Connecting the Entrepreneurial Mindset with Successful Businesses

Posted by admin in Entrepreneurialism on Apr 24th, 2010 | 0 comments

There is a reason most business owners long to possess the entrepreneurial mindset. Most extremely successful entrepreneurs credit the complex but rewarding outlook as the means for their achievements. Of course there are a multitude of factors that result in such intense personal and professional triumphs however a fierce understanding of the entrepreneurial mindset continues to play a vital role.

 

Anyone who has tried to compete in the world of online business knows that although the benefits can be extremely rewarding, it is also an incredibly trying scenario. Therefore those outfitted with durable survival instincts are better prepared for such a setting. Thankfully those blessed with the entrepreneurial mindset come equipped with those necessary traits and are simply built to thrive in such high pressure situations.

 

One of the saddest excuses for the decline of a seemingly brilliant business plan is overexpansion. Many times greed is the prime motivating factor for such rapid development. It is important to remember that a genuine passion for your industry, product or service remains the most significant inspiration behind one’s success. Those in control of the great entrepreneurial mindset understand the risks behind such foolish and hasty growth.

 

Risk has multiple meanings in the world of online business. It can represent anything from a bold website design, ground-breaking marketing campaigns or cutting edge advertising. Courageous entrepreneurs understand that success is hardly ever rewarded by playing it safe. They are always open to change and new ideas. As a result they not only reap monetary rewards but they also manage to establish their business as a leader in its field while securing long-term customers.

 

Along those same lines, while risk is an important component for business success, persistence is also fundamental. No matter how fool-proof your business may seem, you are bound to experience some hardship along the way, whether it be in the form of growing pains or economic adversity. It is simply a fact of the online business world. This is where persistence becomes of the utmost importance. Even after you suffer through these afflictions you must learn to carry on and continue to pursue your business strategy in spite of your setbacks.

Essential Entrepreneurial Skills That Propel your Business to Success

Posted by admin in Entrepreneurialism on Apr 16th, 2010 | 0 comments

Essential Entrepreneurial Skills that Propel your Business to Success.

Though various reasons are attributed for starting a business the main reason without any doubt is to make money. People who start a business know very well that they can never become rich by working for someone else all life long.

To start a business and run it successfully, a range of essential entrepreneurial skills are necessary.If success is what you are after, then it stands to reason that you possess most of the essential skills or acquire them before you commence your business especially if you want to run the business yourself.

The other alternative will be to take in a partner or employee who possesses a particular skill or the skills that you are deficient in.

What then are the essential entrepreneurial skills the business entrepreneur should possess?

1. Planning Skill.

Proper planning is the fundamental first step you should undertake when you consider starting a new business. Feasibility of the business, marketing of the product, local competition and funding are some of the essential aspects that should be studied carefully. Good planning should be able to forecast and foresee the changing market conditions and adopt suitable strategies to counter or take advantage of them. They should also explore possibilities of adding new products or services to keep up with the changing circumstances and beat the competition.

2.Techinical or Knowledge Skill:

If you are turning out a product, you should possess the necessary skills to produce that product. Experience gained in working in similar work places or a professional qualification will stand you in good stead. Of course for certain types of businesses, experience is not essential but to satisfy your customers and provide a good service, technical skills play an important role.

Furthermore it is absolutely essential to keep on updating your knowledge by reading books and attending seminars to keep ahead of your competitors.

3.Marketing Skill:

Marketing is another very important essential skill on which depends the very success or failure of your business. It is the process of identifying your potential customers and persuading them to buy your products or services. Sales, Promotions, Pricing and Public Relations are some of the skills that are an essential part of marketing. Mishandling or negligence of this aspect can lead to failure.

4. Financial Skill:

Financial skills play a major role in the running of a business big or small. Book keeping, estimating, invoicing, negotiating credit terms, controlling cash flow are some aspects of the financial skills you should be able to handle. Negligence of this aspect can lead to recurring cash flow problems such as inability to purchase goods, non payment to suppliers and irregular payment of bank loans. It is obvious that with these problems no entrepreneur can succeed or have peace of mind in running a business.

5. Management Skill:

The need for management skills becomes necessary, especially if you have the intention of employing several employees. Skills in areas such as recruitment, team building, motivation, knowledge of employment law and health and safety requirements are all part of management skills. Knowledge of these skills and implementing them judiciously will help you build a team of motivated employees working for the success of your enterprise.

6. Organizational Skill:

Whether your business is big or small or whether you employ workers to run your business, your organizational skill will be tested fullyas an etrepreneur. You have to set up systems to take orders, handle enquiries and maintain records. A knowledge of these skills will help in the efficient day to day running of the business.

Conclusion:

Each and every entrepreneurial skill mentioned above is essential. If you do not possess some of these skills, acquire them. The easy way out is to go into partnership or employ someone who possesses these skills. Adopting these measures will mean that you are now on the right track to become a successful business entrepreneur.

Lifestyle Retailing for Entrepreneurial Retailers

Posted by admin in Entrepreneurialism on Apr 13th, 2010 | 0 comments

How is it that retailers like Urban Outfitters, Anthropology, The Buckle, Aeropostale and Hot Topic seem to be able to defy gravity? In the last several quarters, each of these retailers have very positive posted results in an environment where very few publicly traded retailers posted a comp store increase of any kind. How are these stores able to do what seemingly nobody else can, particularly in the specialty store segment?

Each of these stores is testament to the fact that a strong, focused retailer can succeed spectacularly even in the toughest of economic times. Take Urban Outfitters Inc, which operates Urban Outfitters and Anthropology. Richard Hayne, founder and chairman of the company, has been widely quoted for his belief that “big is the enemy of cool”, and many observers have pointed out that the company would rather open a new concept in proven markets than saturate every last retail corner with new stores. They go on to note that no two stores are alike, that each store is given a great deal of autonomy, and that the company places a premium on execution.

