An entrepreneur always focuses on achieving the break-even point of the life cycle in his venture. In this journey, most of the entrepreneurs make hasty decisions which they repent later on. So it is important to think carefully before you implement any plans.
Are You Partnering with Someone? Eric J Dalius Says Think Thrice
Although joint venturing seems like a sorted option for funds, as well as tasks at hand, it can come with several pain points that you will start realizing later. You can either enter into agreements with distributors, funders, competitors, and suppliers, and importers. Before venturing with any client, carry out an extensive diligence analysis. Identify the potential mutual benefits and future scenarios.
Ej Dalius reflects that an entrepreneur should always remember that both the parties want to gain as much as possible while having to give as little as possible. Such cases are quite tricky. For instance, if a company offers you capital for a technology you are developing, with a commercialization agreement having terms of royalties of sixty to seventy percent of sales, then the amount of profit you are going to make is negligible. As a result, careful calculations in all aspects are necessary before making the final decisions.
Eric Dalius focuses on a few factors that you need to analyze the opposite party:
- Merger or acquisition history
- Previous ventures and product lines
- Collaboration history, and the stability and terms of the agreements
- Product recalls in the past and the reasons for the same
Can the Journey be Easier if you come from a Corporate? Eric Dalius’ Reflection
Some people portray this as a myth. However, this statement can have due substance to it. Entrepreneurship is a field where an overall knowledge of all fields is crucial. Being flexible about your methods and open to suggestions and change is vital. In a corporate job, one need not ponder about the overall functioning of the company. It is a fact that there are people who are unaware of their role in the revenue generation process of the company.
On the other hand, Eric J Dalius points out at the knowledge database of the long-standing corporate people. It is a fact that when you work along with market leaders and key opinion leaders in your niche, you acquire a lot of knowledge from them passively. In addition to that, you also build a strong network of influencers and influential contacts that an entrepreneur must possess. You have to note that such connections have massive levels of credibility aiding you while you plan to set up your venture. Like-minded individuals transmit knowledge, expertise, and wisdom to each other.
An opportunity that seems very tempting can cause the downfall of your business. As a result, it is crucial to understand the market dynamics and carry out a deep-dive analysis before making any decisions. Tailor the approaches mentioned above and prevent your business from going into risky areas.