Entrepreneurs Need Momentum Over Perfection
gettyStarting a business has never been easier.
With a multitude of digital tools at their fingertips, prospective founders should be able to go from idea to starting their business effortlessly. That it is so easy to do so should matter to all of us, because it’s those founders and their small businesses that power the economy. In the U.K., for example, they represent 99.8% of the business population according to the latest government figures, employ 16.6 million people and have a combined estimated turnover of £2.8 trillion ($3.79 trillion). Their impact cannot be ignored.
Therefore, providing access to the tools and skills to help more people start sooner, and contribute to the economy, should be a no-brainer. Unfortunately, that is not the case. According to recent research by Shopify and The Harris Poll, the gap between idea and starting is significant. Fewer than 1 in 5 (18%) U.K. founders started straight away. The rest waited, hampered by issues such as a lack of funds or financial stability. A quarter (24%) said they simply did not feel ready or confident to start.
While the hesitation may be understandable—it’s a huge leap of faith after likely having a secure income stream—the need to feel ready may actually be unfounded. The research also spoke to existing founders, and their story shows the best thing to do is start, now.
According to the research, half (50%) of founders who delayed starting a business wished they had started sooner, and 73% relied primarily on trial and error to overcome hurdles. It points to a mindset where acting and failing fast will be more likely to drive success than being prepared for every eventuality.
However, that does not mean abandoning all planning. Striving for perfection at the early stages of building a business can slow down growth, which in turn limits the ability to employ others and help the economy to prosper. Instead, founders should set goals that enable them to get insights and learn as soon as possible.
One strategy that may be powerful would be to define one problem, create one offering and identify one route to market with customer feedback built in at every stage. Doing so enables iterations to take place throughout so that when the final product is ready it has already been tested. The overall goal though should be on acting, learning and adapting as fast as responsibly possible.
The array of tools founders now have access to means they can work to significantly shorter timelines than previously. In fact, 74% said technology and AI have made it easier to start, with less resources or expertise required.
However, more tools do not necessarily mean faster or easier learning. For example, half of U.K. founders in the research said their biggest barrier was harder than expected, and 31% noted that finding customers was particularly challenging.
Technology and tools will not remove the challenges founders face, but it can make the experience of learning by doing more manageable. Artificial intelligence can, for example, help them to stress test ideas against what competitors already have in the market, or help them to create content easier. Effectively, tools like these shorten the period between the question or challenge that arises and the answer to solve it, and founders need to be using them practically to help them grow. However, AI does not have the answer to everything; founders still need to decide which problem is most important to solve first.
They also need to be thinking about how iterative learning will enable them to build in the future.
Markers for successful business growth will typically appear at the moment of starting or major milestones like funding. However, data from the Office for National Statistics shows that less than 40% of U.K. businesses reach the five-year mark. It suggests that the grind to build is where the real success should be celebrated.
To beat the odds, founders need to plan for a long-term goal that is relevant and achievable, then attack it in a series of sprints that enable incremental growth. Each step informs the next, with momentum the measure of success over perfection.
By delaying starting and waiting to be completely ready, founders risk losing out to those with similar ideas who jumped into their new venture headfirst. Shortening the gap between the idea and starting needs to be a priority for every prospective entrepreneur. It is not careless, either. They are learning by doing, building their businesses and customer base and feeding into the wider national and global economy sooner. That mindset is now a business advantage that rewards the brave and adventurous, who are prepared to take the right level of risk to reap the rewards tomorrow.
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