Luck is usually regarded as something over which businesses have no control. Yet, as McDonald’s CEO Ray Kroc said, “the more you sweat, the luckier you get,” suggesting that luck can be created. The reality is that both are true. As global markets become more volatile and less predictable, luck plays an inevitable part in business success. Launch a start-up at the same time as a rival and it may be luck that determines who succeeds, and who fails.
Making your own luck
A well-considered business plan is designed to dispense with reliance on luck. A good idea, underpinned by detailed market research and solid financial planning, may help a start-up to ride the whims of the market. A good plan charts a course of action in turbulent markets, protects against the unknown, and prepares the company for contingencies.
In addition, a well-conceived plan can ensure that a company is in a position to benefit from favorable market conditions. In other words, what might seem like luck is often the result of planning. Take the famous example of 3M Post-it Notes. The invention of a reusable glue was accidental, but it was business insight that turned the lucky discovery into a commercial success.
With so many variables, luck is likely to play a part in the survival of a start-up. But a good plan reduces how much luck a company needs.
