“stopping every so often to scan the environment and looking at what’s coming ahead
could save a lot of us business owners a lot
of misery”
Consequently, an entrepreneur’s cash flow forecast would be more considerate
of the external factors that could affect the business. This cash flow would not
only be concerned about what is happening in the industry in which the business operates in but also what happening in the key customers industries.
For example, perhaps you in a manufacturing sector but supplying the farming
sector with equipment or tools. In the current environment, unless you would
have predicted the impact of the drought – your cash flows are probably completely wide of the mark and you might be facing business distress at this
stage.
Herewith are some questions that can help us to begin to think a bit more entrepreneurially and avoid business casualties:
Are there new entrants in our business environment?
What is the competitor’s strategy?
What are the technological trends that could become game chang-
ers/disrupters in our industry?
How can we adjust our business model so as to create or maintain a
competitive advantage?
And ultimately, what can go wrong with our current plan?
While transitioning from an employee to an entrepreneur may be long and demanding journey, stopping every so often to scan the environment and looking
at what’s coming ahead could save a lot of us business owners a lot of misery.
Entrepreneurs, through practice have learnt to spend more time working on the
business (not in it) and thereby taking the time to build the crystal ball that
looks into the future and asks – what is coming? In each and every one of us,
there is an entrepreneur waiting to be unleashed and in each entrepreneur,
there is a crystal ball – a built in ability to see trends and connect the dots.
Therefore as a business owner, take time off a bit and allow that entrepreneur
in you to arise.
Ngoako Huma CA(SA) – Co-founder of KWG
www.kwgsa.co.za