The 7 Things Every Young Black Entrepreneur Should Know by Karabo Che Mokoape

Author:Karabo Che Mokoape
Language: eng
Format: epub
Publisher: Penguin Random House South Africa
Published: 2019-05-22T00:00:00+00:00

7

THE FOURTH THING:

It helps to have a plan

GOOD IDEAS, BAD IDEAS

Business ideas are overrated. This is the painful realisation that every entrepreneur eventually comes to. In the world of supply and demand, there is no shortage of interesting, innovative business ideas. This may sound strange to you, particularly considering that a good deal of this stresses the importance of innovation. There is no contradiction here. Having a great idea – or, at the very least, a solid idea – is certainly the basis for every good business plan. Once you are done convincing your bank manager – or, more likely, your mother or father – to lend you money, it’s execution, execution, execution. It’s the ability to translate what’s on your mind into tangible daily outcomes.

Your ability to execute is the single most important factor for business success

Your ability to execute is the single most important factor for business success. Your ability to execute or, more importantly, develop a team that can execute, is paramount. This is a lesson I have learnt the hard way. The consequences of poor execution are failure. I neglected execution and paid the price. This was part of the reason why one of my businesses failed.

That said, it helps to have a good idea. There is so much competition that you need something to set you apart and give you an edge. We have to assume that all our competitors are going to execute effectively. This is because, in a competitive environment, only the best companies are going to gain and retain market share. Companies have to identify and eliminate inefficiencies continually. Companies that do not do this will quickly fail. Only the strongest companies will remain in a market. And to succeed against your competitors, you’ll need to find an edge if your company is going to differentiate itself. This is where the quality of your ideas will come to the fore, potentially allowing you to create and maintain a competitive advantage.

Business ideas exist on two levels – the high-level strategic ideas, and the technical operational ideas. Should I go into the fast-moving consumer goods (FMCG) sector? In the FMCG sector, should I operate a retail outlet or a wholesale distributor? Should I consider establishing a catering service as an extension of the work I already do in my event-management company? Should my shoe-manufacturing operation expand the range of products it produces to include high-end women’s shoes? All of these questions are strategic in nature and broad in their scope. They seek to answer the question: What should I do? These are important questions that you need to give a great deal of time and attention to, particularly in the formative stages of your business.

While this kind of high-level thinking is essential, it must be coupled with the kind of operational ideas that drive productivity and the process of continuous improvement. Should I automate the process used to make our shoes? If so, what equipment should I choose to invest in? What is the

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