There is an adage that says entrepreneurs are born and not made. However, other than character traits such as a propensity for risk-taking and a certain level of creativity, research shows that it is a combination of external factors that determines the course of a person’s career, as a corporate employee or business owner.
These factors include exposure to entrepreneurial endeavour, access to resources, and operating in a supportive environment. Without these inputs, even the least risk-averse, creative person may have a great idea but be unable to act on it and make a compelling business case. Without a good dose of business acumen, focus, persistence and resilience, a great idea will never translate into meaningful execution.
There is another stark reality – around 90% of startups fail within the first three years, and there are many reasons for this, including lack of cash flow, poor market research or limited access to market opportunities. In the UAE, these might also include the complex regulatory landscape and choosing the correct jurisdiction – mainland or free zone. Startups that start but don’t go the distance are usually stymied by the founder’s inability to get things done and execute on their vision – also known as procrastinating.
We are all procrastinators to a greater or lesser degree, and for a range of reasons. Perfectionism can be particularly debilitating – but in cases where product development does not include safety and security concerns, polish and precision may be overrated. Adaptations and improvements can be made along the way based on feedback.
The fear of failure can inhibit some entrepreneurs, preventing them from getting past the idea and onto the realisation of their dream product or service. Those who are motivated by immediate gratification will lack the patience to see an idea through if it is likely to take years to develop a prototype or MVP.
Without adequate preparation and research, some entrepreneurs hesitate to start because they don’t know what to do next. The inability to delegate tasks and an insistence on retaining control at every stage of business growth can also prevent the execution of the original business vision. Or perhaps the leader is just a dreamer, with too many ideas and no capacity to bring them to fruition.
The journey of an entrepreneur
For a new business to succeed, a number of things need to happen. Even in a region such as the UAE, which has become a hub for innovation due to its supportive business environment and attractive government initiatives, if you don’t take the sequential steps that will see the fulfilment of your idea, you are destined to be the startup that starts but doesn’t finish.
First, the vision, combined with thorough research. Does your idea have a market? Does the product or service already exist, and if so, what is your unique selling proposition? You need to identify an unmet need or market gap where you can stand out. Next, you need a business plan that includes a sales strategy and the planned growth trajectory – potential investors or lenders want to see where their ROI is coming from. Part of your sales strategy should include building the brand to stimulate demand – are your name and logo attractive, are they free of any possible cultural misinterpretation or linguistic faux pas? These details are important in multicultural environments or regions where offence may be taken by certain words or imagery.
When you have created a compelling pitch deck, you are ready to go out to prospective investors, partners or lenders – and be sure you know what kind of funding you are looking for. Do you want an equity partner or a straightforward cash injection (whose repayment terms will not cripple you)? Finally, the launch and the resourcing of the business with staff to ensure the smooth running of day-to-day operations.
Now would be a good time to step back and start working out how to scale up and ultimately to sell the business for profit.
Why collaboration is the answer
While all entrepreneurs need resilience, this should never be mistaken for stubbornness. A refusal to accept criticism, suggestions or alternative ideas and an insistence on micro-managing can make or break a fledgling business.
The idea-to-execution phase of a new business frequently requires the founder to be CEO, CFO, COO and CMO all rolled into one, which can foster a sense of authoritarianism. But these roles can sometimes be filled by people you already know, even if temporarily, providing ad hoc input or an occasional helping hand rather than being hired as permanent, salaried staff. Choosing to work in collaborative, supportive spaces enables entrepreneurs to surround themselves with like-minded, driven and determined people whose thought processes and skill sets complement their own.
Hitting road bumps
The road to successful and lucrative entrepreneurial endeavour is littered with failures. Many of the world’s self-made millionaires have been knocked down, but rose again, reinventing their business and going on to gain global notoriety (and sales). Their ideas evolved, and their plan for execution had to change, too. Undoubtedly, advice from people close to them pushed them to try again.
Entrepreneurial communities that combine a common goal of success with diverse needs and talents can provide this nurturing ecosystem. The space might be a physical village of small startups, or a free zone such as those offered in the UAE. Together, entrepreneurs can explore opportunities and pick each other up when one idea fails to fly.
Entrepreneurs must never be afraid to adapt their ideas and adjust the path to execution accordingly. Challenges and obstacles are all part of the startup journey, and should not be a deterrent to starting over. We all learn from failure.
We started with an adage, and here’s another to close with – procrastination is the thief of time. The most important thing for any business startup is to commit. Take the vision and make it happen. Execute on your idea.
