Entrepreneurial Mindset (eBook)

Thom Stimpel (Autor)

eBook Download: EPUB

2020 | 1. Auflage
110 Seiten
Bookbaby (Verlag)
978-1-0983-2847-4 (ISBN)

Infos

The Entrepreneurial Mindset explores why so many small businesses fail, and provides aspiring and novice entrepreneurs a self-assessment to help determine if they have the appropriate attitude, aptitude, skills, knowledge, patience, support, resources and direction to successfully start a business. Those who elect to proceed will find a comprehensive, step-by-step methodology for planning and implementing a successful business launch. The text is filled with stories and examples, and provides links to importation planning documents and even an opportunity to join a network of like-minded individuals. 'Mindset' is an essential text for those who want their business to thrive!

---

It is well known that the U.S. economy is driven by small businesses. Over 90 percent of the nation's GDP is generated by businesses with fewer than 50 employees, but starting a business and having it succeed is a rare accomplishment! This is evident by the statistics presented by the Small Business Administration and the US Chamber of Commerce. On average, over 50% of new businesses fail in the first 2 years, and 97% fail within 5 years. And in just the last few years, for the first time in U.S. business history, there have been more failures than starts. This is a serious economic problem! But this epidemic of failure can be cured with good planning and flawless execution of business wisdom and fundamentals. It may not be as difficult as it seems if aspiring entrepreneurs have the right tools, information, resources, patience ... and the proper mindset. The Entrepreneurial Mindset explores why so many small businesses fail, and provides aspiring and novice entrepreneurs a self-assessment to help determine if they have the appropriate attitude, aptitude, skills, knowledge, patience, support, resources and direction to successfully start a business. Those who elect to proceed will find a comprehensive, step-by-step methodology for planning and implementing a successful business launch. The text is filled with stories and examples, and provides links to important planning documents and even an opportunity to join a network of like-minded individuals. "e;Mindset"e; is an essential text for those who want their business to thrive!

Textauszug

Chapter 1: Should You Be an Entrepreneur?

Who do you think of when the word “entrepreneur” enters a conversation? Chances are it’s someone who has started a business that has become notorious in some way, and people admire that entrepreneur for what they have accomplished. Chances are it’s someone who now has a larger company, not a start-up, and now has specifically skilled people on his/her staff to handle all the finite details of running a business on a day-to-day basis. They have a personal business banker, they’ve hired lawyers, accountants and several other people who oversee significant parts of the business such as sales, advertising, administration, public relations, information technology, planning, purchasing, operations, quality, customer service, human resources and logistics.

Or maybe you think of someone in a smaller company, perhaps a family member or someone you know. You see them as having a career that they manage themselves. They set their own rules, work their own hours, select their own clientele and, most importantly, they have no boss!

The type of person you think of reflects your own mindset. If you think of Elon Musk, you are likely a dreamer with big aspirations. If you think of your neighbor and their small business, your vision is probably more contained and focused on things other than huge success and recognition.

It does not matter what type of entrepreneur you want to be; what does matter is your mindset! Do you dream of becoming an entrepreneur because you would like to escape the corporate rat race? Are you considering business ownership because other career avenues do not seem to be available to you?

Or do you see yourself as someone who can navigate the broad spectrum of all that is required to succeed on your own at a high level? It is important to know why you are considering this path, and we will discuss that further in just a moment.

To be an entrepreneur, you must wear many hats, and you must look good in all of them. That range of complicated roles to be played is, at least initially, all your responsibility!

If you are not very good at accounting or keeping books, you must improve those skills immediately. You must establish the chart of accounts and the methods you will use to plan your cash flow, control expenses, pay bills, account for revenue and pay taxes. Once you have experienced this, you will know what type of person to hire to manage all of this for you, and whether their operating style fits your way of conducting business.

If you are not very good at sales (a common shortfall), you must immediately learn how to define, attract, engage and sell to a customer. This is actually very complex. If done poorly, you fail. If you’ve always been a back office IT person and think you can establish a big business based solely on systems and networks, I hate to break the news, but eventually you’ll need people, and you’ll need to know how to lead those people in a diverse set of roles.

Your list of responsibilities is much longer and more detailed than those listed above. So, throughout this book, test your mindset … can you wear those hats? If not, are you willing to put in the hard work and long hours to learn? This will not be easy!

