Ask Anand: Thinking and planning before starting a business will help avoid mistakes
Sir, it is always inspiring to read Ask Anand. I also implement a lot of the things you say in my business. I own a hotel on Pune-Ahmednagar road. I have been running it for the past 10 years, and the business is good. I am now trying to expand it. However, I fear something might go wrong in doing so. What to do if I start something new and make a mistake? This thought keeps troubling me. How do I tackle it?
- Vikas Patil, Ahmednagar
Dear Vikas,
Firstly, congratulations on asking such a good question! Not only you but many others are likely to face this question. It is a good thing that you have dared to speak and ask questions openly about it. I personally feel that such topics should be discussed. Considering that you have been running your business for 10 years, you must have already understood its intricacies.
Once things start settling in, people normally try to do many things at once. And they don’t plan well for it. This loses the focus. Entrepreneurs who identify their capacity and gauge what exactly they should do and at what pace they should move ahead are far more likely to be successful.
You should be after just one thing at a time. In an attempt to do several things, not even one thing can be achieved properly. And so, you must carefully consider doing only one thing, set your goal and give it your all to achieve it. Entrepreneurs generally do not think and study before taking decisions, and hence fail. But proper planning and adequate thinking will help you avoid mistakes.
Never take decisions hastily or emotionally. It is necessary to take decisions after having considered all its aspects. I have often seen that a lot of entrepreneurs do not even use common sense when taking decisions. Entrepreneurship is addictive and it is risky. What is rather needed is taking controlled and balanced decisions.
One should be aware of one’s capabilities at all times. Expenses should always be within one’s capacity. It is essential to work on cash flow management. This management is extremely critical in the success of any business. One must be aware of every penny that is coming in and being spent. Excessive or major expenses should not be done on anything without full knowledge of money. Even when taking a loan, one should factor in one’s capacity and limitations.
The following three things are extremely important.
Set your goal carefully
Fix the path to be followed to achieve the goal
Make a plan to achieve your goal on that path