Many small business owners are overwhelmed by the mere thought of going international. The process is easier and quicker than you might believe. Thanks to the growth of technology your business can go overseas.
The internet has probably had the greatest effect on international business. I am not just talking about ecommerce sites. The internet is an amazing place to find resources of how to go international. There are government and local sites with a wealth of information. I have listed these resources for you at the bottom of the post.
Dependable shipping is a must have for any business especially when it comes to international affairs. The ability to track a package can put the customer and business at ease. Shipping companies also are able to give a shipping destination date for the product. This reduces the amount of inquiries and tedious tracking efforts for a business.
Another way technology has benefited international business is through outsourcing. People have mixed views of outsourcing. Some see it as good while others see it as horrible. If you have dealt with calling a customer service line for a product then you have probably dealt with a person who is overseas. Technology has made it possible to outsource customer service support to places such as India and the Philippines. High speed communication systems have made it possible to send these jobs outside of the U.S.
The internet, shipping, and outsourcing are just some aspects where technology has assisted in international businesses. Taking your business international is a great opportunity to take your company to the next level. Make sure you use these resources to get a better feel for regulations, processes, and additional information that you might not be aware of.
http://export.gov
http://exim.gov
http://buyusa.gov
Sunday, March 8, 2009
"Just in Time" Inventory
In many manufacturing industries there are problems between production scheduling and the ability for purchasers to wait for a product. A solution to this problem is called the just in time scheduling system. This type of inventory management has gained greater popularity over the recent years.
The whole purpose of JIT inventory control is to eliminate inventories altogether. The way to do this is by producing goods to correspond with projected shipping dates. This means that products are shipped directly to the purchaser as they leave the assembly line. This type of inventory control reduces production costs greatly.
Just in time inventory management is great for a stable economy and demand. However, it should not be used if the demand changes, which is often seen in a producer of consumer goods. The industry in which the manufacturing takes place cannot have problems with supply or unreliable shipping. You must remember that your supplier has to be dependable and there is enough lead time for the transportation of goods.
As you can imagine, the JIT inventory control would be extremely difficult to coordinate without the use of technology. Just in time inventory has to be controlled by a complex computer based system. Although these systems tend to be expensive, the money saved using JIT inventory control outweighs the cost of the computer system.
Just in time inventory control is a great alternative for manufactures. Like I said before, you have to make sure your industry is stable along with supply and shipping. JIT inventory control reduces costs, virtually eliminates inventory, and diminishes inventory handling.
The whole purpose of JIT inventory control is to eliminate inventories altogether. The way to do this is by producing goods to correspond with projected shipping dates. This means that products are shipped directly to the purchaser as they leave the assembly line. This type of inventory control reduces production costs greatly.
Just in time inventory management is great for a stable economy and demand. However, it should not be used if the demand changes, which is often seen in a producer of consumer goods. The industry in which the manufacturing takes place cannot have problems with supply or unreliable shipping. You must remember that your supplier has to be dependable and there is enough lead time for the transportation of goods.
As you can imagine, the JIT inventory control would be extremely difficult to coordinate without the use of technology. Just in time inventory has to be controlled by a complex computer based system. Although these systems tend to be expensive, the money saved using JIT inventory control outweighs the cost of the computer system.
Just in time inventory control is a great alternative for manufactures. Like I said before, you have to make sure your industry is stable along with supply and shipping. JIT inventory control reduces costs, virtually eliminates inventory, and diminishes inventory handling.
Friday, March 6, 2009
The Credit Formula
What goes into a credit decision when extending credit to a customer? There are four “Cs” to evaluate the eligibility for credit. They include character, capacity, capital, and conditions. Let’s explore what each C means and how it is measured.
Character is the most important aspect when determining eligibility. This means the integrity, honesty, and sense of responsibility of the customer. It is the hardest to assess, as you can imagine. Many times character is determined on the customer’s past track record. Did they handle credit well in the past? Well, then that must mean they have good character and they will continue to do so. I do not believe this is the best form of judging character, but it does seem to work well enough for those who use it. It definitely does not extend grace to the people that may have struggled in the past, but would shine if given a second chance.
