How Can Entrepreneurs Make Strategies Effectively?

Adopting a comprehensive analytical approach to planning, no matter how prevalent this business is in the business world, it is not suitable for most new ventures (start-up).

Entrepreneurs must quickly put their ideas into practice, otherwise they may miss the opportunity.

If a new company wants to survive and make profits, it must have the advantage of combining creative ideas with first class implementation capabilities.

Therefore, successful entrepreneurs do not do too much analysis, but adopt a prompt, cheap and timely way to do moderate analysis.

This article was first published in 1994. The data in this paper are mainly from the author's interview with the founders of 100 new ventures and MBA students' research on 100 other new ventures.

Their research results show that many successful entrepreneurs spend little time analyzing and analyzing entrepreneurial opportunities and writing business plans, while many highly respected companies fail to seize the entrepreneurial opportunities.

Of course, the author believes that all new ventures should conduct moderate analysis and planning.

How can we strike a balance between over planning and no plan at all?

What are the key elements of the analysis method used by successful entrepreneurs?

The author summed up three guiding principles: eliminating people with no prospect and seeking opportunities for entrepreneurship, they usually come up with many ideas.

Quickly eliminating those with little potential will enable them to focus their attention on a few creative ideas that are really promising.

This step requires judgment and reflection, rather than collecting large amounts of data.

Only by combining creative ideas with first class implementation capabilities can we ensure that new ventures can survive and achieve profits.

If your idea of entrepreneurship is obviously lacking in creativity, or you obviously do not have any special implementation capability, you should give up without hesitation.

When assessing whether entrepreneurial opportunities are feasible, entrepreneurs should consider three interaction factors: the goals of entrepreneurship, the opportunities brought by changes in the external environment, and whether the foundation of competition is proprietary assets or fast action.

It is essential to evaluate and compare the attractiveness of entrepreneurial opportunities (i.e. risk and reward).

Besides, entrepreneurs should also assess their risk preferences and other personal preferences in a realistic way.

In order to save time and money, successful entrepreneurs will minimize resources invested in research and analysis of creativity, so they only need to carry out necessary planning and analysis, and make bold judgments when necessary.

When deciding how to analyze the key points, entrepreneurs must realize that even further in-depth research and analysis can not exclude some key uncertainties.

They should also avoid doing research that has no guiding significance for action.

There are no standard lists or universally applicable methods, but rather on the characteristics of new ventures.

Combining action with analysis, entrepreneurs do not have to wait until the answers to all the questions are clear before they begin to act, and they are always ready to adjust their direction in action.

In fact, it is often difficult for them to separate actions from analysis.

There are many benefits to take action before conducting a comprehensive analysis of entrepreneurial opportunities, such as building self-confidence and attracting followers.

This will also help entrepreneurs develop more correct and more fundamental strategies.

Successful entrepreneurs will analyze in stages. Once any problems or risks arise, they will immediately start looking for solutions.

They must also be able to recognize possible mistakes and adjust strategies according to the development of events.

In short, entrepreneurs should think and discover their creativity appropriately, and gradually form their own strategies in the perfect combination of conjecture, analysis and action.