Tag: Administration

  • The Creative Process

    The Creative Process

    Creativity is a phenomenon whereby something new and somehow valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a literary work, or a painting).

    Scholarly interest in creativity involves many definitions and concepts pertaining to a number of disciplines: engineering, psychology, cognitive science, education, philosophy (particularly philosophy of science), technology, theology, sociology, linguistics, business studies, songwriting, and economics, covering the relations between creativity and general intelligence, mental and neurological processes, personality type and creative ability, creativity and mental health; the potential for fostering creativity through education and training, especially as augmented by technology; the maximization of creativity for national economic benefit, and the application of creative resources to improve the effectiveness of teaching and learning.

    The Creative process can be broken into stages:

    Preparation

    This is the first phase, which most people call “work.” A writer, for example, prepares by writing, by reading, or by revising earlier work. A musician plays scales, chords, or songs; a painter messes with paints or visits an art gallery; an entrepreneur researches problems to solve; a programmer plays with code. In each example, the creative is going through relatively mundane processes.

    The reason I say most people call this phase “work” is that these processes may or may not be inherently enjoyable. They’re also fairly mundane and tedious, but the creative has learned that this process is necessary to plant the seeds that lead to…Preparation is the background, experience, and knowledge that an entrepreneur brings to the opportunity recognition process. Just as an athlete must practice to excel, an entrepreneur needs the experience to spot opportunities. Over time, the results of research suggest that as much as 50 to 90 percent of start-up ideas emerge from a person’s prior work experience.

    Incubation

    Incubation is the stage during which a person considers an idea or thinks about a problem; it is the “mulling things over” phase. Sometimes incubation is a conscious activity, and sometimes it is unconscious and occurs while a person is engaged in another activity. One writer characterized this phenomenon by saying that “ideas churn around below the threshold of consciousness.”

    This would be the mystical process if there were one, because you often don’t know that you’re incubating an idea, or if you do know you’re working on one, you don’t know when it’s going to come out. It’s during this phase that your conscious and subconscious minds are working on the idea, making new connections, separating out unnecessary ideas, and grabbing for other ideas.

    This is the phase that most people mess up the most with distractions and the hustle and bustle of daily lives. Modern life, with its many beeps, buzzes, and distractions, has the strong tendency to grab the attention of both our subconscious and our unconscious mind, and as result, the creative process stops and is instead replaced by more immediate concerns.

    Insight

    Insight is the flash of recognition when the solution to a problem is seen or an idea is born. It is sometimes called the “eureka” experience. In a business context, this is the moment an entrepreneur recognizes an opportunity. Sometimes this experience pushes the process forward, and sometimes it prompts an individual to return to the preparation stage. For example, an entrepreneur may recognize the potential for an opportunity but may feel that more knowledge and thought is required before pursuing it.

    Evaluation

    Evaluation is the stage of the creative process during which an idea is subjected to scrutiny and analyzed for its viability. Many entrepreneurs mistakenly skip this step and try to implement an idea before they’ve made sure it is viable. Evaluation is a particularly challenging stage of the creative process because it requires an entrepreneur to take a candid look at the viability of an idea.

    Elaboration

    Elaboration is the stage during which the creative idea is put into a final form: The details are worked out and the idea is transformed into something of value, such as a new product, service, or business concept. In the case of a new business, this is the point at which a business plan is written.

    Illumination

    This is the “Eureka” moment that many of us spend our days questing after. When it hits, the creative urge is so incredibly strong that we lose track of what else is happening. The driving impulse is to get whatever is going on in our heads down into whatever medium it’s intended for.

    The most frustrating thing for me is that the “illumination” moments happen at the most inopportune times. They invariably happen when I’m in the shower when I’m driving by myself, when I’m working out, or when I’m sitting in mind-numbing meetings that I can’t get out of. Of course, the bad part is as I said above: the impulse is to get the idea out as soon as possible, so it’s not at all uncommon for me to stop showering, driving, or working out and run to the nearest notepad – and, in meetings, I start purging immediately anyway. I’ve yet to gain enough clout to excuse myself from the meetings, but I’m working on it.

    I was speaking to a friend a few weeks ago, and I told her I was frustrated because I was pregnant with ideas and didn’t have time to get them out. Keeping with the analogy, when a Eureka! moment hits, it’s much like labor – you’re done with incubating, and it’s time for…

    Implementation

    This phase is the one in which the idea you’ve been preparing and incubating sees the light of day. It’s when that written piece comes out, when that song flows when that canvas reveals its painting, and so on. It’s also when a good creative starts to evaluate the idea and determine whether it’s good or not – but only after they have enough to see where it’s going.

    Most of the creative I know or work with get really frustrated with others during this phase. Other people only see the creation at the end, and they don’t recognize or care much about the process that generated that idea. This is especially true with some supervisors and bosses who expect the end product on a certain schedule, even though the creative process does not work that way. Creative know that for every good idea, there are at least a few that don’t work out, but they can’t know ahead of time what’s going to work out and what won’t.

    The creative process begins with work and ends with work. The takeaway point here is that creativity is not just percolating and Eureka: it’s percolating and Eureka sandwiched between work phases.

  • Successful Characteristics of Entrepreneur

    Successful Characteristics of Entrepreneur

    Have you ever thought about striking out on your own? After all, being your own boss can be an exciting prospect. However, owning a business isn’t for everyone. To be a successful entrepreneur, you must have or develop certain personality traits. Here are nine characteristics you should ideally possess to start and run your own business:

    I. Motivation: Entrepreneurs are enthusiastic, optimistic and future-oriented. They believe they’ll be successful and are willing to risk their resources in pursuit of profit. They have high energy levels and are sometimes impatient. They are always thinking about their business and how to increase their market share. Are you self-motivated enough to do this, and can you stay motivated for extended periods of time? Can you bounce back in the face of challenges?

    Meaning of Motivation is a theoretical construct used to explain behavior. It gives the reason for people’s actions, desires, and needs. Motivation can also be defined as one’s direction to behavior, or what causes a person to want to repeat a behavior and vice versa. A motive is what prompts the person to act in a certain way, or at least develop an inclination for specific behavior. According to Maehr and Meyer, “Motivation is a word that is part of the popular culture as few other psychological concepts are.”

    II. Creativity and Persuasiveness: Successful entrepreneurs have the creative capacity to recognize and pursue opportunities. They possess strong selling skills and are both persuasive and persistent. Are you willing to promote your business tirelessly and look for new ways to get the word out about your product or service? Meaning of Creativity is a phenomenon whereby something new and somehow valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a literary work, or a painting).

    III. Versatility: Company workers can usually rely on a staff or colleagues to provide service or support. As an entrepreneur, you’ll typically start out as a “Solo-entrepreneur,” meaning you will be on your own for a while. You may not have the luxury of hiring a support staff initially. Therefore, you will end up wearing several different hats, including secretary, bookkeeper and so on. You need to be mentally prepared to take on all these tasks at the beginning. Can you do that? Meaning of Versatility; ability to adapt or be adapted to many different functions or activities.

    IV. Superb Business Skills: Entrepreneurs are naturally capable of setting up the internal systems, procedures and processes necessary to operate a business. They are focused on cash flow, sales and revenue at all times. Successful entrepreneurs rely on their business skills, know-how and contacts. Evaluate your current talents and professional network. Will your skills, contacts and experience readily transfer to the business idea you want to pursue?

