Business Venture Competition: No substitute for good old-fashioned sweat

The world of business is changing faster than ever but the achievements of the seven finalists show that traditional principles hold true, writes ANDREW GRANT*.

We still don't know who is going to win first prize in The Great New Zealand Business Venture, but so far this competition shows one thing for certain: New Zealand has the potential to succeed in the emerging knowledge economy. We just need to get it right.

Our seven finalists have all demonstrated a start-up attitude that is consistent with long-term success: they are confident; they hustle; they look to the world and seek the best way; they ally with leaders, and aspire to be the best.

If we could bottle these characteristics, New Zealand's economy would be well-positioned to succeed.

In the meantime, here are the rules to help you become New Zealand's entrepreneur of the future.

1. Stay optimistic. As the great ice hockey player Wayne Gretzky says: "You miss 100 per cent of the shots that you never take." Confidence is not just the consequence of success, it's one of the prerequisites.

Of course, everyone who entered the Great New Zealand Business Venture wanted to win. But our finalists entered with the conviction that they could win and probably would. This optimism gave them the confidence to commit real thought, time and effort to the opportunity.

Such confidence is one of the cardinal rules of business success. A Stanford Business School study of graduates living in Silicon Valley showed that they were confident of the success of their ventures, and their confidence was a self-fulfilling prophecy.



2. Hustle. The old adage of 1 per cent inspiration, 99 per cent perspiration really applies to building a new business.

Every new venture confronts apparently insurmountable problems, which is why you have to learn to hustle.

Take a lesson from the Looksmart experience. Looksmart is a unique search engine for exploring the net and probably one of the most successful e-businesses to emerge in Australasia. Yet Evan Thornley, now a billionaire, was rejected by 50 venture capitalists. "It was venture capitalist 51 who saw the business plan and said, 'We can make it work'."

3. Think global. The All Blacks were born with a global perspective - from day one they knew what it took to win on foreign soil. Business is no different. If you don't start with a global outlook for your business, then you're living on borrowed time.

Our finalists set global standards and seek global opportunities for their businesses. They cover a wide range of interests, from internet services to extreme sport adventures, but they all show how their businesses can be relevant to the rest of the world.

4. Be restless. Elbert Hubbard said: "The world is moving so fast these days that a person who says it can't be done is generally interrupted by someone doing it."

The message is clear. If you don't thrive on the challenge of finding a better way to do everything all the time, then you will get left behind.

5. Ally with leaders. A small slice of a great big pie beats a big slice of a small, half-cooked one. These days in business, you need to improve all the time and often the best way to improve is to form partnerships and alliances. This is particularly true when you're building businesses in new areas, such as biotechnology and e-commerce, where the market remains uncertain and you need to bring together a broad range of different skills.

All too often, New Zealand entrepreneurs resist partnership opportunities. They think forming a partnership means giving up value; they look on it as an admission of weakness. Entrepreneurs in Europe and the United States regard the ability to attract a partner as the vindication of their business concept. It's a sign of strength.

6. Aspire to be the very best. As Dr Tony O'Reilly said during his recent trip to New Zealand: "From a young age I wanted to be the best little red fella on the field."

Learning to enjoy the thrill of competition; striving to outsmart the competition; performing at peak when the pressure is on - these are the forces that drive an entrepreneur.

The finalists in our Great New Zealand Business Venture have already come a long way, but they won't be satisfied with coming second tonight. They won't be happy unless they win.

These seven finalists are the new movers and doers in New Zealand. They have all demonstrated a start-up attitude that will serve them well as they build their businesses. We congratulate them on their success.

* Andrew Grant is principal of consultants McKinsey & Company, New Zealand.