I have read, over my business career, well over 10,000 different articles and lists about how anyone can be successful with a small business be it an independent business or a franchise. Many well intentioned and intelligent consultants I have come across professionally believe that a great idea with a great marketing scheme and superior desire can make anyone successful. Do yourself a favor and tell the next person spewing this nonsense that they are absolutely wrong!
The success or failure of the vast majority of all small businesses has little to do with the desire, marketing scheme or the great idea that created the business. While these three items must be present in every successful business, solid fundamental management principles will allow a small business to prosper and succeed. Every successful company, be it a small, medium or large business, uses the same set of management principals. The size of the business determines the individuals principals used and the sophistication of the principle. As an example, a small business normally has informal and perhaps even unwritten employee hiring guidelines. A medium sized company has a legally approved, comprehensive employee manual with employee hiring guidelines as a separate section. A large global business has an entire department writing several employee manuals in several languages with employee hiring guidelines based upon legal and social issues in each country. However, the common sense management principal that all companies should have a fair, consistent and applicable employment program must be used by every company.
As I have spent the vast majority of my career with small and medium sized businesses, here is a simple and select set of management principles that every small and medium business should follow to ensure success and profitability:
A good accounting department with timely monthly financial statements provides the basis for all management decisions. Any business owner or officer who believes purely in his or her “gut” feel, is running what will be a failed business. Regardless of the business size, every owner and senior executive must have valid data to confirm the decisions their “gut” tells them to make. Your financial statements are a factual record of your business history and we must all clearly understand our history so we do not repeat the mistakes of the past. How can you determine whether your recent marketing campaign is a success unless you see and evaluate the financial results? We have all heard stories about the marketing campaign that brought many new customers to the company but killed the company because the advertising expense was greater than the profit margin on the new sales. A business owner does not need an accounting degree but should know enough to understand and participate in the financial information review.
Running a small business based on the cash balance in the business checking account also violates this management principle and will severely inhibit the growth and success of the business. Unless you want to remain a “mom and pop” business forever, good accounting information is a requirement.
Standardize and automate all routine functions. Have you ever noticed that most successful business people have a routine for most of their daily functions? They have staff meetings at the same time, they want all reports in a specific format, they want all PC’s and software to be the same in the office and they want the external phone calls to be answered with a specific greeting. By standardizing all routine functions, successful business people do not have to think about or manage these functions. They can concentrate their time and efforts on managing non routine situations.
This same principle also applies to your business. I personally know a company that, 10 years ago, had a credit department with 15 employees and 3 managers who made many decisions daily. Today, that company has doubled its sales and now has a credit department consisting of 5 employees, one manager and a set of software programs that manages electronic payments and even sends out reminder letters and emails to customers.
Review and analyze the Balance Sheet before the Profit and Loss Statement. Your monthly P & L tells you whether you were successful last month from your operations but your Balance Sheet tells you what shape your business is in and what you can do in the future. I have seen a company that doubled sales one year and closed their doors less than six months later. I have also seen a business that went bankrupt even though their P & L’s showed reasonable success. The company Balance Sheet shows how the company uses its daily operations to fund the long term success of the business. Analyzing Fixed Assets, Accounts Receivable, Long Term Debt and Retained Earnings will give us the long term view for our company. It is not as exciting as analyzing our new customers and product offerings but is necessary for the long term.
Business Planning and Budgeting will allow you to slow down the daily business fires and take advantage of opportunities. There are an unusual number of small and medium businesses that do not work hard at either annual or strategic planning and budgeting. Most are too busy fighting fires and struggling to keep up with daily business activity. There is no time for planning and budgeting in their 80 hours work weeks. We have all been in this position. The unfortunate issue here is that the fire fighting and long weeks will never slow down or cease until some planning and budgeting is put in place. The need for planning and budgeting becomes more intense as a business grows due to your inability to “manage by walking around.” The planning and budgeting can start simple and will grow naturally as the business expands. This management principle will allow all employees to see the vision and the focus of the business which will start to reduce the daily fires that pop up.
The greatest advantage of planning and budgeting is that it allows every business owner to evaluate quickly and easily how an unexpected opportunity might be of benefit to the business. I have talked to many business owners who stumbled across a sudden and potentially great opportunity such as a competitor for sale, a good supplier needing a partner, a potential new customer that would immediately double sales or a potential new product that would require an entirely new set of tools and equipment. These opportunities happen to all business owners regularly but many also go away quickly. Those companies that have a good plan and budget in place can evaluate these opportunities quickly and easily to determine if the new opportunity fits into the company’s long term plans. These companies also have the ability to quickly approach a bank with solid financial proformas if additional capital is needed.
It isn’t a sale unless you collect. Most small and medium businesses spend way too much time in the sales process and far too little time with the collection process. Most companies are willing to pay a six figure salary to a salesman who can generate tremendous sales for the company and, at the same time, put an entry level accounting clerk in charge of collection with little or no oversight and procedures. The company borrows more and more money to increase sales while an accounting clerk with no customer service experience struggles to collect. The sales department in every business must have a part in the collection process and the company must have a strong, fair and customer oriented collection process to ensure that a sale really means money in the bank.
This process must always start before the sale is made. Collecting information up front to determine whether the potential customer is able to pay and ensuring the potential customer clearly understands the credit terms and payment requirement will benefit all parties. All good potential customers will appreciate this process because we all enjoy dealing with quality companies. I have never found any company that was unwilling to pay for quality products and services when everyone understood the terms and requirements.
The credit department must also have a good set of processes and procedures to ensure that the payment process flows smoothly and efficiently. Supplier employee turnover, cash flow issues and other unexpected issues stop or slow down the payment process. The credit department must, in a customer oriented fashion, work to keep our cash flowing.
Run the business as if it your grandchildren will take it over. Every business is a living and vibrant organization that has many similarities to our children. Your business starts out as an infant and learns to crawl and eventually walk. We would never make a decision for our child that does not take into account the child’s future and we should not do this with our business either.
Working with a supplier who has inferior quality but the cheapest price might be a great short term cash solution for our company but will eventually run off our customers and destroy our business. How many times has a business lost all its records because it decided it couldn’t afford computer backups or a fire alarm system on its warehouse? Have you hired an employee before you had them take a drug test? I even once jumped at the chance to hire a salesman from a competitor because I thought he would be able to bring over many customers. Unfortunately, he cost too much and didn’t bring over any good paying customers at all. There is no such thing as a good short cut for efficient management principals and the long term success of your organization.
Hire the smartest and best people. How many of us have hired our friends, the salesman we thought was a bargain, the bookkeeper who spoke the best during the interview or the manager we thought was most like us? Many small and medium sized businesses are littered with employees who were hired for these reasons because small businesses can’t afford high wages and all the fringe benefit packages that large companies can afford. We tend to hire the best we think we can get.
We need to set our expectations higher and use our planning process to find perfect employees. The first issue is that your company must have a good annual plan as well as a logical 5 year plan on where the company will be. Your company can then lay out what employees will be needed during this 5 year period. Now that we have defined what employees and what responsibilities are required, we need to find the individuals who meet these requirements and not just who we can afford today.
I have always tried to hire people who are smarter and have more experience than I have at the specific position. Any owner who believes he is the smartest individual in every area will never be able to hire the right people. A company will never be greater than its weakest employee so we must always hire the best.
The last company I worked with laid out a plan showing they were going to need their first CPA in 5 years. After 3 years, they told me they hired this CPA and were very surprised because this individual had other job opportunities with large national firms who were offering huge benefits. However, this small firm could offer professional growth and responsibility not available at the larger company. The vast majority of good employees prefer to have a more responsible position with a smaller company with a grand future than a less responsible position with a large company.
You can grow yourself out of business. Cash is king in business and those who recognize this fact will succeed and prosper. I have seen far more businesses that grow too fast with no good business plan and are forced to close their doors or find a quick buyer. Companies that are struggling watch their cash daily and doing what they need to keep the doors open. However, those companies doubling their sales see huge profits on their monthly financial statements and get caught up in the emotion and success. They watch their Accounts Receivable double, their Inventory double because they must buy much more product, their employees double because they must take care of these sales and suddenly they do not have the ability to make this week’s payroll because they have no cash in their checking account. Their company literally grew itself out of business which many small and medium business owners have trouble understanding until they have lived through it.
The culture of every business is as important as its mission. As mentioned earlier, a business is a living and breathing organization. The culture of every business is as important to the overall success of the company as the products and services offered. The owner of the business cannot delegate this function and must be involved. There is no right or wrong here as the business culture is a reflection of the quality, morals and ethics of its owner. A successful company’s culture is not a constantly changing but evolves based upon the growth and expansion of the organization. Constantly changing a company’s culture is a sure way to close a business.
A company with a strict dress code, time clocks that are strictly enforced, and many processes and procedures is no better than another company with no dress code, few processes, and telecommuting for employees. The only difference is the type of employees they retain and the way they do business.
Your quality competitors are essential to your long term success. You can stop laughing now because this is really a fact that every successful company understands. This is an unusual concept but one that great businessmen and women all embrace. Competition is a wonderful concept in every free market economy and quality competition makes us all better. Quality competitors push us to come up with quality improvements, quality products and services and ensure that we have a quality customer oriented operation. We have all seen businesses spring up offering a 50% price reduction for a cheap knock off of our products. Our sales drop and we spend time and effort away from our core business chasing this situation. They stay in business for a short period of time and accomplish nothing more than causing our customers to question our industry. Quality competitors push us all toward greatness and there is plenty of room in every industry for multiple organizations.
Outsourcing reduces costs and improves your weaknesses. Many individuals hear the jokes about the language issues at large company call centers in India or the Philippines and tell themselves they will never make that mistake. However, that might be one situation that is not really a mistake. A good IT programmer in the U.S. can cost upwards of $100,000 annually with payroll taxes, fringe benefits, etc. That employee in India with the exact same intelligence, skills and experience can cost as little as $30,000 annually.
The management principle here is that we should all concentrate on our strengths and outsource everything else where feasible. No business person thinks twice about using an outside tax accountant to do our Federal and State taxes. This is a highly technical area that changes constantly. Most of us also have an outside legal firm. Why do we primarily limit our use of outsourcing to those two areas?? Today, there are professional payroll firms, employee leasing firms, credit and collection firms, IT and Web programming firms and marketing firms. These companies work with many business organizations, stay on top of industry best practices and can better stay on top of the technical changes in their area of expertise.
The only area of any company that I advise against outsourcing is the area that is crucial to the success of your company. Never allow the core of your success to get outside your control. As an example, if your company has a proprietary marketing scheme or a customer database or an engineering method or a production process that is key to your success, do not let it out of your control.
Jumat, 07 Agustus 2009
The Competencies Of A Business Analyst
Competencies are described as the ability to do a particular activity to prescribed standard.
The competencies can be classified into three categories
1. Behaviour Skill and Personal Qualities
1.1 Balanced behaviour
1.2 Leadership
1.3 Problem Solving
1.4 Attention to Details
1.5 Critical Thinking and Analytical Skill
1.6 Flexibility to Manage Situation
1.7 Team working
1.8 Influencing
1.9 Communication
1.10 Relationship-Building
2. Business Knowledge
2.1 Finance and Economy
2.2 Business Case Development
2.3 Domain Knowledge
2.4 Subject Matter Expert
2.5 Principle of IT
2.6 Organization Structure and Design
2.7 Procurement
3. Techniques
3.1 Requirements Engineering
3.2 Stakeholders analysis and management
3.3 Facilitation Techniques
3.4 Business System Modeling
3.5 Business Process Modeling
3.6 Managing Business change
3.7 Data Modeling
3.8 Investigation Technique
3.9 Project management
3.10 Strategy Analysis
1. Behaviour Skill and Personal Qualities
1.1 Balanced Behaviour
This is an ability to work out what is and what is not commercially acceptable in an organization. Having commercial and political awareness by the way emphatically does not mean accepting statue qua. It does mean using resourcefulness and being astute to get results, even in the face of opposition. Balanced behaviour means forcing a issue but moderately, firm but not arrogant.
