Understanding The Business Entrepreneur

Who is the business entrepreneur?

The business entrepreneur is not a “person” but a part of everyone’s personality. The entrepreneur is our visionary, the creator that can be found in each of us.

We’re born with that quality and it defines our lives as we respond to what we see, hear, feel, and experience. What we do with it is up to us.

It is developed, nurtured, and given space to flourish or it is squelched, thwarted, without air or stimulation, and dies. Look at anyone around you and you will recognize whether or not the entrepreneur is alive and well within them.

The business entrepreneur in us sees opportunities everywhere we look, but many people see only problems everywhere they look. (I bet we all know people like that!)

The business entrepreneur in us is more concerned with choosing between opportunities than he or she is with failing to see the opportunities. Opportunities are everywhere if you are open to it.

We’re all born with what we need to be a business entrepreneur.
We are born to create. Everyone is born with that drive, desire, passion, and interest. It is what we do with it that makes the difference.

Most business owners have not fully developed or nurtured the entrepreneur ideas within themselves. Working in the business consumes them with little time left to work on it.

There is no time or energy to be creative, nor the understanding that being creative is being alive, fully alive. Few business owners are fully alive; they’re too busy working for a living.

A business entrepreneurial seizure
A business entrepreneurial seizure is the moment the entrepreneur decides it would be a great idea to start his or her own business. It’s when one believes that knowing how to do the work of a business is all one needs to understand in order to start and grow a business.

So the accountant starts an accounting practice; the mechanic starts an auto repair business; the cook opens up a restaurant. They go to work, accounting, fixing cars, or cooking meals, none of which is the true work of the entrepreneur.

In doing so, the person who starts his or her own business is lost in the teeming confusion created by demands he or she never anticipated…the demands of organization, the demands of cash flow, the demands of people — employees, customers, suppliers, banks, family — and so forth and so on.

They are simply not prepared for the demands that are going to be made on them. The longer they’re in business, the worse it gets. There is no vision; there is only being a slave to work and staying alive. The seizure is long gone; the entrepreneurial vision a vague memory.

The business entrepreneur is not really interested in doing the work;
He is interested in creating the way the company operates. In that regard, the entrepreneur is an inventor. He or she loves to invent, but does not love to manufacture or sell or distribute what he or she invents.

You will not find business entrepreneurs on the production line. You will find them in their office, their room, in their research center, in their mind, dreaming about the product, or building a sample of the product, or drawing a picture of the product on the back of a napkin. Entrepreneurs are dreaming, scheming, imagining, playing…. not doing it, doing it, doing it.

The business entrepreneur goes to work ON the business, not IN the business.
The business entrepreneur invents a business that is more successful than any other business. The business entrepreneur builds an enterprise; the technician builds a job.

It takes study, practice, continuous education and experience for the entrepreneur to create a world class company. While top entrepreneurs seem to be born with the qualities and traits that mark them, there has, in fact, been an enormous amount of trial and error in their lives.

In many ways, it is the school of hard knocks that can turn innocuous little stones into sparkling, outrageous gems called entrepreneurs. Giving up is not an option and challenges are just par for the course.

Trust your entrepreneurial spirit, never give in and chase your dreams until they become just as real in reality as they ever did in your mind.
You will be glad you did.

Make every post a winner!!

Become the business entrepreneur you have always wanted to be.

Diversified Investing – Keeping Your Eggs in Different Baskets

“Don’t put all of your eggs in one basket!” You’ve no doubt heard this over and over again when it comes to investing. All successful investors build portfolios using diversified investing strategies, and you should too!

By diversifying it is true that you won’t be investing in winners all of the time but it’s better than being solely invested in a particular investment! No matter how attractive or safe your basket looks, diversifying is important. This means spreading your money in various shares in different industries, or different properties, different bonds, and in money markets and this includes investing in international markets.

By investing in several different markets, you will actually reduce your risk.

Let’s take shares for example. And to keep things simple we’ll say that the average return on shares is 10% (please note simplification for illustrative purposes). While a single company may be a brilliant operator it may also experience trouble and down times. The annual return may fluctuate between minus 40% and plus 60% but averages 10% over time. If you were to invest in that share alone you’d be experiencing the volatile ride of the company’s ups and downs. And you’re probably more likely to want to sell – at the wrong time.

