Why are the Need Entrepreneurship for Small Business?
Entrepreneurship is the act of being an entrepreneur, which is a French word meaning “one who undertakes an endeavor”. Entrepreneursassemble resources including innovations, finance and business acumen in an effort to transform innovations into economic goods. The most obvious form of entrepreneurship is that of starting new Businesses; however, in recent years, the term has been extended to include social and political forms of entrepreneurial activity.
The concept of entrepreneurship has a wide range of meanings. On the one extreme an entrepreneur is a person of very high aptitude who pioneers change, possessing characteristics found in only a very small fraction of the population.
According to A.H. Cole, “Entrepreneurship is the purposeful activity of an individual or group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods or services”.
Entrepreneurship promotes small business in the society. Government has accepted the fact that small firms have a crucial role to play in the economic development of the country. Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies.
Small businesses are an essential part of our future economic prosperity because of the following reasons;
Employment generation
Entrepreneurial development is look at as a vehicle for employment generation through promotion of small business. India, being far more develop and forward looking country than some of the third world countries, can provide lead to entrepreneurial development activities. However, India can benefit from the well- documented success experiences of developed countries like USA, Japan and UK in the field of employment generation and small business promotion. Steady growth in consumer spending, expanding retail sales, a strong housing market, continued expansion of the service sector, low rates of inflation and of labor cost increases and failing interest rates contributed to a healthy environment for small business. In India, the government policies, political and economic environment greatly encourage the establishment of new and small enterprises. Self- employment and small scale industry schemes have further liberalized during the last decade.
Small business dynamism
Great dynamism is one of the qualities of the small and medium enterprises. This quality of dynamism originates in the inherent nature of the Small Business. The structure of small and medium enterprises is less complex than that of large enterprises and therefore facilitates quicker, and smoother communication and decision- making. This allows for the greater flexibility and mobility of small business management. Also, small enterprises, more often make it possible for owners. Who have a stronger entrepreneurial spirit than employed mangers, to undertake risk and challenges. New Roles of Human Resource Management in Business Development.
Balanced economic development
Small business promotion needs relatively low investment and therefore can easily undertaken in rural and semi-urban areas. This in turn creates additional employment in these areas and prevents migration of people from rural to urban areas. Since majority of the people are living in the rural areas. Therefore, more of our development efforts should be direct towards this sector. Small enterprises use local resources and are best suit to rural and underdeveloped sector. This in turn will also lead to dispersal of industries. Reduction in concentration of economic power and balanced regional development.
Innovations in enterprises
Business enterprises need to be innovative for survival and better performance. It is believe that smaller firms have a relatively higher necessity and capability to innovate. The smaller firms do not face the constraints imposed by large investment in existing technology. They are both free and compellable to innovate. Entrepreneurship development is accelerating the pace of small firm’s growth in India. An increased number of small firms are expects to result in more innovations. And make the Indian industry compete in the international market.
Entrepreneurs are Born or Made; Since the late 18th century, the business has constituted the main component of modern society. As the success of Steve Jobs, Bill Gates and Warren Buffet, many people start their own business in chase of profit. An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. Entrepreneurs are growing every day while others bankrupting.
Here are explain common questions in Corporate, Are Entrepreneurs Made or Born?
You may think that entrepreneurs are born successful, and they owned an enormous business. Why Become an Entrepreneur? However, the entrepreneur does not define as the one who has made their business tremendous, but the one who starts his own company and employs himself. Therefore, anyone can become an entrepreneur if he or she starts his or her own business and works for himself or herself.
There are no boundaries among people, but your working position determines whether you are an entrepreneur. Entrepreneurs are not naturally born, but naturally made. Entrepreneurship is not a destiny, but a qualification. It is the qualities that make entrepreneurs successful. Moreover, the qualities are not inherent but gotten through education and experiences.
Are Entrepreneurs Made or Born?