1.2 Leadership
There is a never one solution for all problems .Leader should have the capability to understand the context of the problem and provide an effective solution.
1.3 Problem solving
A business analyst has to approach an issue with the outlook that problem can be solved. A variation on this is that even if the optimal solution cannot be implemented for financial, technical or political reasons, then the business analyst must be pragmatic and be prepared to find other solutions that will yield at least some benefit.
1.4 Attention to Details
Many business cases fail because there is no sufficient detailed evidence for the proposed change. When a project is handed over to IT specialists, they often find many important issues if the detail have not been addressed. Having an eye for the details is also an important attribute of a good business analyst.
1.5Critical Thinking and Analytical Skill
Business analyst have a common sense to ascertain what data are relevant and what are irrelevant and separate vital factors from less important many critical thinking is achieve by experience and differentiate what factor to concentrate and what to leave.
1.6 Flexibility to manage situation
This is an extremely important quality. Business analyst must have sufficient self confidence in himself, in the quality of his analysis and the correctness in his solution, be able to withstand the pressure and sustain his point of view
1.7 Team working with data’s
Business analyst often work in teams, A nature of understanding of the role within the team and what needs to be done and appreciation of the working style of others are, therefore important to ensure that the project objectives are achieved.
1.8 Influencing
Influencing needs careful consideration and prior planning. Business analysts have to develop an understanding of where the other party stands on their proposal, the likely resistance and influencing style needed to approach the person or the group. For example, some managers might defer all the decisions to another group require information at a very detailed level or ask only for high level summary. Some may be interested in technicalities, others just vision or big picture. Tailoring the approach is vital for a successful outcome. The business analysts are often influenced to take or suggest another course of action. This may involve another round of influencing, facilitating a roundtable discussion and seeking the support of senior colleagues in the best course of action.
1.9 Communication
Communication is the most important skill that human possess. It encompasses building rapport, listening, influencing and creating empathy. Most analysis work involves collecting and analyzing data and presenting back information that brings new perspective on the project so as to propose a course of action. If the communication is not good between the staffs, it leads to frustration when there is a failure to do obvious thing. Communication between business colleagues must be in a language and style that they are comfortable with and avoid what they perceive as techno-babble. Business analyst must adjust their communication to align with the people they are talking to.
1.10 Relationship Building
This is an extension of communication skill and concerns the ability to get on well with people at a working if not social level. Some people possess this ability naturally and others have to work on it. Business analyst must get to the people to impart information and share opinions and listen to ideas for change.
2. Business Knowledge
2.1 Finance and Economy
The universal language of business is finance. A business analyst needs to have a good working knowledge of the economy and of the basics of business finance. It includes a general understanding of financial reports such as balance sheet, profit-and -loss account, financial analysis tools such as ratio analysis and principles of costing.
2.2 Business Case Development
Much of analyst’s work will be to assess the costs and benefits of delivering a project to the organization .When communicating analysis findings; you need to ensure that you have a view of the financial impact on the project. IT is an enabling tool for the business benefits to be achieved. Business analysis projects involve other specialist like management accountants to understand and model the business activities and determine how IT can deliver financial benefit. To develop business case, a basic understanding of finance is required along with financial workings business area. Business analysts involved in business case preparation has to understand basic investment appraisal techniques and work closely with finance department.
2.3 Domain Knowledge
It gives general understanding of a business domain. Apart from general domain, specific domain knowledge is required for the following reasons;
? It enables you to talk sensibly with the business people involved in the project, in a language that they can understand.
? It helps you to understand what would and would not acceptable or useful in the business domain.
? It may enable you take ideas.
2.4 Subject Matter Expert
It takes domain knowledge to a lower level of detail. The level of expertise depends on the type of work being done. Business analysts may be specialist in particular domain ,with a strong and detailed understanding of the subject area, can pinpoint areas for improvement , development and identify what needs to change, to analyze using existing knowledge and contact. The key point is to assess how well competencies meet the needs of the current situation and to recognize where competencies needs some improvements.
2.5 Principle of IT
Many business analysts do not have an IT background. However, many business analysis projects result in the use of IT in some or the other way. General understanding of the field is necessary for a business analyst so that he can communicate meaningfully with IT professionals .The key requirement is that business analyst must understand the technical terms used by IT specialist. Since IT solutions are often investigated by business analyst, the latter should have an understanding of IT fundamentals, including areas such as
? How computers work, including operating systems, application software, hardware and networks.
? System –development lifecycle
? System – development approaches
? The Relative pros and cons of developing systems and buying system "off the shelf’;
? Trends and new opportunities that IT brings, such as ecommerce, grid computing and mobile technologies and how these impact systems development.
2.6 Organization Structure and Design
Business analysis projects involve restructuring organization to a greater or a lesser degree, to improve the customer service. It is important for business analysts to have a good understanding of the various organization structures that may be encountered - function, project, and matrix and so on – and of their relative strength and weakness.
2.7 Procurement
Most organization use external suppliers to deliver their IT systems. Selecting an appropriate sourcing strategy involves assessing the work and deciding the most appropriate way to take the project forward on sound commercial term. Once the analyst has worked out the type that is required , they need to assess the most appropriate supplier – internal and external- to take work forward and what commercial terms has to employed. A business analyst needs a broad understanding of contractual arrangements that is shown below:
* Time and Materials: where the contracted party is paid on the basis of the time worked.
* Fixed –price delivery: where the contracted party is paid the price that originally agreed for the delivery of a piece of work according to the precise specification.
* Risk and reward: where the contracted party has agreed to bear some or all of the risk of the project ,for example by investing resources such as staff time , materials or office space, but where potential rewards are greater than under other contractual arrangements.
3. Techniques
3.1 Requirements Engineering
This is the set of practices and processes that lead to the development of the set of the well-informed business and system requirements, from which IT and other solutions are developed.
3.2 Stakeholders analysis and management
This includes understandings who are the stake holders in a business analysis project and working out how their interests are best managed.
3.3 Facilitation Techniques
The interpersonal skills required for effective facilitation is usually exhibited within the context of a workshop. Effective facilitation usually results from a combination of the right qualities in the facilitator and the choice of the right techniques to match the task and the cultural context of the organization in which it is being used.
3.4 Business System Modeling
Business System Modeling is an approach to understand business systems through the creation of the conceptual models of those systems.
3.5 Business Process Modeling
A business system model looks at the entire business system in overview, more detailed process models are used to map and analyze how business process actually works and helps to identify opportunities for process improvement.
3.6 Managing Business change
This covers the techniques needed to implement changes within the organization and to make them ‘stick’.
3.7 Data Modeling
Analyzing the data held and used within a business system affords valuable insights into how a business operates .For e.g. what are the data items that are held about the customers? What is the relationship between customers, products and suppliers?
3.8 Investigation Technique
To get to the root of a business issue the analyst will have to undertake detailed analysis of the area.
3.9 Project management
The list of project management context and process: scope management, integration management, time management, cost management, quality management, resource management, human management, risk management and procurement management. Business analyst may not necessarily exhibit his skills in all these areas, but if the project team is small the business analyst may be required to undertake the role of project manager.There is some project skill that an analyst should have.
For e.g. understanding project initiation is vital as it allows the analyst to understand define the terms of reference for the project .It is important that the analyst should understand project management planning approaches –he or she will have to work within a plan – and is aware of particularly relevant aspects , such as quality and risk management
3.10 Strategy Analysis
This covers a range of techniques that can be used to understand the business direction and the strengths and weakness of an organization, or part of an organization.
How can I develop my competency?
The first step in developing as a business analyst is to understand the competency required of a business analyst in your organization. This should include an assessment both the current and the future competencies required .The HR department provides an outline definition of the competencies required of the business analyst in the organization. Future competencies are more difficult to assess and depends on the factors such as projects that may develop in future, business issues and technological developments. The organizations may already have a framework in its place or could use the existing framework such as Skill framework for Information Age (SFIA).
There are three ways in which business analysts can develop competencies:
? Training
? Self-study
? Work experience
Training
Class room-based training allows skills to be learned and practiced in a relatively safe environment, with a trainer on hand to support, guidance and encouragement. Computer –based training is also good if the skills to be practiced are primarily technical in nature.
Self-study
Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.
Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.
Work experience
This provides an opportunity to use and improve techniques and to deepen the knowledge .It is best way a business analyst can develop their behaviour skills and personal qualities The performance of most analysts improves overtime as their experience grows ,but this can be heightened and accelerated if our if the organization operates a proper coaching or mentoring programme.
The Skills Framework for the Information Age
SFIA and SFIAplus are the two major standard frameworks for definition of skills and competencies in the information system field. Both frame works include definition for the skill set of business analysis, define various levels of competency for each skill, and can be used as building blocks for any job role that requires these skills
SFIA
The description of overall skill set provided in SFIA framework for business analysis is as follows:
The methodical investigation, analysis, review and documentation of all or part of a business in terms of business functions and processes, and the information they use. The definition of requirements for improving any aspect of the processes and systems. The creation of viable specifications in the preparation for construction of information and communication systems.
In each level defined for business analysis, SFIA provides a more detailed definition of the skills required, for e.g. for level 4 is states:
* The analysis, design, creation, testing and documentation of new and amended programs from supplied specifications in accordance with agreed standards.
* Creates requirements specification and business case for development of ICT solutions by investigating business process and business needs.
SFIA plus provides the sane description for business analysis skill set as SFIA, but also
provides details of the following:
Related skill set (in this case, data analysis business process improvement and system design)
* Technical Overview, including typical tools and techniques ;
* Overview of training, development and qualification ;
* Careers and jobs ;
* Professional bodies;
* Standard and codes of practice;
* Communities and events ;
* Publication and resource.
For each applicable level within this skill set (3-6 in the case of business analysis), detail are also provided under the following heading:
* Background;
* Work activities ;
* Knowledge /skills
* Training activities
* Professional development activities
* Qualifications.
Although SFIAplus provides more detail than SFIA, it is important to realize that the two frameworks should be implemented in different ways.
SFIAplus should be treated as a standard and is not designed to be customized, where as SFIA is intended to be used as a basis for tailoring to an organization.
SFIAplus enables organizations to classify and benchmark their IT skills and to train and develop their teams to meet the defined skill requirements .As a business analyst, this provides a basis for you to gauge where you are against the skills and corresponding level of competence defined in the framework.
The final step is to identify a set if actions that will help your development.
* Seek out assignments that give you opportunities to develop.
* Identify a role model who demonstrates your desired competencies.
* Ask them what is required or ask them to mentor your development or arrange to work for them direct.
* Use training providers to target specifically those areas that need development.
* Consider a secondment to an organization that excels in the required competencies.
* Do your research into specific competencies
* Ask for a regular feedback from your boss or experts.
* Join an industry specialist group.
* Develop as you go and gain from experience. Record what you’ve learned so that you don’t forget.
The competencies can be classified into three categories
1. Behaviour Skill and Personal Qualities
1.1 Balanced behaviour
1.2 Leadership
1.3 Problem Solving
1.4 Attention to Details
1.5 Critical Thinking and Analytical Skill
1.6 Flexibility to Manage Situation
1.7 Team working
1.8 Influencing
1.9 Communication
1.10 Relationship-Building
2. Business Knowledge
2.1 Finance and Economy
2.2 Business Case Development
2.3 Domain Knowledge
2.4 Subject Matter Expert
2.5 Principle of IT
2.6 Organization Structure and Design
2.7 Procurement
3. Techniques
3.1 Requirements Engineering
3.2 Stakeholders analysis and management
3.3 Facilitation Techniques
3.4 Business System Modeling
3.5 Business Process Modeling
3.6 Managing Business change
3.7 Data Modeling
3.8 Investigation Technique
3.9 Project management
3.10 Strategy Analysis
1. Behaviour Skill and Personal Qualities
1.1 Balanced Behaviour
This is an ability to work out what is and what is not commercially acceptable in an organization. Having commercial and political awareness by the way emphatically does not mean accepting statue qua. It does mean using resourcefulness and being astute to get results, even in the face of opposition. Balanced behaviour means forcing a issue but moderately, firm but not arrogant.
