Business Management

By | August 26, 2006

I have a very stubborn friend that reckons his biz idea - lets call it X - is a sure thing

he has little biz sense but is super keen

he has done no research on investment amount, demographics, market size, pricing etc etc. he simply thinks its a good idea

I have three or four things to say about this guy:

1. Of course, one of the problems in Taiwan is that people opening business most often don’t make adequate provisions for poor cash flow in the first 3-6 monthsj of their business plan. They often run out of cash after that period, and go out of business, even when they have a great product. I’ve seen many good business go to the wall in surprisingly short order.
2. Having said that, planning things can in some cases kill enthusiasm. We westerners tend to overplan for things to the point that the idea just dies from the weight of planning. A little spontaneity can really help get a business going. So I wouldn’t completely knock him without knowing such sketchy details as you have provided. Perhaps he’s prepared to roll with the punches, and see how things go.

3. Perhaps he isn’t worried about making a mistake or mistakes. Often, the fear of mistakes prevents entrepreneurial activity, and the planning covers the fear by claiming it is impossible. The best entrepreneurs plan, do, make mistakes and learn from the whole process, even if they decide their business didn’t work the first time.

4. So in some ways, I admire entrepreneurs who keep trying because making mistakes is a sign that one is willing to learn. But one has to be willing to learn something from each mistake, otherwise you are just banging your head against a brick wall, no?
Kenneth