Tuesday, February 17, 2009

EntrePoNukka Tip of the Week

Exploring New Turf from Venture Level.com

Many entrepreneurs pursue entering industries which they are very new to all the time. There are numerous advantages to diverse ventures into different industries, but there are some things to keep in check. Entrepreneurs usually have a type of business or an industry that they dominate. Whether they have been active in the field for years or have had tremendous success with a business in a short amount of time, they know the business in and out...most of the time.I have explored various fields, having success and sometimes tough times with new ventures which I know little about, but there are things that I have learned over time which can really benefit entrepreneurs exploring new turf.

1) Study all you can, before hand- Sometimes I am proposed an opportunity, but then don't dig into it right away since I have no time. Then when I actually do decide to get involved with a new venture, I try to balance between learning more about a business and grow the business at the same time. This is extremely difficult because you are focusing on trying to grow something you don't know much about! If you think you are going to go with a new business venture as an entrepreneur, you should get right down to learning everything you can so you can focus on bringing up the business when you start the venture.

2) Get at least one person on your team that is a guru- I can honestly say, this can make an entrepreneurs life easier. Everytime I venture off with a new opportunity, I try to find the best of the best in the industry. If I can bring in the people who have had tons of experience in a specific industry, I find that I can avoid a lot of the setbacks before hand. While I pay these "gurus" far more than an average employee, it is all worth it most of the time because they make up for it with the bottom line.

3) Don't follow the misconception of "we're good to go"- I've never personally thought this way, but I know a handful of entrepreneurs that have felt like they were "good to go" before they started a new venture, thinking they learned what was necessary to kick start a business, but then they find out they only know 5% or 10% of the business.

4) Micromanage when you can- While you don't want to micromanage every aspect of your new venture, you should try to, when you can- and when there is time. As the head of the new start-up, you will want to get to know all the details of the business. Why? Because when employees leave - "the gurus" - you will want to know what they knew.

5) Question yourself- I'm not saying that you should second guess yourself, but what I am saying is that you should question your knowledge. For example, if you are buying an existing business, which already exists, try to see how the daily operations work and see if you can manage that. Ask yourself, if you can handle the little aspects, while focusing on the big picture.

6) Plan to DOMINATE- Having the feeling or the goal that you plan to dominate, you will keep up innovation in your new venture. When entrepreneurs want something, they have to reach out and grab it. If you want to dominate, you have to tell that to yourself EVERYDAY.When you are exploring new business ventures, you should keep an open mind and try to understand all you can about the idea or concept that the business delivers. I can say that it is always an adventure to wander off into new industries and many times I've seen more growth in a shorter amount of time with a new venture than an existing one.

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