Taplets Inc

Posts Tagged ‘starting a business’

by Murray Raphel

I have a theory on doing business. If my business is good, it’s not because of the weather, the time of year or the economy. It’s because of me. I’m doing something right. If my business is bad, it’s not because of the weather, the time of the year or the economy. It’s because of me. I’m doing something wrong. Somebody is always buying something from somebody, so how can I make them buy from me?

First of all, you need confidence in yourself and your merchandise with clear goals and knowledge of the products you are selling. Only then can you inspire dedication from your staff and a willingness to buy from customers.

Successful business people, no matter what their industry, have been found to share similar traits. Today’s world is no longer satisfied with simply success–we want to know how the successful get to the top. The Russians developed a concept called “anthropomaximology,” in which they try to answer the question of why some individuals outperform others. Through the years I’ve done some anthropomaximology of my own and found there are certain qualities that describe successful business people. Here are a few:

1 They constantly set higher goals Successful business people are mountain climbers who, having climbed one peak, look beyond to the next highest. They are the retailers who send 1,500 mailers to their customers and yield a good turnout of 100. But instead of being satisfied with 100, they ask how they can increase that number to 150 the next time.

For example, Donald Kelley of Kelley Frame and Art Galleries, with locations in Minnesota and Wisconsin, continually tries to improve his e-mail list. “My goal is to collect 150 new e-mail names every month and send out a new e-mail message to this list every two weeks.”

2 They avoid “comfort zones” To a successful person, standing still feels like going backwards. People who stay in their comfort zones do what they did before because it’s “the way we’ve always done it:” They run the same ads, buy the same merchandise in the same way and avoid anything new, different or unusual because they feel they might do something wrong. They blame any lack of business on the weather, the time of the year, the economy–anything except for themselves.

Successful gallery owners attend art shows, read catalogs and visit other galleries in their travels. They are always searching to find unique art exclusive to their galleries. They take control of their own destiny and market their businesses as exciting destinations.

3 They are driven by accomplishments, not money

Successful people follow the theory of Apple Computer’s founder Steve Jobs, who said, “The journey is the reward.” They are customer focused, not product focused. Their thrill is not the ringing of the register but the crowds responding to their mailing. For them, there is no greater high than a line outside the store before the doors open.

4 They solve problems rather than place blame

A telephone pole blocked the view of Ron Bishop’s Canadian gallery. He knew it would be difficult, if not impossible, to have the telephone pole moved. His solution was to paint the pole with an Impressionistic theme. Once it was finished, the local paper came, took a picture and wrote a story about it. “It was great publicity,” said Bishop. “And then the calls started coming, asking, ‘Is it for sale?’”

Successful gallery owners do not waste their time looking at problems and saying, “It’s not our fault” or “Why didn’t we …” They say, “Let’s look at what went wrong and realize it was a learning experience and figure out how we can make it work next time.”

When a customer hears it will take a week or longer to have their art framed, and says, “Sorry, that’s too long,” do you shrug your shoulders and say, “Well, that’s how long it takes.” Or do you think, “Hmmmm, if that’s what the customer wants, how can I solve their problem?”

5 They look at the worst possible scenario

“What’s the worst possible result if we follow this plan?” they ask themselves. Then, knowing that, they decide if the risk-taking is practical.

However, once they make the decision, they proceed with the confidence, knowledge and expertise necessary to make it work.

They understand the most harmful result and then decide if they can live with the outcome. If they can, they move ahead. Confidently.

Galleries that concentrate on one type of art often decide to reach into an unrelated area. Sometimes a gallery will fail in an attempt to broaden their focus, but successful performers understand even defeat is a learning experience.

“Every time I fail,” said Thomas Edison, “I learn something.” He tried 1,114 times to find a filament to stay lit in a bulb. He failed 1,113 times.

6 They rehearse the future as they see it

“I believe our future is a one-stop shop for decorating. In addition to limited-edition prints and posters, we now offer collectibles, gift items and small occasional furniture pieces,” said Christine Knoll of the Art Gallery of Hog Hollow in Chesterfield, Mo.

