O Empreendedor - The Entrepreneur (01)
Não se pode cartografar ou obter o retrato-robot do empreendedor. O que se pode ver, são traços ou linhas difusas.
Penso ser essencial gostar-se das pessoas. Quem não se interessa pelos outros, o que é que pode oferecer? Não se esqueçam que a empresa é, bàsicamente, um centro de trocas; de um produto ou uma ideia, por troca de dinheiro, satisfação, poder, etc. É claro que o ponto de partida foi a descoberta de uma necessidade. De quem?
Segundo, tem de haver motivação. Que pode (e deve!) ser o dinheiro ou a satisfação do eu ou o alcançar do sucesso. A Cruz Vermelha é uma organização de sucesso e eu teria muito orgulho de ser o fundador de algo parecido, mesmo que não ficasse rico!
Outra característica: a perseverança e o espírito de sacrifício. O fulano(a)-tipo "nine to five" não pode ser um empreendedor. Este não tem horários, tem objectivos a atingir.
Capacidade de liderança: só aqueles que são exigentes consigo mesmos, têm a capacidade de liderar. E sem esta capacidade, a máquina emperra. Por isso, se acha que está bem consigo mesmo, deixe-se estar e não se meta em aventuras.
Gosto pelo risco: se se atira ao mar e não sabe nadar, ou se afoga, ou grita pela bóia e agarra-se com toda a força. O que se afoga, já lá vai, e o que se agarra à bóia, trabalhe por conta de outrem; porque o empreendedor assume riscos, mas com planeamento prévio. Se não sabe nadar, verifica primeiro se tem pé...
Pensar que com o criar de uma empresa se substitui a falta de emprego é o erro mais comum. Não caia nele, a não ser que esteja convencido de que é um verdadeiro empreendedor.
Entrepreneurship (02)
Entrepreneurship ou empreendedorismo dois belos, mas complicados, neologismos sempre lembrados por aqueles que enfrentam o desemprego ou se encontram em início de carreira. Será?
Diz o ditado que a necessidade aguça o engenho...
Mas devemos pôr a questão: todos nós podemos criar empresas, ou teremos de possuir determinadas características inatas?
Certo é que todos os países precisam de novas ideias, novos negócios, novas empresas. Criam emprego e geram riqueza.
Certo é também que, em todas as épocas e em todas as latitudes, houve e haverá homens e mulheres que a partir de ideias, algumas até muito simples, criaram empresas de sucesso.
Mas outros (muitos mais!) falharam...
E nem todos eram jovens em início de carreira ou desempregados em desespero de causa.
Porque este é um tema que interessa a muitos e porque precisamos, cada vez mais, de boas ideias e empresas de sucesso, tentarei deixar, neste blogue, algumas notas para aqueles que têm na gaveta as tais boas ideias e não sabem bem o que fazer com elas.
Por ora, deixo-vos a palavra-chave: RISK
Entrepreneurship (03)
So, do you think you are the next Bill Gates? or Paul Allen? or Ray Kroc? Or John Slyth Pemberton, perhaps? Did you say Asa Candler? Well, go for it!
But hey, don't you know who Ray Kroc was? The Mc Donalds founder.
John Pemberton? Oh, just an ordinary pharmacist who invented Coca-Cola. The genius was Asa Candler...
So, you are not familliar with founders...but you want to get you hands on a very profitable company. Better, you gonna be rich!
Ok, first, check this:
Do you like to make your own decisions?
Do you enjoy competition?
Do you have will power and self-discipline?
Do you plan ahead?
Do you get things done on time?
Can you take advice from others?
Are you adaptable to changing conditions?
Did I hear a yes? Ok, now:
Do you understand that owning your own business may entail working 12 to 16 hours a day, probably six days a week, and maybe on holidays?
Do you have the physical stamina to handle a business?
Do you have the emotional strength to withstand the strain?
Are you prepared to lower your standard of living for several months or years?
Are you prepared to lose your savings?
Let's make a break. And think it over and over and over...
Entrepreneurship (04)
On my last post about this subject, I raised some preliminary questions that anyone willing to start a business should consider. Those former questions mailny dealt with your innate qualities and motivation to be an entrepreneur.
