More than 90% of the start-ups failing is a very troublesome fact, especially since these are the foundation for a robust economy. Despite this fact, every day new budding entrepreneurs are born with the belief to succeed.
The basic challenges for various business options from my perspective have been explained, so that, one could get better prepared to significantly enhance the probability of success.
1. Hard Skills: The core knowhow and doHow for the start-up domain.
2. Soft Skills: The self-awareness and the ability to get along with others.
3. Network: The trustworthy relationships with the most valuable people.
4. Seed Fund: The ability to bootstrap the necessary initial start-up finances.
5. Gestation: The tenacity to hold on till operating breakeven is achieved.
The following illustration shows the minimum levels in each of these challenges necessary to for various business possibilities covering Products and Services. The products have been sub-divided into CAPEX: Those that generally are sold once and will be used over time, like Equipment, Machines, Vehicles, Consumer Electronics, Household Appliances, etc. and OPEX: Those that generally are sold continuously, like FMCG, Consumables, Tools, Bulbs, Spare Parts, etc. The services include both manual ones where a personal touch is involved and the technology based services where the data and information are involved.
Let us now say that Mr. Fulano wants to start a business. The first thing he has to do is to get an assessment of his levels for basic challenges by a Coach/Mentor, since many a times a self-assessment can be biased. His assessment could be Hard Skills – 2, Soft Skills – 3, Network – 3, Seed Fund – 5, Gestation – 4. Based on this the various not challenging business options can be identified as per the following illustration which shows that the starting-up a logistics and distribution company for the CAPEX products or Wholesale and Warehousing company for OPEX products would be a good option.
On the other hand, should his assessment be Hard Skills – 5, Soft Skills – 4, Network – 4, Seed Fund – 1, Gestation – 1. Based on this the various not challenging business options can be identified as per the following illustration which shows that the starting-up a marketing and advertising company for CAPEX products, a personal/professional services company or a consultancy would be a good option.
If Mr Fulano however wants to do something different, then he knows from this analysis where he needs to further mature before venturing into Entrepreneurship. Of course this can only serve as a macro guide and the outcome will surely depend on the Coach/Mentorconsulted. Wishing you and your friends success with starting-up.
Happy reading and sharing!