1.2 Leadership
There is a never one solution for all problems .Leader should have the capability to understand the context of the problem and provide an effective solution.
1.3 Problem solving
A business analyst has to approach an issue with the outlook that problem can be solved. A variation on this is that even if the optimal solution cannot be implemented for financial, technical or political reasons, then the business analyst must be pragmatic and be prepared to find other solutions that will yield at least some benefit.
1.4 Attention to Details
Many business cases fail because there is no sufficient detailed evidence for the proposed change. When a project is handed over to IT specialists, they often find many important issues if the detail have not been addressed. Having an eye for the details is also an important attribute of a good business analyst.
1.5Critical Thinking and Analytical Skill
Business analyst have a common sense to ascertain what data are relevant and what are irrelevant and separate vital factors from less important many critical thinking is achieve by experience and differentiate what factor to concentrate and what to leave.
1.6 Flexibility to manage situation
This is an extremely important quality. Business analyst must have sufficient self confidence in himself, in the quality of his analysis and the correctness in his solution, be able to withstand the pressure and sustain his point of view
1.7 Team working with data’s
Business analyst often work in teams, A nature of understanding of the role within the team and what needs to be done and appreciation of the working style of others are, therefore important to ensure that the project objectives are achieved.
1.8 Influencing
Influencing needs careful consideration and prior planning. Business analysts have to develop an understanding of where the other party stands on their proposal, the likely resistance and influencing style needed to approach the person or the group. For example, some managers might defer all the decisions to another group require information at a very detailed level or ask only for high level summary. Some may be interested in technicalities, others just vision or big picture. Tailoring the approach is vital for a successful outcome. The business analysts are often influenced to take or suggest another course of action. This may involve another round of influencing, facilitating a roundtable discussion and seeking the support of senior colleagues in the best course of action.
1.9 Communication
Communication is the most important skill that human possess. It encompasses building rapport, listening, influencing and creating empathy. Most analysis work involves collecting and analyzing data and presenting back information that brings new perspective on the project so as to propose a course of action. If the communication is not good between the staffs, it leads to frustration when there is a failure to do obvious thing. Communication between business colleagues must be in a language and style that they are comfortable with and avoid what they perceive as techno-babble. Business analyst must adjust their communication to align with the people they are talking to.
1.10 Relationship Building
This is an extension of communication skill and concerns the ability to get on well with people at a working if not social level. Some people possess this ability naturally and others have to work on it. Business analyst must get to the people to impart information and share opinions and listen to ideas for change.
2. Business Knowledge
2.1 Finance and Economy
The universal language of business is finance. A business analyst needs to have a good working knowledge of the economy and of the basics of business finance. It includes a general understanding of financial reports such as balance sheet, profit-and -loss account, financial analysis tools such as ratio analysis and principles of costing.
2.2 Business Case Development
Much of analyst’s work will be to assess the costs and benefits of delivering a project to the organization .When communicating analysis findings; you need to ensure that you have a view of the financial impact on the project. IT is an enabling tool for the business benefits to be achieved. Business analysis projects involve other specialist like management accountants to understand and model the business activities and determine how IT can deliver financial benefit. To develop business case, a basic understanding of finance is required along with financial workings business area. Business analysts involved in business case preparation has to understand basic investment appraisal techniques and work closely with finance department.
2.3 Domain Knowledge
It gives general understanding of a business domain. Apart from general domain, specific domain knowledge is required for the following reasons;
? It enables you to talk sensibly with the business people involved in the project, in a language that they can understand.
? It helps you to understand what would and would not acceptable or useful in the business domain.
? It may enable you take ideas.
2.4 Subject Matter Expert
It takes domain knowledge to a lower level of detail. The level of expertise depends on the type of work being done. Business analysts may be specialist in particular domain ,with a strong and detailed understanding of the subject area, can pinpoint areas for improvement , development and identify what needs to change, to analyze using existing knowledge and contact. The key point is to assess how well competencies meet the needs of the current situation and to recognize where competencies needs some improvements.
2.5 Principle of IT
Many business analysts do not have an IT background. However, many business analysis projects result in the use of IT in some or the other way. General understanding of the field is necessary for a business analyst so that he can communicate meaningfully with IT professionals .The key requirement is that business analyst must understand the technical terms used by IT specialist. Since IT solutions are often investigated by business analyst, the latter should have an understanding of IT fundamentals, including areas such as
? How computers work, including operating systems, application software, hardware and networks.
? System –development lifecycle
? System – development approaches
? The Relative pros and cons of developing systems and buying system "off the shelf’;
? Trends and new opportunities that IT brings, such as ecommerce, grid computing and mobile technologies and how these impact systems development.
2.6 Organization Structure and Design
Business analysis projects involve restructuring organization to a greater or a lesser degree, to improve the customer service. It is important for business analysts to have a good understanding of the various organization structures that may be encountered - function, project, and matrix and so on – and of their relative strength and weakness.
2.7 Procurement
Most organization use external suppliers to deliver their IT systems. Selecting an appropriate sourcing strategy involves assessing the work and deciding the most appropriate way to take the project forward on sound commercial term. Once the analyst has worked out the type that is required , they need to assess the most appropriate supplier – internal and external- to take work forward and what commercial terms has to employed. A business analyst needs a broad understanding of contractual arrangements that is shown below:
* Time and Materials: where the contracted party is paid on the basis of the time worked.
* Fixed –price delivery: where the contracted party is paid the price that originally agreed for the delivery of a piece of work according to the precise specification.
* Risk and reward: where the contracted party has agreed to bear some or all of the risk of the project ,for example by investing resources such as staff time , materials or office space, but where potential rewards are greater than under other contractual arrangements.
3. Techniques
3.1 Requirements Engineering
This is the set of practices and processes that lead to the development of the set of the well-informed business and system requirements, from which IT and other solutions are developed.
3.2 Stakeholders analysis and management
This includes understandings who are the stake holders in a business analysis project and working out how their interests are best managed.
3.3 Facilitation Techniques
The interpersonal skills required for effective facilitation is usually exhibited within the context of a workshop. Effective facilitation usually results from a combination of the right qualities in the facilitator and the choice of the right techniques to match the task and the cultural context of the organization in which it is being used.
3.4 Business System Modeling
Business System Modeling is an approach to understand business systems through the creation of the conceptual models of those systems.
3.5 Business Process Modeling
A business system model looks at the entire business system in overview, more detailed process models are used to map and analyze how business process actually works and helps to identify opportunities for process improvement.
3.6 Managing Business change
This covers the techniques needed to implement changes within the organization and to make them ‘stick’.
3.7 Data Modeling
Analyzing the data held and used within a business system affords valuable insights into how a business operates .For e.g. what are the data items that are held about the customers? What is the relationship between customers, products and suppliers?
3.8 Investigation Technique
To get to the root of a business issue the analyst will have to undertake detailed analysis of the area.
3.9 Project management
The list of project management context and process: scope management, integration management, time management, cost management, quality management, resource management, human management, risk management and procurement management. Business analyst may not necessarily exhibit his skills in all these areas, but if the project team is small the business analyst may be required to undertake the role of project manager.There is some project skill that an analyst should have.
For e.g. understanding project initiation is vital as it allows the analyst to understand define the terms of reference for the project .It is important that the analyst should understand project management planning approaches –he or she will have to work within a plan – and is aware of particularly relevant aspects , such as quality and risk management
3.10 Strategy Analysis
This covers a range of techniques that can be used to understand the business direction and the strengths and weakness of an organization, or part of an organization.
How can I develop my competency?
The first step in developing as a business analyst is to understand the competency required of a business analyst in your organization. This should include an assessment both the current and the future competencies required .The HR department provides an outline definition of the competencies required of the business analyst in the organization. Future competencies are more difficult to assess and depends on the factors such as projects that may develop in future, business issues and technological developments. The organizations may already have a framework in its place or could use the existing framework such as Skill framework for Information Age (SFIA).
There are three ways in which business analysts can develop competencies:
? Training
? Self-study
? Work experience
Training
Class room-based training allows skills to be learned and practiced in a relatively safe environment, with a trainer on hand to support, guidance and encouragement. Computer –based training is also good if the skills to be practiced are primarily technical in nature.
Self-study
Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.
Self-study is an excellent way for analysts to grow their business knowledge. Apart from reading textbooks, browsing publications such as the Financial Times, The Economist, the Harvard Business Review and other technical publications and professional journals will broaden and deepen the analyst’s understanding of the business world.
Work experience
This provides an opportunity to use and improve techniques and to deepen the knowledge .It is best way a business analyst can develop their behaviour skills and personal qualities The performance of most analysts improves overtime as their experience grows ,but this can be heightened and accelerated if our if the organization operates a proper coaching or mentoring programme.
The Skills Framework for the Information Age
SFIA and SFIAplus are the two major standard frameworks for definition of skills and competencies in the information system field. Both frame works include definition for the skill set of business analysis, define various levels of competency for each skill, and can be used as building blocks for any job role that requires these skills
SFIA
The description of overall skill set provided in SFIA framework for business analysis is as follows:
The methodical investigation, analysis, review and documentation of all or part of a business in terms of business functions and processes, and the information they use. The definition of requirements for improving any aspect of the processes and systems. The creation of viable specifications in the preparation for construction of information and communication systems.
In each level defined for business analysis, SFIA provides a more detailed definition of the skills required, for e.g. for level 4 is states:
* The analysis, design, creation, testing and documentation of new and amended programs from supplied specifications in accordance with agreed standards.
* Creates requirements specification and business case for development of ICT solutions by investigating business process and business needs.
SFIA plus provides the sane description for business analysis skill set as SFIA, but also
provides details of the following:
Related skill set (in this case, data analysis business process improvement and system design)
* Technical Overview, including typical tools and techniques ;
* Overview of training, development and qualification ;
* Careers and jobs ;
* Professional bodies;
* Standard and codes of practice;
* Communities and events ;
* Publication and resource.
For each applicable level within this skill set (3-6 in the case of business analysis), detail are also provided under the following heading:
* Background;
* Work activities ;
* Knowledge /skills
* Training activities
* Professional development activities
* Qualifications.
Although SFIAplus provides more detail than SFIA, it is important to realize that the two frameworks should be implemented in different ways.
SFIAplus should be treated as a standard and is not designed to be customized, where as SFIA is intended to be used as a basis for tailoring to an organization.
SFIAplus enables organizations to classify and benchmark their IT skills and to train and develop their teams to meet the defined skill requirements .As a business analyst, this provides a basis for you to gauge where you are against the skills and corresponding level of competence defined in the framework.
The final step is to identify a set if actions that will help your development.
* Seek out assignments that give you opportunities to develop.
* Identify a role model who demonstrates your desired competencies.
* Ask them what is required or ask them to mentor your development or arrange to work for them direct.
* Use training providers to target specifically those areas that need development.
* Consider a secondment to an organization that excels in the required competencies.
* Do your research into specific competencies
* Ask for a regular feedback from your boss or experts.
* Join an industry specialist group.
* Develop as you go and gain from experience. Record what you’ve learned so that you don’t forget.
Does Your Business Need a Credit Card?
Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market- the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly.
What is a business credit card?
Basically, business credit card is for the business people's consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.
Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.
Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.
Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards. When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.
Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.
Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.
Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market- the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly.
What is a business credit card?
Basically, business credit card is for the business people's consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.
Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.
Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.
Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards. When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.
Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.
Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.
What is a business credit card?
Basically, business credit card is for the business people's consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.
Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.
Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.
Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards. When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.
Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.
Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.
Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market- the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly.
What is a business credit card?
Basically, business credit card is for the business people's consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.
Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.
Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.
Simplifying business credit cards
It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards. When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative. When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.
Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required. The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.
Although majority of the business credit card issuers offer great value deals, it is very important to research first what does your business needs. Whether your business credit card is meant for investing in inventory or just for payroll, it is significant to look for a flexible business credit card that can handle almost anything. Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card suppliers are there to help you find the right credit card product as easy and convenient as possible.
