Business plans. Mind maps. Market surveys. These are the three things that are at the core of a startup. But the one issue I’m seeing all too often is people who spend far too much time theorising and not enough of that time actually ‘doing’. Let me explain.
A business is above all an idea or a solution to a problem. In my case, I had a deep passion for the world of wine that started during a holiday to Bordeaux in 2017. When I returned to Switzerland, I struggled to find the wines I wanted to try or had tried in other parts of the world. I knew that if I combined my know-how of global logistics with my ability to sell my brand to wineries, I could attract them to partner up with me. It’s at this point a lot of entrepreneurs tend to make their first mistake. They start by spending too much time on preparing the plan or focusing on the minute details of the business (e.g. exact font of the logo or spending months designing the packaging).
The one lesson an entrepreneur will learn in their first few months of operating a business is that the market will very quickly either confirm your predictions or quickly tell you you’re wrong. I learned this with my business. Wine is a competitive industry. With retailers popping left, right and center, consumers spend a great deal of time comparing prices for a bottle to see which one offers the best rates. I was under the impression that I could simply work with a distributor and all would be well. However, very quickly, my customers got bored of my selection and wanted to see new wines. I had to adapt myself to my audience and provide products that weren’t on the market and decided to specialise in ‘exotic’ wines; bottles from regions one wouldn’t expect wine from.
I had the immense privilege of studying business at school and university. I also had the sheer luck of being the son of two very successful entrepreneurs. In business class, we were given case studies, and theories about how to run a business. My parents taught me the realities of starting a business: the endless days of work; the angry customers; the supplier who wanted money in advance but never delivered the goods. No business class or Professor will ever be able to teach you just how bad that feels. It’s something we learn to deal with experience.
Does that mean we shouldn’t have a business plan or endless mind maps? Not at all! It’s perhaps the most important part of starting a business! A business plan is especially important if you’re looking for initial funding or trying to better understand the likely trajectory of a business. But from my experience, the reality is going to be very different.
