{"id":246,"date":"2014-07-31T14:35:31","date_gmt":"2014-07-31T07:35:31","guid":{"rendered":"http:\/\/smartrepreneur.net\/?p=246"},"modified":"2024-06-03T16:08:09","modified_gmt":"2024-06-03T16:08:09","slug":"start-up-la-gi-khac-company-cho-nao","status":"publish","type":"post","link":"https:\/\/taminhtuan.vn\/en\/start-up-la-gi-khac-company-cho-nao\/","title":{"rendered":"Why do people from large companies find it difficult to succeed when starting a business?"},"content":{"rendered":"<p>Around me, there are plenty of stories of executives at major corporations who, despite brilliant previous success, still failed when starting their own businesses. Surprisingly, their failure rate is no lower than that of people who start businesses from the outset without first training in a professional environment that could provide valuable knowledge and skills. With such advantages, shouldn't success be easier for them?<!--more--><\/p>\n<p>To understand the causes behind this \u201cphenomenon.\u201d <em>We need to take a step back and examine 2 concepts that seem like 1 but are actually 2, appearing similar but very different: Start-up and Company.<\/em><\/p>\n<p><strong>Many people are confusing these two concepts.<\/strong><\/p>\n<p>Company is a <span style=\"text-decoration: underline;\">a business organization<\/span> currently <span style=\"text-decoration: underline;\">sell<\/span> <span style=\"text-decoration: underline;\">a product<\/span> or <span style=\"text-decoration: underline;\">services<\/span> somewhere to <span style=\"text-decoration: underline;\">bring in<\/span> <span style=\"text-decoration: underline;\">revenue<\/span> and <span style=\"text-decoration: underline;\">profit.<\/span><\/p>\n<p>Thus, a Company\u2019s business model is very clear. And <b>the goal of a Company is to maximize profit.<\/b><\/p>\n<p>Startups, however, are different.<\/p>\n<p><b>The goal of 1 \u201cStartup\u201d is\u2026 to no longer be a startup.<\/b><\/p>\n<p>That means the startup must reach another state: becoming a company.<\/p>\n<p>So what is a \u2018Start-up\u2019?<\/p>\n<p>A startup is a <span style=\"text-decoration: underline;\">a temporarily designed organization<\/span> (temporarily designed) to <span style=\"text-decoration: underline;\">find<\/span> (search) a <span style=\"text-decoration: underline;\">business model<\/span> (business model) <span style=\"text-decoration: underline;\">repeatable<\/span> (repeatable) and <span style=\"text-decoration: underline;\">scalable<\/span> (scalable).<\/p>\n<p>Thus, the \u2018ultimate goal\u2019 and \u2018highest mission\u2019 during the startup stage are not yet to maximize profit, acquire many customers, or increase brand value (these things must still be done, but they are not the most fundamental goal at this stage)\u2026 The goal at this stage is for the startup to conduct many \u2018experiments\u2019 and continuously \u2018adjust\u2019 its business model to establish one that is viable, solid, profitable, standardizable, scalable, and sustainable.<\/p>\n<p>That is why MBAs, people taking professional CEO training to become hired executives at large companies, and people who acquire business knowledge and skills while working at international corporations \u2014 even though they have succeeded in a much larger environment \u2014 can so easily fail when founding 1 Start-up.<\/p>\n<p><b>Because the thinking, knowledge, and skills they possess all belong to the \u201cCompany\u201d stage.<\/b><\/p>\n<p>The \u201cStartup\u201d stage requires entirely different thinking, knowledge, and skills. They lack these, or are complacent: \u201cThey don't know what they don't know.\u201d At this point<em>\u00a0there is a Gap between what they know and what actually helps them get through the Start-up stage.