Business Grants for Black Women
Business Grants for Women
Many women in business find that in order to meet their business' financial needs, they turn to searching out a loan source. Business loans for women are widely available through the Small Business Administration and a variety of other sources such as banks, credit unions and other financial institutions. Loans, however, are not the only source for financing. In some instances, business grants for women are available.Small Business grants for women are a wonderful option for some women in business. Grants are an excellent source of funding because grants are not repaid. The funding is provided through government resources that have been budgeted for specific needs in our national community. Anyone is open to apply, so small business grants for women are available to anyone regardless of gender, race, religion, or background.visit now http://available-grant-money.blogspot.com
The downside of grants is that business grants for women are not widely available. Rather, business grants for women are available only to select businesses and under very strict circumstances, mostly for research or development. Technologically-focused businesses, for example, will find it much easier to qualify for a grant than a craft or retail business. Still, because the money is readily available, even if your business is retail oriented, it may be of benefit to check into business grants for women available for various resources that could assist you in your business.According to Denouement Solutions and Grants.gov, the United States government and its government organizations offer more 1000 grants totaling more than $400 billion in grant funding every year. Only 10 percent of citizens that qualify for these grants actually apply for grants, despite the fact that many more than that would qualify for a business grant for women. Therefore, even though not every individual or business is eligible for a business grant for women, it certainly can be beneficial to check into business grants for women.
According to grants.gov, the United States government's web site and main resource for grants that are available and can be applied for, there are more than 1000 grant programs offered by the 26 Federal grant-making agencies. These programs fall into 21 different categories, as defined by the Catalog of Federal Domestic Assistance. While some agencies may list available grants under multiple grant categories, the Federal government lists these categories of grants as follows:
Agriculture ,
Art ,
Business and Commerce ,
Community Development ,
Consumer Protection ,
Disaster Prevention and Relief ,
Education ,
Employment, Labor, and Training ,
Energy ,
Environmental Quality ,
Food and Nutrition ,
Health ,
Housing ,
Humanities ,
Information and Statistics ,
Law, Justice, and Legal Service ,
Natural Resources ,
Regional Development ,
Science and Technology ,
Social Services and Income Security ,
Transportation ,
Business Grant money,
Small Business grant money,
Grant money for small business,
Technology grant money,
Even though the category of Business and Commerce may be what appears to have the largest selection of resources for smallbusiness grants for women, consider the other categories as well, according to where your business falls. For example, if your business is a restaurant, don't hesitate to check the Food and Nutrition category for grants currently available. If your business is a farm, check the Agriculture section.
Grants aren't available for starting or opening a new business, and they also aren't available for expanding on an existing business. However, business grants for women can offer funding for research or development of the business. Many grants may not be applicable to your particular business or needs, but there may be funds available for research, education, or other things needed for you to operate and improve your business to help you achieve business growth.
In general, when considering the options for a business grant for women, do your homework and read carefully. Look at all grants available that might be related to your particular business. Consider looking into the Business and Commerce section, of Grants.gov, as mentioned, and also look into the different categories of grant fundings. Take the time needed to read the grant qualifications carefully. With any business, check into the Regional Development category, as well as the Community Development category. Depending on your location within the United States, it's possible to qualify for a grant to economically develop certain areas, and expanding a business in one of these areas can possibly assist you in qualifying for a business grant for women.
Free Business Grants
Several free small business grants are provided by the government for the business-minded person. If you think you have a profitable business or that your business needs additional funding for expansion then several free small business grants are available to cater to your financial needs.
One of these free small business grants is the program of The Department of Homeland Security (DHS). This free small business grants program by DHS seeks innovative ideas and inventions on security-related products. The award for those who will successfully hurdle the competition is $100,000 for six months to fund research that will prove the scientific, technical and commercial value of their concept. If DHS approves of their ideas, the companies can expect a two-year $750,000 free business grants to be spent on making functioning stereotype of the product.
The DHS free small business grants program is funded by the Small Business Innovation Research. To qualify for this free business grants, one must be a U.S.-based company with 500 or fewer employees. Proposals submitted for this free small business grants program should focus on the following areas: chemical and biological defense, information technology and marine security.
Other free business grants that you can avail of can probably be found right in your state. The federal government though, does not as a rule, provide for free business grants. But a number of state-run development agencies do provide free business grants among other things to those interested in going into business. These state-run economic development agencies that give free business grants can be found in Kansas, Nebraska, New Hampshire, New Mexico and Utah. The rest of the states offer financing, incentives, support and technical training services to budding entrepreneurs and practicing businessmen alike. The U.S. government's Small Business Administration (SBA) was established in 1953 to address specific business needs. Free business grants are not available in Small business Administration but they do offer valuable assistance from conceptualizing the business to technical support and training to advices in making the business grow. SBA also extends attractive loan packages to people who want to start or expand business. SBA can be found in every state. And it has worked with several non-profit, lending, educational and training organizations nationwide. Business is a factor that help spurs the U.S. economy. It provides employment to people. It provides the much-needed taxes to the government. And make economic progress possible. Businesses need all the support the government can give. Free business grants could be valuable tools in making the business grow. With free business grants, a door of opportunities has opened for those who want to try their hand in business.
There Are Tons Of Small Business Grants For Woman...But Where?
When starting a small business it can be costly, and finding a grant if you're a women isn't always the easiest thing to do. Little do most people know, there are millions of dollars just waiting to be claimed for grants from the government and other little-known organizations. It can be very difficult to find the right grant for you, and the place of where to get it, but with a few clicks you too can easily get access to small business grants for women.
It is not a secret that women are beginning to own more and more businesses everyday. Not only this, but these businesses are becoming just as successful if not more then men's businesses are. If you are looking for a grant, don't be hesitant to look because of what the business is going to be. There are literally hundreds to thousands of grants out there for women wanting to start craft businesses, consulting, brokerage, record labels and more.
When looking for a grant, there is the option of spending hundreds of dollars to pay somebody to get you a grant. However, there are other ways that are completely free, but may be more time consuming then you would hope. One site that is worth checking out is The Ladies Club 2000.com. It is required that you sign up and become a member, free of charge, but then you will have access to grant information on how you can become qualified for a grant and where you can find grants to begin your business or increase your business.
There are all kinds of companies out there, and the type of grant that you will receive varies for place to place. On womens-finance.com, there are two different kinds of grants offered. There is the New Business grant that is between $100 and $5,000, and there is the existing business grand that ranges from $1,000-$5,000. You do have to apply at this site and be accepted, but it is worth checking this site out below:
http://www.mypaydayloan.com/cgi-bin/pagek.pl?PID=kow&kbid=10062
It may not seem like it, but our government does want you to succeed, and that is why there is millions of dollars out there for you. Most places have ridiculous requirements in order to get a grant such as being over 65, being a minority, or even having bad credit sometimes help the process.
There are sites out there that are specifically looking for women only to give grants to. These sites are attempting to help the women population succeed in entrepreneurialism and begin the road to succession. The site listed just below here has a list of about ten different sites that are specifically looking for women to give grants to.
There is no reason to get frustrated after not having any luck finding loans. The government wants you to succeed in opening your small business, or help develop it that much more. There are a few sites listed above that are very much worth checking out to help you find small business grants for women. Don't get discouraged as this can be time consuming, but once you find the financial help needed, you will be on your way to developing your business.
Additionally, consider applying for an educational grant if returning to school is an option you'd like to consider. Many grants for higher education are offered each year, and not all are awarded. Knowledge is an extremely valuable business tool, and because the money is readily available for those who qualify, and educational grant is an excellent option to consider as a business grant for women.
Many women in business find that in order to meet their business' financial needs, they turn to searching out a loan source. Business loans for women are widely available through the Small Business Administration and a variety of other sources such as banks, credit unions and other financial institutions. Loans, however, are not the only source for financing. In some instances, business grants for women are available.Small Business grants for women are a wonderful option for some women in business. Grants are an excellent source of funding because grants are not repaid. The funding is provided through government resources that have been budgeted for specific needs in our national community. Anyone is open to apply, so small business grants for women are available to anyone regardless of gender, race, religion, or background.visit now http://available-grant-money.blogspot.com
The downside of grants is that business grants for women are not widely available. Rather, business grants for women are available only to select businesses and under very strict circumstances, mostly for research or development. Technologically-focused businesses, for example, will find it much easier to qualify for a grant than a craft or retail business. Still, because the money is readily available, even if your business is retail oriented, it may be of benefit to check into business grants for women available for various resources that could assist you in your business.According to Denouement Solutions and Grants.gov, the United States government and its government organizations offer more 1000 grants totaling more than $400 billion in grant funding every year. Only 10 percent of citizens that qualify for these grants actually apply for grants, despite the fact that many more than that would qualify for a business grant for women. Therefore, even though not every individual or business is eligible for a business grant for women, it certainly can be beneficial to check into business grants for women.
According to grants.gov, the United States government's web site and main resource for grants that are available and can be applied for, there are more than 1000 grant programs offered by the 26 Federal grant-making agencies. These programs fall into 21 different categories, as defined by the Catalog of Federal Domestic Assistance. While some agencies may list available grants under multiple grant categories, the Federal government lists these categories of grants as follows:
Agriculture ,
Art ,
Business and Commerce ,
Community Development ,
Consumer Protection ,
Disaster Prevention and Relief ,
Education ,
Employment, Labor, and Training ,
Energy ,
Environmental Quality ,
Food and Nutrition ,
Health ,
Housing ,
Humanities ,
Information and Statistics ,
Law, Justice, and Legal Service ,
Natural Resources ,
Regional Development ,
Science and Technology ,
Social Services and Income Security ,
Transportation ,
Business Grant money,
Small Business grant money,
Grant money for small business,
Technology grant money,
Even though the category of Business and Commerce may be what appears to have the largest selection of resources for smallbusiness grants for women, consider the other categories as well, according to where your business falls. For example, if your business is a restaurant, don't hesitate to check the Food and Nutrition category for grants currently available. If your business is a farm, check the Agriculture section.
Grants aren't available for starting or opening a new business, and they also aren't available for expanding on an existing business. However, business grants for women can offer funding for research or development of the business. Many grants may not be applicable to your particular business or needs, but there may be funds available for research, education, or other things needed for you to operate and improve your business to help you achieve business growth.
In general, when considering the options for a business grant for women, do your homework and read carefully. Look at all grants available that might be related to your particular business. Consider looking into the Business and Commerce section, of Grants.gov, as mentioned, and also look into the different categories of grant fundings. Take the time needed to read the grant qualifications carefully. With any business, check into the Regional Development category, as well as the Community Development category. Depending on your location within the United States, it's possible to qualify for a grant to economically develop certain areas, and expanding a business in one of these areas can possibly assist you in qualifying for a business grant for women.
Free Business Grants
Several free small business grants are provided by the government for the business-minded person. If you think you have a profitable business or that your business needs additional funding for expansion then several free small business grants are available to cater to your financial needs.
One of these free small business grants is the program of The Department of Homeland Security (DHS). This free small business grants program by DHS seeks innovative ideas and inventions on security-related products. The award for those who will successfully hurdle the competition is $100,000 for six months to fund research that will prove the scientific, technical and commercial value of their concept. If DHS approves of their ideas, the companies can expect a two-year $750,000 free business grants to be spent on making functioning stereotype of the product.
The DHS free small business grants program is funded by the Small Business Innovation Research. To qualify for this free business grants, one must be a U.S.-based company with 500 or fewer employees. Proposals submitted for this free small business grants program should focus on the following areas: chemical and biological defense, information technology and marine security.
Other free business grants that you can avail of can probably be found right in your state. The federal government though, does not as a rule, provide for free business grants. But a number of state-run development agencies do provide free business grants among other things to those interested in going into business. These state-run economic development agencies that give free business grants can be found in Kansas, Nebraska, New Hampshire, New Mexico and Utah. The rest of the states offer financing, incentives, support and technical training services to budding entrepreneurs and practicing businessmen alike. The U.S. government's Small Business Administration (SBA) was established in 1953 to address specific business needs. Free business grants are not available in Small business Administration but they do offer valuable assistance from conceptualizing the business to technical support and training to advices in making the business grow. SBA also extends attractive loan packages to people who want to start or expand business. SBA can be found in every state. And it has worked with several non-profit, lending, educational and training organizations nationwide. Business is a factor that help spurs the U.S. economy. It provides employment to people. It provides the much-needed taxes to the government. And make economic progress possible. Businesses need all the support the government can give. Free business grants could be valuable tools in making the business grow. With free business grants, a door of opportunities has opened for those who want to try their hand in business.
