It is the very nature of business people to seek new and exciting business ideas. That relentless search for profit is the lifeblood of the economy. Making money through constant innovation, and from novel business concept creation, is a matter of survival for entrepreneurs and small business people.
At the same time, some very tempting money losing ideas must be avoided to prevent disastrous losses. Business people must avoid chasing shimmering mirages. These are those elusive, yet seductive projects that promise riches, but yield only bottom line wrecking nightmares. These are the ideas that lead otherwise astute business people like demonic pied pipers to their company's demise.
Recognizing mirages from ideas real business potential is not easy. There are usually some warnings that the mirage is lurking, however. The key for owners and managers is to recognize the red flags the mirage will often give forth. All too often these minute tremors are ignored to the organization's peril. Instead of wasting time, personnel, equipment, and financial resources on a money losing phantom, it's essential that business people recognize some of its usual characteristics.
First and foremost the mirage is seductive through its promise of easy money. This too good to be true aspect is easy to sweep under the rug. Money for nothing usual yields nothing of value in the end. The old saying about something being too good to be true has proven correct on far too many occasions. If a proposal appears to offer that proverbial free lunch, be sure to look hard at the numbers and hidden costs attached to the phantom project. There may be some glaring oversights that are being all too conveniently ignored.
A second aspect of the mirage is often very weak financial evidence of its profitability. All too often, very obvious costs may be missing from the business plan. Less obvious costs are certain to be absent as well. Glowing sales reports, based more on wishful thinking than hard evidence, are usually symptoms of a mirage as well. Check, recheck, and then check the numbers again. Have more than one person examine the cost and revenue estimates. All too often, the harsh light of day will remove the mirage from consideration.
A third possibility of a mirage slipping into the operations is it being championed by someone highly ranked in the organization. Whether the owner of an entrepreneurial venture or the CEO of a major corporation, their suggestions are often left unchallenged. In every case, the same due diligence and financial scrutiny must be applied to the project.
Don't let the high powered sponsorship of the idea prevent you from examining the dollars and sense of the plan. Being intimidated by the person in the big chair will not help the company. Everyone is capable of making mistakes and chasing mirages. It is your responsibility to prevent them from happening in your organization. Don't just go along to get along. Sometimes developing some unexpected courage is necessary for your company's very survival.
Your discovery of a potential money loser will serve your career, as well as your company, in good stead. While the bearer of bad tidings may experience some misplaced disdain in the short term, time will prove the wisdom of someone who prevents a disaster. Company saviours may take some time to be rewarded, but the longer term works in support of those who help the company survive and prosper.
Don't let the siren call of a mirage lure your company onto the financial rocks. Always examine every business idea for practicality, timing, and required resources. It is especially important to recognize the mirage that may be your own pet projects. Instead of presenting a money losing idea, replace it with a solidly profitable one. Your attention to due diligence will mark you as a responsible and dependable leader.
Keep away from the mirage. Shine the light on them, and watch their false phantom profits disappear as if by magic. Don't fall for their shimmer. They promise only the dryness of the desert. There is no free lunch at this illusion of an oasis.
