Starts with a Vision and Ends with Success

In between, says Jo Doolan, partner at Ernst & Young, should be hard questions, hard yards and the chance to make a difference to New Zealand.

In the male domain, two significant events took place within days of each other in the world of retailing and entrepreneurship. ‘Hair apparent’ Rodney Wayne celebrated his ‘40/30/20’ anniversary (representing time in hairdressing, back in New Zealand, and franchising) and ‘Renaissance’ man Michael Hill won the coveted Entrepreneur of the Year awards, earning the right to represent New Zealand at the world event in Monte Carlo in 2009.

They share, in common, the decision to step out from the comfortable world of employment and try their hand in the world of entrepreneurship, doing the hard work, and being true to their vision of what they thought they could, and would, achieve.

So what can we all learn from them and from others of their ilk – having ventured forth on their own, especially in the current downturn?

First, the tried and true formula for influencing success is invariably the same: concept, capital and management. This notion is applicable regardless of how you approach being the master, or mistress, of your own destiny. For example, do you buy into a franchise, go into partnership, or go it alone?

Each of the alternatives has its own challenges or opportunities.
Strategic alliances can provide opportunities to share costs and achieve critical mass. The counterbalance to this is, if the implementation is poor and the relationship between the parties deteriorates, then value will be destroyed.

The horror stories of partners ending up as bitter enemies with failed business or franchisees not meeting their obligations are well known to all of us. Yet many business partnerships and franchises are successful.

While franchising is a low-cost means of expansion, it's not a ‘no-cost’ means of growth. You will need to develop a strategic plan, legal documentation, marketing materials, operation manuals and training programmes.

But, of all the criteria for success, by far the most important is management. Good management will improve the concept, differentiate the concept and ensure that the concept provides adequate returns. No business, no matter how simple, is foolproof. Bad management can (and will) find a way to ruin even the greatest business.

In the end, the best advice that can be given is to test your vision with independent and robust advice. If it works, then go for it!
To find out more contact Joanna Doolan on 0274 935 627 or email joanna.doolan@nz.ey.com
www.ey.com/nz