There Are Tons Of Small Business Grants For Woman...But Where?
When starting a small business it can be costly, and finding a grant if you're a women isn't always the easiest thing to do. Little do most people know, there are millions of dollars just waiting to be claimed for grants from the government and other little-known organizations. It can be very difficult to find the right grant for you, and the place of where to get it, but with a few clicks you too can easily get access to small business grants for women.
It is not a secret that women are beginning to own more and more businesses everyday. Not only this, but these businesses are becoming just as successful if not more then men's businesses are. If you are looking for a grant, don't be hesitant to look because of what the business is going to be. There are literally hundreds to thousands of grants out there for women wanting to start craft businesses, consulting, brokerage, record labels and more.
When looking for a grant, there is the option of spending hundreds of dollars to pay somebody to get you a grant. However, there are other ways that are completely free, but may be more time consuming then you would hope. One site that is worth checking out is The Ladies Club 2000.com. It is required that you sign up and become a member, free of charge, but then you will have access to grant information on how you can become qualified for a grant and where you can find grants to begin your business or increase your business.
There are all kinds of companies out there, and the type of grant that you will receive varies for place to place. On womens-finance.com, there are two different kinds of grants offered. There is the New Business grant that is between $100 and $5,000, and there is the existing business grand that ranges from $1,000-$5,000. You do have to apply at this site and be accepted, but it is worth checking this site out below:
http://www.mypaydayloan.com/cgi-bin/pagek.pl?PID=kow&kbid=10062
It may not seem like it, but our government does want you to succeed, and that is why there is millions of dollars out there for you. Most places have ridiculous requirements in order to get a grant such as being over 65, being a minority, or even having bad credit sometimes help the process.
There are sites out there that are specifically looking for women only to give grants to. These sites are attempting to help the women population succeed in entrepreneurialism and begin the road to succession. The site listed just below here has a list of about ten different sites that are specifically looking for women to give grants to.
There is no reason to get frustrated after not having any luck finding loans. The government wants you to succeed in opening your small business, or help develop it that much more. There are a few sites listed above that are very much worth checking out to help you find small business grants for women. Don't get discouraged as this can be time consuming, but once you find the financial help needed, you will be on your way to developing your business.
Additionally, consider applying for an educational grant if returning to school is an option you'd like to consider. Many grants for higher education are offered each year, and not all are awarded. Knowledge is an extremely valuable business tool, and because the money is readily available for those who qualify, and educational grant is an excellent option to consider as a business grant for women.
Liquidating your Business Assets Can be an Efficient and Prudent Exit Strategy
In today's dynamic business environment you're either Growing or Going…out of business that is! If you're part of the latter contingent and have made the decision to get out of a business but are unable to transition your business internally or sell it as an intact entity, full or partial liquidation of assets may be an appropriate exit strategy. Asset liquidation can provide quick cash and assist in diversifying equity. However, before you terminate your lease, sell a key piece of equipment, or disconnect your utilities, make sure you have a well-thought-out plan.
Getting out of business successfully requires careful planning from start to finish. If you are looking at asset liquidation as a part of your exit strategy, consider incorporating the following recommendations into your plan to increase your chances for success.
1. Talk to your lawyer and accountant.
2. Establish the liquidation value of your assets; remember liquidation vs. retail value can differ substantially.
3. Identify the best venue and timetable to sell your assets.
4. Arrange the sale at the most appropriate location with an expert.
5. Use a non-recourse bill of sale.
Understanding and incorporating these steps into your exit plan will not only help you recover as much money as possible, they may also help you achieve the freedom needed to pursue new endeavors.
It is important to note that the recommendations discussed above are intended to serve as a general overview to assist with the asset liquidation process. It is not a substitute for case-specific advice that only your lawyer and/or accountant can provide. Also, depending on the situation and necessity of business divesture, the cooperation of creditors may need to be considered. Cover your bases and talk to the experts before liquidating any assets that may be in question.
Initiate the process by preparing a current inventory of your business assets. Include photographs, serial numbers and a brief description of the condition of each item if possible. A thorough inventory will save considerable time and expense as you navigate the sale process and can be invaluable if you are asked to provide documentation for creditors or the Internal Revenue Service.
Next, start preparing your assets for sale. To elicit the best offers, take care that you do not diminish the appeal of your most marketable items by lumping them in with outdated or worn-out equipment, furniture or inventory. In most cases the most lucrative value of these lesser items may be in the form of a tax deduction, so why not donate them to an appropriate charity?
Finally, don't overlook your intangible assets. For example, is your lease assignable? Are the business licenses, permits, patents or trademarks that you hold in demand? Can they be transferred? Is there a market for your customer list, contract rights or accounts? You may need to check with your attorney or accountant to determine what information and agreements are transferable but once cleared these types of assets can also provide a substantial return.
Getting out of business successfully requires careful planning from start to finish. If you are looking at asset liquidation as a part of your exit strategy, consider incorporating the following recommendations into your plan to increase your chances for success.
1. Talk to your lawyer and accountant.
2. Establish the liquidation value of your assets; remember liquidation vs. retail value can differ substantially.
3. Identify the best venue and timetable to sell your assets.
4. Arrange the sale at the most appropriate location with an expert.
5. Use a non-recourse bill of sale.
Understanding and incorporating these steps into your exit plan will not only help you recover as much money as possible, they may also help you achieve the freedom needed to pursue new endeavors.
It is important to note that the recommendations discussed above are intended to serve as a general overview to assist with the asset liquidation process. It is not a substitute for case-specific advice that only your lawyer and/or accountant can provide. Also, depending on the situation and necessity of business divesture, the cooperation of creditors may need to be considered. Cover your bases and talk to the experts before liquidating any assets that may be in question.
Initiate the process by preparing a current inventory of your business assets. Include photographs, serial numbers and a brief description of the condition of each item if possible. A thorough inventory will save considerable time and expense as you navigate the sale process and can be invaluable if you are asked to provide documentation for creditors or the Internal Revenue Service.
Next, start preparing your assets for sale. To elicit the best offers, take care that you do not diminish the appeal of your most marketable items by lumping them in with outdated or worn-out equipment, furniture or inventory. In most cases the most lucrative value of these lesser items may be in the form of a tax deduction, so why not donate them to an appropriate charity?
Finally, don't overlook your intangible assets. For example, is your lease assignable? Are the business licenses, permits, patents or trademarks that you hold in demand? Can they be transferred? Is there a market for your customer list, contract rights or accounts? You may need to check with your attorney or accountant to determine what information and agreements are transferable but once cleared these types of assets can also provide a substantial return.
Credit Card Services and Business Loans for the Small Business
To achieve financial independence, experts encourage even currently employed individuals to consider entrepreneurship. Setting up your own business, no matter how small, is touted as one of the best ways toward building the foundation for wealth. Those who are concerned about having a safety net need not take the plunge recklessly. One can start setting up a small business even while employed.
Of crucial use to small businesses are credit card services and small business loans. The entrepreneur needs to know how to avail of these tools and how to effectively wield them for maximum business growth.
Credit Card Services
A small business would do well to get reputable credit card services in order to prosper in the current business climate. Availing of credit card services will enable it to accept both credit card and debit card payments. This is true either for brick-and-mortar businesses
or internet based online businesses. After all, most consumers nowadays routinely use credit cards or debit cards for payment purposes. It only makes good business sense to be well-equipped for the needs of credit card users and debit card users as well as for the needs of customers who pay in cash.
Merchant services provide credit card services covering a wide range of solutions for the processing of credit cards and debit cards as payment options. These credit card services include traditional terminal equipment at point of sale, where credit cards or debit cards are swiped. It also includes software and high speed IP solutions for both traditional commerce and e-commerce. Credit card and debit card payments can, therefore, be accepted in person or through the internet, by phone or by fax.
Small Business Loans
Any business – whether a small start-up business, a medium-scaled one or a big business company – will be needing an infusion of additional capital sooner or later. Additional capital is always needed for expansion, additional inventory, additional manpower, new systems, new equipment or a new physical layout.
Capital is not always easy to come by, though. The original investors’ personal coffers may have been emptied by the earlier outlays. Prospective investors may not be keen on shelling out funds in times of crisis. Businesses, therefore, have no choice but to seek business loans.
Getting business loans is a difficult process. Even small business loans are not readily approved. Be prepared to present a lot of documentation and paperwork. For small business loans, the proprietor’s personal credit history is taken into account and related references need to be submitted. Of course, the company’s financial statements are just as important in proving the feasibility of the business and its capacity to repay its business loans. Having a detailed business plan will show your business strategies and projections, demonstrating your business acumen.
Unfortunately, even with all the requirements completed, applications for business loans – including small business loans – are, more often than not, disapproved.
Solutions
Some merchant services provide a comprehensive solution for the needs of small businesses in relation to credit card services and small business loans. The set up is elegantly simple. A small business need only avail of the company’s credit card services to be eligible for merchant cash advances. These cash advances are actually small business loans, except that there is no need to go through the complicated application process for business loans. Repayment is made very easy and worry-free, too. A certain small percentage is built into the credit card processing rates to take care of the advances. This way, repayment is actually done automatically in a very affordable manner and according to income flow.
Small business owners would, indeed, be wise to look into these timely business solutions.
Of crucial use to small businesses are credit card services and small business loans. The entrepreneur needs to know how to avail of these tools and how to effectively wield them for maximum business growth.
Credit Card Services
A small business would do well to get reputable credit card services in order to prosper in the current business climate. Availing of credit card services will enable it to accept both credit card and debit card payments. This is true either for brick-and-mortar businesses
or internet based online businesses. After all, most consumers nowadays routinely use credit cards or debit cards for payment purposes. It only makes good business sense to be well-equipped for the needs of credit card users and debit card users as well as for the needs of customers who pay in cash.
Merchant services provide credit card services covering a wide range of solutions for the processing of credit cards and debit cards as payment options. These credit card services include traditional terminal equipment at point of sale, where credit cards or debit cards are swiped. It also includes software and high speed IP solutions for both traditional commerce and e-commerce. Credit card and debit card payments can, therefore, be accepted in person or through the internet, by phone or by fax.
Small Business Loans
Any business – whether a small start-up business, a medium-scaled one or a big business company – will be needing an infusion of additional capital sooner or later. Additional capital is always needed for expansion, additional inventory, additional manpower, new systems, new equipment or a new physical layout.
Capital is not always easy to come by, though. The original investors’ personal coffers may have been emptied by the earlier outlays. Prospective investors may not be keen on shelling out funds in times of crisis. Businesses, therefore, have no choice but to seek business loans.
Getting business loans is a difficult process. Even small business loans are not readily approved. Be prepared to present a lot of documentation and paperwork. For small business loans, the proprietor’s personal credit history is taken into account and related references need to be submitted. Of course, the company’s financial statements are just as important in proving the feasibility of the business and its capacity to repay its business loans. Having a detailed business plan will show your business strategies and projections, demonstrating your business acumen.
Unfortunately, even with all the requirements completed, applications for business loans – including small business loans – are, more often than not, disapproved.
Solutions
Some merchant services provide a comprehensive solution for the needs of small businesses in relation to credit card services and small business loans. The set up is elegantly simple. A small business need only avail of the company’s credit card services to be eligible for merchant cash advances. These cash advances are actually small business loans, except that there is no need to go through the complicated application process for business loans. Repayment is made very easy and worry-free, too. A certain small percentage is built into the credit card processing rates to take care of the advances. This way, repayment is actually done automatically in a very affordable manner and according to income flow.
Small business owners would, indeed, be wise to look into these timely business solutions.
