SOPHIA C. MACKINTOSH
Avoid the
White – Collar
Syndrome
Lecture Notes on Entrepreneurship
Let"s do Business
CONTENTS
1. Avoid the White – Collar Syndrome
2. The need for Entrepreneurship
3. Three (3) key Attributes of an Entrepreneur.
4. How to start your Business.
5. Source of Finance for your Business.
6. The Price of Bad Financial Decisions for Small Businesses.
AVOID THE WHITE COLLAR SYNDROME
Well before we begin, let us define the key words that triggers our topic: Avoid: This means to prevent something bad from happening.
White Collar: Working in an office, rather than in a factory.
Syndrome: An attitude or social problem.
Many of our graduates and skilled men and women today, believe that the only way to success is through a White-Collar jobs, working with Oil Companies and with the Government parastatals, but that is not true.
Do not get me wrong. I am not saying working with these institutions is bad, but with the vast number of graduates and skilled men and women within the country it will not easy for everyone to fit in to all these companies and parastatals, so there is a need for Entrepreneurship.
Meaning of Entrepreneurship
Entrepreneurship have been described as the harbinger for rapid economic growth and development. It also serves as a tool for poverty eradication, employment generation and wealth creation.
Societies with outstanding successful Entrepreneurs have witnessed significant economic growth as a result of the impact and success of the collective individual businesses.
Leading nations of the world have enshrined enterprise development in their respective economic growth policies and programs which in turn have led to the notable growth and rate of their various economies.
Who is an Entrepreneur?
This is somebody that has the capacity and willingness to develop, organize and manage a business venture along with any of its associated risks in order to make a profit.
An Entrepreneur combines land, Labor, Natural Resources and capital to produce profit.
Entrepreneurial spirit is characterized by innovation and risk taking, and is an essential part in an ever changing and increasingly competitive global market place.
THE NEED FOR ENTREPRENEURSHIP
The world needs more entrepreneurs to employ more people and creates more jobs for others.
I strongly believe the biggest resources for new employment generation is by creation of new businesses.
According to the dictionary, an entrepreneur is someone who
“Organizes, manages and assumes the risk of business”. The actual role entrepreneurs play in our countries" economies is much broader than that even though it is often not a very visible role.
An entrepreneur is a person who organizes, handles and presumes that risk.
Advantages of Starting your own Business
1. The ability to be your own boss.
2. Set your own schedule
3. Make your own money by doing something you enjoy and so many others, but let us mention but a few.
Note: Becoming a successful entrepreneur requires sound planning, creativity and hard work. It also involves taking risks because all businesses requires some form of financial investment to begin evaluating whether or not owning a business is right for you, consider the personal characteristics and qualities that can help improve entrepreneurial success.
Fact: Any one can learn and become an entrepreneur. Businesses are built on ideas. In fact, the first step to starting a business to come up with an original idea.
Your business must identify and solve the needs of people. Some entrepreneurs continuously struggle to bring a single idea or product to the market while others seem to be able to do it almost effortlessly, time and again.
According to Robert T. Kiyosaki The Author of Rich Dad Poor Dad, to be a great entrepreneur, be a leader who works for those who work for you.
If my company is not profitable, I should not get paid.
The story of the talents in Matthew 25:14-30 is an entrepreneurial lesson. What you know and apply determines how far you can go in life.
Benefits of Entrepreneurship
1. The engine for economic development.
2. Employment generation.
3. Self actualization in running your own business.
4. Opportunity to translate your ideas into profit.
5. Being your own boss.
6. Financial freedom.
7. More money!
8. More time for family, friends and business.
9. Taking advantage of untapped opportunities and make profit.
10. Take a calculated risk and benefit from it.
Below is a business chart of a beverage shop owner and his tithe
S/N DES
QTY AMOUNT PR
SP
FP
T
1.
Milo
10
20,000
2,000
2,300
300
30
2.
Mini
7
60,000
8,570
12,000 3,430 343
Laptop
3.
Printer
20
56,000
28,000 35,000 7,000 700
Abrams Tithe: Genesis 14:18-20. See also Proverbs 3:8-10
Pay tithe on my business, I pay my personal tithe?
The answer is that you are not paying but returning one tenth of your corporate tithe as a compulsory task and saving yourself Ninety percent but where you fail to do so the reverse is the case. See Malachi 3:8-12.
Nothing works without God. See Deuteronomy 8:18, Psalm 35:27.
Characteristics of a successful entrepreneurs 1. A good and successful entrepreneur must be creative.
2. Goal driven.
3. Integrity.
4. Innovative.
5. Problem solving oriented.
6. Persistent.
7. Persevere.
8. Independent.
9. Confident.
10. A risk taker.
11. Willing to embrace new ideas.
12. Improve on self continuously.
13. Trust worthy.
14. Self starter.
15. A natural leader.
16. Ability to take responsibility for his actions.
17. Must have business skills.
18. Family support.
19. Must like to work with people.
20. Takes and stands by his decision.
If you do not possess these traits, do not worry it can be learned.
Characteristics of an Unsuccessful Entrepreneur 1. Lack of proper management of finance.
2. Inability to manage time.
3. Lack of discipline.
4. Inability to manage business.
5. Inadequate finance.
6. Lack of good communication.
7. Improper record keeping.
8. Lack of risk.
9. Improper planning.
10. Poor business site.
The mind of an entrepreneur is for profit making.
Three (3) key attributes of an entrepreneur
1. An entrepreneur must be hardworking.
2. Nonconformity: Entrepreneurs are independent souls. They prefer working for themselves.
3. Strong Leadership: Must be able to stand out and take decision as at when it is necessary.
Note: Preparation + Luck = Opportunity.
