Entrepreneurship Archives - Page 2 of 2

Entrepreneurship and Project Management – The Missing Link

There has been a great deal of emphasis on entrepreneurship and the need for more and more entrepreneurs in the region to help create jobs for the future of the region. There is also a lot of enthusiasm and encouragement for new entrepreneurs – but are we forgetting something? It is great to have the “spirit” but is spirit enough? Do our prospective entrepreneurs know how to take their dreams from the idea into effective operation? Is business planning over emphasized or is it enough? This article will offer an opinion and try to answer these questions and offer a suggestion on what is missing. It is the author’s opinion that Project Management is the missing link that could make the crucial difference between success, challenge, and even failure.

The Need for Entrepreneurs

Various sources and global studies show that small & medium organizations/enterprises (SMO/SME) have huge contributions to economies around the world in term of gross national product and employment. Studies in the Middle East show that SME contributions in our region are lower than developed countries. However, many in government and private sector leadership recognize the need to change this in order to deal with the tremendous challenge of the needs for job creation across the Arab World.

All of private or government initiatives share in playing a role to promote the “spirit of entrepreneurship,” but is spirit the only thing that we need? What is missing? Let us say someone quit his/her job to become an entrepreneur, then what?

There are too many challenges facing an entrepreneur today – some of it is legal structure and regulations. Other challenges are related to the fear of failure and the stigma associated with that. Even if we overcome the fear of failure we will encounter the challenge of availability of capital. With capital resolved or at least somewhat resolved, do we have the right infrastructure to help the entrepreneur launch the business? Do we have the necessary support? How about beyond the launch? The support that is available (business / cash / logistics / management / etc.) is available for someone following a dream, but only to realize that realizing the dream is much more challenging than expected. How do we help the entrepreneur or the small business owner sustain and grow?

Business Planning

Most, if not all, venture capital, foundation, and other sources for funds — in addition to business schools and MBA programs focus on a business plan as an essential deliverable / requirement to seek funds or start a business. Here we ask once again: Is the business plan enough? It is our view that a ‘traditional’ business plan is not enough. Quite a few business plans, that we call ‘traditional’, focus on the business aspects with a heavier focus on operation of the business. The question is: Do these traditional business plans provide a proper focus on the venture (most call a “project”) from idea to launch of the business?

The Missing Link

It is interesting to point out that many call a new venture a “project”, as we mentioned in the earlier section. We like the word “project,” but most definitions of the word “project” mean something that is temporary. So is the venture temporary? We hope not! So is the word ‘project’ the wrong one to use? Yes and No. The business is not a project; it is a business, a venture. So to be academic, the word “project” is not the proper one to use for the new business. Let us call it venture or business. Yet to launch the business is exactly what we call a project – the launch project is to take the venture from the idea to operations. Our objective here is not to get into an English lesson; rather we aim to define the proper use of words in order to have the proper context and fully understand the missing link. So what is this missing link? Well if launching the business is a project, then how do we manage it? Where is Project Management in managing the launch? The next section will provide a methodology to follow in launching the business.

A Proposed Sequence

Our proposed model will focus on the venture launch from idea to initial operation, using the missing link – Project Management. Future articles could focus on the use of Organizational Project Management to help build and sustain a small business and grow it.

The proposed model, which is derived from Customizable and Adaptable Methodology for Managing Projects™ it isa project life span model that divides the project life span into three distinct phases; which we explain here.

Business Concept

The business concept is a crucial phase of the project that spans a period from the idea for the venture until an initial decision to go ahead and encompass a feasibility study. The idea owner is likely to be the entrepreneur who has an idea for a business that could be a passion, an income opportunity, filling a need, fixing a problem, among other drivers for the business.

This is the time for dreaming, but one has to be careful that the dream is realistic and it is possible to achieve. It is highly risky for someone to launch a new venture without proper understanding of the challenges and opportunities, although one could argue in rare cases that spontaneous action could also result in good profit.

Therefore, the entrepreneur (small business owner to be) has to study the feasibility of his idea, and for this we think that existing business planning techniques are very important to use at this stage. However, in addition to the focus on the financials, competition, market demand, operation and other factors, the entrepreneur needs to also think about Project Management including proper Project Management planning. Proper Project

Management planning includes understanding of the stakeholders and their expectations and requirements, setting realistic time and cost targets, have a fair understanding of the project and venture risks (threats and opportunities), in addition to other factors.