    V. Risk Tolerance: Launching any entrepreneurial venture is risky. Are you willing to assume that risk? You can reduce your risk by thoroughly researching your business concept, industry and market. You can also test your concept on a small scale. Can you get a letter of intent from prospective customers to purchase? If so, do you think customers would actually go through with their transaction?

    VI. Drive: As an entrepreneur, you are in the driver’s seat, so you must be proactive in your approaches to everything. Are you a doer — someone willing to take the reins — or would you rather someone else do things for you? Meaning of Drive; operate and control the direction and speed of a motor vehicle. Propel or carry along by force in a specified direction.

    VII. Vision: One of your responsibilities as founder and head of your company is deciding where your business should go. That requires vision. Without it, your boat will be lost at sea. Are you the type of person who looks ahead and can see the big picture? Meaning of Vision; the faculty or state of being able to see. The ability to think about or plan the future with imagination or wisdom. An experience of seeing someone or something in a dream or trance, or as a supernatural apparition.

    VIII. Flexibility and Open-Mindedness: While entrepreneurs need a steadfast vision and direction, they will face a lot of unknowns. You will need to be ready to tweak any initial plans and strategies. New and better ways of doing things may come along as well. Can you be open-minded and flexible in the face of change? Definition of Flexibility; The quality of bending easily without breaking.

    IX. Decisiveness: As an entrepreneur, you won’t have room for procrastination or indecision. Not only will these traits stall progress, but they can also cause you to miss crucial opportunities that could move you toward success. Can you make decisions quickly and seize the moment? Definition of Decisiveness; The ability to make decisions quickly and effectively. the conclusive nature of an issue that has been settled or a result that has been produced.

  • Personal Characteristics of the Entrepreneur

    Personal Characteristics of the Entrepreneur

    An entrepreneur is typically in control of a commercial undertaking, directing the factors of production – the human, financial and material resources that are required to exploit a business opportunity. They act as the manager and oversee the launch and growth of an enterprise. Entrepreneurship is the process by which an individual (or team) identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation. The exploitation of entrepreneurial opportunities may include actions such as developing a business plan, hiring the human resources, acquiring financial and material resources, providing leadership, and being responsible for the venture’s success or failure.

    How did Michael Dell come up with the idea of a “build it yourself” computer company? How did Dave Roberts, the founder of Pop Cap Games, figure out that there is a large and growing market for “casual” electronic games?

    Researchers have identified several characteristics that tend to make some people better at recognizing opportunities than others. Before we talk about them, there is an important yet subtle difference between two key terms pertaining to this topic. We’ve already defined an opportunity as a favorable set of circumstances that create the need for a new product, service, or business. But, the term opportunity recognition refers to the process of perceiving the possibility of a profitable new business or a new product or service. That is, an opportunity cannot be pursued until it’s recognized. Now let’s look at some Personal or specific characteristics shared by those who excel at recognizing an opportunity.

    Prior Experience

    Several studies show that prior experience in an industry helps entrepreneurs recognize business opportunities. For example, evidence over time about the founders of firms appearing on the Inc. 500 list shows that well over 40 percent of those studied got the idea for their new businesses while working as employees for companies in the same industries. This finding is consistent with the findings of research studies the National Federation of Independent Businesses’ group has completed over time. There are several explanations for these findings. By working in an industry, an individual may spot a market niche that is under-served. It is also possible that while working in a particular area, an individual builds a network of social contacts in that industry that may provide insights that lead to opportunities.

    Once an entrepreneur starts a firm, new venture opportunities become apparent. This is called the corridor principle, which states that once an entrepreneur starts a firm, he or she begins a journey down a path where “corridors” leading to new venture opportunities become apparent. The insight provided by this principle is simply that once someone starts a firm and becomes immersed in an industry, it’s much easier for that person to see new opportunities in the industry than it is for someone looking in from the outside.

    Cognitive Factors

    Opportunity recognition may be an innate skill or a cognitive process. There are some who think that entrepreneurs have a “sixth sense” that allows them to see opportunities that others miss. This sixth sense is called entrepreneurial alertness, which is formally defined as the ability to notice things without engaging in the deliberate search. Most entrepreneurs see themselves in this light, believing they are more “alert” than others. Alertness is largely a learned skill, and people who have more knowledge of an area tend to be more alert to opportunities in that area than others? A computer engineer, for example, would be more alert to needs and opportunities within the computer industry than a lawyer would be.

    The research findings on entrepreneurial alertness are mixed. Some researchers conclude that alertness goes beyond noticing things and involves a more purposeful effort. For example, one scholar believes that the crucial difference between opportunity finders (i.e., Entrepreneurs) and non-finders is their relative assessments of the marketplace. In other words, entrepreneurs may be better than others at sizing up the marketplace and inferring the likely implications.

    Social Networks

    The extent and depth of an individual’s social network affects opportunity recognition. People who build a substantial network of social and professional contacts will be exposed to more opportunities and ideas than people with sparse networks. This exposure can lead to new business

    starts. Research results over time consistently suggest that somewhere between 40 percent and 50 percent of those who start businesses got their ideas through social contacts. In a related study, the differences between solo entrepreneurs (those who identified their business ideas on their own) and network entrepreneurs (those who identified their ideas through social contacts) were examined. The researchers found that network entrepreneurs identified significantly more opportunities than solo entrepreneurs but were less likely to describe themselves as being particularly alert or creative.

    An important concept that sheds light on the importance of social networks to opportunity recognition is the differential impact of strong-tie versus weak-tie relationships. Relationships with other people are called “ties.” We all have ties. Strong-tie relationships are characterized by frequent interaction and ties between coworkers, friends, and spouses. Weak-tie relationships are characterized by infrequent interaction and ties between casual acquaintances. According to research in this area, it is more likely that an entrepreneur will get a new business idea through a weak-tie than a strong-tie relationship because strong-tie relationships, which typically form between like-minded individuals, tend to reinforce insights and ideas the individuals already have. Weak-tie relationships, on the other hand, which form between casual acquaintances, are not as apt to be between like-minded individuals, so one person may say something to another that sparks a completely new idea. An example might be an electrician explaining to a restaurant owner how he solved a business problem. After hearing the solution, the restaurant owner might say, “I would never have heard that solution from someone in my company or industry. That insight is completely new to me and just might help me solve my problem.”

    Creativity

    Creativity is a phenomenon whereby something new and somehow valuable is formed. The created item may be intangible (such as an idea, a scientific theory, a musical composition, or a joke) or a physical object (such as an invention, a literary work, or a painting).

    Scholarly interest in creativity involves many definitions and concepts pertaining to a number of disciplines: engineering, psychology, cognitive science, education, philosophy (particularly philosophy of science), technology, theology, sociology, linguistics, business studies, songwriting, and economics, covering the relations between creativity and general intelligence, mental and neurological processes, personality type and creative ability, creativity and mental health; the potential for fostering creativity through education and training, especially as augmented by technology; the maximization of creativity for national economic benefit, and the application of creative resources to improve the effectiveness of teaching and learning.

    Creativity is the process of generating a novel or useful idea. Opportunity recognition may be, at least in part, a creative process. On an anecdotal basis, it is easy to see the creativity involved in forming many products, services, and businesses. Increasingly, teams of entrepreneurs working within a company are sources of creativity for their firm.

  • Do you want to be a BOSS?

    Do you want to be a BOSS?

