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Lesson 5: The false startIn the 20 years I have worked with entrepreneurs, there is a phenomenon I have seen all too often - the false start. ![]() Source: www.pexels.com The typical pattern in many small businesses is that they start with a monthly revenue line that is relatively flat and a similar-looking profit line (or rather a lack-of-profit line) along with a cash-flow line that points 45 degrees downhill. A s the business starts gaining a little traction and more deals come in, at some point, there will be an exponential increase in deal sizes. Often, the increase in deal size somehow triggers a signal to the entrepreneur that they have now hit the big time, that the struggle is over and their success is imminent. In many instances, there is a strong pipeline of orders. There may even be some cash in the bank but, most often, the execution of these orders is incomplete. Despite this, entrepreneurs start displaying some perverse behaviours. In and of itself, one such behaviour may not be concerning but, when I witness three of the behaviours listed below, I’m pretty sure that what’s being experienced is a false start.
Competition is hovering around, waiting to take you out at any chance it gets. People issues continue to present at an increasing rate as the organisation grows. Unforeseeable events threaten your very existence on an ongoing basis. In my opinion, you have never “arrived” and the moment you think you have is the death knell of the business. The nine types of behaviour listed above are signals of two characteristics that are not congruent with long-term success. The first is ego. Ego-based decisions in a business are a distraction that no growing business can afford. When entrepreneurs begin to worry about image and what others think of them more than how to add value and keep a client, it does not bode well for the business. The second characteristic is complacency, the first cousin of ego. The underlying driver of complacency is thinking that your customers will never leave you (ego) and that your competition will never catch up with you (complacency). Elements of exhaustion may be woven into complacency but, in my experience, most entrepreneurs who lose their businesses through complacency do so as a result of it being ego related. Any growth entrepreneur starting the entrepreneurial journey cannot begin with a mindset of “this is going to be a quick sprint to success.” Although there are examples of such entrepreneurs out there (whom the media hype up far too much), by far the majority of successful entrepreneurs slog at it day in and day out for years. They carefully layer and prune their businesses and build teams that can execute. If you are exhibiting three or more of the behaviours above, it is not too late. Simply make the decision to reverse the behaviour and give yourself the chance of making a long-term success of your business. About Allon RaizAllon Raiz is the CEO of Raizcorp. In 2008, Raiz was selected as a Young Global Leader by the World Economic Forum, and in 2011 he was appointed for the first time as a member of the Global Agenda Council on Fostering Entrepreneurship. Following a series of entrepreneurship master classes delivered at Oxford University in 2014, 2015 and 2016, Raiz has been recognised as the Entrepreneur-in-Residence at the University of Oxford's Saïd Business School. View my profile and articles... |