Capacity refers to the financial strength and stability of the customer. This is much easier to assess than character. The overall debt ratio is determined of the individual to see if they will be able to pay back their line of credit. The general rule when it comes to credit is that debt should not exceed 30% to 45% of income. Stability of income is also determined when considering capacity. A good indicator of income stability is the how long the individual has kept their current job and the skill level required of their position.
Capital also refers to the financial strength of the customer, however, it is judged on the ultimate collectability to pay off credit. This is determined by establishing the net worth of the customer. This means that the individual’s assets are measured against their debts and liabilities. The higher their net worth, the stronger they are financially. Sometimes collateral will be involved if the customer is making a large purchase. For example, when a person buys a car, the value of the car is used to secure the credit.
Conditions mean any circumstance that might affect a credit decision. For example, today’s weakened economy plays a major role in the eligibility for credit and the set limit. Another condition may pertain to the health of a business. If a business is doing poorly then they might be more lenient with credit decisions to bring in more customers. There are a myriad of conditions that affect credit eligibility.
Extending credit to a customer might be essential for your business. It is important that good decisions are made about whom to extend the credit to. The success of your business could hang on the credit decisions your company makes. That is why it is so important to thoroughly evaluate your customer using the 4 “Cs.”
Character is the most important aspect when determining eligibility. This means the integrity, honesty, and sense of responsibility of the customer. It is the hardest to assess, as you can imagine. Many times character is determined on the customer’s past track record. Did they handle credit well in the past? Well, then that must mean they have good character and they will continue to do so. I do not believe this is the best form of judging character, but it does seem to work well enough for those who use it. It definitely does not extend grace to the people that may have struggled in the past, but would shine if given a second chance.
Capacity refers to the financial strength and stability of the customer. This is much easier to assess than character. The overall debt ratio is determined of the individual to see if they will be able to pay back their line of credit. The general rule when it comes to credit is that debt should not exceed 30% to 45% of income. Stability of income is also determined when considering capacity. A good indicator of income stability is the how long the individual has kept their current job and the skill level required of their position.
Capital also refers to the financial strength of the customer, however, it is judged on the ultimate collectability to pay off credit. This is determined by establishing the net worth of the customer. This means that the individual’s assets are measured against their debts and liabilities. The higher their net worth, the stronger they are financially. Sometimes collateral will be involved if the customer is making a large purchase. For example, when a person buys a car, the value of the car is used to secure the credit.
Conditions mean any circumstance that might affect a credit decision. For example, today’s weakened economy plays a major role in the eligibility for credit and the set limit. Another condition may pertain to the health of a business. If a business is doing poorly then they might be more lenient with credit decisions to bring in more customers. There are a myriad of conditions that affect credit eligibility.
Extending credit to a customer might be essential for your business. It is important that good decisions are made about whom to extend the credit to. The success of your business could hang on the credit decisions your company makes. That is why it is so important to thoroughly evaluate your customer using the 4 “Cs.”
Tuesday, March 3, 2009
Keep Your Business Safe
Attention small business owner; there may be a thief inside your business. Do you know that small businesses experience fraud at a 100 times higher rate than large companies? This is an alarming rate that must be taken seriously. Several reasons are implied for this higher existence of fraud in smaller businesses. First of all, the highest rate of fraud is committed by the accounting personnel. The small business may have one accounting professional who is given complete trust in dealing with all financial matters. Another reason why there is higher fraud in small firms is because of the lack of internal controls. Small businesses rarely hire an outside source to audit or review their accounts and to hold the accounting professional accountable. The difficult thing about fraud is the fact that fraudulent people look like you and me. They are usually not criminals, but instead our friends, co-workers, and family. Since the person who commits fraud can be a close acquaintance we may tend to overlook or be in denial that they may actually be stealing from our business.