All of these are valuable points to take away from the story, but there’s another lesson to be drawn that’s specifically applicable for any small, entrepreneurial retailer building a successful, sustainable strategy into the future.

Walk into an Urban Outfitters or an Anthropology store and you immediately sense that there’s something very different going on there. They are selling apparel and accessories, that’s obvious as soon as you walk in the door, but there’s also home furnishings and décor, as well as books and knick-knacks, even furniture here and there. Then you notice the store layout, fixturing and décor, the salespeople and the customers… the customers. The customers are the giveaway to this story. This store isn’t so much about stuff as it is about a mindset, an attitude, a lifestyle.

Building a store around an attitude or a lifestyle isn’t necessarily new, but seldom has it been done on the scale and with the impact that you encounter when you walk into these stores. Here you can glimpse the future of retailing in a niche driven, Long Tail world, and in these stores you can immediately grasp the immense potential for small entrepreneurial retailers to extend these concepts around their own particular niche and strategy. It’s been called lifestyle retailing. In fact, the very best small entrepreneurial retailers have been practicing lifestyle retailing for years.

Lifestyle retailing starts from a completely different premise than traditional retailing. It may seem like a bit of a cliché to say that lifestyle retailing is customer-centric, but, as you see when you walk into an Urban Outfitters or an Anthropology store, that truly is the differentiating characteristic.

Traditional retailing starts with the products and services to be offered. This may be the result of an entrepreneur’s particular product expertise, perhaps an entrepreneur’s background in a very specific market. It is product driven, and asks the question, “This is what we sell, who can we sell it to?” Growth is often defined as expanding the customer base, reaching a broader audience, finding more customers to sell to, and is measured most directly by transaction counts.

Lifestyle retailing begins with the attitude and lifestyle itself, and all that it represents. It is, by definition, narrow and exclusive, focused on a very clearly defined niche. It is customer driven, focused on a narrowly defined customer who identifies with the attitude and lifestyle, and aspires to be a part of it. It begins with the question, “These are our customers, what can we offer them that fully represent the lifestyle they aspire to?” Growth is achieved by offering these customers a broad array of offerings, in an almost infinite possible number of categories, and is measured most directly by units per transaction. 

In lifestyle retailing, the physical store itself most directly defines the lifestyle, in its décor and ambiance. The store is unique, distinctive and conceptual. It is not merely a presentation of merchandise, it is a carefully considered synergy of space, materials, textures, colors, sounds, and aromas meant to excite the senses.  Stepping into the store is to fully immerse oneself in the lifestyle, to experience the lifestyle and all that it represents.

The salespeople extend the experience, with their knowledge, interest and enthusiasm, in the very way that they engage their guests. They are actors on a stage, except this is not acting; for them this is real life. Their dress, hair, manner, speech and vocabulary are an integral part of the experience, for they are the very embodiment of the lifestyle. They interact with customers as they would with intimates, for to be part of the lifestyle is deeply personal. Their customers are part of the group, in a profoundly sociological way. 

And within this context, business is transacted. Price is not nearly as significant an issue as in other retail strategies, because customers aren’t merely buying merchandise, they’re participating in the community, in the lifestyle. Assortments are often broad and shallow rather than narrow and deep because the lifestyle is the driver, and new items are the key to frequent visits and units per transaction. The merchandise itself may seem to be highly discretionary, but in fact is as essential as bread and milk because it is so closely linked to the customer’s sense of identity. It is, by definition, a fashion business.

As the retail landscape fragments between large-scale corporate retailing descending further into price-driven commoditization of mass market merchandise, and each consumer’s desire for things they treasure as a reflection of their individual interests, lifestyle and identity, the opportunity for entrepreneurial retailers is clear. A retail strategy built and marketed passionately around a personally held, clearly defined lifestyle or interest is the path to building a powerful retail presence and a very successful business.

Accomplishing the Entrepreneurial Mindset

Posted by admin in Entrepreneurialism on Apr 9th, 2010 | 0 comments

When something like the entrepreneurial mindset breeds such remarkable success, it should come as no surprise that business leaders the world over long to obtain it. However keep in mind that while you may understand the power of such an attitude, you might not grasp the means through which one achieves such a position. So how does one reach such an enviable business plateau?

 

Although it may sound ineffective, maintaining a positive state of mind is surprisingly important when trying to reach the entrepreneurial mindset. If you really stop and think about it, however, it does make sense. In the world of online business, you are constantly trying to attain great success. If you allow yourself to think nothing but negative thoughts, you might resign yourself to such a bleak fate. It is also important to remember that while positive reinforcement may not lead to some magical state of instant success, it can better prepare you for that moment in time when problems do begin to appear within your online business.

 

Risk and an open-minded mentality will better serve you in your quest for obtaining the entrepreneurial mindset as well. Most successful businesses embark on at least one major risk taking venture. That does not mean to say they were ever careless with their capital. It simply means they allowed themselves the opportunity to at least test up-and-coming technology, explore new models for their business or examine new ideas. Those in control of the entrepreneurial mindset do not allow themselves to remain fixated on any one product or service. While structure is important for any business, they also understand that the world is constantly changing. The inability to change with it can result in stagnant companies.

 

Although great entrepreneurs are blessed with brilliant business minds, they should also recognize the moment in time when it become appropriate to pass the reigns to someone else. In other words, even the greatest business owner cannot be responsible for every aspect of their company, nor can they master every facet. It is pivotal therefore that they surround themselves with trustworthy individuals who can successfully lead other areas of any given business.