RECIPE FOR SUCCESS
How to Capture the Entrepreneurial Spirit and Make it Work For You.
By Joe John Duran
Cooking shows give us some great recipes, but it takes business owners who have achieved the American Dream to provide the recipe for success. Every company in the world, no matter how large, started at one time as an idea. That idea was nurtured and worked on and evolved over time into a business. For some companies, that first spark became the beginning of a voyage that created a huge corporation.
Like Thomas Edison's light bulb spawning the behemoth General Electric, no one can predict how large or diverse that first idea will become. Yet there is no question that unless some of the entrepreneurial spirit which started the business remains within the organization, the business will plateau and become stagnant. That's why so many firms, from 3M to DuPont, strive to maintain the entrepreneurial spirit that created them.
So what are the attributes that foster success in an entrepreneurial organization? How do they compare to those found in the bureaucratic company? And how do you make them work for you? We interviewed dozens of successful business owners for the book, START IT, SELL IT, & MAKE A MINT (John Wiley & Sons) to find the common attributes that thriving independent businesses apply every day. Here are the four ingredients that capture the entrepreneurial spirit. They are applicable to not just anyone starting or currently running a business, but they are also important for any business leader who guides a team.
THE FIRST INGREDIENT: Originality
Every newly-founded business has little brand recognition and faces a slew of established competition. This forces every entrepreneurial venture to create different, and in many ways unique, products and services. Every new business owner has looked at the existing landscape and found a market that they believe is under served. This desire to be different is at the heart of the entrepreneurial endeavor. By contrast, many established companies know what has worked for them in the past and would rather play it safe, keeping everything the same. Employees can become complacent and bored with their jobs. Challenging your company, or your division to keep growing and evolving, can help the business thrive and keep employees motivated.
"When we started up there were plenty of firms in the auction business," says William, who runs a large auction firm. "But they all operated in dank and dingy environments. I thought surely people would like to come to an open, clean environment, one that ran like a regular retail operation."
He took that vision and created a hugely-successful operation.
THE SECOND INGREDIENT: Action
Another major facet of the early stage business is the propensity for action. Many live by the motto, "Ready, Fire, Aim." This is in stark contrast to the "Ready, Aim, Aim, Aim, Aim" mindset of the bureaucratic organization. This often backfires for many newer businesses, especially as they grow larger, but the focus on doing, without any red tape, also creates nimbleness and results. The most successful entrepreneurial ventures act, but they do so deliberately. They know when it's time to stop planning and time to start doing.
Mike, who runs one of the largest bakeries in California, concurs. "Whenever we're faced with a big decision, like whether to buy incredibly expensive ovens, I have to be willing to take the plunge. Seldom do things work out the way we forecast. Sometimes they're better, and sometimes they're worse, but doing nothing is certain failure."
THE THIRD INGREDIENT: Passion
Most start up businesses face countless hurdles on their path to success. Every entrepreneur we interviewed overcame huge obstacles along the way. The common theme among all of the business owners we talked with was that persistence alone wasn't enough. Passion is what kept them motivated. A mindset of "failure not being an option" kept the whole company focused, determined and passionate about succeeding. This stick-to-itness can be found at many bureaucratic organizations, but a passion for the cause is often lacking. Passion is what creates major breakthroughs when obstacles are encountered.
"You know, it's not all that exciting cleaning shirts for a living," says Steve, who runs a chain of laundries. "It's not that different from the post office. There's always more to come tomorrow. But in every store we create an environment where people love to come to work. We have fun, we laugh and we also really take pride in the work we do. We recognize everyone's efforts. Everyone feels like he or she is part of something. That translates to good service and happy customers."
THE FOURTH INGREDIENT: Adaptability
Change is the only constant in a competitive market. Because entrepreneurial ventures have fewer layers between the principals and the market, and less red tape to deal with, they tend to react and adapt quickly to changes in the market. Having the flexibility to change course and admit when things aren't working out can be the difference between failure and success for a smaller company. A large organization can survive several mistakes in the short term, but over time, they need to learn to adapt and change, or they will be left behind.
Bob, a seasoned financial services entrepreneur, agrees. "We have to evolve and change every two years. We knew that if we didn't make a significant change to the way we operate or the services we offer, we would simply be competing on price, and that doesn't work for an independent business."
Putting these elements to work within your company or division can help to improve your results and the morale of your group.
Joe John Duran, CFA is an industry expert in the field of entrepreneurship. He is a chartered financial analyst, and author of Start it, Sell it & Make a Mint (John Wiley & Sons). For more free entrepreneurial help, visit: www.startitsellit.com
|
|
Index |
 |
Idea Help |
|
 |
 |
 |
 |
 |