Every new venture requires a sustainable foundation!
Business strategy is rarely considered as critical to the foundation, however, it has to be!
Experience teaches us a great deal and more effectively if we learn from the mistakes of other ventures. The saying is “Fail to plan = Plan to fail” consequently create the sustainable foundation.
What materials are required for the foundation?
- A marketplace
- The skills
- Clear support features
Anyone who is a Dragons Den or Shark Tank viewer is familiar with the phrases “this is not a business”, “solving a problem that doesn’t exist”.
A sustainable business requires a marketplace that continues to produce demand. For example, the every lasting light bulb could be possible but it renders all other light bulbs obsolete and you only get to sell it once. A hobby is of interest to a few people you know and you can be a master at it, however, that doesn’t mean it will sell enough to sustain you or the business.
Therefore, understand the scope and depth of market the product or service requires and then build the support for it. A personal favourite is the company that introduced a reliable product with the purpose of selling the after care service.
Each element applies to developing your business.
Too few new businesses owners plan for months when the targets are missed, that is why so many businesses fail in the first 12 months.
Consequently, the best advice is hold on to 3 months living costs permanently. That creates capacity for poor sales performance, late payment and supplier tardiness.
If you get to the end of the week and you don’t know what’s in the bank then start to get control of the finance. In start-up classes I referred to it as “Old Mother Hubbard”, the affliction of businesses across the world.
One rule that builds respect and financial credibility, pay your own bills on time.
Another, put a credit marker on everyone who is slow to pay. It isn’t unreasonable, because you can’t walk into a supermarket and say of course I’ll and then proceed to eat everything in the basket before you pay.
To dream an impossible dream. When others tell you that you can achieve what ever you want to achieve, there is a truth, if no one is buying you’re not supplying.
So a dash of cynicism hasn’t hurt the planning process. Keep the process honest, based on facts so that the support structures have a real chance to take the load of business development.
The greatest complexity in the whole process needs to be the foundation. Strength comes from understanding that the shape of the building above can change and the foundation remains solid.
Like a building surveyor we test your business foundation, explore where reinforcement is required and what additional structures open new markets to you. Contact me for more detail. There is a world of opportunity and yet businesses still fail. Build on a sustainable business foundation