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    If You Can'T Answer These Questions, Don'T Start Businesses.

    2010/11/19 16:15:00 68

    Entrepreneurial Strategy Business Objectives

    Clarify goals: what goals do I want to achieve?


      

    Entrepreneurship

    Personal goals are closely related to business goals.

    The goal of entrepreneurs is to create individuals.

    target

    Therefore, entrepreneurs must define their own goals before they set goals for enterprises, and must regularly ask themselves whether these goals have changed.

    Many entrepreneurs claim that they create businesses in order to achieve independence and control their own destiny.

    Such a goal is too vague.

    If they seriously consider this matter, most entrepreneurs will be able to identify more specific goals.


    For example, get the opportunity to display artistic talent, get the chance to test new technology, live a colorful life, or eager to create an organization that embodies the deep values of individuals, etc.

    In the economy, some entrepreneurs want to get rich overnight; some entrepreneurs want to get a satisfactory cash flow; some entrepreneurs plan to build up an enterprise before they sell the business and get capital gains from it.

    Those entrepreneurs who want to establish sustainable institutions will not consider their personal economic returns as a priority. They may reject their takeover proposals regardless of the price they offer.


    What kind of business do I need to build?


    Generally speaking, the goal of entrepreneurs is determined.

    enterprise

    Sustainability and scale.

    For those lifestyle entrepreneurs, they only want to earn enough cash to maintain some kind of life, so the scale of enterprises does not need to be large.

    And entrepreneurs seeking capital gains must build up enough large enterprise structures to ensure long-term sustainable operation of enterprises, so that they can eventually sell their businesses, or enable enterprises that they build up to be able to withstand changes in technology, employees and customers.


    Strategy: how do I achieve my goals?


    Many entrepreneurs do not consider long-term.

    strategy

    Start business to seize short-term opportunities.

    However, successful entrepreneurs will soon be able to pform from tactical orientation to strategic orientation, and begin to build key capabilities and resources.


    For a young company to start up, the most fundamental problem is to develop effective strategies, rather than solve recruitment problems, design control systems, establish relationship between upper and lower levels, or make clear the role of the founders.

    If the firm's strategic foundation is solid, even if the leadership relationship is unclear and the leadership is weak, it can survive, and the complex control system and organizational structure can not make up for strategic mistakes.

    Entrepreneurs should regularly conduct the following four tests on their strategies.


    Can this strategy bring enough profit and growth?


    Once entrepreneurs have formulated a clear strategy, they must determine whether these strategies can make the company profitable and expand the enterprise to an ideal scale.

    If the enterprise is unable to make profits and the development is not satisfactory, entrepreneurs must take fundamental measures.

    They must find new industries or expand their scope or scope of operation in this field.

    {page_break}


    Is strategy sustainable?


    The next question that entrepreneurs must face is whether their strategy can meet the needs of enterprises in the long run.

    Persistent problems are especially important for entrepreneurs who have been catching up with changes in new technologies and regulations or other wave of change.

    Entrepreneurs who thrive will thrive at the beginning, but once the climax is reached, with the disappearance of market imbalances, many enterprises that have once been brilliant but have never developed specific capabilities or failed to establish competitive positions will disappear.

    The tide makers must be able to foresee market saturation, competition intensification and the next wave.

    They must abandon the imitating approach and adopt a new and more lasting business model, or sell their own high growth enterprises at a considerable price, rather than imagine their vague long-term prospects.


    Implementation strategy: can I implement this strategy?


    The third question that entrepreneurs have to ask themselves is probably the hardest part to answer because it requires the most honest self-examination: can I implement this strategy? Good ideas do not guarantee good performance.

    Many young companies aborted because entrepreneurs failed to implement their strategy.

    For example, enterprises may run out of funds, and entrepreneurs may not be able to achieve sales or fail to complete orders.

    Entrepreneurs must examine three areas, namely resources, organizational capabilities and their personal roles, to evaluate their ability to execute strategies.


    Do I have the right resources and relationships?


    The lack of good employees is often a major obstacle to the successful implementation of a strategy.

    In the start-up stage, many enterprises fail to attract top class employees, and the entrepreneurs who want to turn unqualified employees into excellent employees are almost always disappointed.

    In addition, a young enterprise needs more than just internal resources. Entrepreneurs must also consider the source of customers and capital.

    Customers who start their businesses can be attracted by the enterprises most quickly, but not the final ones.

    Entrepreneurs must also constantly seek more abundant sources of capital to build lasting businesses.


    Can I play my part?


    Entrepreneurs who want to run small businesses and want to complete all important tasks in person do not need to change their roles.

    However, if the entrepreneur wants to turn the enterprise he founded into an entity that can survive independently, the role of the entrepreneur must be changed as the business expands.

    He should develop from his own business to teach others how to do it, and constantly try new jobs and responsibilities.

    For example, an engineer or entrepreneur should learn to master the skills of financial analysis.

    If entrepreneurs believe that they do not want to change and learn and are unwilling to accept challenges and acquire new skills, it is best to sell them to other people who are interested in business.


    In short, lasting success requires entrepreneurs to constantly ask themselves questions: what is their goal and whether the road they choose can guarantee their achievement.

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