The following questions regard your skills (knowledge / savoir-faire):
Do you know which skills and areas of expertise are critical to the success of your project?
Do you have these skills?
Does your idea effectively utilize your own skills and abilities?
Can you find personnel that have the expertise you lack?
Do you know why you are considering this project?
Will your project effectively meet your career aspirations?
The next three questions emphasize the point that very few people can claim expertise in all phases of a feasibility study. Meaning that you should realize your personal limitations and seek appropriate assistance where necessary (i.e. marketing, legal, financial, etc.).
Remember, this is a big step (more like an endless race) in your life: YOU NEED A PROJECT!
Do you have the ability to perform the feasibility study?
Do you have the time to perform the feasibility study?
Do you have the money needed to have the feasibility study done?
Again, here is my advice to you: think it over and over and over...
Entrepreneurship (05)
Starting the right business at the right time is common sense, but one that is extremely difficult to implement. The high failure rate of new businesses and products indicates that very few ideas result in successful business ventures, even when introduced by well established firms.
So, be cautious right from the beginning. Worry now trying to find the correct answers and not when things turn bad.
Regarding your project description, do the following:
Briefly describe the business you want to enter. Do it as broader, as possible; don't narrow your offer or your target.
List the products and/or services you want to sell.
Describe who will use your products/services.
Why would someone buy your product/service?
What kind of location do you need in terms of type of neighbourhood, traffic count, nearby firms, etc.
List your products/services suppliers.
List your major competitors - those who sell or provide similar products/services.
List other possible competitors – those who do not sell same products/services but can fulfil same needs.
List the labour and staff you require to provide your products/services.
Entrepreneurship (06)
After making your general project description, it is time to check for:
Requirements for Success / Pros
On the below list, look for a yes answer.
Does the product/service/business serve a presently unserved need?
Does the product/service/business serve an existing market in which demand exceeds supply?
Can the product/service/business successfully compete with existing competition because of an "advantageous situation", such as better price, location, etc.?
Do you have “valuable information” not disclosed to your competitors, such as patents that allow you to achieve unbeatable pricing?
Major Problems / Cons
A yes response to the following might indicate that the idea has little or no chance for success.
Are there any causes (i.e. restrictions, monopolies, shortages) that make any of the required factors of production unavailable (i.e. unreasonable cost, scarce skills, energy, material, equipment, processes, technology, or personnel)?
Are capital requirements for entry or continuing operations excessive?
Is adequate financing hard to obtain?
Are there potential detrimental environmental effects?
Are there factors that prevent effective marketing?
The above “two sides of the coin” is what we call the pros and cons analysis. It looks simple, but it is not. For instance, what to you is perceived as huge capital requirement, for a large or medium company looking for new business areas might not be a problem.
However, do not target large capital sort of business. Even if you have won the lottery! It is risky and requires a lot of managerial experience.
Also I advice you to extend the above list, as much as possible. Look for factors/events that might be a value added for the market, (call it a must, hit, “trunfo”), examine the macro / micro economic perspectives; look for “hidden” either current or future competitors, etc.
Entrepreneurship (07)
The following questions should remind you that you must seek both a return on your investment in your own business as well as a reasonable salary for the time you spend in operating that business.
How much income do you desire?
Are you prepared to earn less income in the 1st - 3rd years?
What minimum income do you require?
What financial investment will be required for your business?
How much could you earn by investing this money? (A) – your cost of capital
How much could you earn by working for someone else? (B)
Add the amounts in (A) and (B). If this income is greater than what you can realistically expect from your business, are you prepared to forego this additional income to be your own boss with the prospects of more substantial profit/income in future years?
Entrepreneurship (08)
Check this common example:
Stores buy items from a wholesaler or distributor and increase the price when they sell the items to consumers. The increase in price provides money for the operation of the store and the salaries of people who work in the store.
A store may have a rule that the price of a certain type of item needs to be increased by a certain percentage to determine how much to sell it for. This percentage is called the markup.
If the cost is known and the percentage markup is known, the sale price is the original cost plus the amount of markup. For example, if the original cost is €4.00 and the markup is 25%, the sales price should be €4.00 + €4.00*25/100 = €5.00.
