I have been working recently as a consultant assisting start up businesses and have been reflecting on the fact that, actually, I have seen the same shareholder and management traits in well established businesses as I do in start up ventures.
In reality the passion and enthusiasm, plus expenditure on a new product or service, is matched by a lack of of reality about the market problem or market opportunity that the idea is addressing.
In management speak, managers believe that because they have knowledge they will automatically make money. I mean, after all, surely the potential customers must see that what they know and are selling is a must have.
As an example, a young entrepreneur who has developed a great safety product for the construction sector exhibited at a show, and advised me, that he had fantastic feedback from the limited PR material he distributed, and that it was necessary to discuss price tactics, when in fact he had absolutely no understanding on how he was going to fulfill commitments and whether he was ever going to make money.
When I reflect on sales initiatives in various businesses I have run in different sectors, those traits were apparent in suggestions made to me by highly competent functional managers.
It is a disease that profit seems to be an issue for someone else, and I even see this with entrepreneurs spending their own money who believe God or their accountant will prevail to ensure profit will result from their endeavour.
My mantra is that it is not what you know but how you convince the market that your idea solves a problem and makes profit as a result. It is a process not a dream.
Sometimes I find myself on the wrong side of the shareholder or manager looking inquisitively at me asking, surely you can see why we will make money?
Gratifyingly I received a call from the young entrepreneur this morning, who said I see where you are coming from now.
I look forward to a successful outcome !!!!!!!!
