Eight notes on entrepreneurial management
The first note: the basic principles of realizing the dream of entrepreneurship
1, first of all, find the right industry. Thoughtfully consider which industry is the most appropriate to get involved in, which business can be successful, and what rate of growth is predicted for your business? Please consider the following principles:
Profits and sales are closely linked to the industry, such as when sales increase by 20%, the net welfare can increase by 50% of the industry;
The dependence on other industries is small, there is a strong independence of the industry;
There is a continuous demand for the industry;
Few bankruptcies, closures of the industry.
2. Your dream should be different from your competitors, and it is important to be dominant in a certain market at the beginning of your business.
3, must ensure the quality of products and services, which is the key to success. To have the most perfect service, the most abundant inventory, the best reputation, to be your competitors irresistible strong. Whether it's a product or a service, it's the best of the best; and marketing is unique and highly effective.
4, must work hard. Generally have to follow the 5 + 10 rule. That is, it is going to take five years and ten times more than you think to get to the other side of success. Everything costs at least twice as much time and money as you think, but often only half as much as you expect.
5. Before you go into business, make a good count of how much cash and savings you really have. Because you could lose them and never earn them back.
6, just entrepreneurs must personally do market research, can not refer to other companies or government information, their goals are not suitable for your own goals.
7, before running a company, go to this related field to work for a period of time, will shorten your time in this industry alone to figure out.
Second note: Develop a realistic development plan
A formal written plan can set an invaluable, positive development goals for the newly founded company. It consists of four parts:
1. A statement of objectives, which includes what the company wants to achieve and how it will get there. Such as want to obtain funds, how much money is still needed, how to utilize the funds, how to repay and how to repay investors dividends.
2, the company's business scope of the description, explaining what the company is doing, what are the characteristics of new products or services. If it is the initial start-up, should also detail the start-up costs and five-year plan. Include the company's security system for financial, insurance, security measures, warehouse control and other records.
3, the market promotion plan section, should indicate who the company's potential customers and ways to win these customers. Include all direct or indirect competitors, and the company's competitive advantages. All promotions, pricing, packaging, wholesaling, etc. should be detailed in the plan. Then there is the marketing campaign plan, research on market trends, and how to keep the company at the forefront of the market.
4, capital plan, should explain the company's current funds available and the company actually need funds. Just founded the company should have a form of cash flow statement, and with reference to this table and annual income, to develop a three-year income plan. This can be done with the help of a survey of the market and competitors, or a relevant book in 1 for reference. Business plan, you can free you from the day-to-day grind of hard work, so that your energy can be focused on future development, entrepreneurs very much need to take some time to develop the company's development plan.
Third note: Learn to delegate day-to-day tasks to others so you can have more time to grow your business
Delegate, not just manage the entire process wholesale. If an entrepreneur spends too much time on the day-to-day tasks that anyone can do, and never thinks about the strategic planning and high-level management that the boss should be doing, the cost can sometimes be fatal. People will do well if you allow them to make decisions. They will make the same mistakes we all make, but they can learn and do better next time. Decentralization is the only way for a company to grow.
Fourth note: A mind with business skills must go through a number of processes
Deeply understand your product, listen to your users often, develop an intuitive ability to sense the inflow and outflow of money within your organization, work with your partners and subordinates, and share with them the experience you have gained in the past, the acquisition of a mind will make you a better entrepreneur. Brain gain will make your attention quickly focus on the point.
1, to find their own use, not detached from reality, good high and far.
2, the main direction of the main focus on a specific rather than the scope of the boundless is very important, the company started to be so.
3, step-by-step is a much more desirable way of contributing to a company's rapid growth than rushing into an unfamiliar area where little is known, and where speed is not an option, which can often lead to the disastrous consequences of a lost cause.
The fifth note: to be willing to spend a lot of money, as far as possible to recruit the best talent
will bring the company more than you pay a high salary much more than the profits and benefits, because, if your staff is a first-class, your company will also become a first-class. The boss must be clear about what kind of employees the company needs, and let each employee know their own scope of responsibility, while to develop their team spirit, so that it and other employees with the tacit cooperation. As long as this is done, it is worth the time and effort, which is not only conducive to the boss to understand what kind of talent they need, but also conducive to the company to attract talent.