Here are below explain;
Entrepreneurs are not born,
Entrepreneurs are not like athletes, they don’t need a natural inherent body and muscles. An athlete’s child may grow up an athlete, but it would not happen in an entrepreneur’s family. Many businesses bankrupt every day, including some entrepreneur’s families. However, entrepreneurs are naturally made, and they own some special qualities and also need some training and experiences as athletes. Many people from non-entrepreneurs families start their own business and become entrepreneurs every day.
Dhirubhai Ambani, the most enterprising businessman in India who’s father is a school teacher, started his business on his own. Warren Buffett is not born as an entrepreneur either. He started his company when he was 27 years old using his earns from his previous investments, made a great profit from his unique and accurate opinion on the stock market, and his Berkshire industrial Kingdom became a famous huge business in the world. There are many examples of entrepreneurs who started their businesses as a green hand, instead of inheriting from their families. Thus we could not say that entrepreneurs are born, however, the entrepreneurs acquired many qualities that made them successful.
The main quality of entrepreneurship is innovation,
Which is not obtained naturally. Innovation is a new product, a new technology, a news source, and a new market. There are many examples of entrepreneurs bankrupted due to a lack of innovation. The famous company, Apple, make its success by innovation. As we all know, Apple will release his new product or innovation of its existing products every year, and the big success of the iPhone, iPad, iPod, and iMac make Steve Jobs the most well-known famous entrepreneur. After all, the sense of innovation is not grown naturally, it comes from opportunities. When there is a problem, there are opportunities.
Several years ago, there is no software’s in the computer, and Bill Gates made his entrepreneurship from creating the first software, Windows. The Body Shop International was created by Anita Roddick because ” she was tired of paying for unnecessary perfume and fancy packaging when she bought makeup”. The problem that Anita faced made her start her own business to solve the problem. The problem finding quality is the quality that everyone was born with, and the opportunity is just coming from those problems.
The second quality of entrepreneurship experiences,
Which is exactly extracted from posteriority. About 60 percent of the entrepreneurial leaders are “transitioned”, and the number one ranking factor of success is the experience as the employee. People can learn terminologies and skills for business evoked as their language, and the procedures of running a business become his or her conditional reflex, which will make their future operating business effectively and efficiently. From the previous experience, the entrepreneur can easily tackle the key to a problem and forecasting the development of his or her business. Yu Minhong, a great entrepreneur, started his tutoring school, New Oriental, after his experience of teaching and tutoring at Peking University.
He extracted his way of teaching from his previous experience of teaching and used the teaching method in his company. The big success of New Oriental makes Yu Minhong one of the greatest entrepreneurs in China, and his method of teaching spreads all over the country. The rules of business are simple, making a business plan, ordinating your customers, operating and developing the business. From your previous experience, you will have the blueprint of your business, and you have already had your customers when you start. Thus with your employment experience, you are jumping the first two steps, which are making a business plan and ordinating customers, and directly shortcut into the third step – operating and developing the business.
The third quality of entrepreneurship is knowledge,
Which is not inborn but acquired from education. Entrepreneurs are facing various challenges from finance, operation, organization, and laws. Operating the business requires you to understand financial statements. Financial statements, consisting of income statement, cash flow statement and balance sheet, is a tool for entrepreneurs to track their operations. The knowledge of financial statement is not acquired naturally, it is obtained from the study. Not only the understanding of the financial statement but also the financial ratio analysis are needed as an entrepreneur. To cooperate with the government, the entrepreneur needs to know the regulations such as taxes and franchising.
The lack of financial knowledge may be fatal. Henry Ford surrendered most of his stocks for the demanded capital, and he spent even more years than he expected to receive money to buy back his stocks. Some of the entrepreneurs even gain returns from investing in using finance knowledge. Warren Buffet-“The Oracle of Omaha”, Peter Lynch-mutual fund manager, Benjamin Graham-“The Father of Value Investing”, give us vivid instances of making money just through their wisdom of investing strategy driven from their solid knowledge obtained in school. The knowledge will drive the entrepreneurs to make the right decision for their business and operate better. How To Make Your Small Business Stand Out? Many Ways You Can Try IT!