A faster way to calculate the sale price is to make the original cost equal to 100%. The markup is 25% so the sales price is 125% of the original cost. In the example, €4.00 * 125/100 = €5.00
So, when you buy, check if your warehouse cost + plus markup let you have a competitive sales price, or not.
Entrepreneurship (09)
So, when buying, check the following list:
Can you make a list of every item of inventory and operating supplies needed?
Do you know the quantity, quality, technical specifications, and price ranges desired?
Do you know the name and location of each potential source of supply?
Do you know the price ranges available for each product from each supplier?
Do you know the sales terms of each supplier?
Do you know the credit terms of each supplier?
Do you know the financial condition of each supplier?
Is there a risk of shortage for any critical materials or merchandise?
Are you aware of which suppliers have an advantage relative to transportation costs?
Will the price available allow you to achieve an adequate markup?
Entrepreneurship (10)
Do you know what your expenses will be for: rent, wages, insurance, utilities, advertising, interest, etc.?
Do you need to know which expenses are direct, indirect, or fixed?
Do you know how much your overhead will be?
Do you know how much your selling expenses will be?
But do not forget risk:
Are you aware of any major risks associated with your product, service and/or business?
Can you minimize any of these major risks?
Are there major risks beyond your control?
Can these risks bankrupt you?
Entrepreneurship (11)
Are there any major questions remaining about your proposed venture?
Do the above questions arise because of a lack of data?
Do the above questions arise because of a lack of management skills?
Do the above questions arise because of a "fatal flaw" in your idea?
Can you obtain the additional data needed?
Can you obtain the additional managerial skills needed?
Are you aware that there is less than a 50% chance that you will be in business two years from now?
Entrepreneurship (12)
Naturally that the first concern should be we what type of business do you want to set up? Your own or with partners? What options are available to you and what consequences arise in terms of obligations and rights?
In Portugal (as in many other European countries), from a legal point of view, and on a very simplistic way, there are four mayor types of businesses:
Sole proprietorships – Empresário em nome individual
Partnership - Sociedades por quotas
Corporations – Sociedades anónimas
Co-operatives - Cooperativas
I will try to make a brief description of the first two types, which I think are the most suitable for an entrepreneur starting his first business followed by a summary of their advantages and disadvantages.
However, I strongly recommend you that prior to a decision you must seek for legal assistance on this matter.
Entrepreneurship (13)
Sole Proprietorships – Empresário em Nome Individual
This is the simplest way to set up a business. A sole proprietor is fully responsible for all debts and obligations related to his or her business. A creditor with a claim against a sole proprietor has a right against all of his or her assets, whether business or personal. This is known as unlimited liability
Advantages
• relatively low start-up costs;
• greatest freedom from regulation;
• owner in direct control of decision making;
• minimal working capital required;
• tax advantages to owner;
• all profits to owner.
Disadvantages
• unlimited liability;
• lack of continuity in business organization in absence of owner;
• difficulty raising capital
Again: seek legal advice on this.
Entrepreneurship (14)
Partnership - Sociedades por Quotas
A partnership is an agreement in which two or more persons combine their resources in a business with a view to making a profit. In order to establish the terms of the partnership and to protect partners in the event of a disagreement or dissolution of a partnership, a partnership agreement should be drawn up. Partners share in the profits according to the terms of the agreement.
In a General Partnership, two or more owners share the management of a business, and each is personally liable for all the debts and obligations of the business. This means that each partner is responsible for, and must assume the consequences of, the actions of the other partner(s).
A second type of partnership is a Limited Partnership which involves limited partners who combine only capital. They are not involved in managing the business and cannot be liable for more than the amount of capital they have contributed. This is known as limited liability.
A limited partnership also involves general partners, who are involved in management. They are fully liable for the debts and obligations of the business, but may be entitled to a greater share of the profits.
Entrepreneurship (15)
Advantages and Disadvantages of Partnership
Advantages:
- Ease of formation
- Low start-up costs
- Additional sources of investment capital
- Possible tax advantages
- Limited regulation
- Broader management base
Disadvantages:
- Unlimited liability
- Divided authority
- Difficulty in raising additional capital
- Hard to find suitable partners
- Possible development of conflict between partners
- Partners can legally bind each other without prior approval
- Lack of continuity
Again, do not forget to look for legal advice, before signing any contract.
