So you want to become an Entrepreneur 3? Idea Generation and Experience
In order develop new ideas or new inspiration the entrepreneur has to start looking at everything as a business and as well as to be well-travelled. When we start observing everything as a business we then start to see opportunity where most eyes don’t see opportunity. When we travel the world we are bound to see something new. There is always certain business model’s you can import that may not exist in the home country. What we then do is take the business model and experiment with it in our home country. Experimentation/ testing are parts and part of the attributes of true entrepreneurship. Entrepreneurship is all about taking risks.
When we experiment we are then experiencing our customer’s tastes and then adjusting accordingly to suit customer’s preferences. E.G. Chicken and waffles may work in America but may not work in Africa because Africans prefer savory food separate to sweet food.
The Research Component
We then research by giving out the products and service for free. Yes, for free. The reception should then outline and give us the true colors of people’s likes or dislike. Giving out a product or service is on the assumption that we have research capital. Research capital can go along away to building the business. If we have enough research capital we can even outsource the research to marketing entities. Marketing entities will then collect the data and give us feedback on the client’s tastes.
Secondary research can also help if the said business is existent. Secondary research is data that is always available highlighting the current statistics of the said business.
Small Sizing Testing
When conducting research, we will also be collecting potential customer’s details to see if they would repurchase the said product or service. If we have re-purchase then we know we are successful in our selling. The idea would be to start with 10 or 20 repeat purchasers of the said product or service. We are now building rapport and cash-flow for the business without being capital intensive. If we have enough capital for our bricks and mortar business we can give away freebies on opening night. Let’s take for example when a Chicken King Franchise opens up it gives away free Ice Cream. This strategy has proved to work time and time again.
If we can’t afford a bricks and mortar business as yet we can then streamline delivery to those 10 or 20 clients we have identified to love our products or services.
We then see if the business can expand or whether it contracts. Sometimes our initial business is not our final business. A business goes through the following phases:
1st Step: Discovery: Test the business (Initial or Secondary Research)
2nd Step: Develop the Business Plan
3rd Step: Resource the Business (Inoculate and leverage Share Capital and Assets into the business)
4th Step: Managing the Company (Controlling the resources through discipline, delegation and responsibility)
5th Step: Harvesting (Realization of Profits or Loss, Return on Investments, Return on Equity)
6th Step: Evaluation (Advanced Business Planning); we then re-evaluate if the entity is actually progressing in the desired direction, this could also mean a process of rediscovery
Tenacity
Sometimes Our Initial Business Is Not Our Final Business! Every year we must look at our Advanced Business Plan (GPS) and truly see whether we achieved, what we set out to achieve. The point of a Business Plan is to actually go back and see if we are achieving the set goals and targets. In many cases the entrepreneur writes the business plan, implements the business then puts the initial business plan on the shelf to collect dust.
We call it Advanced Business Planning for a reason because we review every 6 months to 1 year to see if we are adhering to our goals and objectives. We then tweak accordingly and see what changes need to be made and how we can improve the business further. If we see any changes; improvements or downgrades we then return to step 1 Discovery. In Discovery Mode we make the necessary adjustments.
If we see that the business is not progressing or improving we will then develop a new business model. Samsung had several business models before they came to the final business model, a true example of tenacity. If you’re really passionate about your initial business model you will give it more time.
Usually it takes six months to three years to see if the business is propelling forward or backwards. In other circumstances they would be other factors that might be hindering business growth. The key to capitalism is growth and not stagnation. Perhaps the business positioning is not right or the type of business is not the one. When we do Advanced Business Planning we identify these factors.