A Time Management Table
s/n Hours
Activity
1.
6 hours
Sleeping
2.
2 hours
Domestic chores
3.
6 hours
Watching movies
4.
1 hour
Devotion
5.
4 hours
Gossip
10 hours X 7 = 70 per week
70X 4 = 280 hours per month Fact: People that are already in business are Business owners. While people that wants to go into business are starters of start ups.
Areas in Business
1. Service
2. Industry
4. Sales
Examples of service Business
1. Laundry business.
2. Land agent.
3. Hair salon.
4. Catering and Hotel services.
Examples of industry Business
1. Cassava Processing (Garri manufacturing) 2. Fish foods manufacturing.
3. Cassava flour manufacturing.
4. Starch manufacturing
5. Palm oil manufacturing.
6. Palm kernel oil manufacturing.
Tips Before Starting A Business
1. Before you start a business, first of all understand your “Market”.
2. Develop a plan.
3. Your target market.
4. Develop a market plan.
Market Survey
Feasibility study or market survey makes you to understand your market, know your competitors and how you can make profits in your business.
The Plan
The plan will tell you the area of business that you want to start.
Examples of Agricultural Business
1. Fish Farming.
2. Snail farming.
3. Poultry farming.
4. Crops, foods and vegetable farming.
5. Examples of sales Business.
1. Shop owners
2. Newspaper vendors
3. Mobile marketers and sales persons.
4. Road side business persons.
A cost estimate of Ice block Business
Water tank = N20,000
Light Bill = 2,000
Generator = 60,000
Borehole = 120,000
Machine = 120,000
Filter Machine
=
370,000
Total
=
692,000
Sales per day
=
21,000
Sales per month
=
168,000
How to start your own Business
On your mark, set, Go getting started with SMBS: Business plan, concepts, ideas, hobbies and skills.
There are thousands of tasks that every small business owner must consider and do in order to set up a new business. However, whether you are a new small business owner or an experienced entrepreneur, here are five things to remember when setting up a small business.
1. Develop a Business Plan
You must have probably heard it a million times, but is it worth repeating that often? The business plan helps you to understand the following; Why do you want your own business?
What is the focus of the business?
Who are your competitors and how will you compete?
What is the scale of your business idea?
What does your endanger look like?
What else do you need?
What is the parastaltal to operate?
How much money do you need to get started?
How will you get the money to get started and survive?
How much are you going to make?
What is the timing?
Proximity to your competitors
2. Type, Name, Structure and Incorporation of a Business What business structure should you choose? Below are seven types of business structure that exist
i. Sole proprietorship
ii. Partnership
iii. Corporations and Limited liability Businesses iv. C Corporation
v. S Corporation
vi. Limited Liability Corporation (LLC)
vii. Limited Partnership
viii.
As you plan starting up your own business, one of the first decision you need to make is the formal business structure you will assume. Which structure you choose depends on your business.
Sole Proprietorship
This is the easiest type of business to start. There are no incorporation forms to fill or fee to pay to the government. You pick your business name, and get to work.
With a sole proprietorship , you avoid double taxation that occurs in corporations as every dollar you earn hits your personal income tax. You pay no corporate income tax.
Because of the ease of starting this type of business, there is a larger amount of risk involved due to the lack of incorporation. How much risk? You are personally liable for everything done in the business name. You can hire employees as you would with any other businesses, but if they damage someone else"s property you can be personally sued for the damage. This puts everything at your own risk.
Note: Letter of Administration gives you the right to anything that is yours to inherit (Legal Right).
Partnership
A partnership is where two or more individuals formerly agree to do business together. Partnerships are very easy to form, and then income are generated from them.
Corporations and Limited Liability Business
There are several types of corporations and limited liability business structures that can be used to avoid some or all of the business liability undertaken with a sole proprietorship or partnership.
C Corporation
In this business structure, you pool your money together with other shareholders and are given stock in the newly formed business. A corporation is viewed as a completely separate tax entity in the internal revenue service eyes, so your business can take tax deductions just as an individual would.
This also means your profits will be taxed twice. Once at the corporate income tax level, and then again when the corporation pays you via salary, bonuses or dividends. Since the corporation is separate entity, your personal liability is limited.
S Corporation (Sole)
An S corporation is a legal entity formed just like a corporation with the added bonus that income flows directly to your personal income taxes through what is called “Pass through” taxation.
There is no double taxation. This structure is especially nice because your liability is limited to that of a regular shareholder, but you only pay tax once.
Limited Liability Corporation (LLC)
An LLC is a state allowed business structure that mixes the benefits of sole proprietorships and corporations while removing some of the disadvantages.
Owners of LLCS are referred to as members there can be any number of members, bet there is always members, but there is always managing member who is in charge of daily operation for the business. All members are not personally responsible for judgments made against though to their personal income taxes.
There is also a lot less paper cork for an LLC compared to a corporation or sorption you are also not required to have a shareholders meeting every year, nor a board of directors.
Limited partnership
This a relatively large business outing developed by entrepreneurs.
This is a more advanced form of partnership where two or more people combine their repowers together for the purpose of making profits.
3. General Introduction
Business Name
Contacted Information
Executive Summary
The business Desertion
General information
Business mission statement
Business vision
Business description and products offered.
Industry information
Site selection
History of existing business.
Sources of raw materials.
4. Marketing Plan
Entry strategy
Target market
Distribution strategy
Marketing tools.