The fourth quality of an entrepreneur is a good sense of dealing with people, communication,
People are not born with good communication since we all start learning languages, but they can start learning communication skills at an early age. Communicating well means the entrepreneurs will get their potential customers and gained more customers from fabulous customer service. Salespeople will probably become successful entrepreneurs since they will touch the customers directly and know their needs. Great entrepreneurs in the U.S. such as Ray Kroc -founder of McDonald’s, Aristotle Onassis and King C. Gillette start from sales. They sensed people’s need and started their entrepreneurship. Good communication prepare, not born, to sell your product. The entrepreneurs need to know their products, their business field, as well as their customers.
Extra things;
Apart from innovation, experience, knowledge, and communication, qualities such as teamwork & leadership, integrity, and passion are also important. Teamwork and leadership is an essential ability that was gained from life, not born. Successful Characteristics of an Entrepreneur. It required the entrepreneur to address complex problems by utilizing the strengths of different group members and create a synergy that increases innovation and successful outcomes. The team has a big impact on the business, so the entrepreneur needs to organize his team well. It is the entrepreneur and leader’s task to communicate and listen, ask questions and summarize, articulate a goal, and build a member’s confidence.
These tasks like communication are not born, however, they are trained through tasks and group projects. That’s why the business schools are teaching and training students the above skills. In addition to it, integrity, which leads to honest business, is also a personal skill that was highly influenced by the living environment, not born. The business would not exist long if it cheated its customers. The entrepreneurs need to convince the clients to buy their product or invest their companies through the method of integrity; so, that they will gain profit and get funding for their business.
Passion, similar to ambition in entrepreneurship, makes your employment and business experience upgrade into entrepreneurship level. Everyone has passion, and passion makes entrepreneurs start and grow their businesses. Passion is a personal quality that was acquired from experience. It is a kind of confidence in your business you alight with. Only when the entrepreneur targets his or her goal, will he or she have passion in the business. Thus, teamwork and leadership, integrity and passion are not made but acquired after born.
Final things;
To conclude, there are many people become entrepreneurs. A good sense of innovation will survive a business from a crisis and make it the leader of its field; and, the entrepreneurs find opportunities from problems and make innovations. Rich experience, ranking number one of the factor of entrepreneurship; will make the entrepreneurs easily overcome some business crises and forecast its development. Common Myths About Entrepreneurs, Well-rounded knowledge in the field, like the application of financial statements, knowing the government regulations is essential for the entrepreneurs to operate their business.
Good communication skills, gained from experience of dealing with people will get potential customers and gained a huge profit from it. In addition to all the above, teamwork and leadership, integrity, and passion are also keys to entrepreneurship which are acquired through training and practice. Moreover, these qualities are acquired, not born. One can achieve a good sense of entrepreneurship by tempered himself through practice; and, could gain the qualities in the tempering.
Are Entrepreneurs Made or Born! Explanation Why? Image from online.
Why To Be a Best Leader become, First Be a Great Follower?
To differentiate leader from follower is difficult; they have several similarities as well as also have some differences. In leadership, one should have to take risk and lead the team; have ability to see opportunity that other cannot see. Both should be able to learn from someone or something. Leaders must be independent and isolated and should not rely on anyone but himself and have to be entrepreneurial, and make workplace culture better by working with generous purpose. So Now talking about, Why To Be a Best Leader become First Be a Great Follower?
Good leadership is needed to solve problems and to navigate unexpected circumstances Followers only need to be competent during the battle and must be able to carry out orders by their leader, with their own ability while at other times; they have no need to be that competent. They could ask for help from their friends but in contrast, Leader cannot ask for help from his followers or else his followers would consider him incompetent. Being a follower is easier than being a leader because leader has to be isolated and should have ability to solve his own problems.