Credit Card Services and Business Loans for the Small Business
To achieve financial independence, experts encourage even currently employed individuals to consider entrepreneurship. Setting up your own business, no matter how small, is touted as one of the best ways toward building the foundation for wealth. Those who are concerned about having a safety net need not take the plunge recklessly. One can start setting up a small business even while employed.
Of crucial use to small businesses are credit card services and small business loans. The entrepreneur needs to know how to avail of these tools and how to effectively wield them for maximum business growth.
Credit Card Services
A small business would do well to get reputable credit card services in order to prosper in the current business climate. Availing of credit card services will enable it to accept both credit card and debit card payments. This is true either for brick-and-mortar businesses
or internet based online businesses. After all, most consumers nowadays routinely use credit cards or debit cards for payment purposes. It only makes good business sense to be well-equipped for the needs of credit card users and debit card users as well as for the needs of customers who pay in cash.
Merchant services provide credit card services covering a wide range of solutions for the processing of credit cards and debit cards as payment options. These credit card services include traditional terminal equipment at point of sale, where credit cards or debit cards are swiped. It also includes software and high speed IP solutions for both traditional commerce and e-commerce. Credit card and debit card payments can, therefore, be accepted in person or through the internet, by phone or by fax.
Small Business Loans
Any business – whether a small start-up business, a medium-scaled one or a big business company – will be needing an infusion of additional capital sooner or later. Additional capital is always needed for expansion, additional inventory, additional manpower, new systems, new equipment or a new physical layout.
Capital is not always easy to come by, though. The original investors’ personal coffers may have been emptied by the earlier outlays. Prospective investors may not be keen on shelling out funds in times of crisis. Businesses, therefore, have no choice but to seek business loans.
Getting business loans is a difficult process. Even small business loans are not readily approved. Be prepared to present a lot of documentation and paperwork. For small business loans, the proprietor’s personal credit history is taken into account and related references need to be submitted. Of course, the company’s financial statements are just as important in proving the feasibility of the business and its capacity to repay its business loans. Having a detailed business plan will show your business strategies and projections, demonstrating your business acumen.
Unfortunately, even with all the requirements completed, applications for business loans – including small business loans – are, more often than not, disapproved.
Solutions
Some merchant services provide a comprehensive solution for the needs of small businesses in relation to credit card services and small business loans. The set up is elegantly simple. A small business need only avail of the company’s credit card services to be eligible for merchant cash advances. These cash advances are actually small business loans, except that there is no need to go through the complicated application process for business loans. Repayment is made very easy and worry-free, too. A certain small percentage is built into the credit card processing rates to take care of the advances. This way, repayment is actually done automatically in a very affordable manner and according to income flow.
Small business owners would, indeed, be wise to look into these timely business solutions.
Of crucial use to small businesses are credit card services and small business loans. The entrepreneur needs to know how to avail of these tools and how to effectively wield them for maximum business growth.
Credit Card Services
A small business would do well to get reputable credit card services in order to prosper in the current business climate. Availing of credit card services will enable it to accept both credit card and debit card payments. This is true either for brick-and-mortar businesses
or internet based online businesses. After all, most consumers nowadays routinely use credit cards or debit cards for payment purposes. It only makes good business sense to be well-equipped for the needs of credit card users and debit card users as well as for the needs of customers who pay in cash.
Merchant services provide credit card services covering a wide range of solutions for the processing of credit cards and debit cards as payment options. These credit card services include traditional terminal equipment at point of sale, where credit cards or debit cards are swiped. It also includes software and high speed IP solutions for both traditional commerce and e-commerce. Credit card and debit card payments can, therefore, be accepted in person or through the internet, by phone or by fax.
Small Business Loans
Any business – whether a small start-up business, a medium-scaled one or a big business company – will be needing an infusion of additional capital sooner or later. Additional capital is always needed for expansion, additional inventory, additional manpower, new systems, new equipment or a new physical layout.
Capital is not always easy to come by, though. The original investors’ personal coffers may have been emptied by the earlier outlays. Prospective investors may not be keen on shelling out funds in times of crisis. Businesses, therefore, have no choice but to seek business loans.
Getting business loans is a difficult process. Even small business loans are not readily approved. Be prepared to present a lot of documentation and paperwork. For small business loans, the proprietor’s personal credit history is taken into account and related references need to be submitted. Of course, the company’s financial statements are just as important in proving the feasibility of the business and its capacity to repay its business loans. Having a detailed business plan will show your business strategies and projections, demonstrating your business acumen.
Unfortunately, even with all the requirements completed, applications for business loans – including small business loans – are, more often than not, disapproved.
Solutions
Some merchant services provide a comprehensive solution for the needs of small businesses in relation to credit card services and small business loans. The set up is elegantly simple. A small business need only avail of the company’s credit card services to be eligible for merchant cash advances. These cash advances are actually small business loans, except that there is no need to go through the complicated application process for business loans. Repayment is made very easy and worry-free, too. A certain small percentage is built into the credit card processing rates to take care of the advances. This way, repayment is actually done automatically in a very affordable manner and according to income flow.
Small business owners would, indeed, be wise to look into these timely business solutions.
Selasa, 04 Agustus 2009
Entrepreneurship
Entrepreneurship according to Onuoha (2007) is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Many "high value" entrepreneurial ventures seek venture capital or angel funding in order to raise capital to build the business. Angel investors generally seek returns of 20-30% and more extensive involvement in the business.[1] Many kinds of organizations now exist to support would-be entrepreneurs, including specialized government agencies, business incubators, science parks, and some NGOs. Lately more holisitc conceptualizations of entrepreneurship as a specific mindset (see also entrepreneurial mindset) resulting in entrepreneurial initiatives e.g. in the form of social entrepreneurship, political entrepreneurship, or knowledge entrepreneurship emerged.
Contents
[hide]
* 1 History of Entrepreneurship
* 2 Characteristics of an entrepreneur
* 3 Advantages of entrepreneurship
* 4 Promotion of entrepreneurship
* 5 Notes
* 6 See also
* 7 References and external articles
* 8 External links
History of Entrepreneurship
The understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter and the Austrian economists such as Ludwig von Mises and Friedrich von Hayek. In Schumpeter (1950), an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship forces "creative destruction" across markets and industries, simultaneously creating new products and business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. Despite Schumpeter's early 20th-century contributions, the traditional microeconomic theory of economics has had little room for entrepreneurs in its theoretical frameworks (instead assuming that resources would find each other through a price system.)
Some notable persons and their works in entrepreneurship history.
For Frank H. Knight (1921) and Peter Drucker (1970) entrepreneurship is about taking risk. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture. Knight classified three types of uncertainty.
* Risk, which is measurable statistically (such as the probability of drawing a red colour ball from a jar containing 5 red balls and 5 white balls).
* Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing 5 red balls but with an unknown number of white balls).
* True Uncertainty or Knightian Uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose number of red balls is unknown as well as the number of other coloured balls).
The acts of entrepreneurship is often associated with true uncertainty, particularly when it involves bringing something really novel to the world, whose market never exists. Before the Internet, nobody knew the market for Internet related businesses such as Amazon, Google, YouTube, Yahoo etc. Only after the Internet emerged did people begin to see opportunities and market in that technology. However, even if a market already exists, such as the market for cola drinks (which has been created by Coca Cola), there is no guarantee that a market exists for a particular new player in the cola category. The question is: whether a market exists and if it exists for you.
The place of the disharmony-creating and idiosyncratic entrepreneur in traditional economic theory (which describes many efficiency-based ratios assuming uniform outputs) presents theoretic quandaries. William Baumol has added greatly to this area of economic theory and was recently honored for it at the 2006 annual meeting of the American Economic Association.[2]
Entrepreneurship is widely regarded as an integral player in the business culture of American life, and particularly as an engine for job creation and economic growth. Robert Sobel published The Entrepreneurs: Explorations Within the American Business Tradition in 1974. Zoltan Acs and David B. Audrestch have produced an edited volume surveying Entrepreneurship as an academic field of research in the Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction.
In 2009, a new type of entrepreneurship emerged known as LILO entrepreneurship. LILO stands for "a little in, a lot out". This type of entrepreneurship does not use business plans; opting for an immediate try-out at minimal expense instead. LILO enterprises are set up with a minimum of start-up capital and are designed to operate at very low cost. Some of the companies set up via LILO entrepreneurship are no more costly than a hobby. [3]
Characteristics of an entrepreneur
This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2009)
Entrepreneurs have many of the same character traits as leaders, similar to the early great man theories of leadership; however trait-based theories of entrepreneurship are increasingly being called into question. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Such person-centric models of entrepreneurship have shown to be of questionable validity, not least as many real-life entrepreneurs operate in teams rather than as single individuals. Still, a vast literature studying the entrepreneurial personality found that certain traits seem to be associated with entrepreneurs:
* David McClelland - primarily motivated by an overwhelming need for achievement and strong urge to build.
* Collins and Moore - tough, pragmatic people driven by needs of independence and achievement. They seldom are willing to submit to authority.
* Bird - mercurial, that is, prone to insights, brainstorms, deceptions, ingeniousness and resourcefulness. they are cunning, opportunistic, creative, and unsentimental.
* Cooper, Woo, & Dunkelberg - argue that entrepreneurs exhibit extreme optimism in their decision-making processes.
* Busenitz and Barney - prone to overconfidence and over generalisations.
* Cole - found there are four types of entrepreneur: the innovator, the calculating inventor, the over-optimistic promoter, and the organization builder. These types are not related to the personality but to the type of opportunity the entrepreneur faces.
* Zhao & Seibert - meta-analysis (a statistical synthesis of previous research) showed that compared to managers, entrepreneurs score higher on Conscientiousness and Openness to Experience and lower on Neuroticism and Agreeableness. No difference was found for Extraversion.
* John Howkins - focused specifically on creative entrepreneurship. He found that entrepreneurs in the creative industries needed a specific set of traits including the ability to prioritise ideas over data, to be nomadic and to learn endlessly. [4]
Other characteristics include
* The entrepreneur has an enthusiastic vision, the driving force of an enterprise.
* The entrepreneur's vision is usually supported by an interlocked collection of specific ideas not available to the marketplace.
* The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving.
* The entrepreneur promotes the vision with enthusiastic passion.
* With persistence and determination, the entrepreneur develops strategies to change the vision into reality.
* The entrepreneur takes the initial responsibility to cause a vision to become a success.
* Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help.
* An entrepreneur is usually a positive thinker and a decision maker.
An entrepreneur has inspiration, motivation and sensibility.
[edit] Advantages of entrepreneurship
This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2009)
Every successful entrepreneur brings about benefits not only for himself/ herself but for the municipality, region or country as a whole. The benefits that can be derived from entrepreneurial activities are as follows:
1. Enormous personal financial gain
2. Self-employment, own bossing, offering more job satisfaction and flexibility of the work force
3. Employment for others, often in better jobs
4. Development of more industries, especially in rural areas or regions disadvantaged by economic changes, for example due to globalization effects
5. Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export
6. Income generation and increased economic growth
7. Healthy competition thus encourages higher quality products
8. More goods and services available
9. Development of new markets
10. Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity
11. Encouragement of more researchers/studies and development of modern machines and equipment for domestic consumption
12. Development of entrepreneurial qualities and attitudes among potential entrepreneurs to bring about significant changes in the rural areas
13. Freedom from the dependency on the jobs offered by others
14. Ability to have great accomplishments
15. Reduction of the informal economy
16. Emigration of talent may be stopped by a better domestic entrepreneurship climate
17. Serious tax advantages
Promotion of entrepreneurship
Given entrepreneurship's potential to support economic growth, it is the policy goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, legislating to encourage risk-taking, and national campaigns. An example of the latter is the United Kingdom's Enterprise Week, which launched in 2004.
Outside of the political world, research has been conducted on the presence of entrepreneurial theories in doctoral economics programs. Dan Johansson, fellow at the Ratio Institute in Sweden, finds such content to be sparse. He fears this will dilute doctoral programs and fail to train young economists to analyze problems in a relevant way.[5]
Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week, a worldwide celebration and promotion of youth entrepreneurship, which started in 2008.
