Tag: Small Business

Of course! “Small business” refers to a privately owned and operated enterprise that has a limited number of employees, typically with relatively low revenue and a smaller scale of operations compared to larger corporations. Small businesses play a crucial role in the economy by contributing to job creation, innovation, and local communities.

Here are some key characteristics and aspects of small businesses:

  1. Size and Scale: These are characterized by their limited size, often determined by factors. Such as the number of employees, annual revenue, and total assets. The exact definition of a small business can vary by industry and country.
  2. Ownership: These are usually owned and operated by individuals or a small group of partners. It is not publicly traded on stock exchanges.
  3. Local Focus: Many small businesses operate within a specific local or regional area, serving the needs of their immediate community.
  4. Flexibility: These tend to be more flexible and nimble in responding to changes in the market or adapting to customer demands.
  5. Entrepreneurial Spirit: These owners are often entrepreneurs who take risks and pursue their passion. It involves in various aspects of the business, from planning and strategy to day-to-day operations.
  6. Innovation: These can drive innovation by introducing new products, services, and ideas to the market.
  7. Job Creation: These are significant contributors to job creation and employment opportunities, especially at the local level.
  8. Challenges: These may face challenges such as limited access to capital, competition with larger corporations, regulatory hurdles, and operational constraints.
  9. Support: Many governments and organizations offer support and resources to help small businesses succeed, including funding, mentorship, training, and networking opportunities.
  10. Technology: Technology has significantly impacted small businesses by enabling them to reach wider audiences. Through online platforms, streamline operations with digital tools, and improve customer engagement.
  11. Variety of Industries: These exist in a wide range of industries, including retail, hospitality, healthcare, professional services, technology, manufacturing, and more.
  12. Community Impact: These often have a strong connection to their local communities, contributing to their economic vitality and character.

Starting and running a small business can be rewarding. But it also requires careful planning, dedication, and a solid understanding of various aspects. Such as business strategy, finances, marketing, and customer relations. Each small business is unique, and success depends on factors like market demand, effective management, and the ability to adapt to changing circumstances.

  • How to Explain the concept of International Advertising?

    How to Explain the concept of International Advertising?

    International Advertising, generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. This article explains about Concept of International Advertising deeply discussion. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

    Study and Learn, the Concept of International Advertising.

    Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also Learn, What is International Advertising? Meaning and Definition, the Concept of International Advertising!

    It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. The total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values and propagates certain values worldwide.

    Deeply Explain:

    International advertising is becoming increasingly complex; more and more local and international companies are competing for consumers who are increasingly sophisticated and demanding. International advertising defines as the non-personal communication by an identified sponsor across international borders, using broadcast, print, and or interactive media.

    It requires dissemination of a commercial message to target audiences in more than one country. Target audiences vary from country to country in terms of how they perceive or interpret symbols or stimuli; respond to humor or emotional appeals, as well as in levels of literacy and languages are spoken. How the advertising function is organized also varies.

    International advertising can explain as the communication process that takes place in different cultures that varies in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. It is also a major force that both reflects social values and propagates certain values all over the world.

    The International Communication Process:

    The international communication process involves using the entire promotional mix to communicate with the final consumer. First, the appropriate message is determining the target audience by the advertiser. Next, the international sponsor (sender), usually representing by an advertising agency, encodes a message into words and images.

    The message is then translating into the language of the target market and transmitting through a channel of media channels to the audience who then decodes and reacts to the message. Cultural barriers may hamper the effective transmission of the message at each stage in the process and result in miscommunication.

    Art Direction:

    Art direction is involving with the visual presentation- the body language of print and broadcast advertising. Some types of visual presentation are universally understood. Revlon, for example, has used a French producer to develop television commercials, English and Spanish for use in the international markets. These commercials, which are the film in Parisian settings, communicate the universal appeals and specific advantages of Revlon products.

    By producing its ads In France, Revlon obtains effective television commercials at a much lower price than it would have to pay for similar –length commercials produce in the US. Pepsi Co has use four basic commercials to communicate its advertising themes. The basic setting of young people having fun at a party or on a beach has adapted to reflect the general physical environment and racial characteristics of North America, South America, Europe, Africa, and Asia. The music in these commercials has also adapted to suit regional tastes.

    The international advertiser must make sure that visual executions are not inappropriately extending into markets. Benetton recently encounters a problem with its “United Colors of Benetton” campaign. The campaign appeared in 77 countries, primarily in print and on billboards. The art direction focused on striking, provocative interracial juxtapositions- a white hand a black hand handcuffed together, for example, another version of the campaign, depicting a black woman nursing a white baby, won adverting awards in France and Italy. However, because the image evoked the history of slavery in America, that particular creative execution was not in the U.S market.

    Cultural Considerations:

    Knowledge of cultural diversity, especially the symbolism associated with cultural traits, is essential when creating advertising. Local country managers will be able to share important information, such as when to use cautions in advertising creativity. Use of colors and man-women relationships can often be stumbling blocks. For example, white in Asia is associated with death. In Japan, intimate scenes between men and women are considered to be in bad taste; they are an outlaw in Saudi Arabia.

    Advertising Communication System:

    Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel, and a receiver. Also, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of-mouth communication, and it involves social interactions between two or more people and the important ideas of group influence and the diffusion of information.

