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When it comes to entrepreneurship, I suggest changing the mindset from the traditional notion of perseverance and struggle to a more pragmatic approach. Entrepreneurs often glorify their ability to endure challenges and overcome obstacles, but I believe entrepreneurship should be viewed more like project management.
From this perspective, business ventures are temporary, goal-oriented projects with defined start and end dates. The focus should be on both the relevance of the project and a predetermined exit strategy. Entrepreneurs should focus on efficiency and results rather than protracted struggles and act as pragmatic project managers rather than heroes.
Related: Do you want a successful business? Focus on these 5 things
Every entrepreneurial venture is indeed a project
Entrepreneurs need to start thinking of their business ventures as projects. A project is a time-limited effort with a specific start and end date that aims to achieve a specific goal or solve a specific problem. In this context, the focus is on the “finish” part of the project. Entrepreneurs often fall into the trap of believing that once a business is started, they must continue to run it indefinitely without considering a clear end. I suggest that entrepreneurs need to change their approach to running a business by setting an end date for their ventures and planning to exit by that date.
This approach encourages entrepreneurs to be more strategic and goal-oriented. By viewing their businesses as projects, they can define clear goals, allocate resources effectively, and focus on solving specific problems within a defined time frame. This mindset also helps avoid the common trap of becoming emotionally attached to a business, which can lead to irrational decisions and drawn-out arguments that drain valuable resources.
SMART attributes
A key aspect of project management is the business case. A project is a time-limited endeavor designed to solve a specific problem. That problem is defined in the underlying business case. The business case justifies the project's existence by outlining its objectives, expected benefits, and the resources needed to achieve those benefits. In entrepreneurship, success depends on the SMART attributes of the business case, which are driven by the project.
SMART attributes ensure that the business case is specific, measurable, achievable, relevant and time-bound. These criteria provide entrepreneurs with a clear framework to follow and help them create focused and actionable plans that are more likely to result in success. By ensuring that the business case adheres to these attributes, entrepreneurs can avoid vague or overly ambitious goals that are difficult to achieve. Instead, they can focus on creating realistic, well-defined plans that will guide their efforts and increase the likelihood of achieving the intended benefits.
Related: What are SMART goals and how can you set and achieve them?
Focus on timeliness and relevance
Among the SMART attributes, the focus on time-boundness and relevance is particularly important for entrepreneurs. The time-boundness attribute means that entrepreneurs must have a set exit date for their business activities. Starting a business should not be viewed as an open-ended commitment that continues until external circumstances force an exit. Instead, entrepreneurs should actively plan for an exit from the beginning and set a clear timeline for when they plan to complete their project and move on to the next opportunity.
At the same time, relevance must be continuously monitored to ensure that the business case remains valid within the established timeframe. Just because a business case is relevant at the time of initiation does not mean that it will remain so throughout the project's lifecycle.
Entrepreneurs must carefully assess whether their projects can deliver the intended benefits at the time of exit. This ongoing assessment helps entrepreneurs avoid continuing with projects that have lost relevance due to changed circumstances at the time of exit.
Dealing with changing circumstances
In entrepreneurship, changing circumstances are inevitable. Both internal and external factors can continually impact the relevance of a business case and the entrepreneur's ability to achieve the intended benefits within the exit period. These factors may include changes in market conditions, technological advances, regulatory changes, or unforeseen events that disrupt the original plan. Entrepreneurs must remain alert and adaptable, and be ready to respond to these changes as they occur.
Sometimes these changed circumstances may even necessitate an early exit. In such cases, it is important for entrepreneurs to resist the temptation to keep going and try to keep the company afloat at all costs. I suggest that entrepreneurs remember that they are not heroes; they are pragmatic project managers. The goal is to exit the company with a recoverable loss and to contain the loss of valuable resources in time, rather than allowing the situation to continue to deteriorate.
This approach emphasizes the importance of making strategic decisions based on current realities rather than clinging to outdated plans. By being willing to exit early when necessary, entrepreneurs can conserve their resources and focus on new opportunities that may offer a better chance of success. This mindset also helps entrepreneurs avoid the emotional burden and financial stress that can come from protracted struggles in a failing business.
Related: Planning your exit should start with the start
In conclusion, I suggest that entrepreneurs change their mindset from being heroes who endure endless struggles to being pragmatic project managers who view their business ventures as temporary projects with specific goals. By focusing on the time-bound and relevant aspects of their business model, entrepreneurs can ensure that their efforts remain aligned with the intended benefits. When circumstances change, entrepreneurs should be prepared to exit early if necessary, prioritizing resource conservation over protracted struggles.
Ultimately, an entrepreneur's success comes from strategic decisions and adaptability, not from being a hero. Entrepreneurs who take this pragmatic approach are better equipped to meet the challenges of running a business and achieve their goals more efficiently and effectively.
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