Is Christopher Columbus at the helm of your business?

Christopher Columbus set out with a vision to find a new world and he was driven by an overwhelming passion to discover an alternative route to the riches of India and Asia for the Spanish King. Columbus challenged the widely accepted belief that the world was flat arguing that it was round and that he could discover a new route by simply sailing west rather than around the African continent. Is your business driven by a similar approach?

Columbus had no idea of what lay ahead of him. All he had was his belief and conviction that what he was doing would lead to new discoveries and wealth for his sponsors (the Spanish court). His plan was simple – follow that vision.

So often, particularly in start up companies, I see that such businesses are being driven by Christopher Columbuses! There is no doubt that a sense of passion supporting the vision of what you are wanting to achieve is critical to the future success of your business however it does not stop there.

In business we need to have clearly articulated and well researched plans – we can’t afford to simply sail off into the future with little expectation of what the result will be. This is the domain of research and development. Herein lies the difference. Organisations that carry out R&D have a real role to play however at the end of the day we need a business that returns a value to the investors by way of sales. For start up companies this is often overlooked and the owners are seeking investors by way of private equity or publicly listing their companies selling the virtues of their product – investors aren’t buying the product – they are buying the business.

In my capacity as a mentor to the Mentoring for Growth program run by the Qld State Government we so often listen to businesses come to us seeking assistance only to discover that they lack any real business plan. Yes they have a great product, some even have a strong sales history and have proven themselves capable of creating wealth. So many though are sailing ahead without any plan of where they are going to, how they will arrive at the journey’s end and with what resources to achieve the result. Yet they are invariably seeking someone to provide additional capital to fund the growth and development of their business.

Without a clear plan of action that reflects responsibility and accountability for measurable results, your business will not achieve its full potential. Such a plan must be supported by documented research and provide the owners, all staff and most importantly, any stakeholders such as investors, with a clear map of what you are doing and how you will produce growth and wealth for that business.