Developing Your Entrepreneurial Vision

Developing Your Entrepreneurial Vision A Primer for the Want-to-Be Entrepreneur Walsh Enterprises Business Advisors Huntington Beach, Ca Al Walsh CEO Business consultant

Developing Your Entrepreneurial Vision
I’m often asked for advice on business startups. This primer is aimed at those who are contemplating starting their first business, or those who failed and want help in determining why. My authority in presenting this information is past experience with two successful startups that were subsequently grown to mid-cap level, and my years of experience as a consultant helping other entrepreneurs fund & start businesses, beta-test new products & services, and find joint-partners to bring their products to market.
If you already started one or more successful entrepreneurships, you probably don’t need this advice; or won’t be interested. If you are a perennial sucker for the latest “get-rich-quick” scheme, good luck; I can’t help you.
There are endless legitimate and respectable ways to make money in this world. Entrepreneurship can be a tremendously satisfying and rewarding experience. However:
It’s not for the unfocused or unmotivated
It requires a certain risk-taking tolerance
If you’re not prepared to give the full measure of yourself, you probably shouldn’t get involved.
It takes resources. If you have no resources, and think you’re going to easily find a “sugar daddy” to fund your dream, good luck - especially in this economic environment.
It’s not something you should rush into half-baked.
I always recommend that the aspiring entrepreneur go through the deliberate steps of defining their vision, then fleshing out a business plan, then seeking funding (if necessary) and only then starting up. This primer addresses defining the vision. For help on business planning, go to my blog site at http://walshal.wordpress.com and dig back into my early articles where I previously posted a primer on developing business plans.

Before we get into the vision process, allow me to offer a couple of thoughts:
Don’t be in a rush. Be deliberate in planning and executing your business. There’s enough risk involved without rushing in half-baked. If you’re out of work, find the best job you can to get income streaming-in then plan the business in your spare time. Perhaps you might want to consider a business that you can start part-time, probably from home; and work into.
The obvious first step in developing your vision is to select the type of enterprise. I always recommend that it be something which brings a sparkle to your eye and fire to your belly. Your chance of success will be much greater if you enter into something that gets you excited.
Obviously you’ll need to have expertise. If you’re contemplating something outside your knowledge base, then search for an opportunity where training is provided; such as a franchise opportunity.
Do research. The internet is a great resource. Most businesses have an internet presence these days, so a little research can reveal a great deal – such as who your competitors are, how saturated the market is, how others conduct the business, and more. If you have a “new” product or service in mind, a little research can reveal just how unique it really is. There’s little new under the sun, and very likely someone else already had the same idea. It doesn’t mean you can’t succeed, but you want to know what you’re up against and you don’t want to get ensnared in patent or copyright issues. It would be a shame to build something meaningful and then have it all taken away in court.

A friend of mine left the corporate world and started a business several years back. He looked at several ideas and finally settled on a franchise service opportunity. Through internet research, he determined that the industry was mature but there was only a light presence in the Southern California area. He locked in an agreement that gave him exclusive rights in a choice underdeveloped territory, and obtained full training; including field assistance in kicking-off his marketing effort. Within months the business was profitable, and it’s been growing steadily ever since. Research pays. Take the time. Know what you’re getting into, and how to get into it.
A number of other factors should be taken into account in selecting your business:
Can you devote a full-time effort? How will you fund it, and how much do you need? How will you pay the bills until the business is healthy enough to provide your income. How risky is the business, and what is your risk-tolerance? What resources will you need (facilities, equipment, etc)? The hard specifics of these questions should be addressed in developing your business plan, but you should ask yourself these questions within a reasonable tolerance during the vision-phase to size up how viable the business prospect is given your personal situation, available resources, and access to money. Obviously, if your idea is capital-intensive, requiring a large up-front expenditure, and your personal resources are very limited, then perhaps you should be considering something else.
A warning about buying into franchises or other peoples’ businesses:
Nothing in life is free, and there’s always a price to pay. Big promises usually turn into big disappointments. The other party will most likely make money – you need to make sure up front that they’re not the only ones; or that you’re the only one taking a risk. Talk to other people who have participated and learn from their experiences. Don’t just talk to the people the company directs you to. Ask for a list and select at random. Never be rushed by “hard-selling”.

Developing Your Entrepreneurial Vision This may sound silly, but take some time to sit back and actually picture yourself running your business. Unless you’ve got lots of money to throw around, most likely in the early-going you will be the entire business… “ Chief Cook & Bottle Washer” There will be lots of things to do, including selling, accounting, admin, etc. Some people just aren’t cut out for certain jobs. Certain people are uncomfortable selling. You may think you’re a brilliant scientist, engineer, technician, etc., but it’s an entirely different matter when it’s just you. Make sure you’re emotionally and professionally comfortable with all the aspects of what you’ll be taking on. A word about partnerships. Most fail; especially family partnerships. There’s lots of statistics to prove it. One partner may be weak, and one strong. Jealousy, greed, and temptations pop up. Power-struggles arise. Even the best partnerships can fail because people change over time. I always recommend that partners shape a firm contract up-front which has an escape plan in case the relationship goes bad. People with strong entrepreneurial tendencies tend to resent partnerships because they want to do things “their way”, without interference. Make sure you know what you’re getting into. Getting back to research again, you will have to perform a number of bureaucratic steps in setting up your business such as establishing up a corporate shell, or obtaining federal & state identification numbers, or local business licensing. There are resources on the internet that will guide you, for free. You don’t need a lawyer to do this.

Developing Your Entrepreneurial Vision I haven’t touched on everything you should be considering regarding your business startup, but hopefully I’ve impressed on you the value of carefully and deliberately thinking it through. There are a rare few impatient people whose mental processes enable them to rapidly size-up a situation and develop their vision & plan “on the fly”. If you’re one of them, good luck to you. Most people need to take a more deliberate approach. Even if you’re one of those rare quick-studies, I still recommend that you take time to revisit your thoughts, do your research, and verify the veracity of your ideas. Failure is expensive and frustrating. Good Luck Al Walsh, CEO Walsh Enterprises, Business Advisors Huntington Beach, Ca (714) 465-2749 [email_address]

Developing Your Entrepreneurial Vision

by Alan Walsh on Apr 25, 2009

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