Leadership can be as successful or effective or both
Successful leadership but not effective: In this pattern, leader’s style may not compatible; but follower does the job because of leader’s power and position. They obey the command and follow his idea.
Effective leadership: the followers may do the job willingly to cooperate because the leader’s request satisfies the follower’s needs or goal.
Successful leadership: it emphasizes upon position, power and close supervision.
Characteristics of Good Followers
As leader, it is very important to know about that how to follow and how to lead. Many people believe that if you want to become a good leader then you must be a good follower.
Some characteristic about good follower:
Well finisher: Good followers always concentrate on their task and complete their task according to preplanned.
Clear vision: they understand their power and position and it is equally important to understand their role as a leader.
Loyalty: Good followers always try to avoid telling bad things about their boss/leader in public. It does not means that they are completely agree with their boss/leader but only do not want to do things in public because to influence the public it is needed to become public loyal.
Good followers are obedient enough and humble.
Awareness of surrounding: Good follower is well aware of surrounding situations and people. They always try to learn about people behavior and their thinking and how they affect in his work and what is going wrong and then make changes according to demands.
Own thinking: To becomes a good follower, you are able to think on your own and decide what is right and what is wrong. Good followers always take side to leader and support them when they are doing right.
A Great Leader as a Good Follower
Many qualities are same between leaders and followers. A great leader follows the same trait as followers do but change their style and do some modification in it. Great leader knows their boundary and limitation very well.
Good leadership is the golden key to get best performance. Need to imply your own clear sets of values and belief and also have to make clear vision for all. Develop some creative ideas for the organization to make changes and reach up to desire goal. From this perspective, leaders are always try that people follow the process and in this way leader always think themselves as a follower.
There is very important reason to leaders that they have to follow because no one can do it alone and have to create and utilize the energy, ideas and full potential of everyone.
Leadership requires a close study of human behavior. It is the people who are the factors of importance. There are many different points of view about leadership. One belief is that leadership has to be taught while some are of the view that leaders can’t be made by teaching or training. New Roles of Human Resource Management in Business Development.
In this modern age, new leaders are coming but most of them fail to cultivate their inner strength, ability to guide the people, to lead the people. There are three basic steps which are followed mostly in the process of training. Information is the first step, gets from simple reading and continuous study which then converted into knowledge.
Wisdom is the transformation of knowledge. Trained person has to be able to transfer the knowledge into the practice. As a result of training, one should become more self-confident. On receiving training, knowledgeable person becomes capable of taking his own decisions and at this stage; person visualizes the truth-real understanding.
There are few requirements to reach to the truth, in ascending direction that are desire to learn, listening to the teacher, learning, retention, understanding, reflection, rejection of false views and truth.
Human relationship gains the most attraction for a leader for the obvious reasons that the leader leads people. For any business, workforce is the basic requirement and for accomplishment leader has to understand people.
Common logic reason behind the successful leader is the development of proper appreciation human nature. For this, one should have enough confidence and has to explain to other members about task and targets and how that can be accomplished.
Leader should also explain the subordinates about their position and also impact of success or failure on the ultimate goal. If the goal achieved, that is a success of team not a success of leader alone. Leadership Explained by the Internet.
The leader has to do the required morale boosting apart from handling the work and must to be in touch with his people. It is necessary to show adequate interest in their personal problems. It is better for his people must perceive as their leader becomes the real guardian of their interests.
This is necessity to do this as it helps to maintain respective distance from the people. This concept of distant has been mostly appreciated, and understood by successful leader.
Thus, taking an overall view, the leader has to be a dynamic person and should have capability to turn the adversity in his favors and to gain this. The leader must have the capacity to concentrate, and focus attention on the goal with an aptitude to take timely decisions and have to be sincere in his dealing. He has to show his faithfulness and loyalty towards his mission and the people, and should possess a fair knowledge of his job and profession. Be The Change You Want to See in The World.
