Wednesday, 7 March 2018

Self Awareness - The Missing Business Start Up Ingedient

Succeeding in a start up business requires many things, including luck.

However, I suspect the component often missing when a great idea fails to get off the ground is the self-awareness of the creator.

My mind turned to this in the wake of the demise of Doughnut Time* and the founder’s other business enterprises.

The general consensus is Doughnut Time was a great business idea and a fun product adored by many.

The other businesses created by the same person were also hailed as being innovative, creative and were even credited with the revitalisation of an inner-city area.

Sadly, many people have lost their jobs and, in some cases, have not been paid for several weeks.

Concerning the collapse of another business, closure occurred just before Christmas and a number of functions booked did not go ahead and deposits were lost.

The general consensus is the business models were fundamentally sound however were poorly executed or the execution lacked the necessary fundamental business disciplines. To put it another way, the boring stuff was missing.

Arguably, the individual possessing the creativity needed to foresee a new business opportunity and to sell the concept to the public by definition will not have the tendency to apply the boring repetitive management needed to operate the business day in day out.

In recent months I have attended several sessions for Start Up enterprises and budding entrepreneurs.

A common theme is having the self-awareness to know what it is you are good at and to ensure you concentrate most of your energies on that. Accordingly, it is necessary to recruit or seek equity partners that can competently fill the gaps in the skills and knowledge you lack and are needed for success.

The biggest challenge is to get the timing right and know just when to bring those skills in.

Several Doughnut Time outlets have been rescued and hopefully, a sound business will recover and prosper.

*   I have never been in to a Doughnut Time or consumed their produce.

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