Instead of focusing entirely on why fraud happens in a small firm I want to give some tips to preventing fraud from happening in your small business. Many times fraud occurs due to blurry boundaries, lack of supervision, or lack of respect of the leaders in the company. Fraud can be best prevented by creating an ethical environment; one of integrity and respect. The first step in fraud prevention is the implementation of a fraud policy. If a fraud policy is in place, there will be no room for misinterpretation. An employee should be well aware of the rules, regulations, and punishments pertaining to fraudulent activity. The second step is to have high moral conduct when it comes to dealing with customers and suppliers. This example being set forth will elevate the morality in the other employees. Thirdly, establish a place of social unity and respect amongst the employees. Happy and connected employees will not want to steal from the company they enjoy working for. The forth step is to allow no exceptions to the rules. That way there is no gray area in what is right and what is wrong. The last step in preventing fraud is to always screen your potential employees. This means you check references, get background and credit check, and interview them with proven techniques. Many businesses do not take the hiring process seriously enough. It is the first and foremost step in preventing fraud. If that fraudulent person does not get hired they will not have a chance to steal from you.
I hope that you have gathered some new information about fraud and how it affects a small business. As the entrepreneur, you are the one who is responsible for the health of your business. If you do not take precautionary measures against fraud then I can almost guarantee that it will occur in your business. Please begin a plan against fraud now if you have not already done so.
Instead of focusing entirely on why fraud happens in a small firm I want to give some tips to preventing fraud from happening in your small business. Many times fraud occurs due to blurry boundaries, lack of supervision, or lack of respect of the leaders in the company. Fraud can be best prevented by creating an ethical environment; one of integrity and respect. The first step in fraud prevention is the implementation of a fraud policy. If a fraud policy is in place, there will be no room for misinterpretation. An employee should be well aware of the rules, regulations, and punishments pertaining to fraudulent activity. The second step is to have high moral conduct when it comes to dealing with customers and suppliers. This example being set forth will elevate the morality in the other employees. Thirdly, establish a place of social unity and respect amongst the employees. Happy and connected employees will not want to steal from the company they enjoy working for. The forth step is to allow no exceptions to the rules. That way there is no gray area in what is right and what is wrong. The last step in preventing fraud is to always screen your potential employees. This means you check references, get background and credit check, and interview them with proven techniques. Many businesses do not take the hiring process seriously enough. It is the first and foremost step in preventing fraud. If that fraudulent person does not get hired they will not have a chance to steal from you.
I hope that you have gathered some new information about fraud and how it affects a small business. As the entrepreneur, you are the one who is responsible for the health of your business. If you do not take precautionary measures against fraud then I can almost guarantee that it will occur in your business. Please begin a plan against fraud now if you have not already done so.
Wednesday, February 25, 2009
The E-Commerce Buzz
Do you remember when you had to have enough start up costs to cover a building, supplies, and merchandise? Well, now entrepreneurs can start an online business with very little cash. E-commerce has opened up a wide world of opportunities and ventures for making money. We will explore the pros and cons of e-commerce so you can decide if it is right for you.
The loss of the physical, "brick and mortar", store transforms the way an entrepreneur does business. First of all, the cost of a web based business typically costs less than a physical store, which translates into more profitability. Web based businesses have the ability to draw more traffic and require less employees. When it comes to target marketing the process is more precise because you are able to gather a vast amount of information about your customer. Your customer's interests, location, gender, etc. can assist you in sustaining them as customers and marketing to new ones. Advertising online is also more precise with online businesses. Since you know more about your customers you can create ads and pop-ups that pertain to them in places that they visit frequently. Another great advantage is the ease in the transfer of funds. When you use a company like PayPal it makes transferring funds instant and less expensive. Also, customer based financing may become possible because the customer pays you first and then you have the money to buy the product.