Development of the Business Concept

The earlier phase emphasizes the feasibility study and the requirement for business planning. With the business basics in place, Project Management will become more important and the entrepreneur becomes a project manager.

So what do we do now? The project manager/entrepreneur needs to think and act per two aspects, two sides of the same coin. On one side he needs to think about the project from idea to initial operations, but he cannot ignore post project completion, which would be leading and sustaining the business (operations).

For the project aspect, the project manager needs to put in place all of the requirements in details for launching the business, including defining the success factors, time line, required resources, licensing, legal, financial/funding requirements and alternatives, regulations, budget for the launch, time line, communication with stakeholders, procurement strategy, in addition to risks identification, assessment, and management. All of these activities focus on planning to taking us from the idea through project completion but primarily to produce a detailed plan that would give us the necessary information to make the final decision on whether we should continue with the venture or not. This detailed plan is used extensively in the next phase.

For the business aspects, the project manager needs to start planning for operation readiness; which means identifying all of the things needed once the business is operating; such as financial control, human resources, policies, operational processes, in addition to marketing and business development. If the venture is not for profit, it would still require most of these activities but may be with the addition of the needs for volunteers and volunteer management or the need for sponsors.

Project Delivery (Launching the Business)

With a plan for the project and a plan for operation readiness, it is time to start implementing the project leading to initial operations. In this phase we implement the activities that we identified in the detailed plan. For example, in the plan we specified we need a permit, then it is time to do the activities necessary to obtain the permit. In the plan we defined the need for a marketing plan, it is time to define the marketing plan and develop the necessary collateral, whether print or online.

Therefore, the primary purpose of Project Delivery is to perform all of the activities necessary to produce the required deliverables that would be critical for the successful launch of the new business and start initial operations.

Throughout this document we discussed “initial operations” and “operations” as two independent terms and this is intentional. We use initial operations to define the period of time that starts with opening our doors as a business or a not for profit organization. We call it initial operations because as we start to offer services we might recognize that forms need to be adjusted, some documents might be missing something, among other things that might not go as well as we planned.

Therefore, initial operations will allow us to make the necessary refinements before we go into steady and normal operations. In some situations, we might eliminate initial operations and go straight into normal operations. In other scenarios we might have a “soft start” as an initial operations period, which we might call also as a pilot period / trial period. Which approach to take, it all depends on the nature of the business and if it allows a trial period / initial operations or not.

Harness Your Entrepreneurship Potentials

By virtue of this meeting, I believe my audience are a crop of aspiring and emerging entrepreneurs who are ready to take their world by storm. So, I don’t see myself speaking to some young ladies and gentlemen (as the case is), but with young entrepreneurs who will grow to become business giants in few years to come. Then, you’ll remember but may not recognize this little giant standing in front of you – because he would have grown really big too!

Let’s thank God for ideas. But, if ideas were to equal entrepreneurship, everyone of you would have been great entrepreneurs, great inventors, great business men and women. Entrepreneurship is a subject that goes beyond starting a business and staying a business owner! It’s not about blowing your trumpet, giving yourself ego-centric titles: CEO, COO, OM, OPC, EFCC – because you have formed yourself into a company. No!

The bitter truth is that as profitable as entrepreneurship may seem, its venture is not for everyone. A senior friend once said to me in an interview discussion I had with him: “You need the right mind-set and skill-set. Don’t try it (entrepreneurship) until you understand these two!”

I want to sound a note of warning too. Entrepreneurship is not a plan B. It is not an alternative for those who couldn’t get white-collar jobs. Thank God for mouth-watering salaries; but entrepreneurship is not a choice you make because you could not secure employment at Shell or MTN! A prospective student, who makes a federal-owned Nigerian university his /her second choice of institution at the time of filling the forms, has already decided his/her fate!

Really, the increasing toll of unemployed graduates has forced many to look inwards. Ironically, this situation has its positives. In those days (as we were been told), as a graduate, you have an assurance of a good job awaiting you. But today, the reverse is the case! Even with your M.Sc or MBA, you may need to back it up with a professional certificate and several years of hands-on experience.

I do not care how many MTN, Shell or Chevron that has rejected your employment request; all you need is God to smile at your seemingly-looking small business. I see because giants arising from this meeting. You will go out there and storm your world!

What then is entrepreneurship? Who is an entrepreneur?