    What is a BOSS? A person who is in charge of a worker or organization. A person in control of a group or situation. (In computer gaming) A particularly tough enemy, usually appearing at the end of a section or level.

    Definition of BOSS

    An individual that is usually the immediate supervisor of some number of employees and has certain capacities and responsibilities to make decisions. The term itself is not a formal title and is sometimes used to refer to any higher level employee in a company, including a supervisor, manager, director, or the CEO.

    BOSS as Supervisor

    Supervisor, when the meaning sought is similar to the foreman, foreperson, boss, overseer, cell coach, facilitator, monitor, or area coordinator, is the job title of a low-level management position that is primarily based on authority over a worker or charge of a workplace. A Supervisor can also be one of the most senior in the staff at the place of work, such as a Professor who oversees a Ph.D. dissertation. Supervision, on the other hand, can be performed by people without this formal title, for example by parents. The term Supervisor itself can be used to refer to any personnel who have this task as part of their job description.

    A BOSS is a Business Owner with Success Systems. In business, entrepreneurs create systems that cause continuous movement in their business. Before you even get started with your entrepreneurial endeavors, I want to give you some preliminary systems that will prepare you for the world of business. This is not a “how to start a business” guide, but rather a compass to point you in the right direction. If you have ever thought about starting a business or if you are on the fence about it, this post is here to give the encouragement you need to take that leap of faith. Kevin D. provides the keys to move you toward starting your own business:

    Be Creative: Creativity has no boundaries. Creativity has no limits. Creativity has endless possibilities. Do not allow fear to hinder you from unleashing that which is already inside of you. In order for you to do that, you have to think outside of the box. Tap into your imagination and bring forth that next big idea that will change the world. You have to give yourself permission to do so. Why? Your creativity is the key to unlocking your future. “You can’t use up creativity. The more you use the more you have” By Maya Angelou.

    Be a Dreamer: Dreams aren’t just images you see when you sleep. A real dream is a vision that births a passion that you cannot shake. Dreamers are individuals who make our world go round. Everything you see around you started off as a dream. It was inside somebody’s head before it manifested itself into our reality. Your dream has to be bigger than you. Therefore, when you do dream…dream BIG! “If you can Dream it, you can Achieve it.” By Walt Disney.

    Be a Strategist: Thinking that your business will automatically become a success is wishful and wrongful thinking. If you are going to be an entrepreneur, you have to be a strategist. Simply put, a strategist is an individual who establishes and applies a plan that points to the vision or dream. Not only is it imperative for you to know where you are going, but you also must know how you are going to get there. “All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.” By Sun Tzu.

    Be an Original: One of the worst things in the world for any entrepreneur to do is try to duplicate the look, brand, and success of another. You were created unique. Therefore, you and everything about you has to be unique. There has to be something, or maybe even a few things, that set you apart. So as you begin your entrepreneurial endeavors, find out what makes you different than the competition. Be the one that everyone wants to imitate. “It is better to fail in originality than to succeed in imitation.” By Herman Mellville.

    Be Inspired: There will be times where you will question what you do and why you are doing it. There will be times when discouragement will set in because your business is not doing what you expected and desired it to do. That is not the time for you to give up, but rather to find some sort of inspiration—whether it be through a story, testimony, a song, etc… Find a way to get your fire back even when things around you seem dim and dark. Business is difficult, and only those who are strong and persistent will endure will see success. “Inspiration is the rocket fuel that makes ordinary days into extraordinary!” By Gail Lynne Goodwyn.

    Be Passionate: You were placed here to solve a problem that only you can solve. This problem has to become your obsession. It should keep you awake at night. It should wake you up early in the morning. It should have you constantly writing down new ideas or new ways of accomplishing your goals. You shouldn’t truly rest until the thing that bothers you has been resolved. Some of the great business men and women before us worked long hours every day, sacrificing weekends, giving up vacations in pursuit of their passion to resolve that problem. Ultimately, that passion will become your paycheck. “Passion is the genesis of genius.” By Galileo Galilei.

    Be Mentored: For any person to think they know it all and that they don’t need help is simply idiotic and arrogant. The greatest asset a business person can have is a mentor….an individual or individuals who have been where you have been and done what you have done. Find someone that is doing what you desire to do or can at least give your insight on how to do things better. If you cannot have them physically present then read their materials, listen to their messages, and learn their history. Learn from their successes as well as their mistakes. Their ceiling very well may be your floor. “One of the greatest values of mentors is the ability to see ahead what others cannot see and to help them navigate a course to their destination.” By John C. Maxwell.

    Be Empowered: It is no accident that you are reading this e-Book. Do not be afraid of failing. Let your failures drive you to your success. Do not give up or give in but rather keep moving forward. You were placed on this planet on purpose, with a purpose, and for a purpose. You are more powerful than you know. You may be the next Steve Jobs, Magic Johnson, or Vera Wang. You have the potential within you that will change our world. There is greatness on the inside you to do amazing things. So do it…go be great and do great things. You have permission to do so! You have permission to be a BOSS. Just Do It. By Nike.

    Do you want to be a BOSS or own Business? so build your own way how to start? Where are you do it? How to carry full money for your business? The perfect IDEA for Your business.

  • All Cavemen Must Carry a Big Stick

    Understanding the Story of All Cavemen Must Carry a Big Stick. Booker T. Washington is credited with the statement, “Success is measured not so much by the position that one has reached in life as by the obstacles which he had to overcome while trying to succeed.”

    All Cavemen Must Carry a Big Stick

    Once, I was a guest on a talk radio show along with Michael McDonald, one of my students who had pulled himself out of the ghetto to become an attorney and a respected politician. Michael had done this despite seemingly overwhelming odds that were stacked against him. Mike was asked by the host why others also do not likewise pull themselves up by their own bootstraps. He replied that it was really tough to pull yourself up by your bootstraps when you had no boots. What a great answer. No matter what the Preamble to our Constitution states, all men (and women) are not created equal.

    We each are born into different environments, with different talents, financial means, intelligence levels and other distinct advantages… or disadvantages. Why do some, like Mike, despite the odds, manage to succeed? Why do some have different drives, ambition, attitudes and determination? When is all this determined? Is it in the womb or the first few years of life? The great speaker, Zig Ziglar says, “Great people are just ordinary people with extraordinary determination.” Man Cave Store, Over the years, I have found this to be true.

    I taught high school for sixteen and one-half years. As I reflect back on the kids that I taught, the ones that accomplished the most in life were the ones that I would never have selected to do so. They were the ones that were average kids with little opportunity and lots of drive, grit and determination. When our caveman friend went out to go hunting, he soon learned that to bring the game home, he had to carry a big stick and learn how to use it. They too had to learn to carry a big stick and lots of arrows in their quiver. Here are Cavemen’s stories.

    Cavemen Story One: 

    Bob graduated from high school with less than average grades. Never did he, or anyone else, expect him to go to college. He met their expectations by starting to work immediately after high school. Although he did not like school, he was really good working with his hands. He liked the immediate gratification of seeing his projects come to fruition. He enjoyed construction work and began his first job as a carpenter’s helper.

    In a few years, he borrowed money from a local bank and built his first house. Then, he built another…then another. Fifteen years after graduation, he built his first condominium and found that he could quadruple his return by building and reselling multiple units. Bob is now a millionaire but continues to build condominiums and commercial properties.