5. Management Operation:
Business organization
Design company letter – Headed paper with the business name, logo, phone number in the company, contacts and bankers.
Personal Board resolution letter and bank.
Certificates/licenses and permits signatories and why.
Sources of supply and suppliers.
How to Name a Business
Your Business name will frame its identity. The significance of choosing a name can sometimes be a tricky undertaking.
Imagine how the potential name will.
Look (on because cards, Advisements, with a logo) Be remembered (Connotations the name may incite) Distinguish from others.
Your name should
Describe what you do.
Make an impression
Easy to spell.
You can use your own name.
Availability to proposed names.
Name availability search.
Considering your results
Registrations
Optional registration.
Sources of finance for your Business
Seven (7) Business startup funding services
1. Your own income (cost and Risk)
2. Credit cards
3. Family and friends (The basics of finance and how it determines success)
4. Business Plan competitions. Entrepreneurs can turn to business plan competitions. Your plan is presented and compared to those of other competitors, and the winners can walk away with as much as N100,000 in funding to get their business off the ground. Cost
and Risk Minimal your only costs would be travelling to whatever the competition is held and the time you spent preparing.
5. Angel Investors: For larger business idea that needs funding from the beginning. Angel investors are people that are multimillionaires that wants to invest on small scale businesses. They do not know what to do with their money so they want to invest on small businesses. Cost and Risk: They May require equity shares.
6. Venture Capital: The two biggest letters in entrepreneurial investing are VC venture capital groups pool together money from investors and take calculated risks on start-ups. VCs hear dozens of pitches every year, and only invest in a handful.
When they do invest, they invest strongly-usually in the millions of dollars range.
Venture capitalist will normally require a board of directors, a seat on the board, and a defined exit strategy. The goal is typically to sell the company to an acquirer or to go public with an IPO within 5
years. Cost and Risk: Venture Capital is a classic “go big or go home” mentality. VCs can take a significant chunk of equity from your company. Entrepreneurs are willing to give up a lot of control if it means the company has a larger chance of successdings and making them rich too.
7. Loans
Banks and relevant bodies helps start-ups.
The price of Bad Financial Decisions for Small Businesses 1. Under capitalization.
2. Not having a book keeper.
3. Overinvestment.
4. Lack of resources for contingent funding.
Personal Financial Drains
1. Poor financial discipline
2. Poor financial plan
3. Lack of financial management training
4. Impulsive spending
5. Extravagant lifestyle
6. Unreliable financial lifestyle
7. Fraudulent personality trait.
8. Friends
9. Family
10. Emergencies
11. Unplanned lifestyle
12. Lack of budget
13. Excessive philanthropy
14. Accumulated debts and unpaid bills.
15. Lack of expense tracking
16. Over investment
17. Lack or improper financial record keeping 18. Over dependence on business finances (personal, friends and family)
19. Wrong financial investment.
20. Unreliable financial lifestyle and attitude.
21. Fraudulent personality trait.
22. Fake and substandard products and services.
23. Failure in services delivery.
24. Over staffing.
25. Poor financial discipline.
26. Poor financial plan
27. They are irresponsible
28. They do not know the importance
29. They do not know how.
30. They do not believe in themselves.
Finally before we draw the curtain on the subject matter to a close, have these motivations in mind.
1. Good attitude
2. Positive attitude
3. Nothing is impossible, with that the sky is your starting point and not your limit.
Remember
Return always your personal and corporate tithe. Gracias!
Ways To Invest In Your Success
Truly successful people have learned to do what does not come naturally, Real success lies in experiencing fear or aversion and acting in spite of it.” – Joseph mancusi
Highly successful leaders ignore conventional wisdom and take chances. Their stories inevitably include a defining moment or key decision when they took a significant risk and thereby experienced a break through.” – Larry Osborne
1. Stick To Something you Know
As an entrepreneur or a business man, select a line of business that sooths you are good at, he bar services, Restaurants or even art painting, stick to it because “more than anything else, what keeps a person going in the midst of adversity is having a sense of purchase.”
It is the fuel that powers persistence.
2. What You Have To Get What you Want
Most careers involve other people, you can have great academic intelligence, and still lack social intelligence so as a business or firm, to boost your economy, on a palatable, and comfortable, salary rate, but the formula of success is knowing how to get along with people.
3. Avoid Borrowing money Initially, Because it Has to Be Repaid All business owners, borrow money when they run out of cash, i.e.
from banks, as loan, but total avoidance, of borrowing money, because, if you borrow money, initially, will help, boast your business, because, if you borrow from banks, or other financial institutions you will still have to reply that money at the end of the fixed term, it isn"t bad to borrow but borrow and repay not to heap depts. On your head, thereby causing your business to liquidate and bringing you to a financial meltdown.
4. Be Hard On Yourself
“The most importance thing in life us not to capitalize on our gains.
Any fool can do that. The really importance thing i9s to profit from your losses, that requires intelligence; and it makes the difference between a man of sense and a fool”. Self-discipline is a quality that is won through practice. Avoid spending money un-necessarily, know when and how to use your finance"s protect your cash flow and kick start your business to a higher level.
Expert Tips On Creating A Winning Business Plan What are those ingredients, you need for success when putting together a business plan, in application for funding?
When it comes to applying for funding your plan of business, can make, or break your chances of success. How you structure it, what you include, and even what you"ve chosen to leave out, can even make a big difference to your chances of securing funding.
Remember that your business plan is your chance to make an , you impression so to put your best foot forward is essential. If you blow it, chances are, you won"t get a second chance.
