Rediscovering the Forgotten Art of Strategic Entrepreneurship and Fostering Planned, Structured Growth
In the ever-challenging and convoluted landscape of SME businesses, there exists a critical concern that is often emphasised but, for so many reasons, seldom addressed, and that is the entrepreneur’s trap of working “in” the business instead of “on” it.
We all know what is needed and how it should function, but we do the opposite, and by doing so, we become our own constraints, bottlenecks, and, to some extent, worse opponents.
This concerning norm leads to a strategic void, rendering businesses vulnerable to financial predicaments, operational hurdles, and stunted growth. If you are reading along these lines, there is a high probability that you have already experienced (or are currently experiencing) something similar in your business.
You know what they say: acknowledging the problem and staying with it long enough is half the solution. Because if you are aware of it, you can resolve it, find a better solution, or prevent it from happening again in the future.
So my question is:
Are you an entrepreneur caught in this relentless hamster wheel, unable to see the bigger picture and craft a resilient business strategy?
A Twisted Perspective: The Issue At Hand
You started your venture to bring about innovation, disrupt markets, and create value. Probably, your intentions were also to monetise what you know and the impact your product or service makes. However, now, you are entangled in day-to-day urgencies, and losing sight of your strategic vision. As Michael E. Gerber, author of the bestseller “The E-Myth,” famously said, “If your business depends on you, you don’t own a business—you have a job. And it’s the worst job in the world because you’re working for a lunatic!” Great observation, as at times, it may be overwhelming and “crazy’ to some extent.
Research suggests that SME owners often fall prey to this trap, focusing on the minutiae, overlooking the grand strategy, and thus, impairing the long-term viability and growth of their businesses. According to a study by BCG, 70% of SMEs struggle due to strategic misalignment, resulting in financial difficulties and hindering growth.
Be aware of times when you become your own constraint in business.
Grappling with Strategic Short-sightedness: The Aftermath
In the grip of operational urgencies, a strategic vision becomes fuzzy, and entrepreneurs gradually lose the power to steer their venture in a competitive direction. This phenomenon is far more dangerous than one might perceive. Peter Drucker, a management consultant and author, aptly noted:
“The best way to predict the future is to create it.”
By focusing on day-to-day urgencies, entrepreneurs risk compromising the creation of their future.
So my question for you is:
Who is guiding your ship towards long-term strategic targets if you are spending all of your time fighting fires?
Busyness is a great excuse, because, by appearing consumed by work and deadlines, urgencies, and priorities, as a business owner, you play it safe. You play the game of business with the cards on hand, and you don’t want to rock the boat. Strategic thinking and working “on the business” require different mindsets and levels of thinking. It also requires prioritising, dedication, and hard work.
How are you ensuring your business model remains competitive in the face of changing markets?
Unleashing the Power of Strategic Entrepreneurship: The Way Forward
To break free from this detrimental cycle and reclaim your strategic prowess, an intentional shift in approach is indispensable. The key lies in prioritising and working “on” the business, dedicating time and resources to business development, mentorship, strategic planning, and sustained growth. Remember the 6 Ps, the old one from Brian Tracy:
“Proper Prior Planning Prevents Poor Performances.”
Planning is the ultimate cure for a lack of strategic thinking and envisioning. Planning provides the context, paints the picture of the desired future, sets the stage for required performance, and positions you, the entrepreneur, at the centre of business development.
As Warren Buffet rightly stated:
“Someone is sitting in the shade today because someone planted a tree a long time ago.”
This foresight and strategic planning is what set successful entrepreneurs apart. According to a McKinsey’s report, businesses run by strategic entrepreneurs are 60% more likely to succeed over the long term. I think that this percentage is underrated.
Therefore, it becomes the ultimate imperative to engage in:
A – Strategic Planning
Setting clear, concise, and feasible strategic objectives is paramount. Begin by crafting a robust business strategy that aligns with your vision and market realities. I’d like to say, Stay grounded. A business strategy is your core, your base, and your foundation. Make sure it is capable and impeccable to hold on when the pressure is high, the stakes are high, and uncertainty about the SME ecosystem is mounting.
B – Mentorship and Coaching
Invest time in nurturing your team’s talents. Coach and get coached, mentor and get mentored. Find experts, find a sounding board, and find people who are energised, motivated, and inspired to build a venture with you. An empowered team not only relieves you from operational hassles but also strengthens your venture’s backbone. Also, get better at things that elevate results. Get better at communicating the vision. Build the organisational culture as a foundation for everything you do and think of doing.
C – Business Development
Strategically building relationships, exploring collaborations, and diversifying your offerings are crucial aspects of working “on” your business. It goes without saying, business is about people. People create relationships, and relationships drive growth, prosperity, and progress. You can’t do it alone. You can, but it takes a long time and drains resources.
D – Structured Growth
A well-defined growth strategy aligns all your resources, systems, and processes towards the common goal of sustainable expansion. Your well-structured and well-thought-out game plan must encompass what your strategic options are and what the strategic milestones for your future are. To expand is to give control, to progress is to involve others in your dreams and share your vision. To grow is to share business growth responsibilities and results, to be transparent and visible.
The Urgency to Shift the Perspective
Entrepreneurs, it’s time to look beyond the urgencies of today and embark on the path of strategic entrepreneurship. Take this moment to reflect:
- Are you a business owner or a job holder?
- Do you work “on” your business or “in” it?
- What needs to happen so that your role enables the growth, progress, and sustainability of the business you are running?
If you’ve realised the pitfall, it’s time to shift gears and redefine your role because, in your business, everything starts and ends with You. If you get to this point, you will realise it is also your responsibility (for the benefit of your future self) to remove that link, to remove yourself from the picture (to the extent appropriate), and to give your business wings to fly on its own and a free sky to express your values. Your responsibility is to nurture it to the point where it can stand on its own, but not longer than that. You will stand in the shadow when the business needs you, but you must not stand in its way of growth and progress.
Begin today. Prioritise strategic planning, empower your team, focus on business development, and build for structured growth. Let’s venture towards entrepreneurial success, equipped with a resilient strategy and a clear vision, as the true owners of our businesses.
Your Call To Make It Happen
Want to escape the trap and transform your approach? Join our insightful webinar on “Strategic Entrepreneurship for SMEs.” Register now and rekindle your entrepreneurial spirit with strategic insights and practical tips. [Link to webinar]
Your journey from working “in” the business to working “on” it starts here. Take the first step towards strategic entrepreneurship today.