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activity IN business. People get into business in many ways. Anyone can buy an ongoing
business, inherit a business, raise capital to take over an existing division from their employer,
start a franchised restaurant or store or become a partner in an existing company, but
STARTING FROM SCRATCH is where creativity, hard work, luck, opportunity and - sometimes -
a little craziness meet!
New businesses may be started by a person, a group of people or an existing business.
Regardless of the FORM of ownership, the potential owner must consider three key questions
before making the decision to begin a new venture.
What are your strengths?
What are your interests?
What are your goals?
The answers to these questions lead to decisions about what business may be logical, what is
most likely to succeed and what will encourage the founder to “stay the course” through good
times and bad.
Once these questions are answered, a new series of questions emerges.
What resources will the venture require?
What are your available resources?
What time commitment is required?
What is your time commitment?
While there are many, many more questions and conditions to consider, two final and critical
question must be:
WHAT IS YOUR PLAN FOR FAILURE?
Yes – you DID read correctly. Success is easy to plan for. Market acceptance and plenty of
money can solve a load of problems, correct many mistakes and create an environment where
resources are available to hire excellent professionals to assist in planning for growth,
deployment strategies, etc. And, of course, a success plan is necessary in any case.
But what happens when there is NOT market acceptance, either in your particular market or of
your particular product or service? What happens when your financial, talent or time resources
are running out? What if you believe strongly you DO have a viable concept or product, but you’ve
exhausted most of your resources marketing to the wrong audience, marketing the wrong
product or marketing an excellent service in a geographic area where there is not a receptive
audience?
These business problems do not have to spell end of the enterprise. In fact, it is out of adversity
and reflection, NOT during the exciting, heady start-up phase, that unconsidered potential,
hidden strengths and TRULY creative possibilities are uncovered.
WHAT NEXT?
What if – after informed, thoughtful examination, a decision is reached to terminate the
enterprise? WHAT NEXT? This may be the perfect time to salvage SOME resources which will
not be used to satisfy creditors, and use those resources to start a new enterprise.
What resources? Client contacts. Terrific teams. Strategic knowledge of specific processes,
market opportunities or supply resources.
You’ll need motivation. After a business failure it can be tough to get motivated for another new
venture.
You’ll need courage. Fear of another failure sets in and can inhibit your sense of self -
confidence.
You’ll need money. With a business failure on your heels, it can be tough to make the rounds of
funding sources on your own.
You’ll need excellent people. Can you sell folks on your new vision, right after a failure?
You’ll need to realign your beliefs. Guess what…
YOU HAVE NOT FAILED!
Perhaps your business was not able to survive, but that does NOT mean YOU are a failure.
Maintaining confidence can be one of the most difficult hurdles to overcome. With skillful
strategic planning, this can be a time of great opportunity and freedom,.
WHAT NEXT? On the other hand…this may be not be the best time to start another venture. This
may be a great time to use your specialized knowledge in partnership with a former competitor
or strategic partner, a company in a related field or a governmental agency with oversight of your
new area of expertise, or…
This may be a great time to do something completely different, or do nothing at all.
What – really - is the correct decision? IS there any right or wrong? Can you make the decision
yourself - from within your situation?
The perspective of a disinterested party is vital at such a turning point.