Business Psychology

To understand business, one must first properly identify with business people. The mindset of today’s business person originates from their background, the most influential person in their life (a mentor), their learning process whether formally schooled or driven by work experience and their social and financial support structure. In each case, whether from the home of an employee, a manager or a business person, today’s business mind reflects the levels of risk-comfort.

With an employee based background: Where one is guided to follow instructions involving repetitive tasks and routines, and be rewarded with and assured of a wage envelope. Learning is restricted to those areas that affect the job. Borrowing to support home and family and saving for retirement are the major financial concerns. Many success stories develop from this background by opening business based on their own skills and the work they have experience in doing (Auto Mechanic opens Repair Garage or Hairdresser opens Beauty Saloon), employing small numbers of staff to reduce their worries over meeting payroll and external (Accountants) professional services. This type of business person, can also be defined as a contract employee, is a low risk-taker and finds comfort in the respect given by associations as a result of a register business name.

Defining an Entrepreneur

The title ‘Entrepreneur’ has been widely misused to the point of a mass misunderstanding of its complex meaning. A person who organizes and manages any enterprise or business, usually with considerable initiative and risk is referred to as an entrepreneur. In subdividing this definition, it is hoped, that this brings clarity to the meaning of the word.

Risk is used to point out the high degree of failure associated with the title. Risk would not be used if being an entrepreneur was common place or second nature, indicating a person who has the capacity (able to sleep comfortably) and steadfastness (Don’t Quit) to take risk. Initiative defines the ability to change course as necessary, while always having the target constantly in sight. When someone takes or acts on they own initiative, it normally saves cost and implies a willingness to get the best results, while still focusing on the pre-determine goals. Both terms ‘Risk and Initiative’ are commonly associated with profit making enterprise or business.

Success Made-Simple

Success may be easier to achieve than to define. For many people it is about acquiring things that would send a message of success to others, some people think it is about communicating accomplishments which in their mind is more important than the action itself, and for another group of people it is about helping others to achieve success. This is more complicated than one may think when one considers the individual psychosis and the background environment.

Business Planning

Business must monitor future Cash Flow requirements and present Inventory levels to drive growth. The common factor in both of these crucial elements is the product being offered. Product (Goods and Services) is the backbone of any business, extractors (miners or drillers) offer naturally occurring materials, farmers offer mature crops and animals, manufacturers offer process material combinations, tourism operators and lawyers sell time and knowledge, and all such product must be easily identifiable. Each product can have a different cost and price, size and measurement, usage and storage requirement, lag-time between ordering and delivery; that will affect the Cash Flow and the positioning within the Inventory. CONTROL