ROUTINELY WORKING with entrepreneurs, over time one gains a knack for identifying rising stars.
But on the flip side, one also develops an ability to spot those who are likely to fail.
During encounters at the frontline of entrepreneurship with such individuals, the telltale signs of failure quickly come to the fore.
In short, over the years one develops an ability to separate the men from the boys, or to be unbiased, the women from the girls.
This was again so evident working in the //Kharas region last week.
It didn’t take long for one to see the signs and nuances of potential business success, or inevitable business failure.
There is no secret, this is how it works.
One casts one’s eyes around the workspace or business premises, even if it’s a shack in an informal settlement, or a bedroom or the Wendy house in the backyard of a relative’s home.
By doing so one swiftly assesses the level of cleanliness and orderliness.
Then in a nonchalant manner, one checks how the trading stock or manufactured products are being displayed, the storage of raw material and components, and the state of tools and equipment.
It immediately ushers in worry if there is disorder with stock and tools lying on the floor or strewn about the place, as surely this will result in spoilage and damage.
To delve a little deeper, one then casually enquires about business performance.
The first warning sign or flashing amber light appears when this conversational opening ask on the state of business health is met with a barrage of complaints.
Generally, they are about all and sundry, but complaints will specifically be levelled at the government, banks and the firm’s employees.
This blame-gaming is usually followed by a plea for further funding or a money handout.
Daring to ask to see business books or a written record of income and expenditure over past months is met with plenty of excuses.
But enough about this early-stage enterprise wellness diagnostic strategy.
Why then are some wannabes, emerging, and novice entrepreneurs likely to be successful where others fail and simply disappear from the business arena within a year, or at a stretch, two?
The answer is simple – fundamentals must be in place to get the business off to a good start and thereby to solidly position it for growth.
Yes, like in life, in business, fundamentals matter.
Focus, good housekeeping, doing things right from the start, keeping books and records and staying on the right side of business legal and statutory obligations, are key.
Cultivating an ability to identify and find ways to face challenges head-on with determination and having the willingness to work hard and smart are also fundamental needs.
The importance of identifying a mentor who will tell the truth and provide unbiased advice, even if it is unpalatable, is another building block.
It is fundamental in business to always deliver on promises, and to say what you mean and mean what you say.
Starting an enterprise should never be considered an alternative to not finding a job, for it is common knowledge that venturing into business will be rough and tough, and is not for the faint-hearted.
* Danny Meyer is reachable at [email protected]