Entrepreneurial Myths!

Unprofitability.
Lack of access to finance.

Four Top Myths about Entrepreneurship.
According to the latest GEM report, Uganda is the world’s third highest entrepreneurial nation with four Ugandans out of every 10 starting a business. Moreover, 69% ofUgandans say they have the skills to run a business and 64% see opportunities to start a business in the near future. But the rate of business closure is equally high. The report further adds that the two major causes of business failure are;

The media is awash with successful business men who make it look easy. However, we are never given details about what it took for them to ‘arrive’. I must say, for a country as entrepreneurial as ours,we are severely lacking in detailed success stories from our enduring businessmen about their business journey. In my short sojourn as a business enthusiast and now a business consultant(Viisi Consult Ltd) who’s goal is to help business owners start and build enduring enterprises,this is what I have found out about business that we are not being told;
Its not all about the money!
In trying to build an enduring business(which is profitable of course), money is the golden egg and not the goose. If you start a business with the leading goal being to make money, you are in for a rude awakening. Most businesses will not turn a profit in the first 3 years of existence. The market doesn’t care about your needs and billionaire ambitions! It only cares that you are solving a problem for them or meeting a desire. If you are not leading with the above goals,you might make some short-lived money but it won’t take long before customers leave you for the one who is meeting their needs. Make more customer friendly products or services and the market will reward you with more money.
You have to be multidimensional.
Entrepreneurs are always shocked to discover that running a business is not all about making the product or providing the service, which is their specialty, but quickly discover that you have to manage people,do the books, market your products, deal with the tax man, and so on. Ladies and gentlemen, every serious business which has stood the test of time, has had to deal with and has excelled in those areas. Therefore the aspiring entrepreneur does not only have to excel in their technical abilities which are core to the business,but has to excel at business management. One can greatly improve their business management skills by reading business books, listening to podcasts, researching about model businesses, doing business courses and seeking help from business consultants.
The most important trait is perseverance.
“Every one has a plan, until they get punched in the face.” Mike Tyson.
“Dear brothers and sisters, when troubles come your way, consider it an opportunity for great joy. For you know that when your faith is tested, your endurance has a chance to grow. So let it grow, for when your endurance is fully developed, you will be perfect and complete, needing nothing.” James 1:2-4
Most successful businessmen never tell us about the hills and valleys they went through; how in the early stages, they hadly made enough to put on their tables; how on countless occasions, were one step away from giving up, and so on. Patrick Bitature, who Chairman Simba group, Owner of Protea Hotel Uganda and who, according to Wikipedia, was worth USD 100m as of 2012, tells a story of how his entrepreneurship journey was birthed from the difficult circumstances of losing his father at a young age. As the oldest, he had to shoulder the responsibility of looking after his family. One of his first business ventures was bringing merchandise from Kenya for sale in Uganda. They were difficult times indeed, but from his current status, it might not be obvious to the naked eye that he went though such difficult circumstances. Therefore, the up and coming entrepreneur has to know that just because the road is hard, it doesn’t mean that this is not a worthy venture and it will not succeed. I have read countless surveys and business stories that have shown that perseverance on the right path is the most important trait for success. I should also note that one has to know when the fight is futile and thus giving up is the right move to make(Seth Godin,in his book TheDip ,gives guidance on how to tell when to quit a venture). Therefore an entrepreneur should keep their eye on the worthy goal and if they persevere through the hills and valleys,the market will reward them.
Entrepreneurship is not for everyone.
This might sound harsh, but some things are better left as hobbies. Not every idea will translate into a business which is profitable and enduring. Just because you got a few friends to buy your lemon juice, doesn’t mean you can turn that into a business and be the next Kazire. One thing I have noticed in our society is the popularity of ‘deals’ which has led me to the conclusion that most people are doing ‘deals’ but not running businesses. A proper business has Sales and marketing system, management system, accounting and finance system,operations systems,etc. An entrepreneur,however small his enterprises is has to have those systems running to some extent if he is to have a chance at building an enduring business. Also some ideas might not succeed because of timing(the wider market is not ready), geography,etc. Therefore, an entrepreneur has to gauge his idea in light of how it fits the market, and either modify it to fit the market or ditch it all together.

If you have these in mind,analyse your ideas, test them in the market to see if they fit the needs of consumers, have a long-term plan of building a business and an eagerness to learn and improve, then you stand a big chance of starting and building a business that will outlive you!