Tips for entrepreneurial ventures

Reader e-mails have poured in from a curious mix of wannabe entrepreneurs and corporate entrepreneurs, both types keen on dabbling in creative pursuits and innovative strategies. To the former, this means finding a new steady source of income as opposed to salary. To the latter, this means generating initiatives that will result in a sustainable growth in the company’s bottom line.

For the wannabes, this time of the year or the Christmas shopping season is the best time to start and test a business idea. The last quarter of the year is when people have money and, thus, the propensity to spend.

Let me share an advice I always give my Master in Business Management students who opt to do a venture management research report instead of the traditional corporate type of thesis at the end of their course: "Set up your entrepreneurial venture on or before Nov. 15. The last quarter of the year is the acid test of your venture. If you cannot make it then, you cannot make it any other time of the year."

The venture MRR requires the student to integrate the learnings of the two-year MBM in an entrepreneurial venture. In addition to institutional requirements, I have always made it a point to ensure that the magnitude of the venture is such that it had the potential to tempt the student away from corporate employment after graduation. This means the income derived from the venture should be able to match, if not surpass, the monthly pay from a regular job.

For the wannabe corporate entrepreneurs, anytime is always a good time to enter this modality of corporate leadership. Corporate entrepreneurship not only increases the speed of growth but also sustains the rate of growth. I also always say that the best time to start corporate entrepreneurship is just before bad times. It is a great tool not only to survive the bad times but also a perfect tool to perform in a superior manner in bad times.

The following "Tips for the wannabes" should be of interest:

Do not jump without looking. But do not be afraid of jumping.
Look before you leap. But do not stare.
Ask before you answer. But listen to the question first.
Jump and answer even if you are not 100% sure. But make sure you know where the emergency exit is.
Also, keep on looking and asking.

The first part of our "Tips" implies that the adventurer must not jump into conclusions and become reckless, foolish or presumptuous. However, the adventurer must have the courage to jump. The adventurer has to look and understand what he/she is getting into. One must understand the logic of the business. In other words, ask: Paano ba tayo kumikita diyan (How does one make money in this business?)

The adventurer must understand his/her business model. This is best discovered by doing an understand analysis. It leads to an understanding of the logic of the business or knowing where the most money is to be found and how profit is made in the game. But I also say–do not stare. Looking too long is staring. Too much looking or too much analysis can lead to analysis paralysis. It can also lead to information constipation. Too much information and delayed decisions will result to others beating the wannabe in the implementation of a great opportunity.

Before answering, make sure you understood the questions. These come from the customers and they represent opportunities. The harder or more difficult the question, the bigger the opportunity. The more questions, the more opportunities. Listen to the questions carefully.

The second part of our "Tips" suggests that the adventurer jumps and answers even if there is no certainty. For as long as he/she knows where the emergency exit is, the adventurer must go.

(Alejandrino Ferreria is the dean of the Asian Center for Entrepreneurship of the Asian Institute of Management. For further comments and inquiries, you may contact him at: [email protected]. Published "Entrepreneur’s Helpline" columns can be viewed on the AIM website at http//: www.aim.edu.ph).