So what does a great follower look like? I would suggest great followers share at least five characteristics:
They are clear: They understand their role, You can’t be a good follower unless you have clearly identified the leader. While you may be a leader in your own realm, everyone has a boss including you. Great followers not only accept this fact, they embrace it.
They are obedient: While obedience may be a politically incorrect concept, it is essential for organizational effectiveness. No one should be allowed to give orders who can’t obey orders. This is how great leaders model the standards of acceptable behavior to their own followers.
They are servants: This is crucial, Great followers are observant. They notice what needs to be done to help the leader accomplish his or her goals. Then they do it joyfully, without grumbling or complaining.
They are humble: Great followers don’t make it about them, he/she also to be humble, shine the light on the leader, make their own boss look good especially in front of his or her boss.
They are loyal: I have written on this before, Great followers never speak ill of their boss in public. This doesn’t mean they can’t disagree or even criticize. “Yes” people aren’t very helpful in the long run. It just means that they don’t do it in public. Great followers understand that public loyalty leads to private influence.
Many Thinks, Why To Be a Best Leader become First Be a Great Follower?
The Mark Zuckerberg’s of this world corporate leaders propelled into their positions because of what they created are few and far between. Most leaders start in much humbler, entry-level positions and work their way up the corporate ladder, and this is a good thing. Emerging leaders who work their way up learn about what motivates them and their co-workers. They also learn about what makes a team work well together to achieve goals. They also learn what good and not so good leadership is, and this allows them to develop empathy and compassion for those they will one day lead. In essence, they learn key “follower-ship” lessons that will serve them well when they become leaders.
According to Barbara Kellerman, a leadership lecturer at Harvard University, there is a lot a person can learn about being a good leader by being a good follower. Good followers, she says, are passionately committed and deeply involved. They actively support a good leader (one who is effective and ethical). Do Good Always!Bad followers, on the other hand, do nothing to contribute to the group or the organization.
Good followers learn to “read” their colleagues, co-workers, customers, and other audiences. They understand what motivates them and what upsets them, skills that they can use when they become leaders. Good followers also learn important diplomacy skills, like the ability to get along well with others while not ignoring differences for example, working well with a colleague who has different political beliefs. Good followers also need to learn to be courageous. Kellerman notes that good followers can aid the leader when he or she is doing the right thing but they also have to have the courage to stand up to the leader if he or she is doing something wrong (Moran, 2014).
Good followers also learn important collaboration skills that will serve them well as leaders-Good followers and good leaders understand that followers (good and bad) can make or break a leader by influencing how and what goals get achieved-Good followers will assist their leaders in achieving goals. Bad followers can actively sabotage the achievement of goals (Moran, 2014). Good followers also learn to think for themselves and will stand up to a leader who may be heading in the wrong direction (Moran, 2014).
Being a good follower does not end when one becomes a leader. It is important that emerging leaders understand that they must continue to practice good follower-ship in their leadership roles; they become good follower-ship leaders. During a keynote speech in 2012, former HP executive vice president Vyomesh Joshi said the key to being a great leader was to practice good follower-ship. In other words, leaders who have been good followers and who practice good follower-ship principles as leaders understand how to work with people to bring out the best in them.
Why You Should Be Balancing Your Books on Every Single Month
What is meaning of Balancing the Books? Closing up of accounts at the end of an accounting period, by bringing the totals of their debit and credit sides into agreement, and thus to determine the profit or loss made during that period. Be The Change You Want to See in The World.
Call it a habit or just refer to it as downright procrastination. A lot of business owners, MBA holders and other business professionals only contact their accountants on two occasions: during tax season and when something goes wrong. It’s easy to guess that your business is swimming in money and that all your accounts are paid if you simply glance at your books and balances on occasion. However, only certified accountants or online bachelors of accounting graduates know what is necessary to reconcile all your business accounts and how to maintain a proper paper trail. You may not need to have a company-wide audit, but you should be aware of how all your business funding is being saved, spent, and generated.
