2 Aug 2021, 10:30 — 4 min read
An entrepreneur’s journey is a culmination of ideas over a period of time. If you are an entrepreneur seeking to grow your business or have started a business in Covid times, read on.
There are two angles to all entrepreneurial journeys – one is the emotional journey and second is the financial one. Both require a separate understanding, however our experience over the years is both are interlinked and critical for happiness. It is a fact that one can be a successful executive and yet be unhappy, however same is not true for entrepreneurs. It is a difficult journey which requires perseverance as well as patience.
However, what does it take?
Preparation is about what is a worst-case scenario and acting to it. It is important as one cannot forecast black swan events like Covid. However if one has set general provisions aside the situation is manageable.
How does one decide general provisions?
It depends on usual events in the business. That said planning for a worst-case scenario is the responsibility of management. Some businesses have long collection cycles while some have shorter. If your business has a longer collection cycle you need to have a higher emergency fund. The thumb rule of one year expenses at a business level as practiced by Microsoft does not hold good.
When I think of lemonade it reminds of the iced cool natural drink available across the length and breadth of India. In business, all of us face these challenges. If we keep this as a cornerstone of our thinking, we are likely to succeed.
This is especially true in businesses where credit is extended, one of the reasons why doing business in India can be difficult. However, the laws are changing in this aspect and things are likely to be better in the foreseeable future.
One of my friends was in an operations role in a financial services company. He had asked my inputs on whether to start a business. If you have been in a sales role for over five years in the same industry, then it can be considered. Ideally close to 10 years is a good situation as one has more credibility. A good tip is to look at people whom you know and have not called in a while. That sometimes helps to accelerate progress, especially in times like these when meetings are limited.
If you don’t have the experience then have a trusted partner. However, you may need to put up more capital or be happy with being a junior partner. A good structure is to have functional authority over your domain, if you are venturing out.
Product market fit is critical to achieve success. If client perception matches the quality of your operations, it is more likely to achieve success. This can be done through having relevant systems in critical areas of your operations. That is different for different businesses.
Being ready is the key to opportunity. May you grow stronger by the day. Carpe Diem!
To explore business opportunities, link with me by clicking on the 'Connect' button on my eBiz Card.
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Posted byAnirudh Anand Gupta
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7 Sep 2021, 11:00