Do you want to be a successful entrepreneur? You probably have an excellent idea and you’re thinking over whether it is doable or not, whether it will bring in revenues, and whether it has the potential to expand into a more profitable business venture. Now that you find yourself with the desire to start your own business, there are still a lot of things you have to consider and think about.
Amongst investors in start ups, one often hears the sardonic remark that the only assurance one has about the future is that it won't be what is described in the business plan. By the same token, investors will readily acknowledge that their successful investments often occur on something other than the original investment thesis. In those instances, the management team and investors make a decision to depart from the original plan.
Hmmm... Ah yes, Plan B.
How one gets to Plan B is important. That path needs to be fast and factual in my experience. Companies that are slow to adapt and evolve lose the faith of investors, employees and frequently, customers. Being fast goes hand-in-hand with being factual, GE's Jack Welch refers to great management as "seeing things as they are instead of how they are wished to be". Sometimes it just isn't working and the company isn't progressing at the proper rate, the management that is reluctant to see things as they are isn't being factually driven. The facts say the customers aren't buying and/or the salespeople aren't selling -- so maybe it isn't about different customers or salespeople -- maybe it is about the product or market and not the people. Being open minded and facing facts is a powerful combination for keeping investor confidence.
All of which goes to the fundamental point, the Plan A that is held too long is the one that most undermines the chances for and support of Plan B. It is the management team that is honest and forthcoming in its assessments of progress and prospects that is more likely to garner strong Plan B support. The team that clings to Plan A is the team that frequently doesn't get a shot with Plan B.
Plan b
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