1. INNOVATION
Is an idea you are presenting just another „me too" business, something unique now or innovative or does it offer something that is starting? Most business owners, or entrepreneurs, are more likely to get funding for business ideas, that creates a new market, or come up with an innovative approach to meet up with an existing market need in a way that it has not been done before.
2. DIFFERENTIATION
There is need for differentiation in business idea base on innovation really most ideas are successful regarding business but they should be differentiated from the competition. Note that your business plan should show that you have a sound knowledge of who your competitors been differentiated from them. And remember that having different versions of the same thing is not the same as being differentiated. But also bear in mind that cost can only be a true differentiator, if you lower your cost or price of your product, does not preclude you from being able to deliver the product or services and still make a healthy margin of profit.
3. PACKAGING
When projecting or preparing for a business interview you need to equip yourself, this is necessary in packaging the information you provide should be laid out in such a way that makes it clear, easy to read and accessible. Use headers, sub headers, bullet points, numbering, paragraphing and bold text where appropriate to break up the information. Avoid spelling errors in particular at all cost. Don"t rely on electronics spell-check get a professional copy editor to proof-read your submission.
If packaging has to do with how you lay the information out on the page, then clarity refers to the words you chose to put across, you can be the best business idealist in the world, but if you can"t explain it clearly for a funder to understand how dynamic it is, you have no hope of impressing anyone. You should be able to explain in one, short, clear sentence what it is that the business does. A detailed explanation about the business. It"s a good idea to try it out on a couple of people who aren"t familiar with your business concept, and then get them to explain back to you what it is they think you do. But mind you when putting these in your business plan, Remember to include a details explanation always, but the first sentence should leave no doubt in the reader"s mind as to what your business does.
5. PERSONAL INFORMATION
Being able to show you were successful in the past and evidence on how to make it happen, will often position you favorably in the mind of the person accessing your application. This is not to say that you have to be able to show profit in your start-up business, but you should be able to provide substantial for your ability to make it happen". This may include successful project or ventures in a previous job or an entrepreneurial venture. Remember if appropriate to include other information that shows your leadership, sales, and marketing ability.
6. CAN YOU SELL IT?
Having the best product or service in the world is worth noting if you can"t sell it. Sales are a critical business success factor, particularly among start-ups. You need to show that you"ve worked out a comprehensive sales plan, with realistic targets, prospect and timelines. You need to consider who is going to do the selling, if he/she is fit for the job, and what kind of attributes they need to have.
7. MARKETING
Many people, even business people, confuse sales and marketing so don"t lump these together. You need to include a marketing plan of
how are going to get the word out about, or that your products and services are in existence, consider things like branding, design and smart use of various above, below – and through – the – line media.
8. FINANCIALS
If someone wants to invest on you or your business with his money, they are going to want to be 100% sure that your financial are sound.
Firstly, be realistic, making wild projection of profit will not impress anyone understand business; in fact it will most likely have the opposite effect in indicating that you either don"t understand the number, the risk involve, the competition or the market. Secondly, get an expert rate to check the number. Adding a zero or putting the comma in the ubong place will throw your projection out completely.
9. PRESENTATION
If you"ve cross checked the paper round and are given an opportunity to present, your presentation has to be slick, professional and succinct, it will usually sum up what you"ve already include in your business plan, but it"s your chance to show the audience who you are. Remember that funders are investing as much in you a person as they are in your business idea. Make sure you know your material inside out, and understand your subject matter well enough to answer any question they may ask.
PARTNERSHIP KILLERS TO AVOID
Things you should avoid while partnering with somebody or making a partnership deed, pitfall that bound partnership.
Business partnership has been an important part of entrepreneurship and start up success. In theory, a partnership is a great way to start in business. But in real life experience, however, it"s no y always the best way for the typical entrepreneur to organize a business.
The reason is simple: complementary skill sets, share expense or equipment, and the idea that one person with „"hard"" money capital can create synergy with the intellectual capital of another person so both can profit from their venture. The tough thing about most
partnership is that they are just like marriages, and if you have ideas about those statistics" you know half of all marriage don"t survive for you to make a marriage work, it involves headline a volatile mix of partnership issues: money, stress, keeping monthly overheads and day to day expenses throw some employee you must manage, and you will have a good idea of the work required to make a business partnership successful.
If you"ve thinking about a partnership, consider the following list, and avoid potential pitfalls.
1. SHARING CAPITAL INSTEAD OF EXPENSES
Whenever you share your capital be it resources, property money or information you automatically give away your enterprise ability. In a perfect world, the person you are partnering with is upright, full of integrity, and not at all tempted to take this gift and run with it as his own. However the world"s not perfect. So be careful instead, work out an arrangement where expenses are shared in an associative arrangement. It also makes it easier to walk away if things go wrong.
2. PARTNERING WITH SOMEONE BECAUSE YOU CAN"T
AFFORD TO HIRE
This is a partnership killer right from the start. The scene is always Steve has a business idea and Pete has the business killers, but Steve can"t afford to hire Pete as an employee, so they decide to share duties expenses and profits. What happens is both Steve and Pete and up working against each other, and Steve finds himself liable for Pete"s obligation [Financial and otherwise] under the partnership agreement. If you"ve got the idea and someone else has the skill, simple hire him or work out an independent contractor agreement. Don"t give away what you don"t have to.
3. LACKING A WRITTEN , SIGNED PARTNERSHIP AGREEMENT
Due to the nature of partnerships, every details and obligation must be clearly find and written out and agreed upon by all parties. This is best done with a written legal agreement drafted by a well- qualified
mutually agreed upon lawyer, just makes sure the attorney is well versed in business partnerships., and be sure to keep her card handily at all times. You may need that person again when things go wrong.
