Aspiring entrepreneurs are always on the lookout for innovative ways to transform their vision into a reality. The idea that germinates in one’s mind needs to be nurtured and nourished until it becomes a self-sustaining profitable system. The complex process of transforming an idea into a reality involves multiple steps, all within the ambit of confidence, diligence and actionable plans.
Naturally, the first step in the process of bringing a bold business idea to life is to communicate that vision from executive leadership to the team. Corporate strategy needs to be subdivided into high-level management objectives, mid-level management objectives, and lower-level management objectives. The sum total of these strategic plans, tactical plans and operational objectives gives rise to the realization of a business vision.
Communicate the Vision and Embrace Change
The first step in the process of translating thought into deed is communication. Effective communication of organizational objectives is indispensable. Communication media include press releases, speeches, hardcopy, intranet facilities and so forth. The more engaged top leadership is with all rungs of the organization, the more involved each stakeholder and employee will be. Engagement assures a greater level of camaraderie, and this empowers the organization towards realization of its objectives.
Sometimes, it occurs that a business is undergoing a turnaround strategy that requires a unique approach to be adopted. Many businesses go through life cycles, where success turns to failure and vice versa. At times, all it takes is the entry of a new competitor to dramatically alter the trajectory of a business’s profitability. When this occurs, it is important to adapt to those changes and motivate stakeholders accordingly.
Allocating Resources and Evaluating Organizational Performance
Embracing change requires implementation of organizational objectives. This in turn necessitates a ‘blueprint’ to provide direction for the organization. As soon as priorities have been established, actionable plans must be implemented to achieve those objectives. This requires the setting up of rules and regulations, budgets, policies and procedures, responsibility and accountability etc. Employees who understand what is expected of them are far more likely to achieve their goals than those with generic duties and responsibilities.
Each resource component in an organization should be allocated for optimal productivity. As soon as resources have been allocated, metrics should be implemented to evaluate the performance of groups, divisions, and functional units. If deviations from pre-stated objectives occur, control mechanism should be adopted to ensure that the company’s individual components are working towards the synergistic goals.
Banks May Not be the Answer
Sometimes, a company that is already in business may need to change course in its pursuit of growth objectives. These strategies take on many forms including acquisitions, mergers, divestitures, et al. Companies looking to grease the proverbial wheels of their operations may be inclined to seek additional capital by listing publicly (IPO) and raising funds for expansion.
It may be more beneficial to retain equity and simply apply for business loans. The most successful companies adopt a multi-tiered approach to expansion by aggressively pursuing options that add value along the chain. Business loans are difficult to come by for new businesses, and entrepreneurs may find it difficult to get approved by banks, given the current economic climate.
Small businesses are increasingly turning to alternative sources of funding (other than banks) to fund their entrepreneurial vision. Nowadays, we are seeing an increasing number of online lenders providing for the capital requirements of entrepreneurs around the world. A startup without a plan of action is unlikely to generate any interest from lenders, whether they be banks or online lenders.
However, for a company that is already in operation, a business loan is far more likely with an annual revenue of $250,000. Failing which, an average bank balance in the regional $5,000 is also considered as an important determinant for lenders. Other factors include the business’s ability to maintain operations in the current market, and the entrepreneur’s credit score. Therefore, it is of vital importance that the entrepreneur has a clear vision and is financially responsible to drive the organization towards its strategic objectives.