MACRO VIEW
In Y2007 ground breaking book on Extreme Future, Dr. James Canton, CEO, Institute of Global Future, highlighted the Top Ten Trends of the Extreme Future. Most of those predictions are already happening Today. I would like to highlight one of them which is of great importance to all aspiring entrepreneurs.
The Innovation Economy.
The transformation of the global economy based on the convergence of free trade, technology and democracy, driving new jobs, new markets, globalization, competition, peace and security. The Four Power Tools of the Innovation Economy are Nano-Bio-IT-Neuro.
He specified five factors that would define the Extreme Future.
- Speed. The rate of change will be blinding, comprehensive in scope, and will touch every aspect of your life.
- Complexity. A quantum leap in the number of seemingly unrelated forces that will have a direct bearing on everything from lifestyles to work to personal and antional security.
- Risk. New risks, higher risks, and more threats from terror to crime to global economic upheaval will alter every aspect of your life.
- Change. Drastic adjustments in your work, community, and relationships will force you to adapt quickly to radical changes.
- Surprise. Sometimes good, sometimes difficult to imagine, surprise will become a daily feature of your life, often challenging sensibility and logic.
Of great significance is the power and reach of IT on our business and daily life.
Nowaday, people who have an internet connection to their desktop PC, tablet or smartphone, are more likely to do e-commerce or buying thing or procure service online.
An individual or Small and Medium Enterprise owner could have a presence in the Internet, by owning a website domain and with its website being hosted by a phone company or access provider. You have the means to reach billions of potential customers just like any large or multinational company do.
There are plenty of opportunities to build wealth in this type of environment, There are also major business and personal challenges and risks you need to undertake, before you could get your pot of gold.
Before we talk about the nuts and bolts of starting and building of business enterprise, I would like to highlight some of the big mistakes most people made during start-ups and what you can do to avoid them.
Mistake No.1: Without a business plan
Many entrepreneurs have what it takes to succeed – enthusiasm, fearlessness, and a never-say-die attitude. Even all that will not help their business to survive if they do not have enough cashflow (from revenue earned through business operation or borrowings from financial institution or investors).
So make sure that you have a business plan, that encompasses all aspect of your business operation & expenditure, your family expenses, your income streams and money to cover contingencies. It should address one very important question: Will your business make money and When?
TIP: Without this being answered, do not go into the business in a big way, like quitting your job. Conserve you cash as much as you can even if you do. Be frugal in your spending until the revenue could finance your operation and also making you a profit in a reasonable time frame.
Mistake No.2 Selling their products and service too cheap.
You can’t always beat the competition by selling cheap. You think low prices will drive sales. Do the following calculation, say to earn a revenue of $6,000/- from product sale and you will know why.
Sell 600 pcs of a product at a price of $10/- each
Sell 400 pcs of a product at a price of $15/- each
Sell 300 pcs of a product at a price of $20/- each
TIP: When you first embark on startup, you do not have many ready customers. It is much more easier to sell 300 to customers, then double the amount of products. Find a Niche product that can command a high price, and if possible little or no competition in the market place. Don’t challenge the biggies, They have deep pockets, you don’t, to challenge you at all fronts.
Mistake No. 3 Starting a business solely for thrills and no marketing know-how.
Most entrepreneurs are thrill seekers.
The life of an entrepreneur is not only having exciting work, but also hardwork. This include boring but essential work of promoting your products/services and getting product rejections from non-buying customers.
TIP: If you are not going for a long haul with persistence and willing to make sacrifices, my advice is please do not go ahead.
Please note that there are other items not listed here but may also apply to you. So do your own market research and personality traits evaluations before you embark on it.
Be brave and strong. Enjoy your entrepreneur journey. Good Luck.
Bye from now.
Look out for my next blogpost on “Business Plan Successful Entrepreneur Must Have”.
Thank you for dropping by.
Reuben H C Ong (a.k.a Reubeno)
Websites: http://www.reubenointernet.com/
Email: reubeno@reubenointernet.com
If you have interest to know more of Dr. James Canton’s books, please click items below.
The Extreme Future: The Top Trends That Will Reshape the World in the Next 20 Years
Technofutures: How Leading-Edge Innovations Will Transform Business in the 21st Century
