In both boxing and business, success hinges on the delicate balance between technique and strategy. Technique encompasses every move, every punch, and the short-term decisions made, while strategy involves the overarching plan for the entire endeavor—a long-term vision guiding how to apply technique to achieve the ultimate goal. Just as in boxing, where a flawless technique may falter without a sound strategy, in the business world, it’s futile if our short-term decisions are perfect but our long-term plan fails.
The parallels between the ring and the boardroom are evident, because like a wrestler, SMEs and startups face battles. Many entrepreneurs possess commendable technique, landing effective blows to stay in the fight. However, winning the initial rounds is insufficient; a comprehensive strategy is essential for sustained success.
Startups must have a well-thought-out strategy, a long-term vision that informs and guides their technique. Entrepreneurs need the ability to tackle day-to-day challenges, analyze weaknesses, anticipate potential threats, and be prepared, all without resorting to improvisation.
Challenges as opponents
Today’s entrepreneurs encounter numerous challenges, with opponents employing various tactics to knock them down, including:
- Access to Funding
- Reduced Cash Flow
- Suppressed Aggregate Demand
- Intense Competition
- Lack of Budgeting
- Regulatory Compliance
- Market Saturation
- Marketing & Branding
- Uncertain Economic Conditions
- Lack of Business Knowledge
To navigate these challenges effectively, entrepreneurs must study their business scenarios, anticipate the impact of potential blows, and devise tailored alternative plans to counter problems head-on.
The behavior of economic variables within a business is crucial, determining whether a strategy aligns with the economic fluctuation band or if it results in the company exiting the economy. Studying data trends, understanding future needs, ensuring coherence in decision-making, and planning for controlled growth become essential elements.
Like a skilled boxer cannot defeat Muhammad Ali through improvisation, entrepreneurs cannot defeat their challenges through improvisation. 96% of startups do not test their strategies. They focus only on short-term improvements, but do not have a solid strategy that makes the technique valuable. Success lies not in landing a good punch but in executing the perfect combination that leaves the opponent unable to rise.
EBS as a strategic partner
EBS understands these factors and becomes your strategic partner, helping you with your day-to-day financial and strategic decisions. Our External CFO service allows the entrepreneur to focus on what really matters, their ideas, revenue creation and work. While we guide them, simulate scenarios and take care of the day-to-day administrative tasks.
EBS doesn’t dictate strategies, acknowledging that entrepreneurs know their businesses best. Instead, it presents a visual representation of the strategy and its numerical components, ensuring coherence and preventing potential pitfalls.
EBS financial models facilitate the simulation of different strategies, analyzing their strengths, weaknesses, and impact. This proactive approach enables entrepreneurs to make informed decisions, guiding their technique with a strong strategy. Even if short-term tactics falter, a clear path toward the final goal remains evident.
Avoid spontaneous actions; instead, equip yourself to engage in the most formidable battle of your existence. Formulate an optimal strategy and employ the techniques of champions. Adapt, grow, and ascend to the status of a master in pursuit of your goals.