Your New Job Description

You own the company. That means you own the direction, the decisions, the operations and the outcome. Your role is a far-reaching and complicated set of activities that will likely include all the activities listed on the next two pages, including:

• Determine what business you are really in, and WHY?
• Define your WHY … why are you in business, and how does that translate to customers?
• What will the company name be, and why is it compelling?
• Investigate the availability of the name and ensure you are not infringing on another company’s trade name, trademark or intellectual property.
• Establish your mission and vision … it is extremely important to do this right!
• File all documents and licensing that allow you to begin your business, and secure an EIN.
• Define your product set and determine if there is a need or interest from your clientele.
• Define your own unique sales process: to whom, how, when, for what price?
• Define how you will market your business (networking, advertising, social media, web traffic, trade shows).
• Estimate all operating costs, including very conservative sales numbers, and create a cash flow statement and proforma profit and loss statement.
• Determine the amount of cash needed to seed and start your business (then add 40 percent) and investigate options for raising capital.
• Define how your company will operate.
• Define your physical space (even if you are not brick and mortar).
• Define what employees you will need and when.
• Investigate and understand the legal aspects of having employees.
• Define how they will be hired, trained, monitored, paid and incentivized.
• Determine if there are regulatory requirements that you must comply with.
• Create a compelling marketing message and test it with your clientele.
• Design your website and advertising collateral.
• Understand how you will take an order and all the steps that follow.
• How will you collect payments?
• How will you account for revenue and expenses, and manage periodic tax requirements?
• How will you guarantee quality and stand behind your product?
• How will you deal with customer complaints?
• How will you continue to reinvent yourself and innovate?
• How will you keep tabs on your competitors and their success? (Do you even know them?)
• What will your daily calendar look like and when will you actually have time to do all this?
• How will you wrap your head around the lengthy list of unique things that your business does, but aren’t even listed here?

Even if you intend to hire people immediately to assist in running your business, and you can afford to, you still must have a full understanding of all the details and challenges that you will face on a daily basis. How will you train new people if you do not fully comprehend what they will need to know and accomplish? It’s your business, so you need to create the operating processes and document how things will be done.

A note about franchising: If you are considering buying a franchise, they will dictate how things are to be done. Still, if you intend to manage your employees properly, you need to do every job in the business to understand why the processes have been established the way they are, where the challenges are, what can go wrong, and how you expect employees to respond and solve problems. By the way, if you are considering buying a franchise that does not have strict operational policies, run the other way. That is not a viable business model!

If you are considering the purchase of a franchise, my advice is to use a franchise consultant who will help you understand all the requirements and idiosyncrasies of a particular business. Use one who will test you to make sure you have the attitude, aptitude, interest, commitment and readiness to invest in a particular business. Their services are paid for by the franchise companies, and therefore free to you!

Reasons for Going Into Business

Many new businesses are started by people who have a specific skill and interest, and they want to branch out and bring their unique set of abilities to a new business. This is often a very good reason to start a business if you can understand the difference between the “corporate mindset” and the “entrepreneurial mindset.”

As a corporate citizen—that is, an employee—you have responsibility for a very specific set of actions and deliverables. As an entrepreneur, your responsibilities are much broader, all-encompassing in fact, and likely include things you have never done before. So, you must have the attitude that you can and will surround yourself with the help and support you need in areas where your knowledge and experience fall short.

Without a strong, passionate WHY, and an entrepreneurial mindset…you’re doomed!

Maybe the reason you’re starting a business is because you can’t find a job. This is almost always a very poor reason for starting a business. The only passion behind that decision is to generate needed income, and that is a WHY that your customers will not snuggle up to. It is not their problem! You must find a WHY that speaks to their needs and desires. You also need to consider the damage done to your resume if you have an employment gap that can only be filled by a failed business.

Maybe you are starting a business because you have a great hobby that you would like to monetize. If you can capture people’s imagination with your Mission, and your WHY (both discussed in greater detail below), then you might stand a chance. But remember, it is no longer a hobby. It is now a business, with all the roles that must be fulfilled in some way or your business will cost you far more than the hobby alone, and you will fail.

Maybe you are starting a business after years of corporate experience, and you’re just tired of...

Produkt-Details

• Erscheint lt. Verlag: 18.11.2020
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management
• ISBN-10: 1-0983-2847-7 / 1098328477
• ISBN-13: 978-1-0983-2847-4 / 9781098328474