Entrepreneurship is inherently uncertain.
No one can guarantee business success, and the path to failure often seems easier, especially if we assume that success will come without effort.
This blog delves into what it really takes to succeed in the unpredictable world of startups, particularly for those transitioning from the corporate world.
The Seven Key Insights for Aspiring Entrepreneurs
- Workforce Dynamics: In the corporate realm, we have a plethora of employees aiding us, from finance to human resources, sales, marketing, IT, and R&D. But in a startup, the question arises: which roles should be permanent, and which should we outsource? For product development startups, full-time skilled employees in R&D and IT are crucial.
- Salary Realities: Many don’t grasp this aspect of entrepreneurship. Corporate jobs often come with high salaries and various perks. However, founders typically forgo their salaries or take much lower pay than their employees. This financial sacrifice is a reality not well understood by many employees.
- Marketing on a Shoestring: What can a startup do with a limited marketing budget? Many turn to social media as a cost-effective starting point, often without paid ads. Blogs can be another channel to amplify our “voice,” especially when competing with the larger marketing budgets of corporate giants isn’t feasible.
- Sales and Pricing Challenges: Pricing a new product appropriately is a tough nut to crack. Set it too low, and you incur losses; too high, and customers balk. Gaining customer trust is also more challenging for lesser-known startups, leading to missed opportunities against established or international companies.
- Project Poaching (Sailang): Sailang, meaning “snatch” or “grab,” is a common occurrence where project proposals are overtaken by others. Customers sometimes feign interest in proposals while having another company in mind. This doesn’t even include the widespread issue of corruption.
- Partnership Pitfalls: Choosing strategic partners should be done judiciously. Many partnerships end up being fleeting, limited to the scope of a Memorandum of Understanding (MOU). True collaboration should benefit both parties equally.
- Business Plan Realities: In the corporate world, business plans are drawn annually based on established trends. However, for a 1-2 year old startup, creating a detailed business plan is nearly impossible due to the unpredictability of market and customer behavior.
The Gap Between Theory and Practice
This is why theoretical knowledge gained in courses or universities doesn’t always align with real-world experiences.
You might see a large market, but lack financial support.
Your technology and products might be advanced, but customers are not ready to buy. You might have financial backing but lack a viable business idea.
Conclusion
As I mentioned at the beginning, business success is far from guaranteed.
Overcoming these challenges is a must.
Success in business is rarely easy (except perhaps through unethical means) and requires navigating the real twists and turns of entrepreneurship.
Dr. Mazlan Abbas 