    An advertising message can have a variety of effects upon the receiver. It can

    • Create awareness,
    • Communicate information about attributes and benefits,
    • Develop or change an image or personality,
    • Associate a brand with feelings and emotions,
    • Forms group norms, and
    • Precipitate behavior.

    Thus we see advertising has multiple layers to it. A lot more than what meets the consumer’s eye goes into creating a successful advertisement or an advertisement campaign. In today’s era of consumerism, the need for advertisements to break the clutter and stand out becomes imperative. Advertising has multiple media at its disposal with each having its respective strengths and limitations.

    For instance, the radio still, has a reach to rural India like no other medium can. Also, it overcomes the barrier of illiteracy in a developing country like India. On the other hand mailers, pop-ups are an excellent way to remain visible to the urban techno-savvy Internet using consumers. Depending on the target audience the medium best suited should exploit to the hilt.

    How to Explain the Concept of International Advertising - ilearnlot
    How to Explain the concept of International Advertising? #Pixabay
  • What is International Advertising? Introduction and Meaning

    What is International Advertising? Introduction and Meaning

    International Advertising Essay; generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

    Explaining, Essay, What is International Advertising?

    Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also, learn, What do you understand about International Advertising? Meaning, Definition, and Start-UP.

    It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. The total of these activities constitutes a worldwide industry that is growing in importance. Globally advertising is also a major force that both reflects social values and propagates certain values worldwide.

    Meaning of International Advertising:

    Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

    There are two main purposes of international advertising research:

    1. To assist business executives to make profitable foreign advertising decisions for their specific products and services, and.
    2. To contribute to a general knowledge of foreign advertising. That is potentially useful to a variety of business executives, educators, government policymakers.

    Advertising self-regulatory organizations and others were interesting in understanding the process and effects of global advertising.

    Export agencies and their foreign affiliates serving international industrial (now called business-to-business) advertisers tended to translate and adapt domestic advertising materials for use abroad. Agencies serving international advertisers of consumer products tended to depend somewhat more on foreign correspondent agencies to develop localized advertising campaigns appropriate for their particular markets.

    When was started International Advertising?

    In the first 30 years of the 1900s, especially in the prosperous 1920s. Increasing numbers of European and US manufacturers sold branded consumers or industrial products outside their home countries. Some of them utilized ”export advertising agencies“. Most such agencies depended primarily on foreign agencies (called affiliate, associate, or correspondent agencies) either to modify domestic campaigns or to initiate entirely new campaigns, whichever was appropriate from their clients’ point of view.

    Between 1930 and the mid-1950s the number of the export or globally advertising agencies declined. In 1958 in the USA six full-service advertising agencies and a handful of export/foreign advertising agencies were capable of providing international services for their US clients. These six accounted for more than 90% of all international billings of US agencies. Into the 1960s most exporters and manufacturers with foreign subsidiaries necessarily continued to utilize.

    Local foreign advertising agency services available in the countries in which they did business. In the 1970s and 1980s, many consolidations and mergers led to the emergence of large foreign media buying organizations and large holding companies consisting of groups of globally advertising agencies. From the 1980s onward, advertising practices within domestic advertising agencies in Europe and the USA continued to improve.

    What is International Advertising - ilearnlot
    What is International Advertising? Introduction and Meaning
  • The aspect of International Advertising in Social Life

    The aspect of International Advertising in Social Life

    What is International Advertising? This article about an aspect of International Advertising in Social Life, deeply explains. Why global market need International Advertising? Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

    The aspect of the International Advertising Essay in Social Life.

    There are two main purposes of international advertising research: (1) to assist business executives to make profitable international advertising decisions for their specific products and services and (2) to contribute to the general knowledge of international advertising that is potentially useful to a variety of business executives, educators, government policymakers, advertising self-regulatory organizations and others interested in understanding the process and effects of international advertising.

    Aspects of Advertising on Social Life:

    When we consider International Advertising from the advertiser’s point of view, according to them the primary objective of an advertisement is that the product or services which they are offering should sell in the market. And in achieving the main objective of selling the product or services there are other profound consequences.

    Advertising puts an influence that is both persuasive and pervasive. Through the selective reinforcement of certain language and values and social goals, it acts as important force attitudes that underlie behavior not only in the marketplace but also in all aspects of life.

    Global Advertising:

    In an international marketing concern, advertising has an important social influence in several ways: many of the international advertising is designed to promote and introduce new products from one market to another.

    Often this results in the sudden change in lifestyles, behavior patterns of a society, stimulating, for example, the adoption of fast food, casual attire or hygiene, and beauty products.

    International advertising encourages a desire for products from other countries; it creates expectations about “the good life”, and establishes new areas of consumption. Advertising is thus a potent force for change, while selectively reinforcing lifestyles, certain values, and role models.

    Global Market:

    We can see examples of brands like Levi’s, Adidas, Reebok, Nike, Marlboro, and McDonald’s. Which are familiar in almost every corner of the world. These brands have become an object of desire by the teen and young adults throughout the world. Even the scenes and images which have been shown in international advertising are either in western in origin or reflect western consumption behavior and values.

    Even where it had been adapting to local scenarios and role models these shown often come from sectors of society. Such as the upwardly mobile urban middle class. Which embrace or are receptive to Western values and mores. As a consequence, a criticism frequently leveled at international advertising is that it promulgates Western values and morals; especially from the US.