    Cavemen Story Two: 

    Eric, like Bob in the first Cavemen story, barely graduated from high school. If a vote was taken, he would have been selected as the most likely not to succeed. Also, like Bob, he enjoyed working with his hands. His first few jobs were working as a helper for an auto mechanic. He started working part time in construction and learned fast. He enjoyed the challenge and satisfaction of seeing a project completed. Before long, Eric quit his job as a mechanic’s helper and built his first house.

    Eric moved into the house an immediately began his second house. … then a third. … then a fourth. Before long, he was developing subdivisions in his hometown. He negotiated and signed a contract to build grocery stores all across the country for a regional food store chain. The rest is history. Eric is now a multi-millionaire and travels the world expanding his investments and counting his money.

    Cavemen Story Three: 

    Tom graduated from high school in the middle of his class. He was average at best and never attempted to go to college. Instead, he started to work selling televisions at a retail store in a strip mall not far from home. Tom enjoyed sales and got very good at it. While others were in college classes, Tom was learning from the school of hard knocks. He eventually left his job selling televisions and started to work as a salesman for an electronic company that supplied components to the company that manufactured the television sets.

    By the time that Tom’s classmates graduated from college and began to join the workforce, Tom had managed to buy the troubled electronics company. Before long, through Tom’s diligence, determination and perseverance, the company had recovered, and Tom sold it to his biggest competitor. He immediately reinvested his profits into other ventures, which included several radio stations, a restaurant chain and a regional health club chain. Tom now lives in one of the biggest houses in town and spends most of his time playing with his diversified portfolio.

    Story Four:

    John graduated from high school as the class favorite. He was always well-liked and popular. Most were surprised when John did not go to college. He, instead, started to work with his brother-in-law building commercial properties. They soon discovered that they could build high-rise apartments for government housing at hefty profits.

    One thing followed another and soon their company had grabbed the attention of others who wanted to purchase the company. Not long after, John and his brother-in-law sold the business and both retired. Since he was forty-years-old, John has done exactly what he wants to do each day. He has not worked in many years.

    Story Five: 

    Our fifth Cavemen story is the story of Mike McDonald, the young man mentioned earlier in this chapter. I take special pride in Mike’s story since I did play a small part in opening a door to get Mike started. Mike was a great kid in high school. Mike lived in the government housing projects and had witnessed many of the personal tragedies of others growing up there. He stood exposed at an early age to gangs, drugs, violence and crime.

    Mike was smart enough to remove himself from those who were bad influences on him. Mike was active in his church, played on the high school football team and made good grades. Upon graduation, he knew that the likelihood of a college education was not good. This is where I enter the picture.

    Mike had a job working at one of the Taco Bells in Huntsville. As fate would have it, one day I got a craving for a spicy bean burrito. When I entered the Taco Bell I saw Mike sweeping the floors. I asked him why he was not in college. After a short conversation and three burritos, I promised Mike that I would see if I could help him get into college. A few phone calls to Middle Tennessee State University and to State Farm Insurance in Murfreesboro, Tennessee, things were beginning to fall into place. I had worked my way through school at MTSU by working in the mail room at State Farm Insurance’s South Central Office.

    It was mere luck (Remember what I said about luck.) that the personnel manager remembered me (Although it had been nearly ten years.) and agreed to give Mike a job. A few weeks later, Mike was enrolled in MTSU and had a steady job at State Farm Insurance. He caught a greyhound bus to Murfreesboro with only ten dollars in his pocket. Four years later, he graduated with honors from MTSU and entered law school. While at MTSU, Mike earned a position as a split receiver on the football team and was the first black President of the student body.

    Since graduating, Mike has stood named the Most Outstanding Alumni and earned many post-graduate honors. One of his first jobs was as the legal counsel to the Governor of the state of Tennessee. He was later Registrar of Davidson County (Nashville), Tennessee where he served for many years. At this writing, Mike is an attorney in Nashville and a law professor at two universities, MTSU and Tennessee State University. Mike’s success truly touches my heart since he had the least opportunity of any student that I encountered yet, he accomplished the most.

    All of the above stories are true. Of those mentioned, only Mike McDonald had a college education. What did all the people in the stories above have in common? They all had determination, an overwhelming desire to achieve and great work ethic. They each overcame the odds to attain the things that each accomplished. As stated earlier in this book, work ethic is more important than a stack of college degrees. In the Cavemen stories above, each learned to carry a big stick, to fill their quiver, and they each had a passion for what they did.

    Here is a short story about determination:

    Cavemen stories, A young guard stood placed on guard duty for the first time. He stood instructed that no vehicle was allowed to enter the compound unless it had a certain identification number on it. As luck would have it, the first unmarked vehicle to approach the gate was that of a general. The General had total disregard for the young guard and instructed his driver to drive on through the gate. The young guard leaned inside the vehicle and politely stated, “I’m new at this, sir, and I really don’t know what to do. Who do I shoot first, you or the driver?”

  • Practice Does Not Make Perfect

    Practice Does Not Make Perfect

    Several years ago at the National Spelling Bee, one of the young ladies really excelled among the others in the competition. With a bright smile, she confidently spelled each word without hesitation. After she had won the contest, she was being interviewed by the television network and was asked how she became just an outstanding speller. She looked directly into the camera and stated, “My success is due to two things, God and Practice!”

    I spent the first sixteen and one-half years of my working life as an educator. Two particular coaches really stand out in my mind. One fellow would practice his football team hour upon hour, day upon day, week upon week. He would practice his team on weekends and holidays. His practice time ran for hours with disgruntled parents waiting in the parking lot to pick up their kids. He was known far and near as being a tough and demanding coach, a reputation which he treasured. His players seemed to always suffer from burnout and bad attitudes. This coach was known throughout the state as being a tough coach. The problem was he could never produce a championship team. In fact, he often struggled just to have a winning season! Then there was coach number two.

    Coach number two had a whole different philosophy. His practice times were short but compact. The attitudes among his players were great. Every drill had a purpose. His practice time was filled with fun things that developed skills and motivated his athletes. The parents of his athletes loved him; the school board loved him; the Booster Club loved him; and his players loved him. He was always in demand as a public speaker at civic clubs and coaching clinics. Guess what? He also always produced the best teams, winning seasons, and led the conference in athletic scholarships for his players.

    What was the difference in these two coaches? Coach number two had learned the secret of success. Contrary to Ben Franklin or whoever gets credit for the old saying… practice does not make perfect. Only “good” practice makes perfect! If a person does the same thing over and ever and over, but does it the wrong way, it is still wrong. That person is wasting his time, spinning his wheels and reinforcing the negative. A person has to determine the things that work and concentrate on strengthening and improving the little things that will enhance their success ratio. Doing the same thing over and over will produce the same results. If something is not working, then evaluate it (Remember the principals of management?), and make adjustments so that the results will be different. In the world in which we live, the winners have learned to do this whether it is in one’s personal life, business life, hobbies or in coaching!

    A person can find true peace and self-actualization through accomplishment. On the other hand, continuous failure leads to a very sad and unfulfilling life. There are so many people who continue to live their lives in a rut that leads to nowhere. They work in jobs that they do not like, with people that they cannot tolerate and in positions that are unrewarding. This is so sad since life is full of opportunity, excitement and adventure. Why would anyone stay in a situation in which they merely exist instead of flourish? Life has too much to offer for one to waste away his precious years and trade each day of his life for a paycheck! That is why entrepreneurs are different from other people. There is something in their inner being that will not allow them to merely survive.

