GolfTec Organization: Speaker - Essay Example

Speaker
According to the speaker, entrepreneurship is governed by huge risks and we can observe from history that most startup companies fail. This primarily happens because people jump into entrepreneurship without prior experience and knowledge of the changing market trends. Moreover, the failed entrepreneurs do not have a very clear mission and vision for their companies or their managerial operations are not consistent with the strategic decisions (Feinleib). All these factors play a vital role in the failure of any start-up business. However, this also gives entrepreneurs the insight knowledge of their business and hence failure is also important for the betterment of future decisions.

Entrepreneurial failure discloses the basic methodologies through which an individual can refrain from significant losses. The speaker has identified the basic principles which can actually save people from instant business failures. For example, diligent planning is necessary especially in terms of finances because start-up companies usually go out of cash if the inflows and outflows are not managed thoroughly. Additionally, there was an emphasis upon the significance of peculiar business details which are often ignored by the new entrepreneurs and hence they face immediate failure. For instance, entrepreneurs are required to be extra sensitive towards the changing market trends and overall consumer behavior. With the advent of modern technology customers have altering choices and hence there is a possibility that they might get product substitutes very soon. Another important aspect that requires greater attention from the entrepreneurs is their attitude after entering the market. They must maintain profound behavior while analyzing business opportunities. They need to have a very soft and calm attitude to deal with different situations. This is further connected with the fear of business failure. People who initially fear financial loss actually make more productive decisions that foster their future progress and development.

Leadership and entrepreneurship are interconnected with one another. For instance, strong leadership is one of the major contributors to successful business startups. Moreover, leadership based on hard work, passion, and integrity actually ensures the long-term sustenance of business. This is subsequently correlated with organizational culture and employee involvement.

The failure of startup businesses was a more interesting topic for me because I have personally suffered from such an experience. I entered the market without developing a diligent plan, business forecast, or an outline of consumer demands. My plan was to introduce fragrance soap particularly, for women which can perform as regular soap and an attractive fragrance at the same time. I was supposed to target middle-class working women whose professional expenses could be reduced with the integration of perfumes and soaps. However, my business plan failed within three years of its operations because the product positioning was very wrong. I had to face immense competition from soap manufacturers and perfume producers whereas I got out of cash just after two years of setting up the business. Hence one of the most interesting perspectives which I have identified after experiencing a failed enterprise is the perfect market segmentation and product positioning. My product was significantly expensive for working middle-class women and hence it never reached the real target market.

Research indicates that startup businesses primarily fail due to ambiguous business reasons and lack of market awareness (Startup Business Failure Rate by Industry). Furthermore, the bad products or services with particularly undefined nature and categories are most likely to fail within the initial years of their introduction (Feinleib). For instance, in my case most of the consumers had allegories with the fragrance used in the soap and many others were uncomfortable with its feel. Adjusting the failed business through people and leadership was another important aspect pointed out by the speaker. Getz and Lee in their research article further emphasize the significance of leadership.