Notes
1. ^ Angel Investing, Mark Van Osnabrugge and Robert J. Robinson
2. ^ "Searching for the invisible man". The Economist (The Economist Newspaper Limited): pp. 67. 2006-03-11. http://www.economist.com/finance/displaystory.cfm?story_id=E1_VGDTRJD. Retrieved on 2008-03-05.
3. ^ Time magazine describing LILO entrepreneurship
4. ^ Howkins, John, “The Creative Economy: How People Make Money From Ideas”, Penguin, 2001, p.155-158
5. ^ Johansson, Dan. "Economics Without Entrepreneurship or Institutions: A Vocabulary Analysis of Graduate Textbooks" (December 2004). [1]
[edit] See also
General
Business
* Business opportunity
* Junior enterprise
Educational
* Master of Enterprise
Lists
List of management topics, List of social entrepreneurs
Other
Bootstrap funding
References and external articles
Books and publications
* Zoltan Acs and David B. Audretsch (2003) Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction, Springer.
* William J. Baumol, Litan, R. E., Carl Schramm, (2007) Good Capitalism, Bad Capitalism, Yale University Press
* Bird, B. (1992)"The Roman God Mercury: An Entrepreneurial Archetype", Journal of Management Enquiry, vol 1, no 3, September, 1992.
* Busenitz, L. and Barney, J. (1997) "Differences between entrepreneurs and managers in large organizations", Journal of Business Venturing, vol 12, 1997.
* Richard Cantillon, Essai sur la Nature du Commerce in Général. 1759 [2]
* Casson, M. (1982) The Entrepreneur: An Economic Theory Reprint. 1991.
* Casson, M. (2003) The Entrepreneur: An Economic Theory, second edition", Edward Elgar Publishing 2003.
* Cole, A. (1959) Business Enterprise in its Social Setting, Harvard University Press, Boston, 1959.
* Collins, J. and Moore, D. (1970) The Organization Makers, Appleton-Century-Crofts, New York, 1970.
* Peter Drucker, (1970) "Entrepreneurship in Business Enterprise", Journal of Business Policy, vol 1, 1970.
* Folsom Jr., Burton W. (1987) The Myth of the Robber Barons, Young America.
* Gold, Steven K (2005) "Entrepreneur's Notebook" Learning Ventures Press, 2005.
* Hebert, R.F. and Link, A.N. (1988) The Entrepreneur: Mainstream Views and Radical Critiques. New York: Praeger, 2nd edition.
* Knight, Frank H. (1921). Risk, Uncertainty, and Profit. Boston, MA: Hart, Schaffner & Marx; Houghton Mifflin Company
* Knight, K. (1967) "A descriptive model of the intra-firm innovation process", Journal of Business of the University of Chicago, vol 40, 1967.
* Israel Kirzner, (1997) 'Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach', Journal of Economic Literature 35: 60-85
* Lumpkin, GT and Dess, GG (1996) 'Clarifying the Entrepreneurial Orientation Construct and Linking it to Performance', Academy of Management Review 21(1): 135-172
* McClelland, D. The Achieving Society, Van Nostrand, Princeton NJ, 1961.
* Pinchot, G. (1985) Intrapreneuring, Harper and Row, New York, 1985.
* Joseph Schumpeter, (1950) Capitalism, Socialism, and Democracy, 3rd edition, Harper and Row, New York, 1950.
* Carl Schramm, (2006) The Entrepreneurial Imperative, Harper Collins, 2006.
* Shane S., (2003) A general theory of entrepreneurship : the individual-opportunity nexus in New Horizons in Entrepreneurship series, Edward Elgar Publishing.
* Shane, S and Venkataraman, S (2000), 'The Promise of Entrepreneurship as a Field of Research', Academy of Management Review 25(1): 217-226
* Stevenson, HH and Jarillo, JC (1990) 'A Paradigm of Entrepreneurship: Entrepreneurial Management', Strategic Management Journal 11: 17-27
* Onuoha G., (2007)"Entrepreneurship" AIST International Journal 10:20-32.
* Zhao, H., & Seibert, S. E. (2006). 'The Big Five personality dimensions and entrepreneurial status: A meta-analytical review', Journal of Applied Psychology, 91: 259-271.
Contents
[hide]
* 1 History of Entrepreneurship
* 2 Characteristics of an entrepreneur
* 3 Advantages of entrepreneurship
* 4 Promotion of entrepreneurship
* 5 Notes
* 6 See also
* 7 References and external articles
* 8 External links
History of Entrepreneurship
The understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter and the Austrian economists such as Ludwig von Mises and Friedrich von Hayek. In Schumpeter (1950), an entrepreneur is a person who is willing and able to convert a new idea or invention into a successful innovation. Entrepreneurship forces "creative destruction" across markets and industries, simultaneously creating new products and business models. In this way, creative destruction is largely responsible for the dynamism of industries and long-run economic growth. Despite Schumpeter's early 20th-century contributions, the traditional microeconomic theory of economics has had little room for entrepreneurs in its theoretical frameworks (instead assuming that resources would find each other through a price system.)
Some notable persons and their works in entrepreneurship history.
For Frank H. Knight (1921) and Peter Drucker (1970) entrepreneurship is about taking risk. The behavior of the entrepreneur reflects a kind of person willing to put his or her career and financial security on the line and take risks in the name of an idea, spending much time as well as capital on an uncertain venture. Knight classified three types of uncertainty.
* Risk, which is measurable statistically (such as the probability of drawing a red colour ball from a jar containing 5 red balls and 5 white balls).
* Ambiguity, which is hard to measure statistically (such as the probability of drawing a red ball from a jar containing 5 red balls but with an unknown number of white balls).
* True Uncertainty or Knightian Uncertainty, which is impossible to estimate or predict statistically (such as the probability of drawing a red ball from a jar whose number of red balls is unknown as well as the number of other coloured balls).
The acts of entrepreneurship is often associated with true uncertainty, particularly when it involves bringing something really novel to the world, whose market never exists. Before the Internet, nobody knew the market for Internet related businesses such as Amazon, Google, YouTube, Yahoo etc. Only after the Internet emerged did people begin to see opportunities and market in that technology. However, even if a market already exists, such as the market for cola drinks (which has been created by Coca Cola), there is no guarantee that a market exists for a particular new player in the cola category. The question is: whether a market exists and if it exists for you.
The place of the disharmony-creating and idiosyncratic entrepreneur in traditional economic theory (which describes many efficiency-based ratios assuming uniform outputs) presents theoretic quandaries. William Baumol has added greatly to this area of economic theory and was recently honored for it at the 2006 annual meeting of the American Economic Association.[2]
Entrepreneurship is widely regarded as an integral player in the business culture of American life, and particularly as an engine for job creation and economic growth. Robert Sobel published The Entrepreneurs: Explorations Within the American Business Tradition in 1974. Zoltan Acs and David B. Audrestch have produced an edited volume surveying Entrepreneurship as an academic field of research in the Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction.
In 2009, a new type of entrepreneurship emerged known as LILO entrepreneurship. LILO stands for "a little in, a lot out". This type of entrepreneurship does not use business plans; opting for an immediate try-out at minimal expense instead. LILO enterprises are set up with a minimum of start-up capital and are designed to operate at very low cost. Some of the companies set up via LILO entrepreneurship are no more costly than a hobby. [3]
Characteristics of an entrepreneur
This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2009)
Entrepreneurs have many of the same character traits as leaders, similar to the early great man theories of leadership; however trait-based theories of entrepreneurship are increasingly being called into question. Entrepreneurs are often contrasted with managers and administrators who are said to be more methodical and less prone to risk-taking. Such person-centric models of entrepreneurship have shown to be of questionable validity, not least as many real-life entrepreneurs operate in teams rather than as single individuals. Still, a vast literature studying the entrepreneurial personality found that certain traits seem to be associated with entrepreneurs:
* David McClelland - primarily motivated by an overwhelming need for achievement and strong urge to build.
* Collins and Moore - tough, pragmatic people driven by needs of independence and achievement. They seldom are willing to submit to authority.
* Bird - mercurial, that is, prone to insights, brainstorms, deceptions, ingeniousness and resourcefulness. they are cunning, opportunistic, creative, and unsentimental.
* Cooper, Woo, & Dunkelberg - argue that entrepreneurs exhibit extreme optimism in their decision-making processes.
* Busenitz and Barney - prone to overconfidence and over generalisations.
* Cole - found there are four types of entrepreneur: the innovator, the calculating inventor, the over-optimistic promoter, and the organization builder. These types are not related to the personality but to the type of opportunity the entrepreneur faces.
* Zhao & Seibert - meta-analysis (a statistical synthesis of previous research) showed that compared to managers, entrepreneurs score higher on Conscientiousness and Openness to Experience and lower on Neuroticism and Agreeableness. No difference was found for Extraversion.
* John Howkins - focused specifically on creative entrepreneurship. He found that entrepreneurs in the creative industries needed a specific set of traits including the ability to prioritise ideas over data, to be nomadic and to learn endlessly. [4]
Other characteristics include
* The entrepreneur has an enthusiastic vision, the driving force of an enterprise.
* The entrepreneur's vision is usually supported by an interlocked collection of specific ideas not available to the marketplace.
* The overall blueprint to realize the vision is clear, however details may be incomplete, flexible, and evolving.
* The entrepreneur promotes the vision with enthusiastic passion.
* With persistence and determination, the entrepreneur develops strategies to change the vision into reality.
* The entrepreneur takes the initial responsibility to cause a vision to become a success.
* Entrepreneurs take prudent risks. They assess costs, market/customer needs and persuade others to join and help.
* An entrepreneur is usually a positive thinker and a decision maker.
An entrepreneur has inspiration, motivation and sensibility.
[edit] Advantages of entrepreneurship
This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (April 2009)
Every successful entrepreneur brings about benefits not only for himself/ herself but for the municipality, region or country as a whole. The benefits that can be derived from entrepreneurial activities are as follows:
1. Enormous personal financial gain
2. Self-employment, own bossing, offering more job satisfaction and flexibility of the work force
3. Employment for others, often in better jobs
4. Development of more industries, especially in rural areas or regions disadvantaged by economic changes, for example due to globalization effects
5. Encouragement of the processing of local materials into finished goods for domestic consumption as well as for export
6. Income generation and increased economic growth
7. Healthy competition thus encourages higher quality products
8. More goods and services available
9. Development of new markets
10. Promotion of the use of modern technology in small-scale manufacturing to enhance higher productivity
11. Encouragement of more researchers/studies and development of modern machines and equipment for domestic consumption
12. Development of entrepreneurial qualities and attitudes among potential entrepreneurs to bring about significant changes in the rural areas
13. Freedom from the dependency on the jobs offered by others
14. Ability to have great accomplishments
15. Reduction of the informal economy
16. Emigration of talent may be stopped by a better domestic entrepreneurship climate
17. Serious tax advantages
Promotion of entrepreneurship
Given entrepreneurship's potential to support economic growth, it is the policy goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, legislating to encourage risk-taking, and national campaigns. An example of the latter is the United Kingdom's Enterprise Week, which launched in 2004.
Outside of the political world, research has been conducted on the presence of entrepreneurial theories in doctoral economics programs. Dan Johansson, fellow at the Ratio Institute in Sweden, finds such content to be sparse. He fears this will dilute doctoral programs and fail to train young economists to analyze problems in a relevant way.[5]
Many of these initiatives have been brought together under the umbrella of Global Entrepreneurship Week, a worldwide celebration and promotion of youth entrepreneurship, which started in 2008.
Notes
1. ^ Angel Investing, Mark Van Osnabrugge and Robert J. Robinson
2. ^ "Searching for the invisible man". The Economist (The Economist Newspaper Limited): pp. 67. 2006-03-11. http://www.economist.com/finance/displaystory.cfm?story_id=E1_VGDTRJD. Retrieved on 2008-03-05.
