Ten vital ideas to consider as we start businesses

Dr Pronto answers -  Ten fresh principles for startups to consider

Thank you, Luke.  It's great to hear about your initiative, and the proactive approach your group is taking in Melbourne. Starting businesses as members of Gen Z in today's rapidly changing world does require fresh thinking, and action. 

What you are already doing - co-operating, collaborating, and sharing ideas, resources, assets and networks - is the first major principle for our evolving world.  A big ‘well done’ for that!

Even though I am an Oldie but Goldie, I am constantly monitoring new trends, and working with members of all generations, including Generation Z.  So, thank you for believing I can offer ten fresh and relevant startup ideas - when you are already embracing the biggest principle already.

So here goes… ten other fresh ideas or principles that might consider as you form and start up your businesses:

One:  Start with what you are passionate about

For your start-ups to grow into viable businesses, they will demand both passion and a range of masteries from you as co-founders. So, I encourage each of you, first, to deep dive into your natural talents and the areas you are passionate about.  Then talk with like-minded individuals and organisations with the potential to become your clients. to find the foundation idea of your start-up that also matches their needs, wants and interests.

“In the early years your venture is you written large - warts and all. So, minimise your wart impact.” - a #Nevilleism.

Read the bonus -  Seven examples of start-ups based on personal passion and aptitude.

Two:  Emphasize Sustainability and eco-consciousness

From the start, create and build your business with an eco-conscious framework. Consider how you can make a big difference to global warming… and minimize your environmental footprint, whether through sustainable sourcing, reducing waste, or supporting green technologies.

Your target market may not be your fellow Z Generation, but various studies indicate large numbers of your Generation are deeply fearful about global warming.  Make your business one that offers both you and them, hope!

In 2022, The Lancet Magazine published a significant study focusing on the impact of climate change on the mental health of Generation Z. This study involved 10,000 young people aged 16 to 25 from 10 countries: Australia, the United Kingdom, Finland, Portugal, Brazil, France, the United States, India, Nigeria, and the Philippines. 1,000 participants from each country.

The findings revealed widespread despair among these young people, with many expressing a grim view of the future… due to ongoing environmental degradation, and government and corporate inaction regarding climate change.

• 75% of the participants described the future as "frightening" due to climate change.
• 58% reported their governments were betraying them and future generations.
• 40% expressed their reluctance to bring children into the world.
• Over 50% agreed with the statement, "humanity is doomed."

The emotional impact of this crisis is significant, with many reporting feelings of anger, fear, and shame. As you know, suicide rates among young people are climbing.

This extensive research paints a vivid picture of the so-called "eco-anxiety" prevalent among young people today.  And it underscores the need for more robust and immediate action on climate change to address not only the environmental but also the psychological impacts​.  Your businesses can lead the way.  ( Yale E360)​​.

“They ask, what business you are in; you reply, creating hope about climate change.” - a #Nevilleism.

Three:  Create a BIG Purpose for you small business   

A valuable purpose, translated into big, fat, hairy, audacious goals, and focused action, means your new business can remain relatively small, yet have a BIG impact. 

As part of creating your business purpose, make sure you attend to the nature of your ‘inner light’ - your personal life purpose, your personal values, your inner drives, your personal gyroscope - so you tap into the energy source that will drive you and your business forward.

"When you're surrounded by people who share a passionate commitment around a common purpose, anything is possible." - Howard Schultz, former CEO of Starbucks

Here are five realistic examples that illustrate how by creating a BIG Purpose for your small business, you can ensure it has a significant impact despite its size:

First:  Eco-Friendly Packaging Solutions

• BIG Purpose: I will revolutionize the packaging industry by eliminating single-use plastics and promoting sustainable alternatives.
• Audacious Goal: To reduce global plastic waste by 10% in five years through partnerships with major retailers and manufacturers.
• My Inner Light: I am driven by a personal commitment to environmental conservation and a passion for innovative, sustainable outcomes.

Second:  Mental Health Advocacy Platform

• BIG Purpose: I will break the stigma surrounding mental health and provide accessible resources for mental well-being.
• Audacious Goal: To reach 1 million users globally within five years, by offering low cost mental health tools and support.
• My Inner Light: I am inspired by my personal experiences with mental health challenges, and a deep desire to help others find support and healing.

Third: Small Farmer Fair-Trade

• BIG Purpose: I will support small [organic?] farmers by providing them with fair trade opportunities and promoting ethical consumption.
• Audacious Goal: To establish a direct supply chain that benefits 1,000 small-scale farmers and their communities.
• My Inner Light: I am fuelled by my love for fresh, unprocessed natural food, and by my commitment to social justice and economic equity for underprivileged communities.

Fourth:  Tech Education for Underprivileged Youth

• BIG Purpose: I will bridge the digital divide by providing tech education and resources to underprivileged youth and include training in AI.
• Audacious Goal: To empower 100,000 young people with coding and digital skills by partnering with schools and community centres.
• Inner Light: I am motivated by a passion for education and technology, and a personal mission to create opportunities for the next generation.

