Most people worry about the challenges they may face if they decided to start their own small businesses. Here are some common hazards to start your own small business, along with some surprising conclusions on how to treat them
- The new company could not
- The new venture could succeed
- The new company could change to “Zombie business model”
This is probably the most obvious risk, but even if the new projects fail, is it really that big of a problem? Suppose that, in the process of winding down one business, learn valuable insights that provide the key to create a new and profitable venture instead. In this context, the so-called “failure” in the first business was simply a stepping stone to something greater. After all, the most memorable performance for most people are not the ones that happened without any problems whatsoever; victory happens after a number of setbacks is generally much more pleasurable and memorable as well. Consider the example of Henry Ford, who was declared bankrupt three times before to build a lasting empire. How many would still think of him as “repeated failure?” So even if the failure is not permanent, neither is success.
The success of the new project can cause problems all its own. When a new business takes off, you may not have the skills needed to manage a rapidly growing business. On the other hand, even if you have the skills required, you may want the challenge of setting new startup to manage the rigors of larger companies. This forces you to make a choice: Are you turn the business over to someone who is better (or willing) to manage the business successfully, so you can still entrepreneur? Do you keep running the business, but keep it as a “bonsai tree business model” (where growth is artificially restricted to the bare minimum)? There is no simple answer to these questions, but these are relatively good problem to have.
In this case you the worst of all possible worlds. A small business that is not alive and experiencing remarkable growth, yet one that also is not dead because of the obvious business failure. Instead, Zombie lurches business for as long as you put in the time and effort required to sustain it, but it never goes quite where you originally had hoped it would be. This option can never be completely eliminated, but just before startup planning can reduce the risk of coming to some degree. If it has taken place, then the next best option may be to change the venture to better business as soon as possible.
In other words, new projects could not, it could succeed, or it could just sit by. But what is important to recognize is that regardless of the outcome happens, the company will have a different set of risks faced by all these findings. So the best strategy is to plan for every possible outcome, so you are not surprised or disappointed by what the future holds.
Copyright 2010, by Marc Mays