INNOVATION and entrepreneurship. Two words frequently used as the Covid-19 pandemic continues to reshape our lives and livelihoods. While many of us are trying to cope with the “new normal”, entrepreneurs see a unique opportunity to reinvent the preconception of our norms. You too are an entrepreneur. You just don’t know it, or perhaps view it that you have too small of an idea or do not have a “world-changing” idea to be considered an entrepreneur.
What is entrepreneurship?
There is no set definition of what entrepreneurship is. General definitions include but are not limited to:
1. The creation of an enterprise to reap the rewards of a new product or service while understanding the risks involved; or, for simplicity,
2. The creation of value.
However, I view entrepreneurship as a state of mind. How many times have we thought about a great idea that could improve our lives just to fall short on executing it? We could chalk this inaction to fear of failure, fear of ridicule or even the fear of the unknown.
The journey of an entrepreneur is essentially the path to becoming a mad scientist. We hypothesise, test, and gather, analyse, and review the results repeatedly until we hit a minimum viable product (MVP). Failure is the modus operandi, for we would not know what can or cannot work without it. It is like a courtship. You may fail (sometimes a lot), but eventually, you will find one that is suitable.
Not every idea is an MVP; not every MVP has product-market fit
Not all ideas are created equal. Similarly, not every MVP achieves a product-market fit. Amongst 100 ideas you might have, perhaps only 10 might be feasible as MVPs, and only one might have a product-market fit or something that the market wants. The hunt for this product-market fit is vital in developing the MVP.
Distilling product-market fit is essentially identifying and targeting your ideal customer profile (ICP). An ICP is a customer who is willing to pay a reasonable premium to you to enjoy your product. An example would be opening a community supermarket. Your ICP could be senior citizens (who cook great food, I might add) who purchase groceries or visit the morning markets.
You will need to understand the habits of these senior citizens.
→ What is their top consideration when purchasing an item?
→ What is more highly valued (convenience, quality and/or price)?
→ What is your sales pitch to them?
→ What can you offer that your competitors don’t?
These exploratory questions are non-exhaustive, but they give us a jumping-off point for our hunt. However, will achieving a product-market fit bring with it scalability?
Questioning scalability
A successful product in the current market does not equate to a successful product in a different market, at least in its current state.
I had the pleasure of meeting a founder of a tech-based hiring agency. They pride themselves in quality hiring to clients at a reasonable cost. The company is relatively successful in Malaysia. However, when the company expanded to Thailand, what worked in Malaysia fell flat in Thailand. Why?
The answer was the market penetration strategy (or localisation for the example above). While the new market may want or need the product, the product cannot be successful without proper adaptation in your overall sales, marketing, operational and financial strategy.
Likewise, there are situations where your initial market research for the need of your product does not corroborate with your current data. At this time, leave your ego at the door. The product must evolve as you obtain new data. The one-size-fits-all approach will not work.
There are many other factors such as company structure, people, processes and procedures to consider before a company is ready for scale but a word of caution: A strong foundation begets scalability and not the opposite. Never scale for the sake of scaling or to look good in front of investors.
The myth of entrepreneurship
I would also like to tackle the myth, or at least the perception, that being an entrepreneur (or being the boss) is easy. It is not easy. It is a lonely path to take. You have to balance the company’s needs (financially and operationally) with your employees’ needs and wants while staying true to your core principles.
While advice can be given by your investors, friends, and family, you hold the sole power to make the final decision, and the buck stops with you. The company’s failure is your failure. Conversely, the company’s success is your success.
Entrepreneurship also allows you the privilege to build a positive working culture and train like-minded individuals to embrace your values, your mission and your vision. You work for the benefit of your company and those under you. A successful company reflects competent and capable employees, and in turn, its leaders. A failed company indicates failed leadership.
While this does not mean that the iron fist approach does not work, sometimes it is required when making tough decisions. You will need to ask yourself the question: “Is this my legacy?”
Your legacy
Every journey must have an end, and at every end, a legacy is left behind.
I deal with multiple issues a day, and some days these issues feel never-ending. Difficult decisions are prevalent. Core values and principles are challenged continuously. Frustration and exhaustion are all too common. Especially when you are the sole founder. Make no mistake – the path of an entrepreneur can be a lonely one. Still, one can dream.
While I aspire to change the world, I dream of training people to become the best version of themselves. By the time I leave this world, I want those who worked with me to say, “I learnt X from Nicholas” or “He has taught me the value of being X”. My way of achieving this is by building my company. You can dream too.
Whatever your dream is, always remember your end goal when you walk the path of an entrepreneur or any other career path.
Final thoughts
The journey of an entrepreneur is an arduous one. It is not a sprint but a marathon. There are many ups and downs, but there are also many lessons to be learned along the way. It is a risky endeavour, but it is also the path less taken. It does not take a “world-changing” idea to change the world – only a small idea is needed to change the world one step at a time.
This article was contributed by Nicholas Yap, Young MICPA (Malaysian Institute of Certified Public Accountants) Task Force member and co-founder & CFO of ParkIt, a mobility-as-a-service startup that focuses on P2P parking sharing and fleet management. The views reflected in this article are those of the author & do not necessarily reflect the views of MICPA.
Source: The Sun Daily
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