The Questions Every Entrepreneur Must Answer
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what are my goals} Do I have the right strategy^ Can I execute the strategy I
The Questions Every Entrepreneur by Amar Bhide
Of the hundreds of thousands of husiness ventures that entrepreneurs launch every year, many never get off the ground. Others fizzle after spectacular rocket starts. A six-year-old condiment company has attracted loyal custoiners but has achieved less than $500,000 in sales. The company 's gross margitis can 't cover its overhead or provide adequate incomes for the founder and the family members who participate in the business. Additional growth will require a huge capital infusion, but investors and potential buyers aren 't keen on srnall, rnarginally profitable ventures, and the family has exhausted its resources. Another young company, profitable and growing rapidly, imports novelty products from the Far , p^ , , 1 1 1 growth has forced him to reinvest most of his profits to finance the business 's growing inventories and receivables. Furthermore, the company 's profitability has attracted competitors and tempted customers to deal directly with the Asian suppliers. If the founder doesn 't do something soon, the husiness will evaporate. Like most entrepreneurs, the condiment rnakcr and the novelty itnportcr get plenty of confusitig counsel: Diversify your product line. Stick to your knitting. Raise capital by selling equity. Don 't risk losing control just because things arc bad. Delegate. Act decisively. Hire a professional manager. Watch your fixed costs. Why all the conflicting advice? Because the range of options-and problems-that founders of young businesses confront is vast. The tnanager of a mature company might
1 he problems entrepreneurs COnirOnt every day would
^^k, what business are we in? or
How can we exploit our core compe-
overwhelm most managers.
East and sells thetn to large U.S. chain stores. The founder, who has a paper net worth of several million dollars, has been nominated for
•
,
what are my goals} Do I have the right strategy^ Can I execute the strategy I
The Questions Every Entrepreneur by Amar Bhide
Of the hundreds of thousands of husiness ventures that entrepreneurs launch every year, many never get off the ground. Others fizzle after spectacular rocket starts. A six-year-old condiment company has attracted loyal custoiners but has achieved less than $500,000 in sales. The company 's gross margitis can 't cover its overhead or provide adequate incomes for the founder and the family members who participate in the business. Additional growth will require a huge capital infusion, but investors and potential buyers aren 't keen on srnall, rnarginally profitable ventures, and the family has exhausted its resources. Another young company, profitable and growing rapidly, imports novelty products from the Far , p^ , , 1 1 1 growth has forced him to reinvest most of his profits to finance the business 's growing inventories and receivables. Furthermore, the company 's profitability has attracted competitors and tempted customers to deal directly with the Asian suppliers. If the founder doesn 't do something soon, the husiness will evaporate. Like most entrepreneurs, the condiment rnakcr and the novelty itnportcr get plenty of confusitig counsel: Diversify your product line. Stick to your knitting. Raise capital by selling equity. Don 't risk losing control just because things arc bad. Delegate. Act decisively. Hire a professional manager. Watch your fixed costs. Why all the conflicting advice? Because the range of options-and problems-that founders of young businesses confront is vast. The tnanager of a mature company might
1 he problems entrepreneurs COnirOnt every day would
^^k, what business are we in? or
How can we exploit our core compe-
overwhelm most managers.
East and sells thetn to large U.S. chain stores. The founder, who has a paper net worth of several million dollars, has been nominated for