There are some cons to having an e-commerce site. First, there are always the issues with technology. Technology continues to become more and more friendly to the everyday individual. You do not have to be a big tech geek to set up a website and keep it maintained. There are many companies that offer website development and maintenance at fair costs. Even if you do not set up your own website I suggest you learn everything you possibly can about the operation and navigation of it. A successful entrepreneur always tries to learn about every aspect of their business; technology included. Another disadvantage of e-commerce is the loss of the tangible object. Your customer cannot see or feel the actual merchandise. The product may look a different size, color, or texture on the web then it does in person. This increases the likelihood of the item being sent back. The last con is the fact that the social aspect of shopping is lost. There is no physical interaction between your customer, other customers, and you. This can be remedied by having message boards, blogs, or an online community attached to your site. This will bring about connection amongst customers and their opinions about your products.
Online businesses are an amazing success and it is important that you get on board if you have not already. Your customer will never have to worry about your store being closed, waiting in line, parking, finding items, or feeling overwhelmed by the size of the store. It eliminates so much of what people hate about going to a physical store. Sometimes an entire business online is not feasible, but if that is the case then you should still have a website. The web will help you grow your business more quickly, because of higher visibility and access for your customers.
The loss of the physical, "brick and mortar", store transforms the way an entrepreneur does business. First of all, the cost of a web based business typically costs less than a physical store, which translates into more profitability. Web based businesses have the ability to draw more traffic and require less employees. When it comes to target marketing the process is more precise because you are able to gather a vast amount of information about your customer. Your customer's interests, location, gender, etc. can assist you in sustaining them as customers and marketing to new ones. Advertising online is also more precise with online businesses. Since you know more about your customers you can create ads and pop-ups that pertain to them in places that they visit frequently. Another great advantage is the ease in the transfer of funds. When you use a company like PayPal it makes transferring funds instant and less expensive. Also, customer based financing may become possible because the customer pays you first and then you have the money to buy the product.
There are some cons to having an e-commerce site. First, there are always the issues with technology. Technology continues to become more and more friendly to the everyday individual. You do not have to be a big tech geek to set up a website and keep it maintained. There are many companies that offer website development and maintenance at fair costs. Even if you do not set up your own website I suggest you learn everything you possibly can about the operation and navigation of it. A successful entrepreneur always tries to learn about every aspect of their business; technology included. Another disadvantage of e-commerce is the loss of the tangible object. Your customer cannot see or feel the actual merchandise. The product may look a different size, color, or texture on the web then it does in person. This increases the likelihood of the item being sent back. The last con is the fact that the social aspect of shopping is lost. There is no physical interaction between your customer, other customers, and you. This can be remedied by having message boards, blogs, or an online community attached to your site. This will bring about connection amongst customers and their opinions about your products.
Online businesses are an amazing success and it is important that you get on board if you have not already. Your customer will never have to worry about your store being closed, waiting in line, parking, finding items, or feeling overwhelmed by the size of the store. It eliminates so much of what people hate about going to a physical store. Sometimes an entire business online is not feasible, but if that is the case then you should still have a website. The web will help you grow your business more quickly, because of higher visibility and access for your customers.
Wednesday, February 18, 2009
The Problem with "Goodwill"
Is there "goodwill" when it comes to buying a business? You might be wondering what in the world I am talking about. Well, let me explain. Goodwill is defined as a sustainable competitive advantage. You might wonder how one would be able to prove that goodwill exists in a venture. Sure everyone wants to claim that they have it, but few can prove it.
The first problem with "goodwill" is being able to figure out what the competitive advantage is exactly. If you are lucky enough to find it then how do you prove it and if you can prove it then how do you measure it. You have to find some way of measuring the value of this so-called "goodwill" before a price can be applied to it.
I personally do not doubt that some companies do have "goodwill." The existence of "goodwill" many times is contingent on the entrepreneurial team rather the the venture itself. It is important that the potential buyer of the venture keeps this in mind. The question is can the "goodwill" be transferred to the new ownership?
