Should a non-revenue enterprise/business shut down or improve?
This is a question that many people from different fields ask me. That’s why I’m giving you my explanation through this video. I am also leaving you a short written summary.
(Information for Creators and artists by Tomorr Kokona: BACA Chairperson & Creative Leadership Business Consultant)
Business: Just like Human Life
Every business goes through three main stages that can be compared to the cycle of human life:
- It starts by doing all that you can.
- During the process, you make mistakes, learn, correct and improve.
- Business grows along with demands and responsibilities.
- Feels the need for help: more workers, investments, organization, services and expansion.
- Business becomes a sustainable enterprise.
- In addition to expanding and recruiting workers, leaders and organized systems are required to support long-term development.
CRITICAL MOMENT: TEENAGE YEARS
This is the most challenging and dangerous stage. You realize you need to grow up, but you often don’t know where to start. At this point, you have three choices:
- Decide to close it in pain for you, workers and investors, but free yourself from the burden.
- You struggle and suffer without a clear strategy, until at the end you fail either the business or you as an entrepreneur goes through a gruesome ordeal until the end is the same as in the previous example: Closure!
- Rethinking the whole enterprise from the beginning.
- Requires the help of specialists and passes to the Maturity phase.
This is the hardest path for most founders, as most of them start (thinking) as technicians and not as entrepreneurs. To move into Maturity one must think and act like a leader, a true entrepreneur, which is often challenging to understand and implement.
The Maturity Stage requires a big shift in mindset: from thinking like a technician to acting like a skilled and visionary entrepreneur. This transition isn’t easy, but it’s the key to long-term success. Undoubtedly, in addition to all-around assistance, you need to invest in changing the mindset or collaboration with leadership speciality.
A Message For Charitable Associations
Even for charitable associations, the principles remain the same as for businesses. Although founders and volunteers do not seek financial remuneration, they should treat charitable enterprise with the same approach as a business. Organization, system, and strategy are equally important to their success and impact.
Watch the video below for more details.