Know When Money Goes Missing Immediately
Did you know that a good portion of businesses are being charged for services that they don’t need or never authorized? Do Good Always! For example, you could be paying for a business line that was never installed or activated due to a billing error being made by your telephone company. The minute that you have an Online bachelors degree in accounting holder balance your books and review all accounts, bills, services, and subscriptions, you can find out if any money is being wasted or has gone missing. This is also helpful for companies that have had trusted employees mismanage funds or steal in the past.
Find Out How to Stop Making Critical Financial Mistakes
You don’t need to be frivolous to waste business earnings on expenses that are completely avoidable. If you don’t know the current status of your business accounts, you could end up overdrawing a business bank account when you have more than enough money in another bank account to cover all expenses. You could also be paying extra in credit card interest simply because you are missing the payment due date each money. Allow your accountant to aid you in getting more organized so that none of your profits are squandered because of financial mismanagement.
Being Financially Responsible Will Help to Grow Your Business
How can you explain to potential business partners that your company is growing if you don’t know your own financial figures? If you can’t make new business partnerships, your business is not going to grow as big or as fast as it is capable of. You need an understanding of how your company has changed for the better with increased revenues so that potential investors have faith in your future. Do You Really Want to your Own a Business? Ask your accountant to review your finances over the past year and create a spreadsheet that shows your positive gains. New Roles of Human Resource Management in Business Development.
Knowing where your business income is coming from and how it is being spent will reduce waste. Become an Instagram Millionaire but How? In addition, knowing these facts will make you more prepared to talk facts and present a balanced image of a growing company. Don’t try to balance your business ledgers and calculate your revenues once per year. Instead, have at least one update on all accounts payable and receivable from your accountant once per month.
Failing at Life – As we continue further, I want you to realize that there are a number of things that we are doing wrong which may not seem serious, but they are ultimately hurting our lives in more ways than some. Read up!
You Don’t Culture Yourself
How often are you taking the time to study the world around you? There are thousands of different languages, hundreds of different restaurants, and art spewing from every far corner of every city. There is much that can come from the world around you. One might say that the only way anyone can become truly cultured is if they physically surround themselves with that culture. While this makes sense, there are many other ways to fulfill that need without having to go a couple thousand miles outside of the country. There is Google, Wikipedia, Netflix documentaries, and so much more that can shape you and create a masterpiece. All you have to do is step outside of the box and you will see the opportunities that lie ahead.
You Are Not Writing Down Your Ideas
Are you coming up with ideas at random? Do you ever write them down? You should always write down your ideas no matter how silly they may be. You may not be able to map them out just yet, but maybe in a few years it will be able to happen. Write down those dreams and soon enough they will become reality. Don’t sleep on the idea. I use to pretend as if I had the perfect memory and that I could forget nothing and soon enough, I saw that all of my good ideas were going by the wayside because I wasn’t writing them down. Don’t be that guy/girl who never writes their ideas down. Start doing it and see where you get after a year or two. After a while something will be a hit. Then the games will begin.
You Forgot About Giving Back
I guess you had this silly notion that you got to where you are without a little help. You thought for a split second that you were controlling the stars and the planets, and you put yourself in the alignment and out of the explosion came YOU. Giving back is one of the most important things you can do. Helping the homeless, family members, a brother or a sister could be that means of giving back.
I am sure some of you may be reading this and thinking “Well, I do most of this stuff… I guess I am not failing.” Wrong! If you think because you do the bare minimum that you have done enough, then you have fooled yourself. There is much more that can be done and more to be done with the talents that you have. Giving back to others that are in need isn’t just something “cool” to do. It is, and should be, one of your many purposes of living.
