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Opinions expressed by Entrepreneur contributors are their own.
In entrepreneurship, I suggest a shift in mindset from the traditional narrative of perseverance and struggle to a more pragmatic approach. Entrepreneurs often glorify their ability to endure challenges and overcome obstacles, but I believe that entrepreneurship should be viewed more like project management.
In this view, business endeavors are temporary, goal-oriented projects with defined start and "finish" dates. The emphasis should be on both the relevance of the project and having a predetermined exit strategy. Entrepreneurs should focus on efficiency and results rather than prolonged struggles, acting as pragmatic project managers rather than heroes.
Related: Want a Successful Business? Focus on These 5 Things
Each entrepreneurial endeavor is indeed a project
Entrepreneurs need to start thinking of their business endeavors as projects. A project is a temporary effort with a specific start and finish date, aimed at achieving a particular goal or solving a specific problem. In this context, the key focus is on the "finish" part of the project. Entrepreneurs often fall into the trap of thinking that once they start a business, they must continue it indefinitely without considering a clear endpoint. I suggest that entrepreneurs need to change their approach toward business administration by setting a finish date for their endeavors and planning to exit by that date.
This approach encourages entrepreneurs to be more strategic and goal-oriented. By treating their businesses as projects, they can define clear objectives, allocate resources effectively and focus on solving specific problems within a defined timeframe. This mindset also helps avoid the common pitfall of becoming emotionally attached to a business, which can lead to irrational decision-making and prolonged struggles that drain valuable resources.
SMART attributes
A key aspect of project management is the business case. A project is a temporary endeavor that exists to solve a specific problem, and this problem is defined in the underlying business case. The business case justifies the existence of the project by outlining its objectives, expected benefits and the resources required to achieve those benefits. In entrepreneurship, success depends on the SMART attributes of the business case, which will be driven by the project.
SMART attributes ensure that the business case is specific, measurable, attainable, relevant and time-bound. These criteria provide a clear framework for entrepreneurs to follow, helping them create focused and actionable plans that are more likely to lead to success. By ensuring that the business case adheres to these attributes, entrepreneurs can avoid vague or overly ambitious goals that are difficult to achieve. Instead, they can focus on creating realistic, well-defined plans that guide their efforts and increase the likelihood of delivering the intended benefits.
Related: What Are SMART Goals and How Can You Set and Achieve Them?
Focusing on time-bound and relevance
Among the SMART attributes, the focus on time-bound and relevance is particularly crucial for entrepreneurs. The time-bound attribute means that entrepreneurs need to have a predetermined exit date for their business endeavors. Business creation should not be seen as an open-ended commitment that continues until external circumstances force an exit. Instead, entrepreneurs should actively plan for an exit from the start, setting a clear timeline for when they intend to complete their project and move on to the next opportunity.
At the same time, relevance requires continuous monitoring to ensure that the business case remains valid within the determined time frame. Just because a business case is relevant at the time of initiation does not mean it will remain so throughout the project's life cycle.
Entrepreneurs must be vigilant in assessing whether their projects are capable of delivering the intended benefits in accordance to the exit time. This ongoing evaluation helps entrepreneurs avoid pursuing endeavors that have lost their relevance due to changing circumstances, in accordance with their exit time.
Dealing with changing circumstances
In entrepreneurship, changing circumstances are inevitable. Both internal and external factors can continuously impact the relevance of a business case and the entrepreneur's ability to achieve the intended benefits within the exit timeframe. These factors may include shifts in market conditions, technological advancements, regulatory changes or unforeseen events that disrupt the original plan. Entrepreneurs must remain vigilant and adaptable, ready to respond to these changes as they arise.
Sometimes, these changing circumstances may even trigger the need for an early exit. In such cases, it's essential for entrepreneurs to avoid the temptation to struggle on, trying to keep the business afloat at all costs. I suggest that entrepreneurs remember they are not heroes; they are pragmatic project managers. The goal is to exit the venture with a recoverable loss and contain the leak of valuable resources in a timely manner, rather than allowing the situation to deteriorate further.
This approach emphasizes the importance of making strategic decisions based on current realities rather than clinging to outdated plans. By being willing to exit early when necessary, entrepreneurs can preserve their resources and focus on new opportunities that may offer a better chance of success. This mindset also helps entrepreneurs avoid the emotional toll and financial strain that can result from prolonged struggles in a failing business.
Related: Planning Your Exit Should Begin When You Launch
In conclusion, I suggest that entrepreneurs shift their mindset from being heroic figures who endure endless struggles to pragmatic project managers who view their business endeavors as temporary projects with specific goals. By focusing on the time-bound and relevant aspects of their business case, entrepreneurs can ensure that their efforts remain aligned with the intended benefits. When circumstances change, entrepreneurs should be prepared to exit early if necessary, prioritizing resource preservation over prolonged struggles.
Ultimately, success in entrepreneurship comes from strategic decision-making and adaptability, not from being a hero. Entrepreneurs who adopt this pragmatic approach will be better equipped to navigate the challenges of business ownership and achieve their goals more efficiently and effectively.