An entrepreneur is truly a unique individual. Entrepreneurs find it difficult or impossible to work for someone else, although they do work for their customers/clients. They are willing to put everything on the line for the passion and love of seeing their enterprise grow… and sometimes live with several failures.

An entrepreneur is one who has the ability to dream big. The entrepreneur has the qualities of a leader. A leader is one who knows what he wants. He is the one who created ideas, unique opportunities and conceptions. He is ready to take risks.

The following people have something to say about entrepreneurship:

Alan Sugar: “An entrepreneur, if there is such a thing, is a born schemer and thinker up of things.”

Hunt Greene: “Everything is always impossible before it works. That is what entrepreneurs are all about – doing what people have told them is impossible.”

Michael Smurfit: “The entrepreneur is like an eagle… he soars alone, he flies alone, and he hunts alone.”

Tom Peters: “Entrepreneurship is unreasonable conviction based on inadequate evidence.”

The Nigerian business landscape consists of entrepreneurs who, despite their humble backgrounds, withstood the storm and are still standing tall in their pursuits.

Here is a list of some of them:

1. Mike Adenuga (Globacom)

2. Femi Otedola (Zenon Oil)

3. Aliko Dangote (Dangote Group)

4. Jimoh Ibrahim (Nicon Insurance)

5. Frank Nneji (ABC Transport)

6. Tony Momoh (Channels TV)

7. Tony Ezena (Orange Drugs)

8. Samuel Adedoyin (Doyin Group)

9. Alex Ibru (Guardian Newspaper)

10. Folu Ayeni (Tantalizers)

11. Dele Momodu (Ovation Magazine)

12. Otunba Gadaffi (DMT Mobile Toilet)

Let’s take a look at some of the most basic factors that has helped them come this far.

I. You need ideas: Ideas are your connection to the world of business exploit, and this can be gotten via inspiration. Ideas that fly to the high heavens have been the harbinger of the most successful businesses across the globe. Ideas are like good wine, they need no bush. All entrepreneurial ventures start from ideas. Therefore, you constantly need to be creative, innovative and resourceful. Never underestimate the value of an idea. Every positive idea has within it the potential for success if it is managed properly.

II. You may start small but think big always! As a start-up, you may not always have enough funds to start on a large-scale. More than 60% of new businesses within and outside Nigeria are usually faced with the challenge of start-up and running capital. Start with what you have. Starting small does not in anyway mean you are going to remain small. You are permitted to start small, but understand that you need to think big; “for as he thinks in his heart, so is he.” You need to paint a picture of your dream business in your imagination. You need to “act” as though you were managing a big company. This kind of feeling should reflect in all that you do – your communication, your dress sense, your business environment, etc. Starting small is not a crime, thinking and remaining small is. The Word of God admonishes us not to despise our little beginnings. He knows there would always be little beginnings! For many of us, it is a time to learn and be strong enough to cope with the challenges associated with big businesses.

III. Be creative and innovative: Your business cannot survive without some creative thinking. It amuses me how some business owners run their businesses as though they are the only enterprise offering a kind of product or service. You can’t afford to be lazy in your business approach or strategy. Constantly create an activity to make your business, products and services the news worth thinking or talking about. If there are 1001 fashion outfits in an area, aim at becoming the best!

Everett Rogers said, “Invention is the process by which a new idea is discovered or created. In contrast, innovation occurs when that new idea is adopted.” If you use yesterday’s tactics and strategies to manage today’s complex business challenges, you’ll go out of business tomorrow. Arthur Koestler also posited that “the principal mark of genius is not perfection but originality, the opening of new frontiers.”

You need creative approaches for managing current business trends and anticipating future ones. Ask yourself strategic questions. “What can I do to improve on my existing offerings?” Tom Peters puts it this way: “Ask dumb questions. ‘How come computer commands all come from keyboards?’ Somebody asked that one first; hence, the mouse.”

You have a creative mind – use it! You can’t read about creativity; you have to begin doing what every creative action requires – taking the first step into the unknown.

Do you have a new (creative) idea? Take action. Turn it into implementation, and inspiration into execution. “The way to get started is to quit talking and begin doing” (Walt Disney). As Ben Franklin once stated, “Well done is better than well said.”