4. LACKING AN OUT OR AN EXIT STRATEGY
Big-times marriages start with a prenuptial terms agreement. In business and contractual terms, a pre-nup is analogous to an exit agreement. In any partnership agreement, define the terms of an exit strategy that allows you or your partner to walk away from the partnership, or that provide options to buy out the other party, this van be done very clearly and simply without imploding the operation of a successful business.
5. EXPECTING THE FRIENDSHIP TO OUT LAST THE BRAKE-UP OF
THE PARTNERSHIP
Again from the prospective of marriage, how many ex-couples do you who are truly friend? Not, many, I suspect, so don"t go into any partnership with a friend expecting t remain friend after a partnership breakup. It may sound great to do business with you friend, but remember in the business world, it"s always “business first and friendship second”. Also remember most times when business ends, so does the friendship.
6. HAVING A 50./50 PARTNERSHIP
If you are into partnership makes it 60/40 or 70/30 split. Then you and the business have a person for accountability and overall operation control. Also, keep your buyout or exit strategy clear and in your favor – benefiting you and saving problems down the road.
Business Strategy
What are those strategies you have while starting a business, your targets on how, where and when to run the business?
Business ownership in all aspects of business draws, or writes down, a standardized business strategy that will improve the economy of their business.
Success on my major scale requires you to accept responsibility in the final analysis one quality that all successful people have is the ability to take on responsibility. –Michael korda 1. WORKING HARD
To success as a leader you will have to work harder than all those ground you. If you think that being a leader means enjoying more and more nice things, you are in for a dude shock. If you thinks being a leader means to relax as a “potbellied ruler, you will discover that it is not so!
A true leader is someone works harder than everyone around him; a boss working harder than employee, leadership is hard work. A boss must create more ideas or must be creative more than his employees. He often puts in more hours more than anyone else.
2. BEING VISIONARY
Entrepreneurs are always visionary and “Always bear in mind that your resolution to succeed is important than any other thing” –
Abraham Lincon. Your vision are your targets your plan that you gave ahead on how to power your business and improve your market standards.
3. CONSTANTLY CHALLENGING SYSTEMS TO FIND MORE
EFFICIENT WAYS
As an entrepreneur you make constant challenges in the market systems, in other to find more efficient way to improve your business.
Most challenges and price differences change in line of business, due to break-down, or improving both the internal, and external part of your business to meet up with the challenges ahead.
4. AGGRESIVELY PURSUING NEW CUSTOMERS
It"s up to entrepreneurs to attract and retain customers, and to attract your most profitable future clients that already exist. Many of them probably belong to your competitors, so it"s up to you to persuade them to do business with you instead. This is a skill business owners can learn. It comes down to advertising, something successful entrepreneurs are doing anyway. Plus, if you"re going after your competitors clients your chances for success increase for two reasons: you"re targeting only those prospects who have already purchased or are in the process of purchasing a product or service similar to yours, and you"re rewarded the competitions best clients for taking immediate action while showing you proof of their purchasing intent.
5. BEING UNAFRAID TO TAKE RISK [NO RISK NO REWARD]
Risk must be evaluated not by the fear it generates in you or the probability or your success, but by the value of the goal. The common denominator of success lies in forming the habit of doing things that failures don"t like to do. – Albert gray taking risk like loans, overdrafts to boost the success of your business.
6. ENSURING THAT ALL PERSONEL ARE FULLY ENGAGED IN
EVERY ASPECT OF THE BUSINESS
As a business owner, engaging your personnel in every aspect of the business is very important, knowing the need of your staff and making provisions to sooth their taste, ensuring that all personnel knows and are involved in all aspect of your business. This can help to build your business up to another level.
Smart Tips
Explore ways to improve your business from the inside out. But don"t forget to pounce on outside opportunities, too.
When the going gets tough, the tough get going, after all, it"s easy to excel at leadership when all is right with the world.
This tips occurs as a real test when times get rough, the way they are, now right now, some visionaries in business are engaged in a dual strategy, on the other hand, they"re looking inward to shore up their businesses internally, and also they"re looking outward, pouncing on opportunities created by the economy downturn. If you"re not doing so already here are some key steps or tips you should take.
1. MAKE INTERNAL IMPROVEMENTS
Monitor your cash flow. Cash is king, now more than ever, make sure your lines of credit are adequate, and pay extra attention to cash flow projections. If you run short of working capital, manage by cash [not profit and loss statements]. Monitor your number closely.
And be ready to act.
2. Good leaders work for their stakeholders and listen to customers Knowing what they need and providing them the services they needed.
3. Just because you empty someone on a fixed term contract doesn"t Mean you don"t have legal obligations as their employers.
4. NETWORKING
Nurture an abundance mentality and you can have an unlimited supply of referrers.
5. MARKETING
Unsure what to cut and what to keep? This smart point is your guide to advertising.
6. KEEP YOUR EYES OPEN
Be on the lookout for fresh ideas and opportunities. Stay abreast of news and trends. Interact with other entrepreneurs to see what"s going on around you, and be poised to jump on opportunities when they come your way.
When the going gets tough, smart leaders get going, are prepared, and be proactive. Your company can survive recession and benefits from it provided you take the lead.
Business Tips
What are those essential points or tips you need why starting a business?
This points are things that stands out for what you have in mind, before going into business, they"re guidelines that motivates entrepreneurs before going into business, and it point to what they have ahead of them and as beginners as well.
