In business: tight resources are a blessing

Before starting the search for investors you should thoroughly reflect on how much you really need. As each round will be dilutive, if you are not careful you might end owning a small fraction of your company.

When you prepare your business plan (to devise how much money you will need until the company finances its own growth), I suggest you put together three scenarios: optimistic, realistic and pessimistic. Afterwards, adopt the pessimistic as the new optimistic and develop two more scenarios: a new realistic and a new pessimistic. The new pessimistic will not be far from the final outcome.

Many business owners think they are under a competitive disadvantage because they have fewer resources than big corporations. What seems to be a liability is an asset because necessity fosters creativity. To be different you need to be creative. Adversity grow geniuses, prosperity eradicates them.

 In business the true obstacle is not lack of money but the lack of ideas. To launch a successful company you need to find a need and a solution and to add a reservoir of knowledge, experience and ability. Money will follow.

Expensive solutions sign mediocre minds. When a Company has abundant resources at its disposal the tendency is to waste them, not being creative and investing more to get less. The issue is not how much you spend but how bright you are spending what you have.

 If you cannot spend much, the only way to build a Brand is by being bold and developing a strong identity. That′s great because in a world crowded with information the biggest thread that companies face is not rejection but indifference. You can fight rejection with bold changes but indifference is more insidious since whatever you do you remain unnoticed.

 A strong identity helps you to focus. With few resources, the only way to survive is to stay focused. It forces you to simplify your value proposition, to sacrifice elements, to concentrate on what is essential for the client and to ignore the rest. Focus is essential to succeed in today′s competitive environment.

Cash shortages will force you to put your attention solely on one goal, it invites you to reflect on which are your key assets and strengths, on what you can do better than any other company.

Once you know what it is, you have to concentrate in being increasingly better at it. As Jim Collins says: “to focus on what you can do better than any other organization is the only path for greatness”

@EnriqueQuemada

www.onetoonecf.com