    Zig Ziglar has inspired thousands upon thousands with his books and public appearances. I had the opportunity to meet Mr. Ziglar several years ago and found him to be even more dynamic in person as he is in his books and on his tapes. Zig believes, as I do, that a good attitude is the most important personal asset that a person possesses. One’s outlook on life determines how far he will go. One’s attitude determines how one reacts to the inevitable failures that even the most successful people have to overcome. As Zig states, “It’s not what happens to you that is important, but rather how you react to what happens to you.” How true this statement is! When things don’t go right, do you fall apart? Do you lash out and blame others? Do you wallow in your failure or do you pick yourself up, dust yourself off and continue to plunge forward? We have all heard the stories of Thomas Edison and the number of times that he suffered defeat and setbacks in his endeavor to invent the light bulb and some of his other inventions. We have all heard the stories of Col. Harland Sanders and how he only found success with his Kentucky Fried Chicken idea after he retired from what he really did for a living. We have heard the story of Garth Brooks who was rejected time and time again by the major record labels in Nashville before a chance appearance at the Bluebird Café turned his life around. Garth went on to be the biggest single country act in history! These type stories go on and on. Zig states that, “One’s attitude, not his aptitude, will determine his altitude.” How true this statement is for the aspiring entrepreneur?

    Over the years, I have discovered that entrepreneurs have a different outlook on life. There is the story about the young clerk in the department store who was approached by a customer who asked him if he was the manager. The young man looked up at the customer and quickly replied, “No sir! Not yet!” What a great answer! Just imagine if the young man had hanged his head and replied, “Oh no sir. Not me. I’m just a clerk.” What a different image that would have projected. There is another story about the two men who were both working side by side digging a ditch that was to be the foundation for a huge new palace. A passerby stopped and asked the first man what he was doing. Belligerently, he replied, “Can’t you see that I’m digging a ditch?” The passerby continued over to the second man and stated, “Well, I see that you are digging a ditch also.” “No sir”, replied the second man. “I’m building a palace!” Attitude! Attitude! Attitude!

    Once, several years ago, I was watching one of the local television stations in my home town of Huntsville, Alabama. The local news had had a contest among the regional junior high school students and had selected one of the students to co-host the weather forecast. The young man that won the contest gave his weather report along with the station’s meteorologist. After the report, the meteorologist conducted a quick interview with the young man. He asked him about his education and future ambitions. The meteorologist concluded his interview by asking him if one day he wanted to be the weatherman at the station. The young man paused, and with a perplexed look on his face replied, “No sir! One day I want to own this station!” I could not help but get a lump in my throat when I heard his answer. That is the attitude that this country desperately needs! Why work at the station when you can own the station? That is the mindset of the entrepreneur.

  • Are You Want to be a Caveman?

    Are You Want to be a Caveman?

    The caveman was the world’s first real entrepreneur. He had no choice. Either he got up, got his club, wandered into the woods, set his traps, killed something and drug it home each day, or he starved. He had to be able to out-run the fastest saber tooth tiger or he perished. There were no guaranteed salaries, pension plans, 401K’s, trade unions to protect him, deferred compensation programs, life and health benefit programs or Christmas turkeys or bonuses. The caveman had to perform each day, every day by the sweat of his brow and with his two hands and wit or he would not survive. Were there some cavemen who survived better and longer than others?

    A caveman is a stock character based upon widespread but anachronistic and conflated concepts of the way in which Neanderthals, early modern humans, or archaic humans may have looked and behaved. The term originates out of assumptions about the association between early humans and caves, most clearly demonstrated in cave painting. The term is not used in academic research.

    Sure there were! Some hunted longer, ran faster, got up earlier, learned to set better traps, learned to preserve their foods and prospered better than the others. These cavemen had the prettiest women, wore warmer furs, had better caves, bigger clubs and were envied and copied by the other cave people. Since mankind first came upon the earth, there were those who learned to excel over others. There always have been those who, through their willingness to take calculated risks, work harder, work smarter, work longer, develop their skills and improve themselves, achieve when others fail. This is true in the animal world. The biggest and strongest buck gets the doe. The fastest gazelle is never eaten by the lion. The smartest mouse is never caught in the trap no matter how large the cheese appears to be!

    Nothing has changed today except that the mentality of the caveman has been absolved by today’s modern world. Most people today would starve to death if they had to survive by killing something and dragging it home every day. Most would starve if they had to really work to make a living. Many todays had rather live with tremendous debt, work in jobs that they hate and with people that they despise and live in houses that they cannot afford than to roll up their sleeves and change their condition in life.

    Today, it is hard to listen to the radio without occasionally stumbling into one of those financial gurus on the talk radio stations out there. On every show, someone will call in to ask advice on the matter of personal bankruptcy. This person is always in debt because he has established habits of making one poor choice after another. He always has lived in houses that he could not afford, attended college on borrowed money, bought automobiles when he should have been walking and built up credit card and personal debt that was larger than his annual income. All of these callers want to declare bankruptcy. They are seeking advice as to how to get the process started. Almost none of them are willing to do the things necessary to eliminate the debt. What? Work two jobs! Nonsense! Work out a payment plan to systematically eliminate the debt. Not me! They just want to know how to wipe out the debt that they, under legal contract, legitimately owe. By doing so, they cross the magic threshold that converts them from a consumer to a thief!

    They are technically robbing a bank! They are absolutely no different than the person who straightens his mask, sticks a gun in a teller’s face then runs to a get-away car. They are doing exactly the same thing except that the bank robber deserves more respect since he is more honest in his intentions. A thief is someone who knowingly and willingly steals from others. If we would today again implement debtor’s prisons, there is no doubt that personal debt would drop to near zero. Mankind has become accustomed to the cushions afforded by this society. Today, there are few consequences for a person’s actions. Because of this, the caveman mentality of eat or be eaten has been lost. As our bankruptcy courts have proven, many have become lazy and had rather steal than to actually work to change their condition. What is as disappointing is that society has accepted this and places little or no shame on the actions of these people!

    This post is addressed to those who, like the cavemen of long ago, want to enter the world of entrepreneurship. This is a great country with opportunity hanging before each of us like a ripe, red apple ready for picking. There is no better place to be in the universe for those who want to enter the world of entrepreneurship. That world is not for the lazy, fainthearted, weak or unstable. It is for those who are willing to run ahead of the racers, to work longer, harder, faster and smarter. It is for those who are willing to break tradition, to color outside of the lines, to stand straight, to square their shoulders, swallow hard and kill something for the pot each and every day. It is for those who are not willing to live like everyone else. It is for those who do not want to be normal. It is for those who want to lift themselves above the crowd and, by their own two hands, shape and direct their future. If you fit this mold, then get on your feet, pick up your club, follow us as we welcome you to the brotherhood of the caveman and the greatest adventure of your life!

  • Do You Really Want to your Own a Business?

    Do You Really Want to your Own a Business?

    If “Yes” So, this article of post little help you How to Start. “Hope springs eternal in the human breast,” said English poet and essayist Alexander Pope several centuries ago. He wasn’t describing people expanding or starting a business, but he may as well have been. Everyone who goes into business for themselves hopes to meet or surpass a set of personal goals.

    A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses serve as a form of economic activity and are prevalent in capitalist economies, where most of them are privately owned and provide goods and services allocated through a market to consumers and customers in exchange for other goods, services, money, or other forms of exchange that hold intrinsic economic value. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social and economic objectives. A business owned by multiple private individuals may form an incorporated company or jointly organize as a partnership. Countries have different laws that may ascribe different rights to the various business entities.

