Edition 92 – Entrepreneurial Seizure
Why do people go into business? There are many and varied reasons including:
- They think their bosses don’t understand business.
- They believe they can do it better than their boss.
- They’d like to build a life for their family beyond what normal wages and salaries can generate.
- They’ve told their boss to shove their job!
- They have an idea they believe no one else has thought of – and it will change the world.
- They’ve always wanted to be their own boss.
I coin this moment in someone’s life an entrepreneurial seizure. They’ve had a rush of blood to the head and decided that now is their time.
Having an entrepreneurial seizure doesn’t mean they will be great in business nor does it mean they are actually prepared for going into business. It is my observation that if they don’t seek help with their entrepreneurial seizure, often it can end in tears.
Here are some of the common traits I see amongst the entrepreneurially seized:
- Their idea is no different to anything else in the marketplace right now.
- When challenged on their lack of differentiation, they defer to a higher standard of service as their point of difference. It isn’t and it never will be until you prove it consistently once you are in business.
- Their second default argument for their lack of differentiation invariably centres around quality. You cannot espouse quality if you don’t have a product in the market.
- They haven’t looked into the future to determine what the market will be asking for tomorrow. They are only looking at their industry as it is today.
- They’re not passionate about their business offer. Without passion, profits cannot flow.
- They’ve sought advice from their mates or from others who have no understanding of business.
- Their family’s support is at best lukewarm – at worst, destructive.
- They have unrealistic expectations as to how quickly the new idea can get off the ground.
- How much money the idea will consume is a minimum of 50% understated as to the final actual costs of getting the product or service to market.
- Any devil’s advocate questions are treated as a personal affront, not as a constructive element of the process.
If you or anyone you know has experienced or is experiencing an entrepreneurial seizure, you (or they) need to review the above. If you (or they) don’t, all you’re doing is designing a commodity, not a business. Commodities are subject to price pressure and rapid market evolution. In these situations, it may well be the individual has just bought themselves the worst job working for the worst employer – not turned themselves into an entrepreneur.
This Week’s Tip
The best money you can invest is to speak to a trusted business advisor before allowing your entrepreneurial seizure to overcome you. You may find the return on investment is significant
– and could save you losing everything you’ve worked towards to this point in time.