    Global Localization:

    This is generally regarded as negative in societies with strong religious and moral values. Which is run as a counter to those of the west? For example the Islamic societies in the Middle East. When Western advertising shows sexually explicit situations or shows women in situations. Which is considering as inappropriate or immoral? It is likely to consider a subversive force undermining established cultural mores and values.

    Similarly, in some countries such as France, there is strong opposition to the imposition of US culture, values, and use of English in advertising. Promotion of tobacco products by US and UK companies in countries. Where there is no legislation regulating or banning cigarette advertising has also been criticizing.

    Global Communication:

    At the same time, international advertising also acts as an integrating force across national boundaries. It makes the message known using universal symbols and slogans and establishes. A common mode of communication among target audiences in different parts of the world. At the same time, multicultural values are reinforcing by advertisers. Who adopt images incorporating peoples of different nations and diverse cultural backgrounds. For example, the Colors of Benetton campaign or the British Airways “Peoples of the World” campaign.

    Consequently, while, on the one hand, international advertising can view as a colonizing force propagating Western values and morale throughout the world. It is also an important force that integrates societies and establishes common bonds, universal symbols, and models of communication among peoples in different parts of the world.

    The Aspect of International Advertising in Social Life
    The aspect of International Advertising in Social 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 a Business Plan?

    What Is a Business Plan?

    A business plan is a written statement that describes and analyzes your business and gives detailed projections about its future. A business plan also covers the financial aspects of starting or expanding your business—how much money you need and how you’ll pay it back.

    Writing a business plan is a lot of work. So why take the time to write one? The best answer is the wisdom gained by literally millions of business owners just like you. Almost without exception, each business owner with a plan is pleased she has one, and each owner without a plan wishes he had written one.

    Why Write a Business Plan?

    Why Write a Business Plan?
    Why Write a Business Plan?

    Here are some of the specific and immediate benefits you will derive from writing your business plan.

    Helps You Get Money

    most lenders or investors require a written business plan before they will consider your proposal seriously. Even some landlords require a sound business plan before they will lease you space. Before making a commitment to you, they want to see that you have thought through critical issues facing you as a business owner and that you really understand your business. They also want to make sure your business has a good chance of succeeding.

    In my experience, about 35% to 40% of the people currently in business do not know how money flows through their business. Writing a business plan with this book teaches you where money comes from and where it goes. Is it any wonder that your backers want to see your plan before they consider your financial request?

    There are as many potential lenders and investors as there are prospective business owners. If you have a thoroughly thought-out business and financial plan that demonstrates a good likelihood of success and you are persistent, you will find the money you need. of course, it may take longer than you expect and require more work than you expect, but you will ultimately be successful if you believe in your business.

    Helps You Decide to Proceed or Stop

    one major theme of the book may surprise you. It’s as simple as it is important. You, as the prospective business owner, are the most important person you must convince of the soundness of your proposal. Therefore, much of the work you are asked to do here serves a dual purpose. It is designed to provide answers to all the questions that prospective lenders and investors will ask.

    But it will also teach you how money flows through your business, what the strengths and weaknesses in your business concept are, and what your realistic chances of success are.

    The detailed planning process described in this book is not infallible—nothing is in a small business—but it should help you uncover and correct flaws in your business concept. If this analysis demonstrates that your idea won’t work, you’ll be able to avoid starting or expanding your business. This is extremely important. It should go without saying that a great many businesspeople owe their ultimate success to an earlier decision not to start a business with built-in problems.

    Let’s You Improve Your Business Concept

    Writing a plan allows you to see how changing parts of the plan increases profits or accomplishes other goals. You can tinker with individual parts of your business with no cash outlay. If you’re using a computer spreadsheet to make financial projections, you can try out different alternatives even more quickly. This ability to fine-tune your plans and business design increases your chances of success.

    For example, let’s say that your idea is to start a business importing Korean leather jackets. Everything looks great on the first pass through your plan. Then you read an article about the declining exchange ratio of U.S. dollars to Korean currency. After doing some homework about exchange rate fluctuations, you decide to increase your profit margin on the jackets to cover anticipated declines in dollar purchasing power. This change shows you that your prices are still competitive with other jackets and that your average profits will increase. And you are now covered for any likely decline in exchange rates.

    Improves Your Odds of Success

    one way of looking at business is that it’s a gamble. You open or expand a business and gamble you’re and the bank’s or investor’s money. If you’re right, you make a profit and pay back the loans and everyone’s happy. But if your estimate is wrong, you and the bank or investors can lose money and experience the discomfort that comes from failure. (of course, a bank probably is protected because it has title to the collateral you put up to get the loan.)

    Writing a business plan helps beat the odds. most new, small businesses don’t last very long. And, most small businesses don’t have a business plan. Is that only a coincidence, or is there a connection between these two seemingly unconnected facts? my suggestion is this: let someone else prove the connection wrong. Why not be prudent and improve your odds by writing a plan?

    Helps You Keep on Track

    many business owners spend countless hours handling emergencies, simply because they haven’t learned how to plan ahead. This book helps you anticipate problems and solve them before they become disasters.

    A written business plan gives you a clear course toward the future and makes your decision making easier. Some problems and opportunities may represent a change of direction worth following, while others may be distractions that referring to your business plan will enable you to avoid. The black and white of your written business plan will help you face facts if things don’t work out as expected. For example, if you planned to be making a living three months after start-up, and six months later you’re going into the hole at the rate of $100 per day, your business plan should help you see that changes are necessary. It’s all too easy to delude yourself into keeping a business going that will never meet its goals if you approach things with a “just another month or two and I’ll be there” attitude, rather than comparing your results to your goals.

