“40 million dollars, the whole global market is only 40 million dollars.” said the self proclaimed “old gray hair” and my long-term mentor across the table after reading my report on the market size of the company we were involved with. With a heavy sigh he simply said “the business DNA just sucks”.
Every business has a DNA… similar to human DNA… and that DNA sets the scope and global potential of the business.
Just as I will
probably never play Major League Baseball as my personal DNA has set my baseball skills capacity at a maximum of “Little League Coach”… some businesses simply don’t have the DNA to match the leadership team or owners short and long term expectations. Like opening a Hot Dog stand on a rural route, in a “city” with a population of 700. Even if that business hit it out of the park and was as successful as it could possibly be… the owner would likely be grinding it out for the rest of their life simply to get by. Yet entrepreneurs do it everyday with high expectations of business success.
I have met and spoken with a number of entrepreneurs who have big dreams and high expectations for their business ideas. I applaud them and firmly believe that success is achievable if you are willing to put in the time and effort. But, decisions some entrepreneurs make in the heat of the moment as they file their state and federal tax ID forms bring me visions of a Vegas wedding to someone you just met.
Before you get involved with or start a business, take a minute to examine the DNA of that business and picture very clearly in your mind what the absolute maximum potential for success that business may have. Then, work backwards to clarify what is going to be required to get there, what is the time frame, the financial requirement, what is the longevity of the business, and the market response necessary for that success.
Most recently I was contacted by a Dentist who was looking for distribution for his new “battery powered toothbrush cleanser”. A simple contraption that was designed to clean the microbes from a toothbrush between brushings. He had left a thriving dental practice, and invested his life savings, to pursue his dream of manufacturing and selling his invention. He had hit the wall and was becoming frantic trying anything and everything to get his product to market. He was a victim of poor business DNA. Not only is the market size for toothbrush cleansers about as large as a hot dog stand, his invention was more expensive than existing products, bulky, and had low margins. His business DNA just sucked.
Some things you can change within a business, with good leadership, talented people, and personal growth the “lid” on the business can move up. But, recognize and examine the DNA of a business before you take that first leap, it may save you from a nasty divorce with your Vegas bride.