If the idea or thought can be clearly monetized or be profitable, then a business venture or enterprise may soon be born.
This is part three of the series, ASK for an Enterprise. So far, we have already covered the steps, “knock, and it will be opened to you”, and “seek, and you will find”. The third step is, “Ask, and it will be given to you.” This is a crucial question to throw and that is to ask, “What will I gain from it and how?”
The problem. Once an idea, thought or the opportunity to exploit has become clear, its profitability has to be defined as well. Will people be willing to pay anything for the idea? How much will they be willing to pay for it? How can the idea, thought or opportunity be enriched so that it can be profitable? Without knowing how one will establish financial gains from an idea or thought, the idea, thought or opportunity will most likely only perish. Financiers would not be willing to finance a proposed venture if its revenue stream is not clear. Hundreds of start up business end up shutting down. The fastest way to be kicked out of business is by running out of money. Business ventures without a clear or established stream of profit will surely run out of cash to finance the operations and continue the business. A few years ago, I managed a business that failed to establish a revenue stream. After 5 years of struggling, we had to shut it down in 2012 no matter how reluctant we were. At the least, the venture, if it is a social enterprise, has to achieve break even, if it is to persist or be sustainable. I have been involved in a number of advocacy groups that failed to define and establish its revenue stream. They were now merely in experiences in the past to tell.
If the idea or thought can be clearly monetized or be profitable, then a business venture or enterprise may soon be born. The venture may be a social enterprise and as such it does not seek for a profit. The venture may only seek for a break even and that is just fine. The people who will be involved will gain from it just the same. It is still worth pursuing. The idea or thought originator may find his significance in such an undertaking. It is worth it.
Analysis and solution. So why do business ideas or ventures fail in establishing its revenue stream? A business would naturally set a target, or expect, income, but from time to time these goals seem elusive; there are variances (there will always be), and a negative variance may be bad enough for a business to close shop. Why is this? Another CEO, we call him RSM, has an answer, “the assumptions made were wrong”, he said. Perhaps, this is the main reason why funding individuals or institutions look for a feasibility study. Assumptions have to be examined. Thus, asking how will one gain from a business venture must include asking what assumptions one employs. What happens when these assumptions are wrong? At the very start of an enterprise development, it is best to ask these questions. Further, a business venture may in fact have multiple, or potential, revenue streams. It can be very highly profitable or rewarding. Thus, the solution to the problem of profitability and sustainability. Again, ask.
An enterprise, says BRD, is a system of value transformation from an idea to something worth monetizing. Again, ASK and an enterprise may soon emerge. First, “knock” at yourself for ideas and thoughts until the door is opened. Secondly, once the door is opened and the many possibilities are visible, “seek” which one to pick up. Finally, “ask” yourself what to gain from it.