Successful people move towards the pictures they create in their mind. They can rehearse coming actions or events as they “see” them. They are like chess players who can “feel” the next move of their opponent and have half a dozen responses ready when their time comes to move.

Many successful athletes will say they practice “seeing” themselves winning the race, hitting the home run or scoring the touchdown. They actually visualize a future event which gives them the impetus to achieve the goal.

How many of these six characteristics are yours? The more you have, the higher degree of probability you will be doing more business next year instead of being one of the thousands of retailers listed in the obituary pages of the local paper’s business news. ABN

Successful Business People:

–Constantly set higher goals

–Avoid “comfort zones”

–Driven by accomplishments, not money

–Solve problems rather than place blame

–Look at the worst possible scenario

–Rehearse the future as they see it

Murray Raphel is one of the nation’s leading marketing experts and author of several business books….

Meaning of entrepreneurship has evolved over the centuries

  (The following one-page essay is taken from the U.S. Department of State publication, Principles of Entrepreneurship.)

What Is Entrepreneurship?

Essence of Entrepreneurship

What is meant by entrepreneurship? The concept of entrepreneurship was first established in the 1700s, and the meaning has evolved ever since. Many simply equate it with starting one’s own business. Most economists believe it is more than that.

To some economists, the entrepreneur is one who is willing to bear the risk of a new venture if there is a significant chance for profit. Others emphasize the entrepreneur’s role as an innovator who markets his innovation. Still other economists say that entrepreneurs develop new goods or processes that the market demands and are not currently being supplied.

In the 20th century, economist Joseph Schumpeter (1883-1950) focused on how the entrepreneur’s drive for innovation and improvement creates upheaval and change. Schumpeter viewed entrepreneurship as a force of “creative destruction.” The entrepreneur carries out “new combinations,” thereby helping render old industries obsolete. Established ways of doing business are destroyed by the creation of new and better ways to do them.

Business expert Peter Drucker (1909-2005) took this idea further, describing the entrepreneur as someone who actually searches for change, responds to it, and exploits change as an opportunity. A quick look at changes in communications – from typewriters to personal computers to the Internet – illustrates these ideas.

Most economists today agree that entrepreneurship is a necessary ingredient for stimulating economic growth and employment opportunities in all societies. In the developing world, successful small businesses are the primary engines of job creation, income growth, and poverty reduction. Therefore, government support for entrepreneurship is a crucial strategy for economic development.

As the Business and Industry Advisory Committee to the Organization for Economic Cooperation and Development (OECD) said in 2003, “Policies to foster entrepreneurship are essential to job creation and economic growth.” Government officials can provide incentives that encourage entrepreneurs to risk attempting new ventures. Among these are laws to enforce property rights and to encourage a competitive market system.

The culture of a community also may influence how much entrepreneurship there is within it. Different levels of entrepreneurship may stem from cultural differences that make entrepreneurship more or less rewarding personally. A community that accords the highest status to those at the top of hierarchical organizations or those with professional expertise may discourage entrepreneurship. A culture or policy that accords high status to the “self-made” individual is more likely to encourage entrepreneurship.

This overview is the first in a series of one-page essays about the fundamental elements of entrepreneurship. Each paper combines the thinking of mainstream economic theorists with examples of practices that are common to entrepreneurship in many countries. The series attempts to answer: Why and how do people become entrepreneurs? Why is entrepreneurship beneficial to an economy? How can governments encourage entrepreneurship, and, with it, economic growth?

A Leader in You

When you are at work, do you get frustrated because things don’t seem to be happening the way they’re supposed to be? You see people milling around but nothing gets accomplished. And in the daily hustle and bustle, do you feel that your goals remain just that – goals. Then maybe it’s time for you to stand up and do something about it.