For example, lets say a coffeehouse located in a college town is owned by a young, popular twenty something year old. There really is nothing special about this coffeehouse. It has the typical lounge feel and mediocre coffee, but it is always packed with college students. Many of the customers know the owner and really like supporting one of their peers. This owner decides that they want to put the coffeehouse up for sale. The interested party understands that there is something that this coffeehouse has that the others do not. There is obviously a competitive advantage present in this venture. The coffeehouse sells for a more expensive price due to this "goodwill" factor. The new owner takes over the coffeehouse and continues to operate it exactly as it was before. However, the customers slowly become scarce. The reason for the lack of customers is due to the fact that the new owner is middle aged and is not interested in making friends with the clientele. This is an example of the fact that even if "goodwill" exists it may not be transferable.
The first problem with "goodwill" is being able to figure out what the competitive advantage is exactly. If you are lucky enough to find it then how do you prove it and if you can prove it then how do you measure it. You have to find some way of measuring the value of this so-called "goodwill" before a price can be applied to it.
I personally do not doubt that some companies do have "goodwill." The existence of "goodwill" many times is contingent on the entrepreneurial team rather the the venture itself. It is important that the potential buyer of the venture keeps this in mind. The question is can the "goodwill" be transferred to the new ownership?
For example, lets say a coffeehouse located in a college town is owned by a young, popular twenty something year old. There really is nothing special about this coffeehouse. It has the typical lounge feel and mediocre coffee, but it is always packed with college students. Many of the customers know the owner and really like supporting one of their peers. This owner decides that they want to put the coffeehouse up for sale. The interested party understands that there is something that this coffeehouse has that the others do not. There is obviously a competitive advantage present in this venture. The coffeehouse sells for a more expensive price due to this "goodwill" factor. The new owner takes over the coffeehouse and continues to operate it exactly as it was before. However, the customers slowly become scarce. The reason for the lack of customers is due to the fact that the new owner is middle aged and is not interested in making friends with the clientele. This is an example of the fact that even if "goodwill" exists it may not be transferable.
Two Avenues of Buying a Venture
You might have thought about buying a business rather than starting one from the ground up. There are many preconceived notions of which route is the better way to go. The truth in the matter is that both ways of starting a business has its advantages and disadvantages. This post is about buying a business and things you should consider before you take the leap.
First of all, what reasons have brought you to the notion of buying a business. Many times buying a business is beneficial because there is an established customer base and stability in a market area. An established business is often seen as less risky, because it has survived the start up stage. The next question to ask is, why are the current owners looking to sell their business? It is important that they are not selling due to poor revenue or bankruptcy. Even if they profess to be selling for legitimate reasons, it is important that you investigate further to make sure they are telling the truth.
You might also have to buy a business for necessary purposes. These could include obtaining assets, a license, or franchise. Sometimes the only way that you can start a certain type of business is to buy one that already exists. An example of this can be seen in the restaurant business and the obtaining of a liquor license. Some towns have a limit on the number of licenses issued and therefore one business must sell or close down before another business can possess a liquor license.
The best reason to buy a business is if you see potential in it that the current owner does not see. Many new owners of a bought business take the business to new heights. The concept of entrepreneurship is the ability to see what is not there. Buying a previously owned business hangs on this concept. You have the ability to bring a fresh new approach and innovate new ways of growth. Sometimes you see more when you are looking in from the outside rather than being engulfed in the present business. You possess that amazing viewpoint!
There are two different ways in which a business can be purchased. The assets can be bought or the business can be bought as a going concern. Buying a business as a going concern means that the business operates as it was but with a new owner. This means that legally it is seen as the same venture. This presents liability concerns, because there might be legal issues from the previous owner that will pass to the new owner. This is why the asset buying of a business is much more preferable. When only the assets are bought there is no legal responsibilities that can be continued to the new business. That is why you should always go the route of buying only the assets of a business. I know that this is not always feasible, but if you do have a choice then buy the assets only.
First of all, what reasons have brought you to the notion of buying a business. Many times buying a business is beneficial because there is an established customer base and stability in a market area. An established business is often seen as less risky, because it has survived the start up stage. The next question to ask is, why are the current owners looking to sell their business? It is important that they are not selling due to poor revenue or bankruptcy. Even if they profess to be selling for legitimate reasons, it is important that you investigate further to make sure they are telling the truth.
