Approaching a business start-up with a strong sense of realism is as important as having a viable idea to begin with. A realistic plan which views both the possibilities and potential problems which could impact on the business is far more likely to succeed than one which is based on all events being favourable.
Many entrepreneurs approach their new businesses with a sense of cautious optimism, hoping that the operations will progress as they hope, but accepting that unforeseen events will occur.
The results of these unanticipated occurrences are factored in to the overall plan and presumed to increase the costs of the project and the time it takes to reach the desired position or objective.
Being mindful of events which can cause delays and increased expenditure can have a profound affect on the order in which the various elements of a business plan are implemented.
The “what if” philosophy can lead the entrepreneur to conduct some of the more resource intensive and costly aspects of the business plan later on and thus minimise initial expenditure. In the event that the project becomes unviable, it can be aborted and the bulk of the planned work, effort and money saved.
This Time Next Year We’ll Be Millionaires
The business start-ups that spend their fortunes before they have earned them exist. They continually talk about a new idea and how it will make them millionaires by this time next year.
Unfortunately, very few if any of these dreams come true and the very fact that the mind is focused is on spending the large gains from the business instead of carrying out extensive planning and contingency analysis is possibly the reason why.
Compare this aloof and unrealistic fantasy to a business person who, irrespective of how well the operations are actually progressing, treats the hundredth day as if it were the first. Where a sense of both urgency and caution is applied throughout the business even though it may be successful, the level of attainment is more like to continue.
In the inevitable situations where the would be millionaires fail to achieve their goals, disappointment, anxiety and low self-esteem often follow. Aside from these, the financial costs to them and others who may have invested in their business start-up may be high. The chances of securing such funding a second time for a future project may be minimal.
A realistic approach to business start-up can aid in providing a critical appraisal of the ideas, methods and timing of the whole plan and individual sections of it. The entrepreneur is better able to adapt to the unknown and unanticipated if there is a general acceptance that these factors exist and will come to light eventually. Knowing that they will play a role at some stage in the journey towards the business goals can lessen the affect they have once they present themselves.
Where the entrepreneur is fortunate enough not to experience unanticipated challenges when starting a business, the success of that venture will probably be greater than the initial realistic analysis had predicted.