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One industry executive suggested to me recently that a note of bravado had entered sector reporting of late. I understood what he meant. With many companies firmly in expansion mode, confidence has returned with a vengeance — and there is a danger of this tipping over into unqualified bullishness. An antidote has been a series of presentations at the Propel Multi Club Conference series, where a host of entrepreneurs have returned to a similar theme: starting and growing a business is subject to endless setbacks.
Resilience in the face of adversity is the key quality required to side-step the multiple elephant traps that beset any growing business. They are testament to the challenge of making decent early-years profits and generally gaining traction, with the problem of insufficient cashflow an ever-present threat.
In the formative years of a business, every opening represents a mortal threat. No matter how carefully a company budgets for a new opening, there comes a stage where money has to be thrown at a site to get it finished. The scenario is likely to repeat itself over and over through the single-digit openings. He meant that entrepreneurs need the courage and stamina to innovate on a constant basis in the sure knowledge that many ideas will not work. He compared the life of an entrepreneur to the fairground game Whack-A-Mole, where moles pop their heads up, and have to be firmly hit with a mallet.