    Issues Beyond the Plan

    I have written this book to provide you with an overview of the issues that determine success or failure in a small business. Experienced lenders, investors, and entrepreneurs want a plan that takes these issues into account. of course, this book can’t cover everything. Here are some of the key business components that are left out of this initial planning process.

    Bookkeeping and Accounting

    This book discusses the numbers and concepts you as the business owner need to open and manage your small business. You have the responsibility to create bookkeeping and accounting systems and make sure they function adequately. One of the items generated by your

    accounting system will be a balance sheet. A balance sheet is a snapshot at a particular moment in time that lists the money value of everything you own and everything you owe to someone else.

    Taxes

    While there are a few mentions of tax issues throughout the book, most of the planning information doesn’t discuss how taxes will be calculated or paid. The book focuses its efforts on making a profit and a positive cash flow. If you make a profit, you’ll pay taxes and if you don’t make a profit, you’ll pay fewer taxes. A cPA or tax advisor can help you with tax strategies.

    Securities Laws

    If you plan to raise money by selling shares in a corporation or limited partnership, you’ll fall under state or federal securities regulations. You can, however, borrow money or take in a general partner without being affected by securities laws. A complete discussion of these issues is beyond the scope of this book. For now, take note that you must comply with securities regulations after you complete your plan and before you take any money into your business from selling shares or partnership interests.

    Your Management Skill

    This book shows you how to write a very good business plan and loan application. However, your ultimate success rests on your ability to implement your plans—on your management skills. If you have any doubts about your management ability, check out the resources other article. Also see another posts for a thought-stimulating discussion of management.

    Issues Specific to Your Business

    How successfully your business relates to the market, the business environment, and the competition may be affected by patents, franchises, foreign competition, location, and the like. of necessity, this book focuses on principles common to all businesses and does not discuss the specific items that distinguish your business from other businesses. For example, this post doesn’t discuss how to price your products to meet your competition; I assume that you have enough knowledge about your chosen business to answer that question.

  • Who Changing Demographics of Entrepreneurs?

    Who Changing Demographics of Entrepreneurs?

    Demographics of Entrepreneurs; Entrepreneurship traditionally defines as the process of designing, launching and running a new business, which typically begins as a small business, such as a startup company, offering a product, process or service for sale or hire. It defines as the “capacity and willingness to develop, organize, and manage a business venture along with any of its risks to make a profit”.

    Here are explain common questions in Corporate, Who Changing Demographics of Entrepreneurs?

    While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risk involves in launching a start-up, a significant proportion of businesses have to close, due to a “Lack of funding, bad business decisions, an economic crisis or a combination of all of these” or due to lack of market demand. In the 2000s, the definition of “Entrepreneurship” has expand to explain how and why some individuals (or teams) identify opportunities, evaluate them as viable, and then decide to exploit them, whereas others do not, and, in turn, how entrepreneurs use these opportunities to develop new products or services, launch new firms or even new industries and create wealth.

    Definitions of Entrepreneurs:

    Traditionally, an entrepreneur defines as;

    “A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.” “Rather than working as an employee, an entrepreneur runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur commonly sees as a business leader and innovator of new ideas and business processes.”

    Entrepreneurs tend to be good at perceiving new business opportunities and they often exhibit positive biases in their perception (i.e., a bias towards finding new possibilities and seeing unmet market needs) and a pro-risk-taking attitude that makes them more likely to exploit the opportunity.

    “Entrepreneurial spirit characterizes by innovation and risk-taking.”

    While entrepreneurship often associates with new, small, for-profit start-ups, entrepreneurial behavior can see in small, medium and large-sized firms, new and established firms and in for-profit and not-for-profit organizations, including voluntary sector groups, charitable organizations, and government.

    For example, in the 2000s, the field of social entrepreneurship identified, in which entrepreneurs combine business activities with humanitarian, environmental or community goals.

    Now, Here is Who Changing Demographics of Entrepreneurs:

    The following demographics of entrepreneurs how to changing below explains;

    Over the past 10 years, the demographic makeup of entrepreneurial firms has changed in the United States and around the world. Of the 27.5 million businesses in the United States, women, minorities, seniors, and young people own an increasingly larger number of them. This is an exciting development for the entrepreneurial sector of the U.S economy.

    Women Entrepreneurs:

    While men are still more likely to start businesses than women, the number of women-owned businesses is increasing. According to the U.S. Census Bureau, there were 6.5 million privately-held women-owned firms in the United States in 2002, the most recent year the U.S. Census Bureau collected ownership data. These firms generated an estimated $940 billion in sales and employed 7.1 million people. The number of women-owned firms increased by 19.8 percent from 1997 to 2002, compared with a growth rate of 10.3 percent for United States firms overall.

    According to a survey of both women-owned and men-owned businesses in the United States, the average age of the individuals who lead women-owned firms is 44.7 years old. A total of 52.7 percent of women-owned firms are home-based, 31.9 percent are multi-owner firms, and 19.5 percent were started for less than $2,000. The top industry for women-owned businesses is retail (19 percent) followed by professional, management, and educational services (16.3 percent). Women-owned firms still trail male-owned businesses in terms of sales and profits. The average women-owned firm has annual sales of $60,264 and annual profits of $14,549, compared to annual sales of $118,987 and profits of $30,373 for male-owned businesses.