    The word “business” can refer to a particular organization or to an entire market sector (for example: “the financial sector”) or to the sum of all economic activity (“the business sector”). Compound forms such as “agribusiness” represent subsets of the concept’s broader meaning, which encompasses all activity by suppliers of goods and services.

    Sole Ownership: A sole proprietorship (ownership), also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.

    Do You Really Want to your Own a Business - Sole Ownership

    While your particular configuration is sure to be unique, perhaps you will agree with some of the ones I have compiled over the years from talking to hundreds of budding entrepreneurs.

    Independence: A search for freedom and independence is the driving force behind many businesspeople. Wasn’t it Johnny Paycheck who wrote the song “Take This Job and Shove It?”

    Personal Fulfillment: For many people, owning a business is a genuinely fulfilling experience, one that lifetime employees never know.

    Lifestyle Change: many people find that while they can make a good income working for other people, they are missing some of life’s precious moments. With the flexibility of small business ownership, you can take time to stop and smell the roses.

    Respect: Successful small business owners are respected, both by themselves and their peers.

    Money: You can get rich in a small business, or at least do very well financially. most entrepreneurs don’t get wealthy, but some do. If money is your motivator, admit it.

    Power: When it is your business, you can have your employees do it your way. There is a little Ghengis Khan in us all, so don’t be surprised if power is one of your goals. If it is, think about how to use this goal in a constructive way.

    Right Livelihood: From natural foods to solar power to many types of service businesses, a great many cause-driven small businesses have done very well by doing good.

    If owning a small business can help a person accomplish these goals, it’s small wonder that so many are started. Unfortunately, while the potential for great success exists, so do many risks. Running a small business may require that you sacrifice some short-term comforts for long-term benefits. It is hard, demanding work that requires a wide variety of skills few people are born with. But even if you possess (or more likely acquire) the skills and determination you need to successfully run a business, your business will need one more critical ingredient: money.

    You need money to start your business, money to keep it running, and money to make it grow. This is not the same thing as saying you can guarantee success in your small business if you begin with a fat wallet. now, let me confess to one major bias here. I believe that most small business owners and founders are better off starting small and borrowing, or otherwise raising, as little money as possible. Put another way, there is no such thing as “raising plenty of capital to ensure success.” Unless you, as the prospective business founder, learn to get the most mileage out of every dollar, you may go broke and will surely spend more than you need to. But that doesn’t mean that you should try to save money by selling cheap merchandise or providing marginal services. In today’s competitive economy, your customers want the best you can give them at the best price. They will remember the quality of what they get from you long after they have forgotten how much they paid.

    In practical terms, that means you must buy only the best goods for your customers. Anything that affects the image your business has in your customer’s mind should be first-rate. It also means that you shouldn’t spend money on things that don’t affect the customer. For example, unless you’re a real estate broker your customers probably won’t care if you drive an old, beat-up car to an office in a converted broom closet, as long as you provide them an honest product or service for an honest price. Save the nice car, fancy office, and mobile telephone until after your business is a success.

    Self-Evaluation Exercises

    Here’s a question to ponder: Are you the right person for your business? Because running a business is a very demanding endeavor that can take most of your time and energy, your business probably will suffer if you’re unhappy. Your business can become an albatross around your neck if you don’t have the skills and temperament to run it. Simply put, I’ve learned that no business, whether or not it has sound financial backing, is likely to succeed unless you, as the prospective owner, make two decisions correctly:

    • You must honestly evaluate yourself to decide whether you possess the skills and personality needed to succeed in a small business.
    • You must choose the right business.

    A small business is a very personal endeavor. It will honestly reflect your opinions and attitudes, whether or not you design it that way. Think of it this way: The shadow your business casts will be your shadow. If you are sloppy, rude, crafty, or naively trusting, your business will mirror these attributes. If your personal characteristics are more positive than those, your business will be more positive, too. To put this concretely, suppose you go out for the Sunday paper and are met by a newsie who is groggy from a hangover and badmouths his girlfriend in front of you. chances are that next Sunday will find you at a different newsstand.

    I’m not saying you need to be psychologically perfect to run a small business. But to succeed, you must ask people for their money every day and convince a substantial number of them to give it to you. By providing your goods or services, you will create intimate personal relationships with a number of people. It makes no difference whether you refer to people who give you money as clients, customers, patients, members, students, or disciples. It makes a great deal of difference to your chances of ultimate success if you understand that these people are exchanging their money for the conviction that you are giving them their money’s worth.

    The following self-evaluation exercises will help you assess whether you have what it takes to successfully run a small business. Take out a blank sheet of paper or open a computer file.

    Your Strong and Weak Points

    Take a few minutes to list your personal and business strengths and weaknesses. Include everything you can think of, even if it doesn’t appear to be related to your business. For instance, your strong points may include the mastery of a hobby, your positive personality traits, and your sexual charisma, as well as your specific business skills. Take your time and be generous.

    To provide you with a little help, I include a sample list for Antoinette Gorzak, a personal friend who has what she hopes is a good business idea: a slightly different approach to selling women’s clothing. You’ll get to know her better as we go along. Her strengths, weaknesses, fantasies, and fears are surely different from yours. So, too, almost certainly, is the business she wants to start. So be sure to make your own lists—don’t copy Antoinette’s.

    Your list of strong and weak points will help you see any obvious conflicts between your personality and the business you’re in or want to start. For example, if you don’t like being around people but plan to start a life insurance agency with you as the primary salesperson, you may have a personality clash with your business. The solution might be to find another part of the insurance business that doesn’t require as much people contact.

    Unfortunately, many people don’t realize that their personalities will have a direct bearing on their business success. An example close to the experience of folks at nolo involves bookstores. In the years since nolo began publishing, they have seen all sorts of people, from retired librarians to unemployed Ph.D.’s, open bookstores. A large percentage of these stores have failed because the skills needed to run a successful bookstore involve more than a love of books.

    General and Specific Skills Your Business Needs

    Businesses need two kinds of skills to survive and prosper: Skills for business in general and skills specific to the particular business. For example, every business needs someone to keep good financial records. on the other hand, the tender touch and manual dexterity needed by glassblowers are not skills needed by the average paving contractor. Next, take a few minutes and list the skills your business needs. don’t worry about making an exhaustively complete list, just jot down the first things that come to mind. make sure you have some general business skills as well as some of the more important skills specific to your particular business.

    If you don’t have all the skills your business needs, your backers will want to know how you will make up for the deficiency. For example, let’s say you want to start a trucking business. You have a good background in maintenance, truck repair, and long distance driving, and you know how to sell and get work. Sounds good so far—but, let’s say you don’t know the first thing about bookkeeping or cash flow management and the thought of using a computer makes you nervous. Because some trucking businesses work on large dollar volumes, small profit margins, and slow-paying customers, your backers will expect you to learn cash flow management or hire someone qualified to handle that part of the business.

    Your Likes and Dislikes

    Take a few minutes and make a list of the things you really like doing and those you don’t enjoy. Write this list without thinking about the business—simply concentrate on what makes you happy or unhappy.

    If you enjoy talking to new people, keeping books, or working with computers, be sure to include those. Put down all the activities you can think of that give you pleasure. Antoinette’s list is shown as an example.

