Interesting data from Harvard Business school working knowledge reveals that, MOST Startup companies fail. It's an unsettling fact for the bright-eyed entreprenuers. The statistics are disheartening no matter how an entrepreneur defines failure:
# If failure means liquidating all assets, with investors losing most or all the money they put into the company, then the failure rate for start-ups is 30 to 40%.
# If failure refers to failing to see the projected return on investment, then the failure rate is 70 to 80%.
# If failure is defined as declaring a projection and then falling short of meeting it, then the failure rate is a whopping 90 to 95%.
The hardball question is: Why do they fail?
Obviously no entreprenuer would startup a company with failure as his end in view. Even then, they never fail to fail. Some of them fail trivially, some moderately, some fail greatly, blowing up the castles-in-the-air they've built so far. Now,probing in to the cause of the failures, besides many intermediary factors like,
-Improper management
-Insufficient capital
-Lack of planning
-Poor advertising
-Inexact business location
there exist one more top-drawer subtle philosophy which the major part of entreprenuers often overlook or fail to understand: relationships!
Yes, the knack of understanding the relationship between client/customer/end user/consumer and the goods/services supplied is where successful entreprenuers match out from the rest. Understanding and mastering this fine-spun philosophy is what puts successful entreprenuers in The Big League. Remember Steve Jobs? He was ahead in the game not only that he worked for his passion, but he was outstanding at understanding the intricacies of human relations with the gadgets. He figured out the secret recipe. He outlied!
But where does anyone matriculate to gain expertise of the enigmatic nature of relationships? What can inspire humans to gain insights in to understanding this inexplicable relationships?
Well, I've got an Idea for this pickle. My idea is a natural model. A model which can teach the facts and disciplines of the relationships. An impeccable model which is surviving flawlessly for more than a million years: The Ecological model.
Ecology is a branch of science which deals with relation and interaction between different organisms and environment. Being a part of this very model we seldom give a shot trying to realize the nature of these relations. We might have previously studied basics of ecology as a part of our education. But have we "understood" them? There is just a flimsy difference between knowing and understanding. For instance, you may "know" that tomato is actually a fruit, only if you "understand" that fact you'll not put that in a fruit salad. Realize the difference? So, mere knowing doesn't make a difference. You gotta understand to make it great!
# There exists similarity in patterns in the ways and means in which man understands ecology.
# The similarity between Barter system of Trading and the symbiosis( relationship between individuals of different species where both individuals derive a benefit) is one of the remarkable analogy.
If you're looking forward for a new business plan, now I give you the source code for the best laid plans: The Ecological model. For it has been living and kicking since the pre-human era.
# If failure means liquidating all assets, with investors losing most or all the money they put into the company, then the failure rate for start-ups is 30 to 40%.
# If failure refers to failing to see the projected return on investment, then the failure rate is 70 to 80%.
# If failure is defined as declaring a projection and then falling short of meeting it, then the failure rate is a whopping 90 to 95%.
Obviously no entreprenuer would startup a company with failure as his end in view. Even then, they never fail to fail. Some of them fail trivially, some moderately, some fail greatly, blowing up the castles-in-the-air they've built so far. Now,probing in to the cause of the failures, besides many intermediary factors like,
-Improper management
-Insufficient capital
-Lack of planning
-Poor advertising
-Inexact business location
there exist one more top-drawer subtle philosophy which the major part of entreprenuers often overlook or fail to understand: relationships!
Yes, the knack of understanding the relationship between client/customer/end user/consumer and the goods/services supplied is where successful entreprenuers match out from the rest. Understanding and mastering this fine-spun philosophy is what puts successful entreprenuers in The Big League. Remember Steve Jobs? He was ahead in the game not only that he worked for his passion, but he was outstanding at understanding the intricacies of human relations with the gadgets. He figured out the secret recipe. He outlied!
But where does anyone matriculate to gain expertise of the enigmatic nature of relationships? What can inspire humans to gain insights in to understanding this inexplicable relationships?
Well, I've got an Idea for this pickle. My idea is a natural model. A model which can teach the facts and disciplines of the relationships. An impeccable model which is surviving flawlessly for more than a million years: The Ecological model.
Ecology is a branch of science which deals with relation and interaction between different organisms and environment. Being a part of this very model we seldom give a shot trying to realize the nature of these relations. We might have previously studied basics of ecology as a part of our education. But have we "understood" them? There is just a flimsy difference between knowing and understanding. For instance, you may "know" that tomato is actually a fruit, only if you "understand" that fact you'll not put that in a fruit salad. Realize the difference? So, mere knowing doesn't make a difference. You gotta understand to make it great!
# There exists similarity in patterns in the ways and means in which man understands ecology.
# The similarity between Barter system of Trading and the symbiosis( relationship between individuals of different species where both individuals derive a benefit) is one of the remarkable analogy.
If you're looking forward for a new business plan, now I give you the source code for the best laid plans: The Ecological model. For it has been living and kicking since the pre-human era.
A very well etched out article with an interesting conclusion. Its a naked truth for all budding entrepreneurs. Goodluck !
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ReplyDeleteThank you!
ReplyDeleteA unique perspective of looking at the philosophy for entrepreneurs. 'The Ecological Model', there is more to this than meets the eye. You must take this 'model' ahead into something more elaborate and comprehensive. I am honestly impressed.
ReplyDelete'understand-tomato-fruit-fruit salad', that sold me the idea.