With entrepreneurship growing as an acceptable even desirable career path, it is important for first-time entrepreneurs to heed others” experience. Experienced entrepreneurs understand the odds.
They know most business plans never raise money. They know most new ventures fail. Most of all, they don’t want to start what long-time venture capitalist Bill Egan calls a “lousy business,” which consumes years of energy and effort, going nowhere in the end.
And so, every day, they consider: ?Why will or won’t this work?” So committed are they to showing a reluctant world that their vision is feasible that they want to know why they might be wrong before bad things can happen.
If they can find flaws before they launch, they can often work around them. They can modify their idea to better fit their target market. If the flaw they find proves to be fatal, they can abandon the idea before launch, or soon enough thereafter, to avoid wasting months or years and piles of savings.
Better yet, if after asking their daily question the signs remain positive, they pursue their opportunity with renewed passion and conviction. This evidence translates to newfound confidence that the facts not just intuition confirm their hypotheses.
So resist the urge to launch right away and learn as you go. While appealing in today’s lean start-up world, this approach is all too likely to result in a waste of your entrepreneurial energy and talent. Instead, road test your idea before starting. And in the meantime, learn from those who have come before you.
Understanding attractive opportunities
It’s crucial to evaluate a potential business idea by answering the entrepreneur’s question: “Why will or won’t this work?” Opportunities are best understood in terms of three elements: markets, industries, and key team members. Consider the experience of Paul and Alison Lindley, founders of Ella’s Kitchen.
Back in 2006, the young parents were facing a bit of a challenge in getting their six-year-old daughter Ella to eat. In his Caversham kitchen, 40 miles west of London, Paul Lindley started concocting blends of natural and organic fruits and vegetables that were fun, colourful, and fit the family’s on-the-go lifestyle.
Quickly realising that there might be a market for his tasty creations he confirmed the micro market for his products by watching how Ella loved them! Paul did more formal macro market analysis of other parents like himself. Indeed, he found great interest in healthy, ready-made goodies for young children. And yet, the food industry hadn?t provided any such product to meet this demand.
Based on these market and industry insights, as well as his confidence in himself and his wife as target users of their products, Lindley moved his lean start-up out of his kitchen into a couple of beautiful barns nearby to expand production. Ella’s Kitchen baby and toddler food pouches filled with all-natural purees of organically grown fruits and vegetables began finding their way into the homes of most British families with young children.
Organic smoothies in four kid-friendly colourful flavours red, green, purple and yellow followed, as did a range of toddler-sized fruit snack bars and a host of other products.
Lindley then expanded internationally after all, eating should be fun, tasty, and cool for kids, no matter where they live. And in 2013, Hain Celestial, a leading American marketer of natural foods and beverages bought Ella’s Kitchen.