Fifth:  Zero-Waste Home Goods Store

• BIG Purpose: I promote a zero-waste lifestyle by offering sustainable, reusable home goods and educational resources.
• Audacious Goal: To assist 1 million households adopt zero-waste practices within five years through innovative products and community engagement.
• Inner Light: I am driven by a personal commitment to sustainability and a desire to reduce the environmental footprint of everyday living.

Four:   Leverage New Technology Smartly

Your next fresh idea:  Research and use technology not just for the sake of it…but significantly to enhance your business efficiency and customer experience…and then to offer these technologies to the market.

• From automation tools to AI and big data analytics, to mindware, peopleware and orgware tools, select tech that aligns with your BIG business purpose. These technologies can be the ‘products’ of your business, or part of your support systems.  As a member of STEEP Renaissance you gain access to many of these tools.

Five:  Build your business around, and into, a tribe or community

As an integral part of the old business system, now increasingly defunct, the great management guru, Peter Drucker, claimed, “The sole purpose of a business is to create a customer.” 

Today, I quote a #Nevilleism:  “The sole purpose of a business is to create an interacting, collaborating, co-operating, sharing community.”  Please consider this carefully with your peers in your group as it has multiple consequences.

• Then go one step further.  Yes, partnerships in business and marriage are difficult to maintain.  Typically, at least 50% fail and lead to “divorce” eventually.  So, accept your partnership may or may or may not last. Then move head, anyway. Set up ways to separate from the beginning, as you give up being a solo entrepreneur.  And create your start-up with others, including two external mentors.

Six:  Focus on creating a business with soul

Think about the huge difference between a ‘soul-less’ business and a business with soul.    Discover how you create a ‘business with soul,’ based on great values and the higher human needs.  Learn how you create a team culture that prioritizes, personal development, mental health, and ‘being an incubator of the human spirit.’  

This gives you a unique selling point for attracting and holding your co-founders, investors and top talent.  It also guarantees higher productivity, enhanced creativity, and ongoing team satisfaction. 

• Ensure you have a Values and Ethics Manifesto for your business, that everyone signs onto, and that informs all your business decisions, including ensuring all new recruits not just sign on, but enthusiastically commit to these principles.
• Make sure your team is diverse and inclusive.  Diverse teams bring diverse ideas, which can lead to innovative solutions and products. And they also become surrogates for understanding diverse markets.
• As you start and grow your business, invest at least one day a week, every week, in growing you into the very best version of you.  This is one of the four major themes of the STEEP Renaissance web site and blogs. They can be one of your guides.
• Ensure the continual learning of you and your team, is not just in your field, but in understanding global economic, social, and technological trends. This mindset will help you and your team adapt and innovate continuously, and collaboratively.  "The only sustainable competitive advantage is an organization's ability to learn faster than the competition." - Peter M Senge.

Read the bonus -  Example of a Values and Ethics Manifesto

Seven:  Maintain a Hybrid Work Model

Embrace flexibility in working conditions for you and your team. Since the Covid - 9 lockdowns, hybrid models that combine remote and in-office work are now the norm.  Basically, because hybrid work allows for a better work-life integration and balance and access to a wider talent pool. However, different information systems, flexible management controls, and attention to different legal obligations need attention.

"The future of work integrates life and labour seamlessly, making hybrid models a necessity for future-creating enterprises." - a #Nevilleism.

Eight:   Accept the first three survival rules of any business

Cash Flow.  Cash Flow.  Cash Flow.   Then know that over 80% of start-ups take three years to reach cumulative break-even.  That is the position where the total of cash coming into the business over that time, equals the total of cash going out. 

This single factor is the main reason why, on average, 20% of start-ups fail in the first year.  And another 60% in the first 3-5 years. 

So, before you start your startup. you need very clear cash flow management strategies. 

  Read the bonus -  Ten Cash Flow Tips for Startup Entrepreneurs

Nine:  Continuously Pivot Your Dynamic Business Model

You creating a business model is old hat.  In fact, Alex Osterwalder has turned his Business Model Canvas - which we recommend you use - into a global industry.  [Incidentally his is a great example, which you might emulate, of turning ‘intellectual property,’ or mindware, into a product and transferrable technology]. 

Add to this your own testing, trialling, failing fast, revising and pivoting your business model, based on the Lean StartUP Methodology, and you have a solid base on which your startup can survive and thrive. And to beat the failure statistics which for most nations are around 20% meltdown in the first year, and another 60% going to the wall in the first 3-5 years.  Leaving around 20% or 1 in 5 still standing.

Ten:  Long-term Vision with Agile Execution

It’s crucial you create and execute a long-term vision for your life and business. We covered this in earlier answers - Visions for Better Futures and Steps to implement a vision for the future.

In addition, being agile in your execution, allows you to pivot as necessary in response to changes in the market, your customer’s needs, or your business environment. 

For example, just as the digital world changed every industry and every business, so global warming, pandemics, the arrival and spread of artificial intelligence, the blockchain-cryptos-tokenisation of assets-DeFi, and the push towards the 4 ^th and 5 ^th Industrial Revolutions, are all bringing major changes to the business ecology.

Go well

Dr Peter Pronto