Generally speaking, department managers should be selected within their own companies, while good salespeople and marketers should be hired at rival companies.
Sixth note: Before starting a business, you should go out of your way to understand the salary system of other companies
1, to establish a quota sales system, the completion of sales employees will receive a certain percentage of the company's gross profit income. Completion of sales will not be less income, overcompletion of income is relatively more, the formation of more capable, less equal, mediocrity under the competitive mechanism. When the enterprise is just starting out, the more you know about the salary system, the easier the company's future development.
2, the enterprise from the first day of founding, there should be written rules and regulations. An undisciplined, loophole-ridden mess can cause problems for a company's operations. A company without any rules and regulations will only end up struggling. The best thing about rules and regulations is that they keep everyone on the same page and working towards the same goals. If you, as the boss, don't set this guideline and point out this direction, then the employees will act on their own.
3, rules and regulations, can not limit the boss to deal with things in the right to decide. The treatment of violation of rules and regulations should also be clearly written, for example, for those who consistently fail in their work, according to the record such a person will eventually be dismissed. However, the focus of the guidelines should be on the employee's performance on the job.
Seventh note: Don't do anything alone; a partner can be invaluable
Find a "partner" among your competent employees to go into business with, but there should be a written agreement in advance that spells out the rights and obligations of both parties. Usually both parties should be able to bring different business talents, experience or other relevant advantages to the development of the company. Friendship does not sustain a partnership, in fact a business partnership can easily destroy years of friendship. For a partnership to be successful and enjoyable, an agreement must be written prior to the partnership. In the case of a partnership between two people whose views are often at odds, it is even more important to have a written agreement.
A typical agreement should state the specific purpose of the business, the tangible assets, property, equipment, patents, etc., and intangible inputs such as services, know-how, and networks of contacts of each partner, as well as each partner's percentage of income. Such an agreement will allow the partners to hold different shares of the company, but it must specify the position and function of each partner in the management of the company, whether the partner is allowed to engage in business other than that of the company, and so on. The most important point is the manner in which the partnership is to be terminated by the partners, and this must be stated in the agreement.
The eighth note: the beginning of the establishment of a professional management team, from the "workshop" into a regular company
"Workshop" style management will bring you great pressure, the company's development will also be extremely slow and limited. The company's growth will be extremely slow and limited. Company size is small, a person alone management still work, but when you start to do millions of dollars in large contracts, customers will be concerned about whether your company has a professional management level, you then have to rely on a formal and professional management team to run.
You should first analyze what the company is doing every day? How does it do it? And what are the main benefits of the company? These investigations should not be rushed, but should be done with care and attention. This process is as much about helping decentralize the business as it is about guiding targeted hiring of people whose character and talents are a good fit for the company. Rigorous research helps in these endeavors. Finding the best managerial talent for a position can be a lengthy process. You have to know what makes each of them tick so that you can tailor the position to their talents.
You can't just find someone and be done with it; you have to keep digging to bring people with real talent into the company. Many companies have died in the process of changing towards professional management because they have not built an efficient and professional management team. To build this team you must follow several principles:
Hire experienced people;
Choose people of high quality;
Attempt to adapt the experience and talent they possess to the company's environment;
Try to find them among your friends who have ****ed things up in the past;
Manage the management team with the smallest possible number of people;
Keep your eye on the goal - profit is the ultimate goal.
This building process is grueling. At first, you will inevitably have to get along with a group of people you don't know, don't understand and have difficulty trusting, and these people will change frequently until you are most satisfied with the group. Can also be taken through the "consultant" system to form the management team approach: first from a number of intellectual retirees or business relations in this experience in the person hired, they can make up for the shortcomings of your young staff inexperience. Each young manager is assigned an advisor to guide them in their work. In this way, the company's management team will naturally mature as the business grows.