Score success by aligning your stars. Does that ring a bell? What is alignment of stars and how does it fit into the equation of success? This week, we will take a look at factors that are crucial for any start-up to survive and excel. We will also highlight the key factors that can turn an otherwise sinking business into a money-making machine.
Is luck central to entrepreneurial success? Does it account for something as compared to education, experience, hard work and talent? The mere mention of ‘alignment of stars’ brings to mind all sorts of images of priests and astrologers doing math and telling you the perfect day to inaugurate your business or to get it off the ground. Sadly, the alignment of stars has nothing to do with astrology.
Seeing an astrologer or visiting card-readers are just personal beliefs. These acts may help an entrepreneur muster the courage to weather storms that the business scene hurls his way but the story ends there. When speaking in the context of entrepreneurship, ‘alignment of stars’ refers to the ingredients principal to success.
Creating a business model is a highly objective approach that varies from one enterprise to another. Likewise, the ingredients or stars for success in each case differ as well. This is where an entrepreneur has to demonstrate his competency by identifying the unavoidable elements that are part and parcel for a business venture to succeed.
By recognizing these elements, an entrepreneur can substantially increase his chances of success. He can realize his dream of taking his business to the big leagues. For a business to take-off, it is crucial that an entrepreneur guarantees that all necessary conditions are in place.
Before you embark on an entrepreneurial journey, you should at least have a mental model of what these stars should be. Just as the right ingredients play a significant role for a dish to come out right, similarly, the timely and orderly availability of all the factors can be the thin line that demarcates success from failure.
Alignment of these stars is a must for an entrepreneur to phenomenally increase his odds for success. The more aligned your stars are, the greater are your chances of having a smooth-sailing business. Regardless of the type of business you invest in, there are three basic stars essential to every enterprise. If an entrepreneur loses sight of any of the following, he should brace himself for a rough ride. These stars are listed below.
Before taking a dive, an entrepreneur should find answers to queries like:
In the business landscape, copying someone else won’t get you anywhere. An entrepreneur has to make sure there is an opportunity for the business to survive. There should be an opportunity for the market and industry to embrace a new entrant. If a business can give existing incumbent companies a hard time, the Star of Opportunity is there.
No matter how ground-breaking your product, service or technology is, unless there is a market willing to adopt and accept it, chances of success are slim. A lot of times people rely on technology alone. They mistakenly assume that it is sufficient for them to make it through only to find themselves in the pit of failure. This happens because the Star of Opportunity was not aligned to technology.
It is the absence of this star of opportunity that keeps an entrepreneur from accomplishing the desired outcomes. Remember entrepreneurship is all about belief. An entrepreneur should have faith that he will be a winner. His offerings will not only sell well, he will also give the competitors a run for their money.
This Star of Opportunity is what encourages the entrepreneur into putting everything at stake. He has acknowledged the long-term viability of the project and is now acutely focused at making things work, one way or the other.
The next one on the list is the Star of Team. Team is the lifeblood of any business. Having the right people on your team is tantamount to success. No matter how competent you are, chances are slim that you will be able to juggle so many responsibilities simultaneously.
A good team is the collaboration of a group of people who have mutual goals, believe in each other and can become a lean and mean fighting machine when the need arises. Since a business operates in multiple dimensions and each individual has a skill-set to limit him to a certain capacity, it is vital for an entrepreneur to have a diversified team that greases the gears at every single step.
For an integrated and diversified team, the entrepreneur should tap strengths and handle weaknesses. It will be great to have a team that has worked together previously. Having experienced individuals on the team can be particularly useful as everyone most likely knows what is expected of them and how to deliver it.
Execution of a business plan can be negatively influenced if an entrepreneur fails to have effective and self-motivated individuals on his team.
Last but not least, smart money comes into the picture. The question that arises is whether or not an entrepreneur has enough capital to accomplish the stipulated goals. Does he have the right mode of financing? Do the investor’s interests align with business interests?
With the two stars listed above already in place, an entrepreneur can attract easy money. Regardless of how unfavorable circumstances are for entrepreneurship, companies will attract financers, provided the business plan is sound and the team is proficient.
When you have a great business plan, faith in your ability to execute it to perfection, clear vision of opportunities and a great team to back you up, you will have no difficulty pooling in the money. It is crucial that an entrepreneur takes time to choose a financier who can bring as much money to the table as possible.
Often, entrepreneurs jump to avail the first opportunity an investor waves at him without realizing that he may be missing out on better options. In addition, it is vital that an entrepreneur accomplishes the alignment of objectives between the investors and team. When everyone is not on the same page, it will be equivalent to a living nightmare where investors will critically analyze every single move you make.
Ensure the alignment of the three stars listed above and prevent any unnecessary deterrents from stifling your progress.