A letter to the young(ish) entrepreneur

Embarking on the journey of entrepreneurship is akin to setting sail into uncharted waters. It’s a path fraught with challenges, but for those who persevere, the rewards are immeasurable. Allow me to share some hard-earned wisdom from my own journey, which began in the trenches of traditional business and evolved into the complex digital landscape.

Step 1: Master the Fundamentals with a Traditional Business

Begin with a venture grounded in tangible operations. Whether it's a consultancy, a retail store, or a local service provider, these enterprises teach essential business management skills. Here’s why this foundational step is crucial:

• Consultancy: Perfect for understanding client relationships, project management, and financial stewardship.
• Brick-and-Mortar Store: Offers lessons in inventory control, supplier negotiations, staff management, and financial oversight.

These traditional businesses are your training ground. You’ll learn to navigate inventory, billing, accounting, finance, HR, sales, and marketing. These are the bedrock skills every entrepreneur must master.

Step 2: Transition to the Digital Domain

Once you've solidified your grasp on the basics, venture into the digital realm. Digital businesses, be it e-commerce, SaaS, or digital marketing, demand a different skill set. But with a solid foundation, you'll be well-prepared for this transition.

Why Follow This Approach?

Statistics reveal a stark reality: traditional businesses often boast higher success rates compared to their digital counterparts. Data from reputable sources indicate:

• Traditional Business Success Rate: Approximately 70%
• Digital Business Success Rate: Around 30%

This means traditional businesses are more than twice as likely to succeed compared to digital ones.

Mortality Analysis & Business Opportunities

• Traditional Businesses: Tend to have greater longevity. Think of the family-owned diners or local hardware stores that have stood the test of time.
• Digital Businesses: The digital landscape is volatile; startups can rise and fall swiftly.

Consider these thriving traditional business examples:

• A?aí Franchises: These have gained significant traction, capitalizing on health trends and consumer preferences. For instance, franchises like "Sambazon" and "Acai Express" have expanded significantly in recent years .
• Fitness Studios: Gyms and wellness centers have seen substantial growth over the past decade. Chains like "OrangeTheory Fitness" and "F45 Training" have proliferated globally .

My Journey

I began with Bravo Media, a consultancy where I honed my skills in marketing and client management. This experience was invaluable when I later founded The Bridge, a digital/hybrid business. The journey was tumultuous, marked by relentless effort and strategic decisions. Ultimately, we achieved success, culminating in our acquisition by the European firm, Gi Group.

Words of Wisdom

• Stay Lean & Sharp: Avoid the temptation of chasing venture capital and lofty valuations. Focus on sustainable growth and sound financial practices.
• Per Ardua Ad Astra: "Through adversity, to the stars." This Latin motto, embraced by the Australian and New Zealand air forces, underscores the importance of effort in achieving excellence. Remember, there are no shortcuts to success.

In conclusion, start small, learn thoroughly, and then venture boldly into the digital world. The road is arduous, but with perseverance and the right foundation, the stars are within reach.

Yours in entrepreneurial spirit,

Bernie

References

1. Success Rate of Traditional Businesses: Data from the Bureau of Labor Statistics (BLS).
2. Success Rate of Digital Businesses: Report from Startup Genome.
3. A?aí Franchises Growth: Industry analysis from IBISWorld.
4. Fitness Studios Expansion: Global market research by Statista.