You might also have to buy a business for necessary purposes. These could include obtaining assets, a license, or franchise. Sometimes the only way that you can start a certain type of business is to buy one that already exists. An example of this can be seen in the restaurant business and the obtaining of a liquor license. Some towns have a limit on the number of licenses issued and therefore one business must sell or close down before another business can possess a liquor license.
The best reason to buy a business is if you see potential in it that the current owner does not see. Many new owners of a bought business take the business to new heights. The concept of entrepreneurship is the ability to see what is not there. Buying a previously owned business hangs on this concept. You have the ability to bring a fresh new approach and innovate new ways of growth. Sometimes you see more when you are looking in from the outside rather than being engulfed in the present business. You possess that amazing viewpoint!
There are two different ways in which a business can be purchased. The assets can be bought or the business can be bought as a going concern. Buying a business as a going concern means that the business operates as it was but with a new owner. This means that legally it is seen as the same venture. This presents liability concerns, because there might be legal issues from the previous owner that will pass to the new owner. This is why the asset buying of a business is much more preferable. When only the assets are bought there is no legal responsibilities that can be continued to the new business. That is why you should always go the route of buying only the assets of a business. I know that this is not always feasible, but if you do have a choice then buy the assets only.
Friday, February 6, 2009
To Franchise or Not To Franchise
Franchising can be a great alternative to starting a business on your own from scratch. Many entrepreneurs choose to purchase a franchise, because it offers a proven business concept, support, visibility, and instant credibility. If a franchise offers all of this then why isn't everyone doing it? Well, there are also some drawbacks to a franchise which I will discuss later in this post.
Let us first discuss what the franchisor provides to its franchisees. A franchise means that the franchisor grants the franchisee a license to use its business structure, services or products, trademarks, and brand identity. The franchisee cannot have all these goodies until they pay up. This involves an initial franchise fee and royalty fees thereafter. Also, don’t forget about the minimum startup capital required to start the franchise.
It is reported that there is a lower failure rate for franchisees than independent businesses. This is overall true, but it does not mean that if you own a franchise it will not fail. There are several reasons why a franchisee will be more inclined to succeed. The first reason and main reason is the requirement of startup capital. Most independent businesses fail, because they started their business with insufficient funds. There is no way an entrepreneur can start a franchise with little capital, because the franchisor will simply not allow that to happen. Another benefit for success is the fact that a franchise is usually based on a successful business model. Somewhere there is at least one business flourishing from this business structure. That is why it is appealing to potential entrepreneurs. The third reason why franchises are more successful is because of the training and support provided by the franchisor. Knowledge is the key here, because many new entrepreneurs have little to no knowledge about running a business.
Even though there are many benefits to owning a franchise there are also some things to remember. Starting a franchise means that you will have instant visibility which can be a double edged sword. Most customers do not think of a franchise as independently owned. They expect the same service or product that they received from another franchisee. This means that there will be a steep learning curve from the very beginning to ensure your customers are getting consistent service or products across the board. Another aspect of a franchise is the fact that there is not as much freedom when operating under a franchisor. You have to abide by the rules and regulations that the franchisor has set in place. Some entrepreneurs also get tired of paying the royalty fees. They do not think that having the franchise is worth having to pay fees so frequently.
To own or not to own a franchise is a personal preference. If you are interested in the franchise concept than here are some resources to gain more knowledge.
http://www.franchise.com/
http://www.entrepreneur.com/franchise500/
http://www.franchise.org/
Let us first discuss what the franchisor provides to its franchisees. A franchise means that the franchisor grants the franchisee a license to use its business structure, services or products, trademarks, and brand identity. The franchisee cannot have all these goodies until they pay up. This involves an initial franchise fee and royalty fees thereafter. Also, don’t forget about the minimum startup capital required to start the franchise.