Investing in many different shares means that when one company performs poorly others in different industries may be doing quite well or even very well. Rather than losing all your money in the one share the volatility of the combined portfolio is likely to be much smaller. The fluctuations of shares moving in opposite directions means the poor performers are cancelled out by the better performers and your risk reduced. And you still get the same average 10% return.

If you invest in property, once again it’s best to buy in different areas and different types of building. It tends to be more difficult to diversify in property because of the cost involved so for many this means using managed funds that invest in property.

You can also include different investment styles. Managed funds make it possible for smaller investors to spread their portfolio so diversification is possible at all levels of investment.

Over time, research has shown that investors who have diversified portfolios usually see more consistent and stable returns on their investments than those who only invest in one area.

With diversified investing you will find that you have a lower risk of losing your money, and over time, you will see better returns by keeping all your eggs in different baskets.

Essential Skills for Entrepreneurs and Small Business Owners

Research studies into the failure of small businesses in Australia, have identified that in over 90% of small business failures, a lack of appropriate management skills have been cited as the key cause of that failure. One way to offset a lack of management skills is to outsource them to experts. For most small businesses this is beyond the reach of their limited budgets. A more viable option is to develop the skills you need to manage your business operation. Let’s examine the key competencies you will need.

Strategy Development

You need to develop skills in undertaking appropriate business research, including how to identify and locate relevant business information, analyse the data in order to determine an appropriate strategy. You then need to develop skills to effectively communicate that strategy in both a formal way, such as a business planning document, or to informally articulate it to your staff or other stakeholders when required.

Sales and Marketing Management

Strong sales and marketing skills are vital in the promotion of your small business and its products and services. You need to be able to undertake market research which will help you to identify where your markets are, the total market size and the size of each of its key segments. You should also be able to profile your customers, identify their needs, wants, behaviours and ambitions and parlay the information into powerful and effective marketing campaigns and sales techniques which will help to drive sales revenue.

You need to be able to keep your finger on the pulse of your customers ever-changing demands and the business environment in which you operate and to identify the threats and opportunities that may impact on your small business. Inability to adjust to changes in the market place was identified by market research as one of the key skills lacking in small business operators.

Financial Management

Many entrepreneurs abdicate responsibility for the financial management of their business to their accountants.This is a rookie mistake. As the business owner you must take responsibility for the management of your finances.

The first core requirement is the ability to maintain an accounting system that is compliant with current taxation requirements, such as MYOB or Quickbooks. These systems provide a raft of automated processes including the delivery of key financial documents such as Balance Sheets, Income and Expense Statements and Cash Flow forecasts.

You need to develop the core skills that keep your business liquid as more businesses fail due to a lack of cash rather than a lack of profit. You also need to ensure that your business has sufficient capital to continue operating. Financial planning and management skills are also vital to your businesses survival and you need to develop working relationships with your accountant and your taxation specialists

Legal

It is essential that you develop an awareness of your legal rights and obligations. You need a thorough understanding of the Acts, Regulations, Codes of Practice and licensing requirements with which your business needs to comply. Taxation is just one of the complex legal elements you will need to come to grips with.

Which ownership structure you choose for your business will also carry with it further legal rights and responsibilities. Being able to fully understand and manage the impacts on your business is important.

Operational Management

You need to build operational management skills in order to develop the systems and processes by which you deliver your products and services. The more efficient and effective they are the more ‘productive’ your business will be. Core operational skills include planning, management, communication as well as effective systems design.

Resource Management

Your staff can be your most valuable business asset – or your most expensive, depending on your ability to hire right. Developing appropriate policies and procedures as well as the development of induction, coaching and mentoring programmes can assist in the development of a productive workforce.

Self-Management SKills

Your personal organisation skills may be the key to the success or failure of your small business. You need to be organised, productive, able to communicate and manage your time. You need to be able to negotiate effectively, motivate staff and be able to handle sustained levels of stress.

Technology Management

Technology is the great enabler. It can increase your capacity to deliver with less staff. It can also be a key competitive differentiator. You need to understand and manage technology and be able to identify and take advantage of the multitude of opportunities is offers to small business.

It is important to remember that each of the required skills are not discrete skill sets. To be truly effective as a small business manager, you need be able to integrate each of the core management skills.

You should set yourself the task of developing your abilities in these key management areas on a continuous basis as the skills and knowledge required is forever evolving. Master these core management skills and the chances of your small business being a huge success will improve dramatically.