    There are a growing number of groups that support and advocate for women-owned businesses. An example is Count Me In (www.makemineamillion.org), which is the leading national not-for-profit provider of resources, business education, and community support for women entrepreneurs.

    Minority Entrepreneurs:

    There has been a substantial increase in minority entrepreneurs in the United States from 1996 to 2010. The biggest jump has come in Latino entrepreneurs, which increased from 11 percent to 23 percent from 1996 to 2010, followed by Asian entrepreneurs, which jumped from 4 percent to 6 percent during the same period. While these numbers are encouraging, in general, the firms created by minority entrepreneurs lag behind averages for all firms in terms of economic indicators. The Kauffman Foundation is one group that actively engages in research to not only track the growth in minority entrepreneurs but to better understand how to strengthen the infrastructures and networks to enable minority entrepreneurs to reach higher levels of financial success.

    Similar to women entrepreneurs, an important factor facilitating the growth of minority entrepreneurs is the number of organizations that promote and provide assistance. Examples include the Latin Business Association, Black Business Association, National Indian Business Association, The National Council of Asian American Business Associations, and the Minority Business Development Agency, which is part of the United States Department of Commerce.

    Senior Entrepreneurs:

    The increase in entrepreneurial activity among senior entrepreneurs, consisting of people 55 years and older, between 1996 and 2010 is substantial (from 14 percent to 23 percent). This increase attribute to several factors, including corporate downsizing, an increasing desire among older workers for more personal fulfillment in their lives, and growing worries among seniors that they need to earn additional income to pay for future health care services and other expenses. Many people in the 55 and older age range have substantial business experience, financial resources that they can draw upon, and excellent vigor and health.

    There are several interesting statistics associated with the increasing incidence of senior entrepreneurs. For example, 39 is now the average age of the founders of technology companies in the United States, with twice as many over age 50 as under age 25. Similarly, the steady increase in life expectancy means that Americans are not only living longer, but are living healthier longer, and are likely to remain engaged in either a job or an entrepreneurial venture longer in their lives than earlier generations.

    Young Entrepreneurs:

    Interestingly, a drop in new entrepreneurial activity for people in the 20 to 34 age range occurred between 1996 and 2010 (from 35 percent in 1996 to 26 percent in 2010); nonetheless, the number of young people interested in entrepreneurship remains strong. At the high school and younger level, according to a Harris Interactive survey of 2,438 individuals ages 8 to 21, 40 percent said they’d like to start their own business someday. A total of 59 percent of the 8- to 21-year-olds said they know someone who has started his or her own business. The teaching of entrepreneurship courses is becoming increasingly common in both public and private high schools. Not-for-profit agencies involving in these efforts too.

    The Network for Teaching Entrepreneurship (NFTE), for example, provides entrepreneurship education programs to young people from low-income communities. The organization’s largest annual event calls “Lemonade Day” and held each May. In 2011, over 120,000 kids attended one-day entrepreneurial training sessions in 31 cities. The program teaches children and teens how to borrow money and repay investors who help start their stands, and what to do with the profit, including donating some to nonprofit causes. Since its founding, the NFTE has reached more than 300,000 young people, and currently, has programs in 21 states and 10 foreign countries.

    In addition to the NFTE,

    A growing number of colleges and universities are offering entrepreneurship-focused programs for high school students. Babson College, for example, offers three Summer Study Programs for high school students. The first two programs, Babson Entrepreneur Development Experience and Babson Idea Generation Program, are resident programs for high school students entering their junior or senior year. Members of the Babson faculty teach in these programs; each program lasts seven weeks. The third program, Service Learning Experience, is a nonresident program for high school sophomores who are passionate about social outreach.

    On college campuses, interest in entrepreneurship education is at an all-time high, as will be described throughout this article. More than 2,000 colleges and universities in the United States, which is about two-thirds of the total, offer at least one course in entrepreneurship. Although the bulk of entrepreneurship education takes place within business schools, many other colleges and departments are offering entrepreneurship courses as well—including engineering, agriculture, theater, dance, education, law, and nursing.

    Who Changing Demographics of Entrepreneurs Bulletin board
    Who Changing Demographics of Entrepreneurs? Bulletin board image from Pixabay.

    Notes: Here are read it Who Changing Demographics of Entrepreneurs? Would you like more read it; What is an Entrepreneur?, and also read it What Is Entrepreneurship?, don’t forget read it; Why Become an Entrepreneur?, and Common Myths About Entrepreneurs.

  • Fourteen Common Myths About Entrepreneurs

    Fourteen Common Myths About Entrepreneurs

    Common Myths About Entrepreneurs; There are many misconceptions about who entrepreneurs are and what motivates them to launch firms to develop their ideas. Some misconceptions are because of the media covering atypical entrepreneurs, such as a couple of college students who obtain venture capital to fund a small business that they grow into a multimillion-dollar company.

    Here are the best fourteen Common Myths About Entrepreneurs.

    Such articles rarely state that these entrepreneurs are the exception rather than the norm and that their success is a result of carefully executing an appropriate plan to commercialize what inherently is a solid business idea. Indeed, the success of many of the entrepreneurs we study in each chapter’s Opening Profile is a result of carefully executing the different aspects of the entrepreneurial process. Let’s look at the most common myths and the realities of entrepreneurs.