It is reported that there is a lower failure rate for franchisees than independent businesses. This is overall true, but it does not mean that if you own a franchise it will not fail. There are several reasons why a franchisee will be more inclined to succeed. The first reason and main reason is the requirement of startup capital. Most independent businesses fail, because they started their business with insufficient funds. There is no way an entrepreneur can start a franchise with little capital, because the franchisor will simply not allow that to happen. Another benefit for success is the fact that a franchise is usually based on a successful business model. Somewhere there is at least one business flourishing from this business structure. That is why it is appealing to potential entrepreneurs. The third reason why franchises are more successful is because of the training and support provided by the franchisor. Knowledge is the key here, because many new entrepreneurs have little to no knowledge about running a business.
Even though there are many benefits to owning a franchise there are also some things to remember. Starting a franchise means that you will have instant visibility which can be a double edged sword. Most customers do not think of a franchise as independently owned. They expect the same service or product that they received from another franchisee. This means that there will be a steep learning curve from the very beginning to ensure your customers are getting consistent service or products across the board. Another aspect of a franchise is the fact that there is not as much freedom when operating under a franchisor. You have to abide by the rules and regulations that the franchisor has set in place. Some entrepreneurs also get tired of paying the royalty fees. They do not think that having the franchise is worth having to pay fees so frequently.
To own or not to own a franchise is a personal preference. If you are interested in the franchise concept than here are some resources to gain more knowledge.
http://www.franchise.com/
http://www.entrepreneur.com/franchise500/
http://www.franchise.org/
Thursday, February 5, 2009
What Influences You?
Entrepreneurs are driven by their passion. Some are driven by the shear act of entrepreneurship while others are driven by the field or business in which they are entrepreneurs. What is behind this passion? Let’s take a closer look at the factors that influence a person to become an entrepreneur. Is it life experiences, education, career displacement, parental influence, or maybe all of the above?
There is nothing more powerful than the wisdom gained from life experiences. Our past determines our beliefs and reactions toward our present and future. You might have had struggles or obstacles that you have overcome to make you the entrepreneur you are today. One very powerful characteristic of an entrepreneur is the fact that they build from their mistakes. Many entrepreneurs are not successful the first time or first few times around the block. They learn from their failures. It is rare that an entrepreneur hits it out of the park on their first swing. They have to get a feel for it before they know the force and technique needed to make a home run. Not all life experiences comprise of struggles and obstacles. Some experiences can pertain to your life passion. For example, it could be a hobby that you had since you were younger that you have made into your business venture. Maybe you have been touched by somebody or something that has fueled you to opening up your own non-profit to help others. Life experiences are the very foundation of who we are and what our business is built on.
The topic of education is quite controversial when it comes to entrepreneurship. Some theorists believe that entrepreneurship cannot be taught, because it is inherent in nature. I would have to disagree here. Maybe there are certain people that are predisposed to being good entrepreneurs. For example, a person who is outgoing and confident that makes a great salesman. The truth in the matter is that there is an entire spectrum of people who are successful in their own right when it comes to running a business. Many people who are entrepreneurs do have some level of secondary education under their belt. These degrees are not just in business and entrepreneurship, but also degrees in specific fields. For example, an individual with their counseling degree wants to open up their own wilderness therapy camp. I believe education can be beneficial to an entrepreneur, because it brings credibility and wisdom to their venture. However, I know several businesses that have been started by people who do not have any additional education and they are extremely successful. I believe it depends on the person and situation.
Another aspect that can influence a person to become an entrepreneur is career displacement. This means that a change takes place in a person’s career or life that makes them consider becoming an entrepreneur. This could mean losing a job or being dissatisfied with the current career path. This is seen all too frequently especially in today’s economic crisis. It is unfortunate to say that many negative situations lead to the making of an entrepreneur. They feel that the grass will be greener on the entrepreneurial side. Sometimes the business will be successful and many times it will fail. Problems will occur when a person rushes into opening up a small business without any venture planning.
