Sunday, July 15, 2012

Managers and Entrepreneurs Need Training Too

In today's economy more and more people are turning to entrepreneurship as job replacement. This is true for two instances:
  • People who can not get jobs and need to start their own business to earn money.
  • People who are under-employed and need to start part-time businesses to supplement their income.
In both cases, these individuals, who are not necessarily entrepreneurship-inclined and trained; need to take steps to enure their businesses succeed and that they do not take a bad situation and make it worse; and that they do achieve what they set out to do – earn enough money to pay the bills and live a comfortable (at worst) life.

Before starting a business keep in mind that:
  • 50% fail in the first year
  • 10% to 33% are left standing after five years (depends upon the study you read)
And that the main reasons business fail are:
  • No business plan
  • Poor management
Interestingly, research I have done shows:
  • 80% of all entrepreneurs indicate a business plan is important
  • 20% of all entrepreneurs have a business plan
Looking at the last stat, along with many people starting businesses with no management training; it is no wonder the vast majority of new businesses fail.

This is why I implore people starting businesses to generate a business plan (worst case in bullet point format) and, at minimum, know what management tools are needed to run a business successfully.

A business plan is needed for many reasons, not just to obtain financing. A business plan is a feasibility study to ensure your business can earn enough money to cover your personal and business expenses. A business plan helps set strategies so you can measure if you are on the path to success or need to re-look what you are doing (and to do so quickly before you get swallowed up by debt). Researching and writing a business plan also helps define your management strengths and weaknesses. If you cannot develop a good marketing promotion while generating your plan, you better improve your skills or leave room in the budget to hire someone to develop one for you.

As far as management tools go; you need to implement a strategic plan, with specific objectives, strategies, tactics and goals from day one and monitor your progress quarterly. You also need to understand marketing. This includes advertising and promotion, pricing strategies, your competition, perfecting your sales skills and elevator pitch, and understanding branding. Other areas you will need to perfect include: customer service, cash flow management, project management, market research, and more.

I teach a course, “How to Start, Grow and Manage a Business.” The course covers business plans and management tools. I wrote a book to support the course. It contains much of the lecture content (in bullet form so you do not have to read four paragraphs to get the key piece of information) and has lots and lots of worksheets that entrepreneurs can use in their business and to outline a business plan.

You can check out the book's table of contents on Amazon ( If you cannot find a better deal on line, go to my book's web site, and use coupon code ADF28U4Q for $5 off.

The book is perfect for entrepreneurs, whether new or seasoned, and for managers employed by a business who want to learn new to implement improvements to their departments.


Jay Goldberg said...

Thank you.

Unknown said...

Good piece of help. Starting one's own business is the ultimate avenue for people who are either not pleased with their current job or are in search of it but not finding one. Thanks for this information -