IV. Search for relevant knowledge in your area of specialization and interest. Knowledge they say is power. The Word of God says, “a man is commended according to his wisdom… a man’s wisdom makes his face to shine.” Don’t think of decorating your home, shop or office with your degree certificate; instead, decorate your mind with current innovative strategies, techniques and trends that will help grow your business or career. Search out new pricing and sales techniques. The truth is that you cannot be better, bigger and more successful than what you have on your mind. Your actions and inaction can be traceable to your knowledge power; and your knowledge power determines your thoughts! Remember, “For as he thinks in his heart, so is he.” Creativity and innovation is 90% within and 10% without.

V. You need a defense against discouragement. As an aspiring or emerging business owner, you should have a mind-set that success does not come easy; not even in business. Usually at the onset, we brim with ideas for starting a business; the enthusiasm is high and we devote both time and energy for the success of the new venture. At this level of your business, you never really knew that on the flip side, business management means coping with stress, challenges, disappointments, failures, and outright rejections!

In a research study of two hundred and forty three entrepreneurs in Lagos, Nigeria; among the problems encountered by entrepreneurs, unreliable employees were the most critical. Weak economy, electricity shortages and unsafe location were also mentioned as obstacles preventing entrepreneurs from achieving their goals.

At every point of your business growth, you need to shield yourself from discouragement; you need to trust God for help and believe in yourself to stay strong till you conquer fear. As a small business person, I have been tempted on several occasions to apply for a paid job somewhere else. As a matter of fact, I have submitted applications for some! Owning and managing a business is not a light issue. You need to be aware of this from the onset. Business is life – don’t let it die in your hands!

Be focused. Be persistent. Be consistent. Be strong. Indeed, you can truly become a business giant! See you at the top!

Why India Needs Culture of Entrepreneurship in Classrooms

While there are successful examples of young innovators like PC Musthafa (iD Fresh), Sampriti Bhattacharyya (Hydroswarm) and Vijay Sharma (One97), the harsh reality is that an inordinately large number of start-ups fail. That’s the reason why academic institutions and organisations must assist and support the development of entrepreneurs in order to ensure high survival rate.

Young Indian entrepreneurs are making headlines with regularity. After an entire generation of cautious Indians who viewed entrepreneurship with suspicion-preferring stable and predictable careers in government service, banks, as doctors, lawyers and engineers-the tide is turning. There is optimism in the air as young entrepreneurs are daring to go global, drive innovation and experiment with unique business models.

The latest Global Entrepreneurship Monitor (GEM) report reflects this important cultural shift. The report noted that 58% of Indian adults (18-64 years old) consider entrepreneurship a desirable career choice and 66% think that entrepreneurs receive a high level of status and respect. And this is not just because Indian tech entrepreneurs are becoming global rock-stars. It is because young entrepreneurs from every sector-from agriculture to manufacturing-are putting India on a new path of growth and development.

Take the story of 42-year-old PC Musthafa, who quit a well-paying bank job in Dubai to return to India because he wanted to create job opportunities for the rural youth. He started iD Fresh Food, a dosa batter company, with his cousins, 550 square feet of space, two grinders, a mixer and a sealing machine. They began by selling 10 packets of batter a day. Today, iD Fresh Food sells 50,000 packets a day, has expanded its product range to ready-to-eat foods, and is a R100 crore company employing 1,100 people. Musthafa’s goal is to become a R1,000 crore company employing 5,000 people in the next five years.

Among the more innovative ideas his company is exploring is that of a Trust Shop-in apartment complexes and corporate offices-where you can pick up idli-dosa batter, ready-to-eat wheat parathas and chapatis, and drop the money in a box at the store. The store has no salesmen and is not monitored by cameras to keep an eye on shoppers who don’t pay. The stores are proving to be a success. Shoppers who don’t have money on them are coming back the next day to drop the cash. It is a unique low-cost model that can be scaled, ensuring that prices are kept low and stores are conveniently accessible 24×7.

Now let’s take the case of 28-year-old Sampriti Bhattacharyya, whose company Hydroswarm designs and manufactures autonomous drones that can scan ocean floors, look for lost aircraft, identify oil spills, and spot radiation under the sea.

Entrepreneurs and innovators like these are playing a major role in bringing unique ideas, offerings and business models to market-ideas that large companies don’t want to explore because they don’t have a clear and well-charted future and could pose a risk to their growth plans.

One recent study by a leading analyst has suggested that the micro, small and medium enterprise (MSME) sector-which includes such entrepreneurs-will increase its contribution to India’s GDP from the 8% share in 2011-12 to 15% by 2020.

