For numerous years, I
have stated that size, Big or Small, does not matter in terms of business
success. Back in the 1980's while delivering many talks on starting your own
business, the mainstream media called such advice; becoming self employed or
managing a small business. In the 1990's Government programs adopted the most
commonly known titles; small business grants and loans, to promote its
socioeconomic assistance. By the decade of 2000, I truly believed that it was
much more widely accepted that a strong plan with sound market fundamentals and
correctly calculated financial projections addressing relevant risks, was the
root to determining the most efficient size and model of business operation and
would lead to eventual success. In addition, 2010 I founded the Society for
Entrepreneur and Economic Development (SEED) to better understand and support
business growth. 2011, I leant my skills to structure a Governmental
initiative; Enterprise Development through Business Incubation Policy Document,
to incubate ideas into industries.
I found it essential to understand and define entrepreneurs
(risk-takers). The research revealed six types:
1.
The Independent – A person
seeking to be in control of resources to generate income and expand operations.
Whether based on a new or traditional idea, formal education or practiced
skill, or triggered by job loss.
2.
The Inventor – A person or
group of persons driven by curiosity and focused on developing new tools,
equipment, machinery or systems.
3.
The Innovator – A person or
group of persons focused on improving an idea, good, service or process to make
it more marketable.
4.
The Investor – An individual or
team educated and experienced in financial markets that is focused on
generating superior returns with a small percent of their total funds under
management, by seeking out new and innovative ideas.
5.
The Industrialist – An
Individual or team that searches to combine proven inventions and innovations
with high risk investment funding and is focused on setting up a new or
improving a traditional industry or sector.
6.
The Instigator – A person or
group of persons that uses an original idea or intellectual property and
skillfully masterminds it into a strategic business plan combining inventions
and innovations with high risk investment funding and expert management
techniques.
Each type needing support and advice, but strong
personalities would normally refuse help, so instead of hiring dedicated
professionals, undertakes the corporate tasks themselves, alongside daily
operations and activities.
Business Direct was designed to guide such
entrepreneurs, in private, at their own speed and addressing their current
skill needs. Business courses, which
are a crucial part in the Master Entrepreneur Curriculum, structured in three
sections; Business Literacy,
designed to expose its audience to and present a basic understanding of the
subject matter, Business Theory, a
more detailed tutorial on each topic while promoting the consultation with
professionals in all relevant areas and Business
Model, focusing on successful examples that proves the point of the related
topic. Such teaching emphasizes that Business must be measured and judged in
ratios and percentages proving its feasibility and sustainability. Guided by a
comprehensive and dynamic Strategic Plan, which embraces short, medium
and long-term tasks, include trade secrets, formulas, architectural and
engineering plans, organizational structures and legal contracts; as intangible
assets, and extracted portions to pursue fund raising; Business Plan
addressed to lenders, and Prospectus targeting Investors. Hence, all
business across all Industries and Sectors; Service, Tourism, Agriculture,
Mining, Construction, Trade, Finance, must be correctly capitalized to procure
necessary materials, production tools and equipment, meet its recurrent
obligations, inclusive of personnel cost and debt servicing for a set period of
startup or non-revenue collection.
Business Light was designed to offer entrepreneurs,
in public, industry and sector news to strengthen and implement their plans. This
program provides all the essential research, analysis and contents within each
report. Business Intelligence disseminated by Video will complement existing
business programs or stock exchange reports and employs broadcast industry
standard strategies to win and keep-an-audience hence, generating advertising
revenue above the production cost, while maintaining its budget integrity.
Helping and promoting a clear understanding of all the necessary components a
business must have in order to succeed: Ownership equity refers to that
dedication and commitment shown in time, effort and resources to advance the
idea. Borrowings needed to implement the plan before realizing sales. Fixed assets
current values are determined by subtracting depreciation from purchase prices.
Inventory size is a complex recurrent calculation based on costing and pricing
formulas. Cash required for running the operation and paying staff.
Even the smallest operation with one employee must set
aside, at the very least, one full year of payroll expense to match the employee’s
cost of living, while the business grows. Hence, most small business is said to
fail due to under capitalization. Summarizing, the label “Small Business” brings to mind failure; no sizeable dependable
loyal customer based, unreliable inferior products, heavily indebted to
suppliers, insecure employees with no healthcare or pension benefits, generally
under insured, unable to meet its statutory obligations, no cash reserves,
starting entrepreneurs off on the wrong foot. I think business would be better
described by age as Startup and Mature.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