It is very possible that the way we were brought up influences our business today. Many times entrepreneurs are who they are, because their parents were also business owners. Now this usually pertains to positive experiences that occurred based on the parent’s business. For example, I have had a positive outlook on business ownership because my father owns a business. He bought the business over four years ago when I was just graduating from undergrad. The business flourished quickly and my family saw great profits and success. The business continues to grow rapidly with an ever expanding customer base. My experience was positive about parental business owning, but for others it does not always result in a positive attitude. Some children grow up in a home with an absentee mother or father and actually resent their parents for the lost time. All the money in the world cannot bring back their childhood. These children have seen the negative aspects of business owning and therefore usually run in the opposite direction. I wonder if I would have thought differently about business ownership if my dad owned a business when I was younger.
When it comes to being an entrepreneur, there is a plethora of reasons we are the way we are. These influences affect the business we choose, how we run it, and how we make it successful. I know personally that my life experiences and parental influences affected me the most. I also believe my education helped prepare me to be a better entrepreneur. What influences affected you the most to become an entrepreneur?
There is nothing more powerful than the wisdom gained from life experiences. Our past determines our beliefs and reactions toward our present and future. You might have had struggles or obstacles that you have overcome to make you the entrepreneur you are today. One very powerful characteristic of an entrepreneur is the fact that they build from their mistakes. Many entrepreneurs are not successful the first time or first few times around the block. They learn from their failures. It is rare that an entrepreneur hits it out of the park on their first swing. They have to get a feel for it before they know the force and technique needed to make a home run. Not all life experiences comprise of struggles and obstacles. Some experiences can pertain to your life passion. For example, it could be a hobby that you had since you were younger that you have made into your business venture. Maybe you have been touched by somebody or something that has fueled you to opening up your own non-profit to help others. Life experiences are the very foundation of who we are and what our business is built on.
The topic of education is quite controversial when it comes to entrepreneurship. Some theorists believe that entrepreneurship cannot be taught, because it is inherent in nature. I would have to disagree here. Maybe there are certain people that are predisposed to being good entrepreneurs. For example, a person who is outgoing and confident that makes a great salesman. The truth in the matter is that there is an entire spectrum of people who are successful in their own right when it comes to running a business. Many people who are entrepreneurs do have some level of secondary education under their belt. These degrees are not just in business and entrepreneurship, but also degrees in specific fields. For example, an individual with their counseling degree wants to open up their own wilderness therapy camp. I believe education can be beneficial to an entrepreneur, because it brings credibility and wisdom to their venture. However, I know several businesses that have been started by people who do not have any additional education and they are extremely successful. I believe it depends on the person and situation.
Another aspect that can influence a person to become an entrepreneur is career displacement. This means that a change takes place in a person’s career or life that makes them consider becoming an entrepreneur. This could mean losing a job or being dissatisfied with the current career path. This is seen all too frequently especially in today’s economic crisis. It is unfortunate to say that many negative situations lead to the making of an entrepreneur. They feel that the grass will be greener on the entrepreneurial side. Sometimes the business will be successful and many times it will fail. Problems will occur when a person rushes into opening up a small business without any venture planning.
It is very possible that the way we were brought up influences our business today. Many times entrepreneurs are who they are, because their parents were also business owners. Now this usually pertains to positive experiences that occurred based on the parent’s business. For example, I have had a positive outlook on business ownership because my father owns a business. He bought the business over four years ago when I was just graduating from undergrad. The business flourished quickly and my family saw great profits and success. The business continues to grow rapidly with an ever expanding customer base. My experience was positive about parental business owning, but for others it does not always result in a positive attitude. Some children grow up in a home with an absentee mother or father and actually resent their parents for the lost time. All the money in the world cannot bring back their childhood. These children have seen the negative aspects of business owning and therefore usually run in the opposite direction. I wonder if I would have thought differently about business ownership if my dad owned a business when I was younger.
When it comes to being an entrepreneur, there is a plethora of reasons we are the way we are. These influences affect the business we choose, how we run it, and how we make it successful. I know personally that my life experiences and parental influences affected me the most. I also believe my education helped prepare me to be a better entrepreneur. What influences affected you the most to become an entrepreneur?
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