Why it's so difficult to start a business

Key takeaways

§? There is some mystery to starting a new venture

§? Venture starts with people with an entrepreneurial mindset

§? Uncertainty management is the name of the game

§? Ideas are a start, but a method is needed to test their viability

§? Testing of an idea should be done inexpensively

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To the outsider to the world of entrepreneurship, starting a venture is a mix of mysticism, miracles and pseudo-magic. Some look to their successful neighours and peers and wonder why they have not made the move. What could be keeping me back? Is there a method to the madness of venture creation?

Entrepreneurs are our heroes, or should be. They accumulate a lot of wealth and have a significant influence. Elon Musk started the first automobile company based on electric technology in a century. Jeff Bezos transformed retailing with his disruptive e-commerce business model. We know that most businesses started small and then became high-growth organisations, and there seems to be a method to achieve this.

Myths of venture creation

Most outsiders to the field think that ventures start with an idea. However, there is a stage before the concept that is often ignored or minimalised. Ideas come from somewhere. A stream may begin from a spring; however, much happens below the surface to create a fountain. It takes the structure of a water table and pressures to force water upwards.

Similarly, ideas come from a mental structure called the human mind. Minds are not all the same, and our neurons fire differently.

Brains can be moulded, as clay can be changed into pottery. Entrepreneurs are wired differently; they can spot opportunities where others see nothing or doom.

Charles Revlon, in the depths of an economic depression, identified a need that was most ignored. In an environment with double-digit unemployment and banks falling, women still had a problem to solve.

They wanted to be noticed and find work in a harsh climate. And so, Revlon cosmetics were born. Someone asked the founder of Revlon what business he was in, and his reply is still relevant today. He said that in the factory, we produce cosmetics, but in the market, we sell hope.

Fear of the unknown

We may not notice that we feel safe in our comfort zone. The human mind likes to be in control, and venturing out with a new idea can be threatening. When we lose the power of control, we feel lost, but entrepreneurs like the feeling of uncertainty. Think about when we moved into the COVID-19 pandemic. We had severe restrictions on movements. However, humans are social creatures, and even in post-pandemic times, some are still suffering from psychological and psychiatric challenges. We are done with COVID-19, but it is not done with us!

Entrepreneurship starts outside of your comfort zone. This feeling of discomfort has to be conquered if aspiring entrepreneurs have to become successful.

You can use some techniques to change your mind’s wiring—starting a new hobby or learning a new language. Using your other hand, closing your eyes, and slowly navigating a dark room is essential to test your ability in a difficult situation. The mind must be open to new experiences; rocking in a hammock might not be the best place.

However, there are times when the mind needs to rest. There are many historical examples where people got inspiration not from tackling the problem but from stepping away from it.

Archimedes, an ancient mathematician, was puzzled and unable to calculate the volume of an irregular object. He studied it and could not come up with a solution. He took a break and immersed himself in his bathtub filled with water. After a few minutes in a relaxed mood, he was inspired. The water level rose as he stepped in and lowered as he left the bath. The level of displacement, therefore, was equivalent to his body volume.

We know from psychology that a eureka moment can come from a rested mind and a brain with enough sleep. Research points to couples with a sleep divorce, who can get more snooze and perform better.

However, relaxation might be challenging to pull off in a world of distractions. It could be as simple as relaxing with light music and sipping tea. I often have my phone close by not to browse, but when the idea emerges from below my consciousness, I record it before the flash goes away.

Method of entrepreneurs

There is another barrier to starting a venture beyond mindset changes, idea generation, and problem-solving. Aspiring entrepreneurs frequently believe in the myth that venture creation requires much cash and luck. While luck can sometimes happen, do not bet on it. Often, when an entrepreneur ventures in uncertainty, the outcomes are less favourable—the odds are against you.

What is the technique that entrepreneurs use to start their ventures? Some say it is a process—start with an idea and write a business plan. Frequently, ideas have little commercial potential. Entrepreneurs begin by doing a business experiment—they are testing a hypothesis. If I wanted to determine the viability of geera-jerk barbeque, I could not assume that since people like both, they will like the combination—it is not as sure as rum and Coke. The key assumptions that we test will determine success. Look for assumptions; you might be making some and do not know. Be careful of the ‘don’t know that you don’t know’ situation, and speak to someone with a different perspective.

Testing an idea has to be done inexpensively. Why? Since we do not want to waste money on an unproven concept, it makes sense to assume that it will give unexpected results—some might be useful, but most will not be. Do not fall in love with your idea and mortgage your home; you are not an entrepreneur but a gambler.

Entrepreneurship can be a long and winding road; however, if you know the tricks of the trade, you can be successful. Develop your mindset to explore new ideas in uncertainty, design a business experiment, evaluate the results, and determine if you should start over again. Maybe you have the beginning of a successful business model.

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This condensed version of my article appeared in my T&T Business Guardian column titled Entreprenomics.

Sajjad Hamid is the author of Build Your Legacy Business: Solopreneur To Family Business Hero.

This book combines entrepreneurship and family enterprise as no other. Sajjad is an SME & Family Business Advisor supporting entrepreneurs in scaling their ventures. In his spare time in Trinidad and Tobago, he tries to produce organic tropical fruits and vegetables and practise sustainable farming in his home garden.

You can contact him at [email protected]