Canadian entrepreneurs have faced many challenges in the last couple of years, but the entrepreneurial spirit is still going strong. In fact, business ownership may seem increasingly viable to meet consumers’ needs in the evolving post-pandemic world. Of course, making your entrepreneurial pursuit a success takes more than just a great idea. Here are some tips from Ivey’s Entrepreneurship faculty for getting started or moving beyond the start.
Eric Morse’s tip – Involve others
Eric Morse is a professor of Entrepreneurship and the Executive Director of the Morrissette Institute for Entrepreneurship
It’s easy to think entrepreneurs have a plan and all the answers the day they start their venture. The truth is usually quite different. Eric Morse says entrepreneurs learn as they go and problem-solve almost constantly. He also says entrepreneurship can be a lonely experience. Often entrepreneurs don’t want to share the issues they are facing with employees, customers, or even friends and family. Morse recommends entrepreneurs find a cohort of other entrepreneurs and advisors that they can call on for expertise and sometimes just to bounce ideas off of. This can be a more formal advisory board or something much less formal, such as a weekly coffee meeting or just a phone/zoom call. Other entrepreneurs and advisors will understand what you are going through since they’ve been there, done that (or are doing that) and will want to help where/when they can. Morse also encourages entrepreneurs to talk about their business widely with others, and to network.
“You never know who may be able to help your business succeed and this is the far more likely outcome than someone ripping off your idea (though this is often the fear),” he said. “Get as many good minds thinking about your business as possible. It will be more fun, less lonely, and increase your chance of success.”
David Simpson’s tip – Find passionate customers
David Simpson, MBA ’88, is a lecturer in Entrepreneurship and Director of the Business Families Centre
Even casual viewers of popular entrepreneurial pitch shows, such as Dragons’ Den or Shark Tank, know the subject of passion comes up a lot. Passion is often depicted as the secret sauce that drives entrepreneurs to succeed and investors to weed out the applicants lacking this emotion. The notion is that business is hard, and no matter how prepared people are to launch a venture, there will surely be tough times, rough patches, setbacks, and the need to pivot.
David Simpson says passion is a double-edged sword. On one hand, passion keeps people going against all odds and signals to the investor that the fledgling entrepreneur won’t give up. The flip side is that passion often blurs our vision, clouds our judgment, and leads us down irrational paths. He gives two examples to illustrate this: 1) The scientist whose passion for discovery leads her to a unique patent that she then turns into a business venture, only to find the “market” has different ideas about how to address the problem; and, 2) The baker whose passion for making pies leaves him frustrated when he discovers the business of pie-making requires compromises on ingredients to scale. Simpson’s advice: Don’t let your passion for your idea limit your openness to pivot and follow different paths.
“My experience has been that having passion about ‘business’ – the process rather than a specific venture – is a critical ingredient, but the biggest success stories are from those that find ‘passionate customers,’” he said. “Choose a project that solves a real need for a customer group so passionate they will loyally pay for your solution.”
Dominic Lim’s tip – Revisit your business model
Dominic Lim, PhD ’09, is an assistant professor of Entrepreneurship
What made your business a success to date may not always keep it afloat. Dominic Lim says the business model – or planning of the fundamentals, such as the value proposition and key activities to deliver on it – is its roadmap to success. Especially in times of crisis, it’s important to revisit your business model to assess what’s working, what’s not, and what else can be done. For instance, some aspects of your value proposition may have become more important in the current environment and you can take the opportunity to strengthen them. On the flip side, there may be some barriers to delivering on it and you need to consider what resources and activities you can adjust to continue to deliver it, or even consider if the value proposition should change altogether.
“When you are always busy with customers, it can be hard to think big picture. Likewise, when you are in trouble, you may be too busy firefighting. But when things are slow, there might be an opportunity re-think your business model and even think about the positive aspects of the crisis,” he said.
For instance, during an economic downturn, organizations might be able to acquire key resources, such as people, property, and equipment, at a lower cost, to improve their operations. Additionally, Lim encourages organizations to look for support in all (and some unexpected) places. Suppliers might extend payment deadlines, or customers might be willing to pay for products or services in advance, through gift cards or other means, particularly if offered a discount.
“If your customers are loving your business, they don’t want you to go out of business so if there are things they can do to help, they’ll do it,” he said. “Sometimes you may feel that everybody is in trouble and no one can help you, but if you don’t ask, you will never know.”
Eric Janssen’s tip – Just start
Eric Janssen, HBA ’09, MBA ’21, is a lecturer in Entrepreneurship
Launching a business may seem intimidating, but Eric Janssen has seen firsthand that overcoming apprehension is the first step to success. Janssen teaches the New Venture Creation course where Ivey students have to launch real businesses, with real revenues by the end of the semester. In just 90 days, the students discover a problem, develop a solution, get feedback from customers, bring a product or service to market, and generate actual sales. By the end of the class, Janssen said the students are surprised that starting a business wasn’t as hard, or as painful, as they’d imagined.
“Young, aspiring entrepreneurs talk themselves out of starting businesses because they don’t have the time, money, energy, experience – many reasons. But the reality is, starting has never been easier,” he said. “Stop making excuses and just get started. Done is better than perfect.”