<\/em><\/p>\n<p>Only those who know how to adapt and forget the old to make room for the new can succeed. For example, I once knew a manager at Unilever who, after leaving to start a business, needed 3 years to truly \u201cunlearn\u201d the thinking he had learned at U before succeeding as an entrepreneur.<\/p>\n<p>To make this clearer, people who work at large companies have the advantage of a clear industry perspective and good skills, but sometimes they suffer from a \u201ccondition\u201d: wanting to standardize everything too early, establishing complete processes and applying all sorts of \u201ctools,\u201d such as BSC, to their businesses.<\/p>\n<p>But they forget that large companies and corporations have had hundreds of years of experience to \u2018know what is right for them,\u2019 and only then standardized everything. A startup is still on a journey to find the \u2018truth\u2019 for its business model. Rushing to standardize will backfire. It is like having a rope (resources), but using it to tie your own hands and feet, making you move slowly and laboriously and miss every opportunity.<\/p>\n<p><i>Sometimes a Start-up's only strength and competitive weapon against the giants is Speed. In this case, old habits, old methods and old ways of thinking led these \u201centrepreneurs\u201d to standardize everything too early, making the whole startup operation too \u201ccumbersome.\u201d They thus abandoned their only advantage, speed, and plunged straight into the abyss already visible ahead.<\/i><\/p>\n<p>And that is only one of the old habits that make someone successful in a large corporation, yet not necessarily more likely to succeed in a startup.<\/p>\n<p><em>T\u1ea1 Minh Tu\u1ea5n \u2013 TMT \u2013 is a successful entrepreneur pioneering several startup fields in Vietnam, 1 of Vietnam's 30 most outstandingly successful and influential people in the prestigious \u201c30 Under 30\u2033 ranking by Forbes, the world's leading business magazine, and the founder of YUP! Start-Up Education &amp; Incubation Centrer (www.yup.edu.vn).<\/em><\/p>\n<p><a href=\"http:\/\/yup.edu.vn\/article\/\">&gt;&gt; Great articles on entrepreneurship<\/a><\/p>\n<p><a href=\"http:\/\/yup.edu.vn\/x-startup\/\">&gt;&gt; Business Startup Course<\/a><\/p>\n<p><a href=\"http:\/\/yup.edu.vn\/ceo-coach-chuong-trinh-tu-van-kinh-doanh\/\">&gt;&gt; Business Consulting Program<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Xung quanh t\u00f4i kh\u00f4ng thi\u1ebfu c\u00e1c c\u00e2u chuy\u1ec7n v\u1ec1 nh\u1eefng ng\u01b0\u1eddi l\u00e0m s\u1ebfp t\u1ea1i nhi\u1ec1u t\u1eadp \u0111o\u00e0n l\u1edbn, tr\u01b0\u1edbc \u0111\u00f3 d\u00f9 \u0111\u00e3 th\u00e0nh c\u00f4ng r\u1ef1c r\u1ee1 nh\u01b0ng khi kh\u1edfi nghi\u1ec7p v\u1eabn th\u1ea5t b\u1ea1i. \u0110i\u1ec1u \u00a0ng\u1ea1c nhi\u00ean l\u00e0 t\u1ef7 l\u1ec7 th\u1ea5t b\u1ea1i c\u1ee7a h\u1ecd kh\u00f4ng h\u1ec1 th\u1ea5p h\u01a1n so v\u1edbi nh\u1eefng ng\u01b0\u1eddi kh\u1edfi nghi\u1ec7p ngay t\u1eeb [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":11140,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105],"tags":[],"class_list":["post-246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-khoi-nghiep-thong-minh-kinh-doanh-thong-minh"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why do people from large companies find it difficult to succeed when starting a business? - T\u1ea1 Minh Tu\u1ea5n<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taminhtuan.vn\/en\/start-up-la-gi-khac-company-cho-nao\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why do people from large companies find it difficult to succeed when starting a business? - T\u1ea1 Minh Tu\u1ea5n\" \/>\n<meta property=\"og:description\" content=\"Around me, there are plenty of stories of executives at major corporations who, despite brilliant previous success, still failed when starting their own businesses. 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