The growth is not just because young Indian entrepreneurs are daring to dream up great new ideas, but also because they understand the value of hiring the best talent in the country. Take Vijay Sharma’s One97 Communication, the digital goods arm of Paytm. Sharma’s company announced its expansion into Europe and the US this July, using some of the best business talent in the country to enable the growth. In other words, Indian entrepreneurs are aware of what it takes to be globally competitive.

Going global should not be difficult for Indian entrepreneurs. Today, the best minds in the country are dreaming of entrepreneurship. This year’s IIT-JEE topper, Deepanshu Jindal, says that after graduation he wants to become an entrepreneur. Youngsters from prestigious educational institutions all over the country such as the IITs and IIMs are showing similar inclinations.

All this makes great news. But the harsh reality is that an inordinately large number of start-ups fail. Studies have shown that 47% of the jobs created by start-ups are eliminated because the business folds up in the first five years. This emphasises the importance of having academic institutions and organisations to assist and support the development of entrepreneurs in order to ensure a higher survival rate.

If India is to continue on its growth path, the contribution of entrepreneurs to wealth creation will play a pivotal role. This is why the importance of including entrepreneurship as part of standard curricula cannot be undermined. We must begin by creating a formal culture of entrepreneurship starting in classrooms where young minds and the nation’s future are shaped.

How To Enter The Realms Of Entrepreneurship & Start Your Own Business

If you have been thinking of starting your own business but with a little information on how to make the first step, then, you have to take the following into great consideration.

1. Decide what type of business you want to put up. You may ask to some of your successful friends what is a good type of business. Well, they might suggest some, but the right answer is in you. Deciding what type of business you would put up means reflecting deeply the things you want to do and things you are good at. Look ahead and ask yourself these questions: Am I willing to do this business everyday for years? What do I love to do? What are the things that are both profitable, at the same time, things that I find enjoyable? These questions will lead you to specific type of business you want to put up. Take your time.

2. Do research. Once you have determined a particular type of business you want to put up, study its profitability. You simply don’t put up a business you love, don’t you? You still have to think if the business will click. Feasibility study would do the job. In other words, study if the business you are trying to put up will return to you the investment you have given. In here, you have to decide where to put up your business. Remember that a certain type of business would hit big time in one place but not on the other, so make sure that the place you will choose will give you good sales once you have opened.

3. Decide on the name. Create a name that is snappy; the name that will put every element of your business in a nutshell. A name may or may not be short as long as it distinguishable.

4. Decide on the form of business. Form of business means that you will have to choose between, incorporation, partnership, and sole proprietorship. Know the difference between the 3 and what are their advantages and disadvantages to you.

5. The registration. Most businesses must be registered and there are processes to follow. You need to reserve for the business name and registering your business. One state might have different business registration procedure from another. Check the information on the website of your state.

6. Get the license and business number. Register for the PST and the GST/HST. All these must be accomplished before you can operate your business. Again, you may want to check on the whole procedure of starting a business on your state.

7. Get you employees ready. Having an employee helping you will certainly give additional boost on your business. It may be the last thing you would think on the early stage of business but it is nice to know that when you have an employee, you know there is someone who can assist you as you go along the way.

8. Get business insurance. A support net would come in handy once you fall from the sky. Research on the types of business insurances that you can get.

9. Get started. Give a good start and keep your name clean. You may want to study more on the principles of entrepreneurship as you go along.

Although all these may sound easy or awfully hard task, you still need to understand how the business world works. Yes, having read this would not mean that you would instantly become a tycoon. These are only your initial steps; somewhat the basic information you need to know when you decide to start a business of your own. To become a successful entrepreneur, you need to dedicate you whole heart and soul to the business you love. Before you know it, you are a growing businessman.

Once you have started, never disregard the chance of failure. And this should not demoralize you. It is just the part of the game. Learn how to adapt to the business and charge all your failures to experience. You will learn as you go along. Successful people never give up. Remember, always head forward but have time to look back, learn from the past and seek out new information to improve your results.

Get started now at: http://www.BusinessGrowthGuru.com where you can claim your FREE copy of Aaron Parsons Best New Book “How To Make A Million Dollars In Your Business In The Next 3 Years Or Less”

You’re welcome to use this article provided the active link in the signature box is included.