opportunity to concentrate on building a successful business.
Don’t fall into the trap of failing to plan “create the plan” it is after all the goal of anyone seeking to be proud of something they have created.