What are the three perspectives for making a new business successful?
There is a saying that the probability of a new business succeeding is less than 10%.
Personally, I operate under the assumption that it is less than 1%. However, if you do nothing, you will only face a slow decline.
Taking on new business at some point is essential for continuing to manage a company.
The president is excited about coming up with a new idea!
But the employees are not enthusiastic at all. In fact, their anxiety is growing.
This is a common scenario. I have thought about why this happens.
Are the meaning and motivation for doing the new business shared?
The purpose is important in everything. Let's also consider the higher-level meaning of doing the new business.
Is the president talking about the meaning of doing the new business?
Why do it now? What kind of future are you envisioning? Try speaking in your own words as the president. It might be a little embarrassing, but if you don't say it, it won't get across.
If you only give instructions without talking about the meaning, purpose, and motivation, there is no way the employees will move.
Recently, the term "purpose-driven management" has become a hot topic. It is important to communicate repeatedly until you can confirm that the purpose and meaning are not only shared but also resonated with.
Is there a clear prospect for realizing the new business?
If you think, "If I do it, I can do it!", the hurdle is lowered, but
in a situation where you don't know how to do it in the first place or don't feel like you can do it, anxiety grows. Isn't the honest truth that you would rather avoid it if possible?
In a new business that no one has ever done before, there are no teachers. Even if you get support from external experts, you are the ones doing it. Moreover, you won't find the right answer immediately.
In the end, the important point is whether you yourselves believe you can do it.
The process and preparation for that are important. What to prepare and in what order to consider things. It can be a little reassuring to have an expert who can support such a process.
Are there customers? Can you build a relationship?
The purpose and meaning have been shared, and there is a prospect of being able to do it!
But are there customers in the first place?
The most important thing in business was the customer, wasn't it?
Find your first customer. Then, increase that to two or three people.
It is ideal if you can start the new business with some customers already found.
If you have customers, you can manage somehow. At first, focus on quality rather than quantity.
Dig into why customers come to you, the reasons they continue to come, and the reasons new customers keep coming.
Observe and interview customers thoroughly to find out their true feelings. Let's think about internal initiatives and mechanisms to deepen relationships for that purpose. Generally, this is the area called test marketing. Start small and grow big. There is no end to building relationships with customers.
Taking on a challenge of something new that has never been done before. Some people get excited about it, while others get anxious. If you think the company is not united, that is proof that there is diversity.
Rather, if you can leverage that diversity as a strength and discuss it together, it might grow into a charm that is a bit different from the rest.
For company presidents who are frustrated because their new business is not progressing well,
are you aware of which stage is becoming the hurdle?
This article was written by
Mousou Biz Planning Representative Shigeki Kawahara
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