3. ^ Time magazine describing LILO entrepreneurship
4. ^ Howkins, John, “The Creative Economy: How People Make Money From Ideas”, Penguin, 2001, p.155-158
5. ^ Johansson, Dan. "Economics Without Entrepreneurship or Institutions: A Vocabulary Analysis of Graduate Textbooks" (December 2004). [1]
[edit] See also
General
Business
* Business opportunity
* Junior enterprise
Educational
* Master of Enterprise
Lists
List of management topics, List of social entrepreneurs
Other
Bootstrap funding
References and external articles
Books and publications
* Zoltan Acs and David B. Audretsch (2003) Handbook of Entrepreneurship Research: An Interdisciplinary Survey and Introduction, Springer.
* William J. Baumol, Litan, R. E., Carl Schramm, (2007) Good Capitalism, Bad Capitalism, Yale University Press
* Bird, B. (1992)"The Roman God Mercury: An Entrepreneurial Archetype", Journal of Management Enquiry, vol 1, no 3, September, 1992.
* Busenitz, L. and Barney, J. (1997) "Differences between entrepreneurs and managers in large organizations", Journal of Business Venturing, vol 12, 1997.
* Richard Cantillon, Essai sur la Nature du Commerce in Général. 1759 [2]
* Casson, M. (1982) The Entrepreneur: An Economic Theory Reprint. 1991.
* Casson, M. (2003) The Entrepreneur: An Economic Theory, second edition", Edward Elgar Publishing 2003.
* Cole, A. (1959) Business Enterprise in its Social Setting, Harvard University Press, Boston, 1959.
* Collins, J. and Moore, D. (1970) The Organization Makers, Appleton-Century-Crofts, New York, 1970.
* Peter Drucker, (1970) "Entrepreneurship in Business Enterprise", Journal of Business Policy, vol 1, 1970.
* Folsom Jr., Burton W. (1987) The Myth of the Robber Barons, Young America.
* Gold, Steven K (2005) "Entrepreneur's Notebook" Learning Ventures Press, 2005.
* Hebert, R.F. and Link, A.N. (1988) The Entrepreneur: Mainstream Views and Radical Critiques. New York: Praeger, 2nd edition.
* Knight, Frank H. (1921). Risk, Uncertainty, and Profit. Boston, MA: Hart, Schaffner & Marx; Houghton Mifflin Company
* Knight, K. (1967) "A descriptive model of the intra-firm innovation process", Journal of Business of the University of Chicago, vol 40, 1967.
* Israel Kirzner, (1997) 'Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach', Journal of Economic Literature 35: 60-85
* Lumpkin, GT and Dess, GG (1996) 'Clarifying the Entrepreneurial Orientation Construct and Linking it to Performance', Academy of Management Review 21(1): 135-172
* McClelland, D. The Achieving Society, Van Nostrand, Princeton NJ, 1961.
* Pinchot, G. (1985) Intrapreneuring, Harper and Row, New York, 1985.
* Joseph Schumpeter, (1950) Capitalism, Socialism, and Democracy, 3rd edition, Harper and Row, New York, 1950.
* Carl Schramm, (2006) The Entrepreneurial Imperative, Harper Collins, 2006.
* Shane S., (2003) A general theory of entrepreneurship : the individual-opportunity nexus in New Horizons in Entrepreneurship series, Edward Elgar Publishing.
* Shane, S and Venkataraman, S (2000), 'The Promise of Entrepreneurship as a Field of Research', Academy of Management Review 25(1): 217-226
* Stevenson, HH and Jarillo, JC (1990) 'A Paradigm of Entrepreneurship: Entrepreneurial Management', Strategic Management Journal 11: 17-27
* Onuoha G., (2007)"Entrepreneurship" AIST International Journal 10:20-32.
* Zhao, H., & Seibert, S. E. (2006). 'The Big Five personality dimensions and entrepreneurial status: A meta-analytical review', Journal of Applied Psychology, 91: 259-271.
Reverse Your Fortune With Sound Marketing
Which comes first, the market or the product? No, this isn’t some strange twist on the old which comes first the chicken or the egg question. You see, when you put finding your market first, you can completely alter your sales outlook, whether you’ve run your business for years or the recession has you striking out on your own.
Too many entrepreneurs get wrapped up in what they plan to sell before discovering what their customers want to buy. In this recession economy, that can mean the difference between losing a fortune and making one. Time and again, I get requests for marketing guidance from business owners who’ve invested years perfecting a product or service without knowing the answers to three critical questions:
1. Exactly who will want to buy this product and why?
2. How much are they willing to pay?
3. What will it take to convince prospects to buy from you instead of anyone else?
Pinpoint the Ideal Customer
Imagine you’re starting out with a clean slate. Set aside any preconceived notions of what your current product or service offering must be. In this economy, consumers are emphasizing needs over wants. So ask yourself: What is truly needed in your product or service category? It might be anything, from a machine with fewer moving parts to longer customer service hours. The ideal customer knows what she needs--or at least she knows it when she sees it--so you must craft your product or service accordingly.
Next, decide which prospect group has demonstrated a willingness to pay to fill this need. Don’t spin your wheels developing a product or service before you know there’s a target market that wants to buy it. Better to discover a market searching for a product than to have a product groping to find its niche.
Get Pricing in Line
Suppose you’ve spent the last year developing this awesome widget that fills a strong need within an established widget-buying target market. You’re ready to bring your new widget to market, but it will cost $6 while all other similar widgets sell for $2. Assume your widget does something that the others don’t and your prospects know they need this new, advanced product. What should you do?
A few years ago you might have thrown a major advertising campaign behind this advanced product and captured sales from deep-pocketed customers who were willing to pay significantly more for added features. But today your smartest move would be to find a way to introduce your superior widget at close to parity pricing with the old-fashioned widgets. Then, after the market had embraced your new product, you could gradually increase your prices, although probably not as high as three times more than the competing products.
Bottom line, never enter a market unless you know you can produce and sell your product or service for what your targeted prospects are willing to pay.
Factor in Credibility
This is where reality hits. The hard truth is that the merits of the product or service you offer are probably not enough on their own to close sales. When money’s tight, prospects scrutinize every purchase more carefully. Part of bringing a product or service to even the most willing audience is factoring in the time, energy and money it will take to build the credibility required to convince prospects to purchase from you instead of your competition. That means developing an advertising plan, a content-rich website and online marketing that includes PR and social networking. You should market aggressively to sustain sales through the life of the product or service offer, including prior to and during rollout.
Marketing exists to support sales. Once you’ve identified a target market with a clear need and decided how you will fill it, a great marketing campaign will convince these qualified prospects to buy from you.
Too many entrepreneurs get wrapped up in what they plan to sell before discovering what their customers want to buy. In this recession economy, that can mean the difference between losing a fortune and making one. Time and again, I get requests for marketing guidance from business owners who’ve invested years perfecting a product or service without knowing the answers to three critical questions:
1. Exactly who will want to buy this product and why?
2. How much are they willing to pay?
3. What will it take to convince prospects to buy from you instead of anyone else?
Pinpoint the Ideal Customer
Imagine you’re starting out with a clean slate. Set aside any preconceived notions of what your current product or service offering must be. In this economy, consumers are emphasizing needs over wants. So ask yourself: What is truly needed in your product or service category? It might be anything, from a machine with fewer moving parts to longer customer service hours. The ideal customer knows what she needs--or at least she knows it when she sees it--so you must craft your product or service accordingly.
Next, decide which prospect group has demonstrated a willingness to pay to fill this need. Don’t spin your wheels developing a product or service before you know there’s a target market that wants to buy it. Better to discover a market searching for a product than to have a product groping to find its niche.
Get Pricing in Line
Suppose you’ve spent the last year developing this awesome widget that fills a strong need within an established widget-buying target market. You’re ready to bring your new widget to market, but it will cost $6 while all other similar widgets sell for $2. Assume your widget does something that the others don’t and your prospects know they need this new, advanced product. What should you do?
A few years ago you might have thrown a major advertising campaign behind this advanced product and captured sales from deep-pocketed customers who were willing to pay significantly more for added features. But today your smartest move would be to find a way to introduce your superior widget at close to parity pricing with the old-fashioned widgets. Then, after the market had embraced your new product, you could gradually increase your prices, although probably not as high as three times more than the competing products.
Bottom line, never enter a market unless you know you can produce and sell your product or service for what your targeted prospects are willing to pay.
Factor in Credibility
This is where reality hits. The hard truth is that the merits of the product or service you offer are probably not enough on their own to close sales. When money’s tight, prospects scrutinize every purchase more carefully. Part of bringing a product or service to even the most willing audience is factoring in the time, energy and money it will take to build the credibility required to convince prospects to purchase from you instead of your competition. That means developing an advertising plan, a content-rich website and online marketing that includes PR and social networking. You should market aggressively to sustain sales through the life of the product or service offer, including prior to and during rollout.
Marketing exists to support sales. Once you’ve identified a target market with a clear need and decided how you will fill it, a great marketing campaign will convince these qualified prospects to buy from you.
Minggu, 02 Agustus 2009
ENTREPRENEUR
An entrepreneur is a person who has possession of an enterprise, or venture, and assumes significant accountability for the inherent risks and the outcome. It is an ambitious leader who combines land, labor, and capital to create and market new goods or services. ... [1] The term is a loanword from French and was first defined by the Irish economist Richard Cantillon. Entrepreneur in English is a term applied to the type of personality who is willing to take upon herself or himself a new venture or enterprise and accepts full responsibility for the outcome. Jean-Baptiste Say, a french economist, believed to be coined the word Entrepreneur first in about at 1800. He said an entrepreneur is "one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labour".[2]
Entrepreneurship is often difficult and tricky, resulting in many new ventures failing. The word entrepreneur is often synonymous with founder. Most commonly, the term entrepreneur applies to someone who creates value by offering a product or service, by carving out a niche in the market that may not exist currently. Entrepreneurs tend to identify a market opportunity and exploit it by organizing their resources effectively to accomplish an outcome that changes existing interactions within a given sector.
Observers see them as being willing to accept a high level of personal, professional or financial risk to pursue opportunity.
Business entrepreneurs are viewed as fundamentally important in the capitalistic society. Some distinguish business entrepreneurs as either "political entrepreneurs" or "market entrepreneurs," while social entrepreneurs' principal objectives include the creation of a social and/or environmental benefit.
Contents |
Etymology
Credit for coining the word "entrepreneur" goes to Jean-Baptiste Say, a nineteenth century economist.[3]
The word "entrepreneur" is a loanword from French where its female is "entrepreneuse". In French the verb "entreprendre" means "to undertake," with "entre" coming from the Latin word meaning "between," and "prendre" meaning "to take." In French a person who performs a verb, has the ending of the verb changed to "eur," comparable to the "er" ending in English. "Unternehmer" (lit. "undertaker" in the literal sense of the word) is the high German equivalent and curiously, "Unternehmensforschung" is the German equivalent of Operations Research although the Anglo-Saxon model of the firm is fairly anti-thetical to the notion of management as a science.
Enterprise is similar to and has roots in, the French word "entreprise," which is the past participle of "entreprendre."
Entrepreneur as a leader
Scholar Robert. B. Reich considers leadership, management ability, and team-building as essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en Général (1755) and Jean-Baptiste Say (1803 or 1834)[4] in his Treatise on Political Economy. "Unternehmer" (lit. "undertaker" in the literal sense of the word) is the high German equivalent and curiously, "Unternehmensforschung" is the German equivalent of Operations Research although the Anglo-Saxon model of the firm is fairly anti-thetical to the notion of management as a science.
A more generally held theory is that entrepreneurs emerge from the population on demand, from the combination of opportunities and people well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. In this view, one studies on one side the distribution of information available to would-be entrepreneurs (see Austrian School economics) and on the other, how environmental factors (access to capital, competition, etc.) change the rate of a society's production of entrepreneurs.[citation needed]
A prominent theorist of the Austrian School in this regard is Joseph Schumpeter, who saw the entrepreneur as innovators and popularized the uses of the phrase creative destruction to describe his view of role of entrepreneurs in changing business norms.
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