    An entrepreneur has been defining as,

    “A person who starts, organizes and manages any enterprise, especially a business, usually with considerable initiative and risk”. “Rather than working as an employee, an entrepreneur runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur commonly sees as a business leader and innovator of new ideas and business processes.”

    Here are Fourteen Common types of Myths of Entrepreneurs:

    The following common myths of entrepreneurs are below;

    Myth I: Entrepreneurs are born, not made;

    This myth bases on the mistaken belief that some people genetically predisposes to be entrepreneurs. The consensus of many hundreds of studies on the psychological and sociological makeup of entrepreneurs is that entrepreneurs are not genetically different from other people. This evidence can interpret as meaning that no one is “born” to be an entrepreneur and that everyone has the potential to become one. Whether someone does or doesn’t is a function of environment, life experiences, and personal choices. However, there are personality traits and characteristics commonly associated with entrepreneurs; these are Common traits, myth, and Characteristics of Entrepreneurs;

    • A moderate risk taker – Optimistic disposition
    • A networker – Persuasive
    • Achievement motivated – Promoter
    • Alert to opportunities – Resource assembler/leverager
    • Creative – Self-confident
    • Decisive – Self-starter
    • Energetic – Tenacious
    • A strong work ethic – Tolerant of ambiguity
    • Lengthy attention span – Visionary

    These traits are developed over time and evolve from an individual’s social context. For example, studies show that people with parents who were self-employed are more likely to become entrepreneurs. After witnessing a father’s or mother’s independence in the workplace, an individual is more likely to find independence appealing.

    Similarly, people who personally know an entrepreneur is more than twice as likely to involve in starting a new firm as those with no entrepreneur acquaintances or role models. The positive impact of knowing an entrepreneur is explained by the fact that direct observation of other entrepreneurs reduces the ambiguity and uncertainty associated with the entrepreneurial process.

    Myth II: Entrepreneurs are gamblers;

    The second myth about entrepreneurs is that they are gamblers and take big risks. The truth is, entrepreneurs are usually moderate risk-takers, as are most people. The idea that entrepreneurs are gamblers originates from two sources. First, entrepreneurs typically have less structured jobs, and so they face a more uncertain set of possibilities than managers or rank-and-file employees.

    For example, an entrepreneur who starts a social network consulting service has a less stable job than one working for a state governmental agency. Second, many entrepreneurs have a strong need to achieve and often set challenging goals, a behavior that sometimes equates with risk-taking.

    Myth III: Entrepreneurs motivate primarily by money;

    It is naïve to think that entrepreneurs don’t seek financial rewards. As discussed previously, however, money is rarely the primary reason entrepreneurs start new firms and persevere. The importance and role of money in a start-up is put in perspective by Colin Angle, the founder, and CEO of iRobot, the maker of the popular Roomba robotic vacuum cleaner.

    Commenting on his company’s mission statement Angle said: Our, “Build Cool Stuff, Deliver Great Products, Have Fun, Make Money, Change the World” (mission statement) kept us (in the early days of the Company) unified with a common purpose while gut-wrenching change surrounded us. It reminded us that our goal was to have fun and make money. Most importantly, it reminded us that our mission was not only to make money but to change the world in the process. Some entrepreneurs warn that the pursuit of money can be distracting. Media mogul Ted Turner said, “If you think money is a really big deal you’ll be too scared of losing it to get it”.

    Extra Things;

    Similarly, Sam Walton, commenting on all the media attention that surrounded him after he was named the richest man in America by Forbes magazine in 1985, said:

    Here’s the thing: money has never meant that much to me, not even in the sense of keeping score. … We’re not ashamed of having money, but I just don’t believe a big showy lifestyle is appropriate for anywhere, least of all here in Bentonville where folks work hard for their money. We all know that everyone puts on their trousers one leg at a time. … I still can’t believe it was news that I get my hair cut at the barbershop. Where else would I get it cut? Why do I drive a pickup truck? What am I supposed to haul my dogs around in, a Rolls-Royce?

    Myth IV: Entrepreneurs should be young and energetic;

    Entrepreneurial activity is fairly evenly spread out over age ranges. According to an Index of Entrepreneurial Activity maintained by the Kauffman Foundation, 26 percent of entrepreneurs of ages 20 to 34, 25 percent of ages 35 to 44, 25 percent of ages 45 to 54, and 23 percent of ages 55 to 64. The biggest jump, by far, from 1996 to 2010, which is the period the Kauffman date covers, is the 55 to 64 age bracket. A total of 14 percent of entrepreneurs were 55 to 64 years old in 1996, compared to 23 percent in 2010.

    The increasing number of older-aged entrepreneurs is a big change in the entrepreneurial landscape in the United States. Although it is important to be energetic, investors often cite the strength of the entrepreneur (or team of entrepreneurs) as their most important criterion in the decision to fund new ventures. A sentiment that venture capitalists often express is that they would rather fund a strong entrepreneur with a mediocre business idea than fund a strong business idea and a mediocre entrepreneur.

    What makes an entrepreneur “strong” in the eyes of an investor is the experience in the area of the proposed business, skills and abilities that will help the business, a solid reputation, a track record of success, and passion about the business idea. The first four of these five qualities favor older rather than younger entrepreneurs.

