Creating a new business that is genuinely transformative is a once-in-a-lifetime opportunity. From incubation to creation to commercialization, the process can be slow-moving and frustrating.
However, once the right idea is identified, a few key tactics and philosophies make the process easier and are critical in creating a successful business. Jerry V. Gross, CEO and co-founder of Vytal, says, “execution speed is important, but learning speed is different and far more critical to startup success.” The reason being, he believes, learning speed is the ultimate advantage in business, suggesting “all else being equal, the fastest company to learn in any market will win.” He should know, after all, he is a seminal entrepreneur.
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Maintaining focus despite ups and downs can be summed up in the entrepreneur’s attitude to unanticipated factors that can cause shifts in consumer demand and business performance, says Dr Yemisi Bolade- Ogunfodun, a Lecturer at Henley Business School, UK. Such factors are those which are typically unrelated to product pricing and include economic downturns, changes in consumer tastes and preferences, employee turnover, and impacts of technological change.
These factors may provide growth opportunities and expand current markets, potentially increasing revenues. Conversely, downward shifts in demand could shrink the business’s market size and adversely affect revenues and growth. “In such situations, you need a fallback plan which can create new life cycles for existing product lines and, in extension, new markets and revenues,” Dr Bolade-Ogunfodun continues. The decision could also be to move into an entirely new product space to generate sustainable demand for the future. Running a resilient business is really about that balancing act, argues Dr Bolade-Ogunfodun.
Entrepreneurs will never cease to create new ideas and go on to launch first-of-its-kind companies, but there are plenty of reasons one startup may succeed over another. According to the U.S. Small Business Administration (SBA), roughly 70% of all new businesses survive for the first two years. Beyond that, the chances of success fall to about 50% at five years. So as the world looks towards the light at the end of the dark pandemic tunnel, many are taking the plunge into entrepreneurship just as Sanjay Govil did 20 years ago – starting businesses with dynamic ideas and innovative concepts. Now the Chairman Of The Board at Infinite Computer Solutions and CEO of Zyter, he believes when you come to a crossroads, trust your instincts.