Negative People Surround You
Negative people have woven themselves into the very fiber of your existence. These so-called “Friends” aren’t the friends you saw on that 90’s sitcom show. Those were FRIENDS. What you have around you are a bunch of negative and tired individuals who need prayer and examination. IF this doesn’t apply to you then I suggest you move on, but before you go, here are a few other thoughts: What are you to your friends? Are you that negative one? Are you the one bringing the people around you down? Here is the moment of clarity and honesty that you have been waiting for – if you are NOT the culprit then I suggest that you find new friends. If anything can done, pray for the older friends to find that purpose and that place in life for themselves as well.
Your Priorities Are Out of Order
Your time and energy are not being spent on the right things and/or the right people. The people who truly care for you are being overlook. The things that are truly important are being place in the passenger seat, possibly even in the back seat or EVEN, the trunk. If the priorities aren’t squared up with the mission that your life is pillared upon, then you can kiss any thought of “success” goodbye. This is where writing out goals comes into place and where good friends, family, teachers, and any other important people in your life have to keep you in check. Just as much as we need to get by, so do you.
You Stopped WRITING
Why have you stopped challenging the brain and all its thinking? The concept of writing is an expression of form and design meeting those faint blue lines, and yet you ignore them. You have now trapped yourself in the Alcatraz of Internet puns and one liners. Your entire life can now be summed up in a few mimes. You have brought this on yourself but the great thing is that you are not too late, You can begin writing letters to those you love and others who you may care about deeply, You may now physically cross your T’s and DOT your I’s.
Through writing, we become better individuals. You once expressed yourself and gave your thoughts a chance to play. When you grew tired, you rested and then picked back up where you left off the next day. Try writing at least once or twice a week. Even if the letter never goes out to anyone, at least you will be pushing the brain to do all that it once did when you were a little child.
You Need to Start Forgiving
You are holding on to pain and torment and you have been doing this for years now. This is only a quicker way to destroy the goodness that is on the inside of your heart. By forgiving, we get a second to remember the time when a certain individual forgave us and then gave His life up for us. Everyone is having it tough but everyone isn’t letting their lack of forgiveness shape their entire world.
You Are Not Being Kind to Others
You never know when a random act of kindness could change the world. Whether it is a friend, stranger, or family member. All of these individuals deserve kindness. If we were all a little bit kinder to our friends and the world around us, we would be in an entirely different place. When you are kind to others, perform the act with no want or no benefits behind it.
You are Not Networking
We all know it’s not about what you know, it is about who you know. While we know this is important we forget about it all the time. There are organizations in each and every city that promote networking and getting involved with the community but we rarely use these opportunities. We let work and life drain us, and we never advance like we should. Some examples include groups such as the NAACP, National Urban League, the church (which is a great place to network with a variety of people), local community events and so on and so forth. With networking happening, you should definitely have business cards in place. Even if it is something general.
Vistaprint is a great place to get a few business cards and Moo Cards is awesome as well. Also, every profession has a club or social group outside of its place of employment. Find those groups and see how you can get active with them or contribute to the cause. Lastly, we don’t stay in touch with the friends we have. Sometimes all it takes is someone to hear you say, “Yeah, I am looking for a job…” and all of a sudden they may know someone who can help you. Conferences, conventions and so many more things happen each and every day. It is time to start getting active! Network builds your net worth!
You are Forgetting to Pray
This is one of those personal struggles of mine. I get so tiring and so wrapped up in my feelings, my problems and my life that I tend to forget about who controls it all. I forget about who is the master and who is in charge. A simple prayer could shape and change the lives of the world around us. I could continue to go on and on with this one, but I think it says it all. A hip-hop rapper I am close with said this: “You should pray more… it just makes sense, but all you want is dollars and that just don’t make cents.” I think that this is where I digress. Time to improve and make a change. Unless you want to continue failing because that is cool as well.
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.
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?”
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.
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!
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?
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.