    As a business owner, you will spend most of your waking hours in the business, and if it doesn’t make you happy, you probably won’t be very good at it. If this list creates doubts about whether you’re pursuing the right business, I suggest you let your unconscious mind work on the problem. most likely, you’ll know the answer after one or two good nights’ sleep.

    Specific Business Goals

    Finally, list your specific business goals. Exactly what do you want your business to accomplish for you? Freedom from 9 to 5? money—and if so, how much? more time with the children? making the world or your little part of it a better place? It’s your wish list, so be specific and enjoy writing it.

    How to Use the Self-evaluation Lists?

    After you’ve completed the four self-evaluation lists, spend some time reading them over. Take a moment to compare the skills needed in your business to the list of skills you have. do you have what it takes?

    Show them to your family and, if you’re brave, to your friends or anyone who knows you well and can be objective. of course, before showing the lists to anyone, you may choose to delete any private information that isn’t critical to your business. If you show your lists to someone who knows the tough realities of running a successful small business, so much the better. You may want to find a former teacher, a fellow employee, or someone else whose judgment you respect.

    What do they think? do they point out any obvious inconsistencies between your personality or skills and what you want to accomplish? If so, pay attention. Treat this exercise seriously and you will know yourself better. oh, and don’t destroy your lists. Assuming you go ahead with your business and write your business plan, the lists can serve as background material or even become part of the final plan.

    You have accomplished several things if you have followed these steps. You have looked inside and asked yourself some basic questions about who you are and what you are realistically qualified to do. As a result, you should now have a better idea of whether you are willing to pay the price required to be successful as a small businessperson. If you are still eager to have a business, you have said, “Yes, I am willing to make short-term sacrifices to achieve long-term benefits and to do whatever is necessary—no matter the inconvenience— to reach my goals.”

    Reality Check: Banker’s Analysis

    Banks and institutions that lend money have a lot of knowledge about the success rate of small businesses. Bankers are often overly cautious in making loans to small businesses. For that very reason it makes sense to study their approach, even though it may seem discouraging at first glance.

    Do You Really Want to your Own a Business - Bankers

    Banker’s Ideal

    Bankers look for an ideal loan applicant, who typically meets these requirements:

    • For an existing business, a cash flow sufficient to make the loan payments.
    • For a new business, an owner who has a track record of profitably owning and operating the same sort of business.
    • An owner with a sound, well-thought-out business plan.
    • An owner with financial reserves and personal collateral sufficient to solve the unexpected problems and fluctuations that affect all businesses.

    Why does such a person need a loan, you ask? He or she probably doesn’t, which, of course, is the point. People who lend money are most comfortable with people so close to their ideal loan candidate that they don’t need to borrow. However, to stay in business themselves, banks and other lenders must lend out the money deposited with them. To do this, they must lend to at least some people whose creditworthiness is less than perfect.

    Measuring Up to the Banker’s Ideal

    Who are these ordinary mortals who slip through bankers’ fine screens of approval? And more to the point, how can you qualify as one of them? Your job is to show how your situation is similar to the banker’s ideal.

    A good bet is the person who has worked for, or preferably managed, a successful business in the same field as the proposed new business. For example, if you have profitably run a clothing store for an absentee owner for a year or two, a lender may believe you are ready to do it on your own. All you need is a good location, a sound business plan, and a little capital. Then, watch out Neiman-Marcus!

    Further away from a lender’s ideal is the person who has sound experience managing one type of business, but proposes to start one in a different field. let’s say you ran the most profitable hot dog stand in the Squaw valley ski resort, and now you want to market computer software in the Silicon Valley of California. In your favor is your experience running a successful business. on the negative side is the fact that computer software marketing has

    no relationship to hot dog selling. In this situation, you might be able to get a loan if you hire people who make up for your lack of experience. At the very least, you would need someone with a strong software marketing background, as well as a person with experience managing retail sales and service businesses. naturally, both of those people are most desirable if they have many years of successful experience in the software marketing business, preferably in California.

    Use the Banker’s Ideal

    It’s helpful to use the bankers’ model in your decision-making process. Use a skeptical attitude as a counterweight to your optimism to get a balanced view of your prospects. What is it that makes you think you will be one of the minority of small business owners who will succeed? If you don’t have some specific answers, you are in trouble. most new businesses fail, and the large majority of survivors do not genuinely prosper.

    Many people start their own business because they can’t stand working for others. They don’t have a choice. They must be either boss or bum. They are more than willing to trade security for the chance to call the shots. They meet a good chunk of their goals when they leave their paycheck behind. This is fine as far as it goes, but in my experience, the more successful small business owners have other goals as well.

    A small distributor we know has a well thought-out business and a sound business plan for the future. Still, he believes that his own personal commitment is the most important thing he has going for him. He puts it this way: “I break my tail to live up to the commitments I make to my customers. If a supplier doesn’t perform for me, I’ll still do everything I can to keep my promise to my customer, even if it costs me money.” This sort of personal commitment enables this successful business owner to make short-term adjustments to meet his long-range goals. And while it would be an exaggeration to say he pays this price gladly, he does pay it.

    Note: This article of “Do You Really Want to your Own a Business?” from Internet and book of How to Write a Business Plan, only for share knowledge with help.

  • What is CSR?

    What is CSR (Corporate Social Responsibility)?

    Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society. A business’s CSR can encompass a wide variety of tactics, from giving away a portion of a company’s proceeds to charity, to implementing “greener” business operations.

    Definition of Corporate Social Responsibility (CSR)

    The movement aimed at encouraging companies to be more aware of the impact of their business on the rest of society, including their own stakeholders and the environment. Corporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

    CSR is a concept with many definitions and practices. The way it is understood and implemented differs greatly from each company and country. Moreover, CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development. Whatever the definition is, the purpose of CSR is to drive change towards sustainability.

    Although some companies may achieve remarkable efforts with unique CSR initiatives, it is difficult to be on the forefront on all aspects of CSR. Considering this, the example below provides good practices on one aspect of CSR environmental sustainability.

    Corporate Social Responsibility
    Corporate Social Responsibility

    Example; Unilever is a multinational corporation, in the food and beverage sector, with a comprehensive CSR strategy. The company has been ranked “Food Industry leader’ in the Dow Jones Sustainability World Indexes for the 11 consecutive years and ranked 7th in the ‘Global 100 Most Sustainable Corporations in the World.”

    One of the major and unique initiatives is the ‘sustainable tea’ program.  On a partnership-based model with the Rainforest Alliance (an NGO), Unilever aims to source all of its Lipton and PG Tips tea bags from Rainforest Alliance Certified™ farms by 2015.  The Rainforest Alliance Certification offers farms a way to differentiate their products as being social, economically and environmentally sustainable.

    Other Definitions

    The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts used the following definition:

    Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large The same report gave some evidence of the different perceptions of what this should mean for a number of different societies across the world. Definitions as different as CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government of Ghana, through to CSR is about business giving back to society from the Philippines.

    Traditionally in the United States, CSR has been defined much more in terms of a philanthropist model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

    What is the Social Responsibility of Business?

    Ever since Milton Friedman famously proclaimed “The Social Responsibility of Business is to Increase its Profits” (NYTimes 1970), pundits have pondered whether his purist interpretation was really the only way.

    Profit is certainly a lot easier to quantify than something like ‘happiness’, but the intangible benefits of good, honest business clearly go way beyond pure finance Must the word ‘profit’ always refer to money in the strictest sense?