Most people are content just to stand around listening for orders. And it isn’t unusual to adopt a follow-the-leader mentality. But maybe, somewhere inside of you, you feel the desire to make things happen – to be the head, not the tail. Then maybe leadership just suits you fine.

Some people believe that great leaders are made, not born. Yes, it may be true that some people are born with natural talents. However, without practice, without drive, without enthusiasm, and without experience, there can be no true development in leadership.

You must also remember that good leaders are continually working and studying to improve their natural skills. This takes a commitment to constantly improve in whatever endeavor a person chooses.

First of all, let’s define leadership. To be a leader, one must be able to influence others to accomplish a goal, or an objective. He contributes to the organization and cohesion of a group.

Contrary to what most people believe, leadership is not about power. It is not about harassing people or driving them using fear. It is about encouraging others towards the goal of the organization. It is putting everyone on the same page and helping them see the big picture of the organization. You must be a leader not a boss.

First of all, you have to get people to follow you. How is this accomplished?

People follow others when they see a clear sense of purpose. People will only follow you if they see that you know where you are going. Remember that bumper sticker? The one that says, don’t follow me, I’m lost too? The same holds true for leadership. If you yourself do not know where you’re headed to, chances are people will not follow you at all.

You yourself must know the vision of the organization. Having a clear sense of hierarchy, knowing who the bosses are, who to talk to, the organization’s goals and objectives, and how the organization works is the only way to show others you know what you are doing.

Being a leader is not about what you make others do. It’s about who you are, what you know, and what you do. You are a reflection of what you’re subordinates must be.

Studies have shown that one other basis of good leadership is the trust and confidence your subordinates have of you. If they trust you they will go through hell and high water for you and for the organization.

Trust and confidence is built on good relationships, trustworthiness, and high ethics.

The way you deal with your people, and the relationships you build will lay the foundation for the strength of your group. The stronger your relationship, the stronger their trust and confidence is in your capabilities.

Once you have their trust and confidence, you may now proceed to communicate the goals and objectives you are to undertake.

Communication is a very important key to good leadership. Without this you cannot be a good leader. The knowledge and technical expertise you have must be clearly imparted to other people.

Also, you cannot be a good leader and unless you have good judgment. You must be able to assess situations, weigh the pros and cons of any decision, and actively seek out a solution.

It is this judgment that your subordinates will come to rely upon. Therefore, good decision-making is vital to the success of your organization.

Leaders are not do-it-all heroes. You should not claim to know everything, and you should not rely upon your skills alone.

Seeing things differently is good

You should recognize and take advantage of the skills and talents your subordinates have. Only when you come to this realization will you be able to work as one cohesive unit.

Remember being a leader takes a good deal of work and time. It is not learned overnight. Remember, also, that it is not about just you. It is about you and the people around you.

So, do you have the drive and the desire to serve that is required of leaders? Do you have the desire to work cooperatively with other people? Then start now. Take your stand and be a leader today.

A company’s financial position indicates the amount of resources that they have, and also the claims against those precious resources at any time.  Claims can also be referred as equities. So, a company can be known as a combination of economic resources and equities.  Economic Resource=Equities.

     No matter what type of business you’re in, every type of company has two different types of equities. They are creditor’s equity and owner’s equity.  In another way Economic Resources= Creditors Equities +Owners Equity.  When using accounting language, the economic resources a company has at a particular time is called their assets?  On the other hand the amount of creditor’s equity a company has is known as their liabilities.  So here is the standard equation of accounting or better known as the accounting equation: Assets=Liabilities + Owner’s Equity.  Similar to an algebraic equation, both sides of the equation has to be equal. This equation comes in handy when analyzing the financial effects of your everyday business activities.

Counting your Assets is the beginning of Fun

      Let’s talk about a very important concept of any business. Assets are known as the economic resources that a business has that are expected to generate money for them in the future.  Some examples are real estate and any other property that a business owns so that they can rent out to people.  If a business is owed money then it goes into what is known as accounts receivable which are monetary items. However, there are some assets that are not physical. Some examples are copyrights, trademarks, and patents, but they are still extremely valuable to a business. 

