Reality check for entrepreneurs

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So you've started your business, but you're really struggling to come to terms with how difficult it is.

Those sales projections in your business plan are looking increasingly out of touch with the reality of securing orders.

York Zucchi, a Swiss entrepreneur who has built a pan-African business in the primary healthcare sector, offers the following reality checks to budding entrepreneurs: Forget about making a lot of money quickly. The reality is that it is highly unlikely you will. It takes time ... lots of time, lots of hard work, long hours and most probably more tears than you care to shed.

This is the reality, so don’t overdramatize when things are going badly. This is all part of your entrepreneurial adventure. As with any long journey, there are uphills and downhills. Bring perspective to your journey and don’t simply throw in the towel when things aren't going as you intended.

Don't expect to make 'perfect' decisions, which means you shouldn't beat yourself over the head for making mistakes. These are a natural progression of your development as an entrepreneur. Rather make the best decision you can, and roll it with.

Avoid becoming that person with a list of businesses as long as your arm. People tend to not take these jacks-of-all-trades very seriously - quality overrides quantity any day of the week. Rather focus on what you're good at, and stick to it.

Realize that people you engage with are equally busy and that you're likely but one meeting/idea on their table. The reality is that you are more than likely not their priority.

Key takeaway: When things are not going as you'd expected, the responsibility rests on you to find a way to make things work. Simply sitting back and complaining is not going to solve your problems. Get up, brush yourself off and get on with the business of being an entrepreneur.

 

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44 comments
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  • Phindile Xaba
    Admin is everything. A well rounded skilled administrator who is trainable to undertsnad the core of your business is a gift because your business can run optimally even when you are off site.
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  • Thayn Niemand
    Reality check#2 - Check your terms with suppliers. Important to maintain/establish good relationships with competent product providers. They may be your key to improving cash flow or surviving cash flow problems
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  • Phindile Xaba
    This is a brilliant idea. Try to make a loan the very last source of capital injection. Go through all sorts of alternative funding sources before getting into anything that requires you to pay interest at the very outset which can be crippling. You know thecashflowguy in my previous life when I was part of the team that founded the Women's Club which was a women'seconomic empowerment project for a publication I once was one of itsexecutive editors. We gave small loans at very very low interest. We had a bright spark in one a young lady whose business plan was amazing to perfection. She had already takenout a loan with one of the commercial banks to open a restaurant. Six months down the line she was on the verge of folding. We came in to attempt a rescue plan but it was a bit too late to try and correct something that could have been prevented. The young lady did not know nearly enough about the industry and the very small margins in profit. Even if one may have wanted to rescue it one would have taken majority equity and put too much capital into marketing -the place was not in the right address the menu was not properly priced etc.She still had to pay back the money with interest. The business died before it took off.
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  • Phindile Xaba
    You know MichelaGordon spot on! Innovation is the mother of all solutions coupled with implementation and follow throughs will go a long way in makinga difference in the business. This may mean sleepless nights and all sweat and tears. It is worth it if you are to make it in this hard world of entrepreneurship.
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  • Thayn Niemand
    othe roptions ??? ...other options..... aka non-traditional sources - funding from friends family fools..
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  • Thayn Niemand
    Another reality check may be to segregate clients. I have often said no deal is better than a bad deal. I have in the past checked whether the 80/20 rule applies in my business...and it does..I.e 20% of clients generate 80% of business. Yet I was using 80% of my time in the clients that generated 20% of business. #rethink
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  • Thayn Niemand
    We all have to hustle for business why does the government want to make it more difficult for entrepreneurs?
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  • Thayn Niemand
    On the upside if we accept that Rome was not built in a day and we have a viable and sustainable business committed business owners will realize that they will have less competition as the current reality in RSA seems to be daunting for the non-committed entrepreneur
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  • Michela Gordon
    I agree but when business is tough then you're tempted towant to turn no deal is better than a bad deal into any deal is better than no deal. I've found that sometimes you have to apply the 80/20 principle the wrong way with a particular client with the view to getting a bigger piece of business from them that can then be more profitable and less time consuming for your business - a bit like agreeing to dothe invitations for a function and then getting the entire event management of their next function if you're in the event management business...
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  • Phindile Xaba
    I support #rethink. I really do. 80/20 rule must work to the benefit of the business. I would rather have 20% solid clients reliable etc. generating 80% of the business. It will be built on string pillars.
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  • Phindile Xaba
    Agreed thecashflowguy. I hear you from a national point of view I think everything is really perplexing. The political environment and economic climate arenot favourable to SMMEs and there don't seem to be supportive public policy to smallentreprises.I believe that we need people whounderstand entrepreneurship to be at the helm as you say it doesn't help tohave a minister who only has something to say when there is a crisis and hadn't initiated much of anything to support the SMMEs. I do have to say that Gauteng as a province especially the office of MEC for Economic Development Lebogang Maile has not only pushed theconversation forward on then role small businesses have in the economy. He engaged SMMEs in a public discourse that is slowly bearing fruits - township economy is becoming not only a conversation point but a reality and it is gaining traction. All of this to ensure that we can have inclusive economic roles and that we do not have to move out of our spaces when there is potential for running our businesses where we are. There are economic hubs in most townships. There is a Gauteng Economic Propellor which helps SMMEs with connecting them with providing some financial or non-financial support with cheaper office spaces or no cost office spaces internet resource centres etc.Here is what I think they need good PR!
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  • Thayn Niemand
    Reading a book about businesses that started in times of hardship. Walt Disney's first company went bankrupt and Penguun books achieved record sales during world war 2!
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  • Thayn Niemand
    It is tempting and I know of businesses that take work st cost just to keep doors open. But then is that a bad deal? I think a bad defl is one when you do a deal that costs you without any possibility of a recovering those costs in one way or another
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  • Thayn Niemand
    Reality checks should be scheduled. Very often a business can experience problems during good times! So if things seem to be going well reality check time. Why going well can it be improved is it because of a certain strategy or just being in the in the right place at the right time?
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