1. KNOWING MY MARKKET INSIDE – OUT
This involves research; research proves that companies that maintain marketing activity during soft economies reap greater benefits later. The major thing is knowing what your customers would want from you, the price of goods and services, lowering or raising them to a more affordable and suitable rate to suit their demands and meet up with your prospects as well.
2. DEFINING THE BUSINESS CONCEPTS AND MAKING IT AS SIMPLE AS POSSIBLE
A simple clear explanation of what you business is all about will impress your founders, and even create avenue for customers in other to develop the business to a greater height.
3. CONDUCTING RESEARCH IN BOTH MARKET AND THE CONCEPT
To be a great entrepreneur, you need to conduct research in both your market and your concept of your business, knowing your market values and how to draw your plan of work changing or still stagnant, the competitions in the market base on product, price service and quality differences or difference in quantity of goods and Production and other factors that might as well affect production and distribution of goods and services.
4. STICKING TO THE ORIGINAL CONCEPT EVEN IF YOU GET
OFFERS FROM VARIOUS OTHER SOURCES
This point is very important, because most entrepreneurs don"t stick to their original concepts due to offers they might have received from their sources. Rethink your sales strategy, identify your most profitable products or services, and focus your sales efforts accordingly. Use gross profit as a measure, or better yet, your gross margin return on live statement.
5. Keeping overheads as low as possible and getting some savings In the bank for the tough times, will help build up your business to a standard height, and uplift the productivity of your firm or venture.
Making Advertisement
Constantly creating avenues to show, tell and explain the quality and quantity of your products and services to the audience, this advertising.
When money"s tight the knee-jerk reaction on advertising unfortunately, the businesses that stop advertising simply drop out of sight, taking these entrepreneurs from slow sales to no sales –
fast. It"s a risky move many may not recover from, rather than eliminate your advertising in a recession, cut the fat from your campaign, and focus on the right media choices for the highest return on investment.
To figure out what to cut and what to keep, use this checklist to chose the right media for your business in this challenging economy.
1.ADVERTISE WHERE PROSPECTS LOOKS FIRST
Where will your customers look when they"ve advertising decided to buy what you sell? Many people purchase online after researching on the internet or brick and motor store, placing advertising on search engines may be an important aspect of your scaled down campaign, other search media"s include trade and industrial directories, both online and in print, circular newspapers, classified adds, and shopping sections of specialty magazines, By advertising where prospective customers look, you"ll shorten your sales cycle and lower your cost per sale.
2. USE MEDIA THAT TOUCH PROSPECTS OF TEN
Even when your customers aren"t in search mode, they still interact with other important media. Discover which media touch your best prospect throughout the day. Do they read a particular newspaper?
Which TV and radio programmed do they enjoy and at what times of the day, zero in on the industry publication they rely on for information. Both business and consumer prospect have favorite websites they frequents. Armed with this vital information, you can strategically place ads in media you know play central roles in their daily lives.
3. PUT YOUR ADS IN CONTEXT
Not all media that touch your prospect will be smart advertising choose media"s that touch your prospects when they"re in the right frame of mind to be receptive to your message. For example, your best prospects may dine out frequently and be exposed to the ads inside the restroom stalls of popular restaurants. But the location of this media may be inappropriate context for advertising your type of business. It all depends on when and how you want your customers to think of your business pare down your campaign your to the media that put your message in the right context, and your response rates will climb.
4. ADVERTISE FOR MAXIMUM MEMORABILITY
The best use of limited advertising budget is to spend money where your campaign can be a standout. That requires sufficient ad size and frequent. With the abundance of clutter in all major media, it can be challenging to standout with small size fractional page ads, larger ads will give you more bang for your buck because they"re more likely to be seen and remembered. Rather than run small space ads in many publications or websites, reduce your media choices to those in which you can afford to buy larger ads and advertise frequently. Narrow your broadcast selections, to fewer radio station or TV programmed, and advertise to your core audience frequent, so your message is sure to penetrate by the time the marketplace rebounds, you"ll be a solid position to expand your campaign once again
Ways To Build A Successful Business
What are those pillars on which you build a successful business?
“The important thing is to make sure your people know how to manage customer relations when things go wrong, you must know how to receive them if they are unhappy with empty. When things go wrong all people want is for you to fix their problem with as little as further irritation as possible”.
1. Build a constant customer presence in the media through astute use Of cost effective advertising methods.
2. Allow customers to have easy and fort able access to yourself an your staff.
3. Uphold your integrity at all times, in all aspects.
4. Be fanatical about service satisfaction.
5. Always under-promise and over-deliver never create false
Expectations only to disappoint. Don"t be tempted to hear- tell Customer what they want to hear-tell it like it is.
6. make sure you have comprehensive product knowledge and instill a Culture of loyalty to the product and service you sell.
7. Build good relationships with key managers and vital suppliers. Put effort and energy into making honorary contributions to industry for the benefit of all its players.
Measure your performance against today"s parameters. Use the key number and benchmarks for your sector, seek out best practices and strive to meet – and beat them.
EMPOWERING YOU TO KEEP GOING
It"s not about starting over it"s about empowering yourself to keep going
Every entrepreneur Challenges that makes him question whether it"s time to quit and try an alternate earlier. From fluctuating customer desires and increasing costs, to changing technology, the events that influence your personnel and business success regularly test you, no matter how hard work to establish a routine, as an entrepreneur, you must always be prepared for the unexpected.