      Next, liabilities are the obligations that a business has such as paying cash, provide future services to individuals, or transferring assets to another entity.  These are known as the debt of a business or the money that they have to owe in the near future. All of these are recorded in the accounts payable.  As I’m sure you know, having a lot of debt is not fun and liabilities/debt are claims that are seen by the law. The law gives creditor (People that money is owed to) the right to push the sale of a company’s assets if they don’t pay their debt on time.  Creditors have a ton of rights over owners and they have to be paid in full even before the owners receive anything.

      It is very possible for a debt to consume up all a company’s resources. Next, owner’s equity refers to the claim that owners of a business make in regards to the assets they have. It is the residual interest or the remaining assets of a company after deducting the amount of entity liabilities.  Here is the equation for owner’s equity. Owner equity=Assets-Liabilities. The owner’s equity within a particular corporation is referred as stockholders equity, so the equation then looks like this. Assets=Liabilities +Stockholder’s Equity. 

     The stockholders equity has two distinct parts which are the contributed capital and retained earnings.  Stockholder’s Equity=Contributed Capital + Retained Earnings. The amount that an individual stockholder puts into a business is known as the contributed capital. Contributed capital is usually divided into two separate parts known as par value and “par value” and “additional paid in capital.”  The retained earnings are the amount of equity that is earned by stockholders from the income generating activities of a business that are kept for future uses by a business.

     Retained earnings are affected by three types of transactions which are revenues, expenses, and dividends.  The increase and decrease in a stock are known as revenues and expenses respectively and these come from operating a business whether online or offline. If you’re online an operating expense that you will have if you have your own website is your domain name and hosting service.

    Another example,  if a customer agrees to pay you in the near future for a service that the company will perform. The money is recorded in the accounts receivable (asset account) which increase the asset value but decrease the stock holder’s equity amount which is an example of revenue. However, if a company promises to provide a service in the future this is known as an expense. When this happens the assets decrease (accounts receivable) and the liabilities (accounts payable) is increased, which makes pretty good sense right? When the revenues exceed the expenses this is known as the net income which is good, and on the other hand when expenses are greater than revenues this is known as net loss which means that you’re losing business or your business costs more to operate than what you make.

     Dividends are the distribution of assets to stockholders which refer to the past earnings.  Do not confuse expenses with dividends, because they both are reducing the retained earnings amount. Retained earnings are the collected net income or revenues minus expenses. 

     The financial statements are the main way for communicating information about a business to those who have some type of interest in it. What helps me is to think of these statements as a type of model for business because they show how a business is doing in financial terms. However, like a variety of methods and models, financial statements are not perfect and have their flaws. There are four main financial statements, and they are income statement, the statement of retained earnings, the balance sheet, and the statement of cash flows. 

     What the income statement does is summarize the revenues earned or the money made, and the expenses or the money that is deducted from a business. Many accountants consider it the most important financial report because it makes it clear whether a business has met its profitability goal. 

In Business see the Progress

 The next one is the statement of retained earnings,  it displays the retained earnings over a period of time.  The time that the retained earnings will be zero is when a company first started out in their accounting period. A lot of companies use the statement of stockholder equity as a substitute of retained earnings. This is a more detailed statement because it displays not only the aspects of retained earnings, but it also shows the changes in the stockholders equity accounts. 

     Next, the financial situation of a business on a particular date, usually on the end of the month or the year is the balance sheet.  The balance sheet displays the value of a business according to their assets and the claims against those assets which are the liabilities and the stockholders equity. 

     Lastly, the statement of cash flows is geared towards a company’s liquidity measures.  They are basically the flow and outflow of cash in a company.  The net cash flow is the subtraction between the inflow and outflow of money.  The statement of cash flows also display the money generated by simply operating a business, and it also displays the investing and financing transactions that occurs during a particular accounting period.