Presentation on theme: "Entrepreneurial Pitfalls"— Presentation transcript:
1 Entrepreneurial Pitfalls ~ Look Before You Leap ~
2 1.ENTREPRENEUR TRAPS TO AVOID Entrepreneur as a TechnicianLearning PhaseMore resource expended than gatheredTypically running cash flow negativeEntrepreneur as a “technician”Entrepreneur wears many hatsSurvival is a day-to-day concernStart-up TrapExpenditure = risk“Dream stealers” prevailSelf-confidence is questionedComfort zone is calling loudEntrepreneur tempted to bail just prior to growth phaseTraps & Evolving Management StylesX Start-up TrapMany success stories never see the light of day
3 Many success stories never see the light of day 1.ENTREPRENEUR TRAPS TO AVOIDEntrepreneur as a TechnicianLearning PhaseMore resource expended than gatheredTypically running cash flow negativeEntrepreneur as a “technician”Entrepreneur wears many hatsSurvival is a day-to-day concernStart-up TrapExpenditure = risk“Dream stealers” prevailSelf-confidence is questionedComfort zone is calling loudEntrepreneur tempted to bail just prior to growth phaseX Start-up TrapMany success stories never see the light of day* Brian Tracy
4 1.ENTREPRENEUR TRAPS TO AVOID Entrepreneur as a ManagerFounders TrapNeeds exceed founder ability to controlIf delegate accountability & responsibility = continued growthIf not = growth ceilingInability to make decisions is main causeSuccess TrapMeeting or exceeding expectationsTypically 5+ year mark **Must reinvent or slowly dieWhy?Ride a good thing too longWhen KPI down-trend, may be too lateMust commence new lifecycle while cash flow supports itX Start-up TrapEntrepreneur as an Entrepreneur
5 2.VISION - YOU ARE BLIND WITHOUT IT It all starts with future state in mindBHAG – Big Hairy Audacious GoalA true BHAG is clear and compellingServes as unifying focal point of effort, and acts as a clear catalyst for team spiritIt has a clear finish line, so the organisation can know when it has achieved the goalHigh AchieversUnderstand perception is reality.A true vision forefront of mind will eventually become a reality with applied effort
6 3. GENUINE PAIN RELIEF Value Proposition Quantitative statements Value is in the eye of the buyer (…not yours!!)Quantitative statementsabout the uniqueness of the business & precisely why a customer should engage.Describe it as – “a market need in search if a solution”Your offering must be market driven not technology driven
7 4. HEARD THESE?.... Build it & they will come…. We have no competitors….Our mousetrap is better than X’s….We have first mover advantage….We are funded – now we can relax…
8 4. WHAT THEY MEAN!.... Build it & they will come…. No Plan. We don’t need to market - beat a path to our doorWe have no competitors….We have not looked or there is no market or S&AOur mousetrap is better than X’s….We hope the market will agreeWe have first mover advantage….No patent or competitive differentiatorWe are funded – now we can relax…Naïve to investor demands and process
9 5. ROUTE TO MARKET Technology risk vs. Commercial risk Too many business focus on the technical aspects of product/serviceFeature/Function set overloadInvestors generally assume the technology worksHow do you use this thing as a business?Vs. property, shares, etcHow do you mitigate commercial risk
10 6. VALUE REALISATION & EXITS Ongoing vs. Out & gonethey don’t need to be the sameYou all need to get something for your hard workVR/Exit misalignmentOften cause of most board level/ issuesWhen others can see how/when they realise value, they will be more willing to help.
11 7. INVESTORS – KNOW THY DEMON Know the Difference:FFF, HNW, Angels, VC, Project FinanceVulture Vs Venture Capital? – time driven modelThe “Golden Rule”Those who have the gold makes the rulesGenuinely know what & who you are getting into bed with.Walk a mile in their shoesPresent info in the form they want/need to make a decision
12 8. MANAGING GROWTH Seems simple…..growth = success? Generally Single largest & fastest growth cost is peopleNext is buildings/equipmentYou have less control over revenue generation but ultimate control over expenditureScalabilitycan the current business model scale for growth?if not change or don’t & it will self-implode.
13 9. LEADERSHIP LONELINESS It is exhilarating but it can also be very lonely…..CEO, Entrepreneur, leader, chairman are all human…..Express doubt at times about strategy, products, ideas & selfInnovation calls for outside of box thinking = “crazy” ideas, “the path less travelled”, pathfinder not follower…….Difficult to express ideas/issues/concerns to:Board – they generally employ you, judge risk & your rationalitySpouse/Friends – don’t have the full context or day-to-day pressureMany may get the wrong message & panic:Staff:(resign), Customers:(drop sales), Market:(share price), Advisors: (Banker)Some studies indicate it may be the biggest contributor to leadership failure & workplace depressionCEO forums, peer networks, functions like these, mentors
14 CONCLUSION - ENTREPRENEURSHIP No guarantee for success….But….you can maximise chances!Often outside your comfort zone….But….fortune favours the brave!There is no journey without a destination….But….often its more about the journey & the 1st step!The unknown breeds fear & uncertainty….So….study widely & deeply – overcome the “unknown!”
15 ~ Look Before You Leap - But Do Leap!! ~ www.ranksec.com THANK YOU~ Look Before You Leap - But Do Leap!! ~