Perseverance and a positive attitude play an essential role in the development of any enterprise. Rather than feeling as though you have to start over when you face a radical change, remind yourself of the courage it took to start your business. Constructing your unique business path is a process, and you must learn to be flexible and continually apply the knowledge you"ve gained. Leveraging that extra mile when others would stop in their tracks.
1. CREATE AN EXIT STRATEGY FROM THE BEGINNING
Trying to decide whether to continue your business can be emotionally draining. Release the fear of quitting by defining the
parameters that would makes your dream unattainable. This acknowledgment subconsciously frees you to pursue all possible solutions, promise yourself that you will only quit when the time is right. As you move forward, what might have seemed like a business – stopping mistake will produce surprising and rewarding results.
2. CHANGE DOES NOT EQUAL FAILURE
Only you can block your own efforts. Roadblocks and setbacks will occur; however, these outside influences don"t have to affect your capacity as an entrepreneur to move forward. The average for entrepreneurs is 3-8 failures before they finally make it in business.
Every situation on contains new success. Experience can help your business mature and grow. That"s why you need to look beyond the negative effects and figure out how you can simplify your processes or better serve your customers needs. By seeking solutions, you gain energy an create distinctive methods for obtaining even greater success.
3. VIEW YOUR BUSINESS AS AN EXPERIMENT
Your goal as an entrepreneur is to persistently gain knowledge those ads to your arsenal of strategies. You"re an expert at testing out new ideas and seeing them through the end. Rather than quit reignite the entrepreneur spirit that inspired you to set out on your own. Let your institution be your guide as you take on new challenge. It"s ok to alter your business concept and incorporate all you have learned. Conquering problem breed self-confidence, which in turn make you more productive.
4. REINFORCE YOUR WILL POWER.
Purpose and passion go hand in hand. Re-energize your spirit by keeping your head clear of negative thought commit to minimizing action that drain your energy and associate yourself with people who motivate and inspired you. Take your idea serious, and focus on what you"ve achieved rather than what you may have failed to accomplish.
There are more countless paths to accomplish your goals. Remain flexible and boost your success by developing unique options and remaining open to where your decision may lead you. When faced with doubt, remind yourself that you can move forward no matter what challenge you may encounter. The answer lies your creativity.
ACHIEVING A GOAL.
What are those fuel your need to kick start your dream and achieved a goal? The vital point on which your goal is been laid upon.
At first, what is a goal “a goal is nothing more than a dream with a time limit."" Joe l. Griffith
Many people don"t have goal because they haven"t allowed themselves to dream.
TOP KEYS
The goal shapes the plan. The
plan shapes the action. The
action achieves the result. The
result brings success.
“By failing to prepare you are preparing to fail. Benjamin Franklin.
1. THE GOAL.
As an entrepreneur or businessman, what you have in mind, before going into the business can be termed as a goal. It is your desire that prompt you to your open doors of success, it is the key that power your spirit, soul and body in achieving your goal, then energies will follow success can only be actualized when it is backed up by action.
2. THE PLAN.
Planning is a deliberate process of drawing out your intensions about what you want to do. In business and other wise, planning is the fundamental recipe for success. “He that fail to plan, plan to fail. It is the bringing of the future into the present so that you can do something about it now. Business owners ought to plan on the capital, they want to use to start up a business, the type size and the location, the materials involved in starting the business, finance, product at large and putting in effort to carry out this plans in other to buttress their success.
3. THE ACTION
“Success seems to be connected with action, successful people keep moving”. To succeed as a business man you must be open to problems. You have to failure. And as you go up, the ladder, you gain the right to get more problems. That thing that keeps you going in the midst of adversity is called “a action “, that charges your energies, you and brings you to the doors of success through thacity and persistence is the action” so to be a success means maximization of the available abilities and resources to hit at a desired target.
4. THE RESULTS
As an entrepreneur, the remark or score you get, after started your business is known as “The result”. It might be progressive or retrogressive, depending on your profit sales. If you are succeeding in everything you do, then probably you"re not pushing yourself hard enough, and that means result can push you to enough risks. The results can push you to becoming a winner or failing, when achiever he knows how much he still has to learn, even when he is considered an expert by others before he has learned enough to know how little he
knows”.
5. THE SUCCESS
Success is the progressive realization of all that you were meant to be and do. “The person interested in success has to learn to view failure as a healthy, inevitable park of the process of getting to the top”. If you"re not failing then you"re not growing. Tell yourself “am not a failure: failed at doing something”. There"s a big difference, all achievers are given multiple reasons to believe there"re failures.
But in spite of that, they persevere failure isn"t so bad if it doesn"t attack the heart.
Success is all right if it doesn"t go to the heard. Success is the end point of your goal, because the desire of every business owners before starting a business is to aim at success, achieving success makes come true what one has projected for, and powers him to the height of an achiever. These vital keys you"ve read is your guide to achieving a goal learn from your mistake and move on to the next challenge.
Your success in life has condition to it. Remember that “a wise man does not relax and expect life worth living through the utilization of diligence and proper application of the keys or principles of success”. Every one desire and dream of success, but those that move themselves to success will attain it at the end.
About The Book
This book is written based on my idea"s and knowledge as a purchasing and supply student, and my experiences in kerosene retailing business and phone marketing. This book is mainly structured to induce achievers into exploring their success, which are the missing link in modern, businesses. Most entrepreneurs are very optimistic about the way, how and when to on rive at it. Readers of this book will find the therapy on achieving their dreams and antidote"s to getting an unattainable
success.
STAFFING
The word staffing is derived from the word “Staff”
Staff according to the Oxford Advanced Leaners Dictionary means “All the workers employed in an organization considered as a group”.
