Entrepreneurship Planning Beyond Your Business Plan

The biggest mistake that entrepreneurs make in choosing a new business opportunity is not the most obvious. Most aspiring entrepreneurs are focused on making money when they should be focused on making peoples’ lives better. First time entrepreneurs readily identify the lack of adequate investment and working capital, the lack of a skilled, trained workforce and the difficulty in attaining market traction and market share as major pitfalls to avoid when creating and growing successful, thriving entrepreneurial ventures.

I believe the biggest pitfalls for individuals to avoid in creating world-class, successful enterprises lie not in the particular choice of opportunity to select or the location of the venture operation, but in the choice of why to pursue the particular opportunity, how the entrepreneur will lead and direct the business and what role the entrepreneur and his/her organization will play in the community where they reside. Guy Kawasaki, author of The Art of the Start, observed that if you seek to build value and make a difference in peoples’ lives you will have financial success, but if you don’t make a difference, you probably will not be financially successful. After 25 years of being a serial entrepreneur, I have come to appreciate the fundamental importance of this insight.

Successful entrepreneurs are driven by a passion to create organizations which deliver value-added products and services which meet the unmet needs of customers. These entrepreneurs commonly select their choices for new products and services based upon a variety of criteria including prior personal and professional experience in a particular industry sector and interest in creating a product or service which fills an existing gap in consumer needs. For many aspiring entrepreneurs, but not all, financial gain and security are prime motivating factors for new enterprise creation. While this is a noble and admirable reason for embarking on the entrepreneurial adventure, it is not sufficient in and of itself to ensure the success of the enterprise or the growth of the entrepreneur.

In examining successful entrepreneurs’ choices for their enterprises there is a more compelling reason which drives individuals to make their selection regarding which opportunity to pursue. This process involves creating entrepreneurial ventures which make a difference in people’s lives by improving the quality of life, even is a small way, for their customers. These entrepreneurs develop and nurture long-term relationships with customers. Consciously or unconsciously, successful entrepreneurs live by the golden rule of treating people fairly and equitably, as the entrepreneurs would wish to be treated themselves. They seek to create and build organizations of high value that are partners in the community in which they reside and which help to improve the quality of life of the communities in which they conduct business. Further, these successful entrepreneurial visionaries lead by providing a positive example to others by giving back of time, talent and resources to the communities which help them become successful.

A morning or evening trip to Starbucks can help us to understand the difference between making money and making a difference. Many people would drive by a packed Starbucks and think, “Wow, I can really make some money selling coffee.” However, Starbucks’ success is due to their ability to create a positive experience for people, not the quality of their coffee. Starbucks stated mission is to become the third place in peoples’ lives after work and home. It is this third place where friends meet and interact. Before Starbucks, this interaction often did not occur. Has Starbucks seen financial success by making peoples’ lives even subtly better?

Avoid the mistake of not understanding that you should first create value for customers when starting and growing your entrepreneurial venture. Passionately seek opportunities which make a difference in peoples’ lives. Create purpose driven-organizations which seek to improve the quality of lives of others. As a result of your actions to create unique value for your customers, you will be rewarded in being able to hire and retain employees who, like yourself, are willing to go the extra mile to help your customers. Ultimately you will be successful. You will be successful in making a difference in peoples’ lives and become financially successful as well. Through your organization, its products and services and your personal example you will build value for your employees, the community in which you live and work and for yourself.

About the Author
Dr. Fountain currently serves as the Founding Director of the University of South Florida’s (USF) university-wide Center for Entrepreneurship, which delivers both the Graduate Certificate in Entrepreneurship and the Master of Science Degree in Entrepreneurship in Applied Technologies.