    Myth V: Entrepreneurs love the spotlight;

    Indeed, some entrepreneurs are flamboyant; however, the vast majority of them do not attract public attention. Many entrepreneurs, because they are working on proprietary products or services, avoid public notice. Consider that entrepreneurs are the source of the launch of many of the 2,850 companies listed on the NASDAQ, and many of these entrepreneurs are still actively involved with their firms. But how many of these entrepreneurs can you name? Perhaps a half dozen? Most of us could come up with Bill Gates of Microsoft, Jeff Bezos of Amazon.com, Steve Jobs of Apple Inc., Mark Zuckerberg of Facebook and maybe Larry Page and Sergey Brin of Google.

    Whether or not they sought attention, these are the entrepreneurs who are often in the news. But few of us could name the founders of Netflix, Twitter, or GAP even though we frequently use these firms’ products and services. These entrepreneurs, like most, have either avoided attention or been passed over by the popular press. They defy the myth that entrepreneurs, more so than other groups in our society, love the spotlight. Now, Common Myths About Entrepreneurs by businesstown.com.

    Myth VI: Entrepreneurs Are High-Risk Takers;

    Entrepreneurs, Rye states, are often thought of in terms of the risk they assume. Even the dictionary describes an entrepreneur as one who assumes business risks. However, like all prudent businesspeople, entrepreneurs know that taking high risks is a gamble. Entrepreneurs are neither high nor low-risk takers. They prefer situations in which they can influence the outcome, and they like challenges if they believe the odds are in their favor.

    They seldom act until they have assessed all the risks associated with an endeavor, and they have an innate ability to make sense out of complexity. These are traits that carry them on to success where others fail. I certainly agree with Rye. Entrepreneurs generally seek the best risk/reward situation. Like most humans, they are often are a little hesitant to risk everything and take wild chances.

    Myth VII: Entrepreneurs Mainly Motivate to Get Rich;

    Any successful entrepreneur, argues Rye, will tell you that starting a business is not a get-rich-quick alternative. New businesses usually take from one to three years to turn a profit. In the meantime, you consider being doing well if you break even. During the business start-up stage, entrepreneurs do not buy anything they do not need, such as fancy cars. Most drive junk cars and use their surplus money to pay off debt or reinvest it in the business. Their focus is on creating a company with a strong financial base for future expansion.

    I largely agree with Rye. For entrepreneurs, money isn’t everything. But nothing is embarrassing about being partially motivated by money, as are most entrepreneurs. If entrepreneurs couldn’t get rich and get a financial reward for their work, the United States could be almost as poor as Cuba. It is OK to make money, build a business, and help build your local economy in the process.

    Myth VIII: Entrepreneurs Give Little Attention to Their Personal Life;

    All successful entrepreneurs, Rye says, work long hours, which cuts into their personal life. However, long working hours are not unique to entrepreneurs. Many corporate managers and executives work well beyond the average 40-hour workweek. The primary difference between the entrepreneur and his or her corporate counterpart is schedule control.

    In the corporate world, you may not have control over your schedule. If some higher-level manager calls a Saturday meeting, you’ve got no choice but to be there. Entrepreneurs don’t mind working 60- to 70-hour weeks, but they will do everything they can to preserve their private time. They schedule important meetings during the week so that they can have weekends off for their personal life, which is very important to them.

    I find what Rye says is true, that most entrepreneurs do not give a lot of attention to their personal lives. I have, at times, been an outlier and had almost no personal time, such as when I was a full-time student at Harvard Business School and running four start-up businesses at the same time, or was a full-time college student and starting an independent newspaper business. Sometimes, as an entrepreneur with an especially fast-growing business, you are going to have to sacrifice personal time.

    Myth IX: Entrepreneurs Are Often High-Tech Wizards;

    We are all aware, says Rye, of a few high-tech entrepreneurial wizards who have made it. Media attention overplays the success of these few high-tech entrepreneurs. Only a small percentage of today’s businesses consider high tech, and what was considered high tech just a few years ago not considers high tech by today’s standards.

    It takes high-profit margins, not high tech, to make it as an entrepreneur. One has only to look at the recent problems that have plagued the computer industry to understand this basic principle. High-tech personal computers did very well when they made high-profit margins. The industry then went into a nosedive when profits fell.

    Yes, I think Rye is right on the money. Very few businesses require high tech abilities. I have started and run a multimedia business, an interactive software business, and two Internet businesses, with virtually no tech experience or expertise. (Although to be sure, I did learn to do a little computer programming along the way when I start these businesses, to help me appreciate what the engineers were doing). Furthermore, most businesses are not even tech businesses at all.

    Myth X: Entrepreneurs Are Loners and Introverts;

    Initially, Rye says, entrepreneurs might work alone on a business idea by tinkering in the solitude of their garage or den. In this myth, I don’t agree with Rye. An astute entrepreneur knows that he or she must draw on the experience and ideas of others to succeed. Entrepreneurs will actively seek the advice of others and will make many business contacts to validate their business ideas. The entrepreneur who is a loner and will not talk to anybody will never start a successful business.

    I’ve spent a lot of time working largely in isolation during the early stages of building businesses. I think a lot of other entrepreneurs have, too. Not ideal in hindsight, but that’s what I often did. Generally, I think entrepreneurs are willing to work independently if it is necessary to succeed. But even independent-minded people can get lonely, especially if you are working day and night in a small home-based business.

