It is never a bed of roses and neither is it difficult to rise again and again in enterprising.
Most for us are quick to give up, as if that was the aim at the inception.
Real entrepreneurs ride and rise in the muds until they grow to be corporates/multinational corporations.
No wonder why the motto has always been “Failure is not an option”.
In this edition we walk the talk of business sustainability. We have discovered a global trend of quick success which is eventually followed by an unexpected failure.
We need to equip ourselves with how we then move on for a triumph against all odds.
Sure, it takes determination at each stage of the business/entrepreneurial modelling to remain in the game forever.
We make some reflections on common success/failure matters as learnt from others, by us and other experiences.
Deception in market trends has always been part of our entrepreneurial setting.
This is because most of them are caught unaware mainly through not having a proper plan.
Remember in the last edition we were informed that failure to plan is planning for failure.
Sure, many of our entrepreneurs are operating without a plan.
A common elementary cause of premature failure is capital planning and management.
I have seen most entrepreneurs celebrating and squandering their early returns not knowing that they will be eating capital (by just simply summing up costs and revenues). That is a recipe for disaster.
An entrepreneurial start-up is like a newborn baby whom you are supposed to keep on feeding and grow until self-sustenance.
We always do the opposite as we do not reinvest the little gains that come along the way.
Those in the school of accounting/financial management can agree that both capital employed and working capital should be maintained so as to keep on increasing as the business grows.
Initially an entrepreneur sources capital to start a business (through savings, borrowings and venture capitalisation), but as the business starts it further generates its own capital (as working capital).
The latter is what most of our promising businesses are spending instead of taking it back into the long-term capital generation life cycle of the business. Food for thought here.
Order is critical and a course of concern in the failure of our promising enterprises. Even at an individual level when order lacks nothing will come out. Just simple record keeping has been a problem of our entrepreneurs as they do not see its importance.
Documentation is not done in most instances such that everything is everywhere in a haphazard manner.
From the inception going into the longer generational vision of the business record keeping should lead the way.
Shockingly some cannot even trace a water bill they have paid in the previous month.
We are short-changed in many instances because of lack of evidence from the records we are supposed to have.
To even just attract a venture capitalist there are some critical records that need to be generated daily which contributes to a monthly and yearly report as evidence for progress and success.
Then you find someone trying to explain without any proof/evidence. Failure will not only knock on your door but will enter.
Experience is a great teacher and helps in perfection. Those who are managers, employees and business partners should have extensive experience in their area of specialisation (not jerks of trades).
Our entrepreneurs are always found wanting in this perspective through nepotism by appointing people who are not qualified or with the needed experience.
Favouritism, wrong judgement and little research are other derailing matters in this drive.
Yes, it becomes costly to hire those who are highly experienced but as once informed by Tom Peters mind-set will inform creativity and success.
Proper screening of these parties in an organisation can reward into the future efficiencies (both productive and allocative), succession, further rewarding partnerships and a lasting brand vibrancy for sustainability.
Most of our entrepreneurs shunprofessionalism as they always want to take short-cuts.
Successful businesses are run through adhering to certain professional guidelines.
These can be as prescribed by a certain sector, legislated by regulators or through recommendations.
The bottom line is that professional codes of conduct determine success/failure of a business.
That is where some ethical practices are born and configured into the business.
Those practices that are not only seen/measured by the regulating bodies but also by the customers.
The customer is King and always right. Once they view you as a professional provider then all markets will grow to be yours.
Lastly, it is not only in agricultural or tourism businesses where timing is important.
All types of businesses need proper timing as to when and not to throw a dice just like the life of gambler.
But we always find ourselves throwing everywhere.
Businesses are run by strategies and in these it is imperative to have timing lead the way as each business has a cycle that notifies periods of high yields.
That is yield management which informs even the changing pricing, promotion, inventory/stocking and other forms of strategy.
An entrepreneur should know the period where his/her business receives more so as to meet all the demands (without surpluses or shortages) for a greater market satisfaction.
If you snooze you lose!!! Till then let’s reflect towards triumph of an entrepreneur.
- Dr Farai Chigora is a businessman and academic. He is the head of business science at the Africa University’s College of Business, Peace, Leadership and Governance. His doctoral research focused on business administration (destination marketing and branding major, Ukzn, SA). He is into agribusiness and consults for many companies in Zimbabwe and Africa. He writes in his personal capacity and can be contacted for feedback and business at fariechigora@gmail.com, www.fachip.co.zw, WhatsApp mobile: +263772886871.