    Collected on this page are various interpretations of the idea of “social responsibility” and the responsibility of business to take an active, passive or indifferent role in building a more sustainable world.

    There are a few broad categories of social responsibility that many of today’s businesses are practicing:

    I) Environmental efforts: One primary focus of corporate social responsibility is the environment. Businesses regardless of size have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

    II) Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Businesses have a lot of resources that can benefit charities and local community programs.

    III) Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

    IV) Volunteering: Attending volunteer events says a lot about a company’s sincerity. By doing good deeds without expecting anything in return, companies are able to express their concern for specific issues and support for certain organizations.

    Examples of Corporate Social Responsibility

    Corporate Social Responsibility (CSR)

    While many companies now practice some form of social responsibility, some are making it a core of their operations. Ben and Jerry’s, for instance, uses only fair trade ingredients and has developed a sustainability program for dairy farms in its home state of Vermont. Starbucks has created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production. Tom’s Shoes, another notable example of a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases.

    However, Stevens said companies need to really understand what their core social purpose is and how that aligns with their stated mission, to create a cohesive CSR strategy.

    For example, Stevens said that Kashi, a Kellogg’s brand, wants to increase organic farming and is one of the few certified organic kinds of cereal. Since only 1 percent of U.S. farmland is actually organic, the breakfast brand worked with Quality Insurance International to help certify new organic farmers across the nation.

  • Social Responsibility

    What is Meant by Social Responsibility?

    Social responsibility is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. A trade-off may exist between economic development, in the material sense, and the welfare of the society and environment, though this has been challenged by many reports over the past decade. Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

    Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. For instance, if a company follows the United States Environmental Protection Agency (EPA) guidelines for emissions of dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. “A significant element of current thinking about privacy, however, stresses “self-regulation” rather than market or government mechanisms for protecting personal information”. According to some experts, most rules and regulations are formed due to public outcry, which threatens profit maximization and therefore the well-being of the shareholder, and that if there is not outcry there often will be limited regulation.

    Social responsibility means that the government (including public corporations), NGOs, business organizations, and individuals have a responsibility to society to eliminate corruption and irresponsible or unethical behavior that might harm its people or the environment.

    Corporate social responsibility, therefore, refers to a business’s obligation to set policies, make decisions, and follow courses of action that are desirable in terms of the values and objectives of society — its customers, employees, and people in the community.

    Businesses accept social responsibilities when they take their objectives beyond what the business, the economy, and the law require and do what they feel are ethically and socially desirable. For example, such ethical and desirable actions might include raising the safety standards of product and continuously striving to care for the well-being of workers and their customers.

    These ethical and desirable actions that businesses may choose to undertake may be well above the legally required standards.

    Look at the following examples of Namibian businesses fulfilling their social responsibility towards the Namibian society:

    Many companies are increasingly working on cultivating a social responsibility, whatever their actual practices. They are eager to prove that you can save the planet, help the poor and make money at the same time.

    As an entrepreneur how can you behave in an ethically social responsible way towards the following?

    Employees Responsibility

    The main responsibility of any business is towards its employees. It is imperative that a business always looks for ways to support and empower its employees. A happy workforce, a well-motivated and a loyal workforce, leads to improvements in productivity and quality. Your responsibility towards your workers goes beyond just paying them salaries. A socially responsible business tries to ensure that its working environment is free from sexual harassment and discrimination.

    Customers Responsibility

    Customers Social Responsibility

    Even if you are an entrepreneur, you are also a customer at a business where you buy your products. It is, therefore, important that you live and practice the notion, “Do unto others as you would have them do unto you”. That means that you should treat your customers in the same way as you expect to be treated as a customer by other businesses. A business’s social responsibility actions towards its customers are rewarded by loyal customers and by their word-of-mouth advertising.

    Government Responsibility

    The acceptance of social responsibility has increased in the government because through policies, the government is forcing businesses to act responsibly. When a firm act in a socially responsible manner, it sets policies, makes decisions and follows courses of action that are desirable in terms of the values and objectives of its different stakeholders. To pay tax is a business’ responsibility towards the Government of a country.

    Society/Community Responsibility

    Social investment looks at what a business is doing for a community. Businesses can engage in social responsibility programs to help the community fight their social problems, such as drug addiction in impoverished areas or providing recreation activities for the youth. These programs normally aim to improve standards of living and create more stable and peaceful communities.

    Corporate Responsibility

    Corporate Social Responsibility
    Corporate Social Responsibility

    Corporate social responsibility or CSR has been defined by Lord Holme and Richard Watts of the World Business Council for Sustainable Development’s publication “Making Good Business Sense” as ” the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.” CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. Evidence suggests that CSR taken on voluntarily by companies will be much more effective than CSR mandated by governments. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives through the main motive is the same. All companies have a two-point agenda to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stakeholders of every company are increasingly taking an interest in “the outer circle”-the activities of the company and how these are impacting the environment and society. The other motive behind this is that the companies should not be focused only on the maximization of profits.

    Social responsibility, therefore, is about holding a group, organization or company accountable for the effects it has on the people within the company, people working with the company, the community in which the company operates and those who buy from the company.

    How Does an Individual Become Socially Responsible?

    The Workshop for Civic Initiatives Foundation (WCIF), Bulgaria, describes ISR in its position statement on Social Responsibility as, “The individual social responsibility includes the engagement of each person towards the community where he lives, which can be expressed as an interest towards what’s happening in the community, as well as in the active participation in the solving of some of the local problems. Under community, we understand the village, the small town or the residential complex in the big city, where lives every one of us. Each community lives its own life that undergoes a process of development all the time. And every one of us could take part in that development in different ways, for example by taking part in cleaning of the street on which he lives, by taking part in organization of an event, connected with the history of the town or the village or by rendering social services to children without parents or elderly people. The individual social responsibility also could be expressed in making donations for significant for the society causes – social, cultural or ecological. There are many ways of donating, as for example donating of goods or donating money through a bank account or online”

    Social Responsibility can be “negative,” in that it is a responsibility to refrain from acting (resistance stance) or it can be “positive,” meaning there is a responsibility to act (proactive stance). Being socially responsible not only requires participating in socially responsible activities like recycling, volunteering and mentoring, but to actually make it a lifestyle. Only through a commitment to embrace and embed social responsibility into your personal value and belief system can you truly become socially responsible in all you do.

    What is a Social Entrepreneur?

    Entrepreneur Social Responsibility
    Entrepreneur Social Responsibility

    Social entrepreneurs work to solve critical social problems and address basic unmet needs through entrepreneurship. Their innovations create system change, improving the lives of underserved or marginalized groups.

    Despite the increased attention that social entrepreneurship has received in recent years, there is no precise definition. Various organizations describe social entrepreneurship differently:

    Ashoka defines social entrepreneurs as “individuals with innovative solutions to society’s most pressing social problems” who “find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to move in different directions.”

    The Skoll Foundation calls social entrepreneurs “society’s change agents, creators of innovations that disrupt the status quo and transform our world.”

    In the Stanford Social Innovation Review, Roger L. Martin and Sally Osberg offer a more rigorous definition. A social entrepreneur is “someone who targets an unfortunate but stable equilibrium that causes the neglect, marginalization, or suffering of a segment of humanity; who brings to bear on this situation his or her inspiration, direct action, creativity, courage, and fortitude; and who aims for and ultimately affects the establishment of a new stable equilibrium that secures permanent benefit for the targeted group and society at large.”