    Myth XI: Entrepreneurs Are Job Hoppers;

    A recent study of successful entrepreneurs, notes Rye, showed that most of them worked for a large corporation for several years before they started their own business. In every instance, they used the corporate structure to learn everything they could about the business they intended to establish before they started their own. Entrepreneurs are not job hoppers.

    I tend to agree with Rye. I think most entrepreneurs have usually had a good track record in the workplace. Most have spent years working for other people before going on their own. But you don’t have to do so to succeed. The longest single job I ever held lasted about eight weeks, but in total, I’ve only worked a few months for anyone else in my entire lifetime.

    Myth XII: Entrepreneurs Finance Their Business with Venture Capital;

    Entrepreneurs, Rye says, know that venture capital money is one of the most expensive forms of funding they can get. Consequently, they will avoid venture capitalists, using them only as a last resort. Most entrepreneurs fund their business from personal savings, or by borrowing from friends or lending institutions.

    I often remind people that venture capital is a relatively small industry and, as such, finances an extremely minute number of small businesses. To finance by a VC firm, your business might need to meet all kinds of criteria, and then find a VC firm that loves it. Furthermore, since VC firms tend not to want to put much money into any one startup, most VC-funded startups have to get money from not one but several different firms.

    Myth XIII: Entrepreneurs Are Often Ruthless or Deceptive;

    Rye thinks that some people believe that to make it as an entrepreneur; you have to be deceptive and step on anybody who gets in your way. On the contrary, this mode of operation doesn’t work for the entrepreneur. The truly ruthless or deceptive entrepreneur will often alienate others; and, forces to waste time and energy repairing relationships with employees, customers, and suppliers, or simply fail.

    I don’t know if people predispose to think negatively of entrepreneurs as Rye states. But, in any event, I think entrepreneurs have some bad apples in their ranks. Not many, but some. I have lost sales to competitors who fabricate the facts, exaggerate the truth, slander their competitors, and engage in all kinds of other unethical behavior. But I have found that such competitors eventually implode.

    Often, they lose their best employees, whom they also treat poorly, or they lose their customers. Once, when I was in a dogfight with a ruthless competitor in a business that was extremely dependent upon sales, his three best salespeople, as well as his sales manager, approach me on their initiative and end up joining my team.

    Myth XIV: Entrepreneurs Have Limited Dedication;

    Rye says it is a myth that entrepreneurs do not dedicate to any one thing. But he adds that dedication is an attribute that all successful entrepreneurs exhibit. They dedicate to becoming their boss. To this end, they’ll work like a dog to make their business succeed.

    While I agree with Rye that entrepreneurs will work like a dog to succeed; I do think that many entrepreneurs can change businesses or direction quicker than other people. Often, this ability to switch direction quickly can be essential for success, and entrepreneurs tend not to switch direction recklessly, although there are always exceptions. Finally, you may understand the best fourteen Common Myths About Entrepreneurs.

    Fourteen Common Myths About Entrepreneurs Macbook
    Fourteen Common Myths About Entrepreneurs, Macbook image from Pixabay.

    Notes: Here are read it Common Myths About Entrepreneurs, Would you like more read it; What is an Entrepreneur? and also, read it What Is Entrepreneurship?, don’t forget read it; Why Become an Entrepreneur?, Next up; Who Changing Demographics of Entrepreneurs?.

  • Types of Business

    Types of Business:

    There are three major types of businesses:

    1. Service Business

    A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.

    Examples of service businesses are schools, repair shops, hair salons, banks, accounting firms, and law firms.

    1. Merchandising Business

    This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” businesses. They make the profit by selling the products at prices higher than their purchase costs.

    A merchandising business sells a product without changing its form. Examples are grocery stores, convenience stores, distributors, and other resellers.

    1. Manufacturing Business

    Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus, there is a transformation of the products purchased.

    A manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to customers.

    Hybrid Business

    Hybrid businesses are companies that may be classified in more than one type of business. A restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

    Nonetheless, these companies may be classified according to their major business interest. In that case, restaurants are more of the service type – they provide dining services.

    Forms Types of Business Organization:

    These are the basic forms of business ownership:

    1. Sole Proprietorship

    A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.

    The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of the owner if the business cannot pay them.

    The sole proprietorship form is usually adopted by small business entities.

    1. Partnership

    A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves.

    In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners.

    1. Corporation

    A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock.

    The owners (stockholders) enjoy limited liability but have limited involvement in the company’s operations. The board of directors, an elected group of the stockholders, controls the activities of the corporation.

    In addition to those basic forms of business ownership, these are some other types of organizations that are common today:

    Limited Liability Company:

    Limited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation.

    Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation.

    Cooperative:

    A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated.

    Some examples of cooperatives are water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing cooperatives; This is simple types of business read and understanding, around world many many types of business run.

  • 201 Great Ideas for Your Small Business

    201 Great Ideas for Your Small Business:

    201 Great Ideas for Your Small Business by Jane Applegate; 201 Great Ideas provides lively, practical strategies to help you manage, grow, and promote your business. The first edition of 201 Great Ideas for Your Small Business was hailed by management guru and author Tom Peters as “Brilliantly researched. Brilliantly written. A gem of priceless value on almost every page.

    201 Great Ideas for Your Small Business.pdf