Staffing in this scenario can then be seen as a process of providing staffs in an organization.
Staffing has been one of the challenges of entrepreneurs especially a small growing business that operates within his/her locality (Home).
Staffing is all about analyzing the staff requirements and the ability to fill various position with the right personnel. (J. Amesi, 2015).
The entrepreneur must realize that he/she cannot carry out virtually all the activities which comprises the day to day running of the business, purchasing, advertising, storage, giving records, etc. Hence there is a need for proper and adequate s1. taffing. It has been observed that the profit or loss incurred in a business is not necessarily influenced by the owner of the business but by the type of staffs that help in the running of the business. As a result an entrepreneur is advised to take adequate care in the type of staff that works for his organization especially a small business.
Objectives of Staffing
This has to do with the paramount aim the entrepreneur is expected to achieve from his/her adequate staffing skills; 1. Staffing process reminds the entrepreneur of the required manpower needed in the running of the business. As he is screening the staffs he now gets the knowledge of the need of the business and the type of staff which will be suitable to fill in the job position.
2. Proper staffing attracts the best qualified candidate in the sense that job position and accurate description will be provided and the
best candidate that is convinced he/she is fit for the position will apply. But when accurate information is not given, any individual can apply without knowing the position he/she is even applying for.
For instance, as advert for employment is published without specifying the jobs description and requirement, someone who is jobless will certainly apply. Fortunately the person is accepted but starting the work he/she founds out that the job is too difficult. The person will not function effectively as the individual who already know the specification of the job before applying.
3. Effective staffing inculcates the vive of mutual understanding of the business culture.
4. When employees are trained it become an objective of staffing since it enables the right staff to be placed in the position deemed fit for such employee.
5, Completion factor is one of the objective of staffing. This is because the business owner is fully convinced that any job given to any of its staff will be executed smoothly without preemption.
6. Effective staffing increases the welfare longevity of a firm,.
7. Businesses with the right personnel is associated with effective business operation with little or no complaints by their client.
8. Effective staffing yields more profit for the business.
9. There is maximum reduction in the increment of expenses since everyone is an expert in their work.
10. Effective staffing saves time and resources.
Factors to identify a promising staff
The most talented athletes rarely make good coaches so does the most skilled instrumentalist make the best singer. There is a clear difference between the skill of performance and the skill of leading the performance. These are two different skills possessed by different people.
Below are some of the ways of identifying a promising staff.
1. Past Leadership Experience
Someone who has had some experience on the job past years ago tends to perform better on the same job since the acquaintance and skill of the job is already embedded in the individual thus increasing the efficiency of the individual.
2. Creativity and the ability to catch vision The ability to create and recreate something new is a quality a good staff. An individual who is smart un understanding the patterns on how things work and catches a vision usually excel in his/her field.
3. Objectivity:
Highly objective people are rarely good staffs, because they say and do things their own way without minding if they are hurting their clients or reducing he profit level of the company. Morealso highly original people are not good leaders because they need someone to tell them “this will work” and “this will not work”. These people are slow in decision making and often confused over a little challenge coming their way.
4. Reluctance over responsibility
There exist skilled personnel in a form but they may be “scared” of starting an assigned responsibility . These set of people do not trust themselves as a result if this, they make mistakes along the line. These people rarely make good staffs. Effective staff should be confident while discharging their activities and should not be careless.
5. Mental Toughness: A leader or a staff must sometimes be criticized or faced with discouragement; it is the ability to the staff to take courage even when things are not working as planned and should not give up when he/she is not encouraged/rewarded when they may have done something fantastic. Mentally tough people usually make good staffs.
6. The completion factor:
This is a test to determine how committed an individual is to their work.
An entrepreneur can decide to assemble all his staff and give a general problem which may not necessary be what they are supposed to do. The one that never let go of the job until it is done has a completion factor skill.
Some staff just possess this skill that they do not ask “Why and How”
they just execute task and produce the desired output. It is called
“Completed staff work” (J. Amesi; 2015). People as this makes good staffs.
7. Family respect:
Someone highly respected in his family/community is perceived to be of good character. The family feelings towards someone reveals a lot about that person potential.
8. Fluency in Communication:
Someone who cannot express the burning thought inside cannot make adequate contribution and there will be difficulty in interacting with clients. People as this should be placed in a position that does not require regular interaction with clients.
9. Constructive and destructive weakness of the staff should be considered of every staff in a firm.
Challenges faced by Entrepreneurs as to Staffing Entrepreneurship business has many challenges and also many reward. Some of these include;
1. Recruiting
Finding the right personnel is a challenge for many entrepreneurs who have to compete with large firms. This is common to Small Business Association (SBA).
2. Retention:
Retaining top talents is very challenging. This is because the staffs is intrigued by what other staffs of his level are benefiting from large firms
as a result retaining such talent is always challenging for the entrepreneur.
3. Payroll
This is yet another challenge for entrepreneurs especially when they are currently experiencing low financial dramatization. Some Small Scale Business faces the odds of paying their workers as a result of lack of funds.
4. Number of Staffs
In a Small Scale Business 9SSB) over staffing can lead to reduction in profit while under staffing can lead to reduction in workforce and efficiency, hence staffing should be optimized and regulated.
5. Family
The family can also be a challenge for the entrepreneurs. Some think the first son of a man must be his manager but this is not ethical in any business aspiring to succeed. If a family relation is not fit to be employed, they should not be employed. The half cooked meal is not good enough for any business.
6. Lack of fund for security and other janitorial works for Small Sacle Business
