| Posted by admin on August 13, 2010 |
Entrepreneurship Basics
Entrepreneurship may be one the trendiest buzzwords these days, but it takes a lot more than a causal interest in making money to be successful – it takes drive, determination, and sacrifice, not to mention a solid business plan. While becoming your own boss can offer many benefits, you need to have some solid business skills and enough capital to keep things moving. You also have to have the correct personality profile to be able to see it through even when the odds are against you.
Before you jump into starting a new business, it is imperative that you do some serious introspection to decide if this is something you are prepared to take on. Ask yourself honestly if you have what it takes, weighing the real risks and benefits of starting a new business. Here are a few of the most critical ingredients for starting a business on your own.
A business idea you’re passionate about
Above all else, you must love your business idea and be willing to work arduously s to bring it to fruition. Is this something you’re willing to invest significant time and energy into? Be prepared to put in strenuous hours to help your business take off. It is crucial to have an idea that you believe in enough to make it worth the sacrifice that you will have to make to realize your dream.
A willingness to accept financial risk
Starting a business from the ground up can provide financial stability in the long-run, but in the short-run can be extremely stressful. What is your risk tolerance? You may have to drastically scale back your lifestyle while you are getting your business off the ground. This could mean a no-frills attitude for months or even years. Many new business owners don’t even pay themselves a salary in the beginning, preferring to funnel that money back into making the business take life. Furthermore, you must be willing to dedicate the time to make your plan successful even in a down economy or when your sales are low.
Business management skills broader than just your area of interest
Being in business for yourself means taking charge of all the tasks related to the business, not just your specialization. That means everything from keeping the books to marketing to managing people. You will have to invest the time to cultivate these skills properly. Lastly, don’t assume that because you are an expert in one area, you know how to manage people.
Adaptability
Becoming an entrepreneur is in many ways a double-edge sword: you get to devise your own strategy and you don’t answer to anyone, but on the other hand, you are forging your own path and there is no one to tell you how to do it. This means you have to be humble and willing to learn from your mistakes. It also means having flexibility and adaptability to roll with the punches and constantly retool your strategy according to new challenges.
Persuasive nature
As a self-starter, it’s crucial to be able to convince others of the value of your business. You must be confident in your product or service and be able to convey that to customers or clients. Your conviction must also be able to create trust in your employees and motivate them to stay. Finally, if you are seeking investment, you must have the ability to persuasively argue your case for why someone should invest her/her funds in your company.
Competent partner that complements your style
If you decide not to go it alone, one of the most important elements that can make or break your business is your choice of a partner. If you can collaborate with someone with the same work ethic and vision for the company, you will be better poised to reach your goals more quickly. A partner who complements your skills can be a tremendous asset, filling in the gaps where you don’t have the knowledge or don’t want to be involved. However, a poorly chosen partner can be a cancer for your business, so make sure you carefully consider before bringing anybody else on board.
All in all, entrepreneurship can be an extremely exciting career path- you face constant challenges but you have the chance to better control your professional life. Make sure that you know what you are getting into. Once you take off the rose-colored glasses, you will be better equipped to make the right decision for you.
Filed Under: Business Planning and Success Tags: business basics | business ideas | entrepreneur | starting a business | success No Comments
| Posted by admin on July 3, 2010 |
The meeting began unassumingly – a handful of international managers sitting down for a business lunch to hash out a deal with potential investors from the Middle East. Soon, though, it became clear that some of the guests had brought to the table an unexpected recipe of two parts swagger, one part intimidation and a generous dose of posturing.
One executive present at the meeting recounts how the other party purposely dragged the meeting out for over 5 hours, harangued other negotiators over the most negligible minutiae, was appallingly condescending to the restaurant waitstaff, and routinely smashed his fist violently onto the table, startling other diners. “That was one of our toughest cases,” the executive recalls. “Individual personalities always come into play, but part of it is just how they conduct business. The histrionics are par for the course and are not considered bad faith. But for us, it’s really shocking.”
So what are internationally minded managers to do when confronted with such a scenario? How can they gracefully handle the complex situations that arise in international business? And most fundamentally, what are the characteristics necessary for an entrepreneur or exec to keep in mind when launching a new project abroad?
Doing Business in a flat world
The globalized marketplace is here to stay. As growth rates in emerging markets outpace those of a number of established markets, many eyes are turning abroad seeking profits by serving the growing middle classes gobbling up everything from gadgets and gizmos to the glittering cachet of namebrand notoriety.
In this context, many internationally minded executives and entrepreneurs know they need step into developing markets as a way to scale their business or start a new venture in a locale with a promising growth rates. However, savvy managers also know that there is no one-size-fits-all strategy for exporting an existing business. There are a number of things that international entrepreneurs and seasoned execs alike can do to increase the odds of success in a foreign venture.
Overcoming international barriers
One crucial factor is awareness, both of self and of others. Here awareness of self means being cognizant of one’s own cultural programming and how that can affect interpretations of others’ behavior, e.g. having the perceptiveness to see other cultures without assigning mismatched meanings. This goes beyond being merely accepting or tolerant of other cultures to being knowledgeable about them and the historical, social, political and cultural panorama that will shape business interactions in the proposed country of business transaction. True multiculturalism will be an asset to anyone wanting to conduct business abroad.
Despite the widespread use of English in global commerce, the mastery of foreign languages will also be tremendously useful for conducting business in the host country. Not only does it facilitate communication and allows for more nuanced understandings, but it allows business professionals to get closer to understanding the ethos of a people, which affects why they purchase a certain product or service. It is also a way of demonstrating cultural competency and respect toward the local culture.
Flexibility and adaptability are also crucial. Entrepreneurs are known for their confidence but must be modest and able to gracefully navigate situations that aren’t clear cut. It is useful to know that some cultures, such as Mediterranean countries, have much higher tolerance for uncertainty, whereas others such as Germany rank high on uncertainty avoidance. Being comfortable in ambiguous situations will make the entrepreneur infinitely more successful. For example, some cultures value punctuality and lateness can signal disrespect for others’ time, whereas in some cultures, it is customary for higher ranked bosses to arrive later to the meeting. Similarly, in some cultures business meetings can include small talk or banter before meandering back “on topic.” Being flexible will allow people conducting business in other countries to recognize and accept these differences rather than seeing them as a roadblock to getting things done quickly.
All in all, entrepreneurs must incorporate a variety of skills when they transplant their business to a new market. But most of all, they need to bring with them a multicultural outlook and the willingness to be flexible.
Global Business Union Team
http://www.globalbusinessunion.com
Filed Under: News & Events Tags: 1 Comment
| Posted by admin on April 16, 2010 |
- Entrepreneur Life
From passion and positivity to leadership and ambition, here are the entrepreneurs that best define the entrepreneurial spirit: PASSION, POSITIVITY, ADAPTABILITY, PERSISTANCE & AMBITION.
Filed Under: Business Planning and Success Tags: The Entrepreneur Life Style 1 Comment
| Posted by admin on April 12, 2010 |
NEW YORK — With April 15 not far off, many small business owners will get six-month extensions of the deadline to file their income tax returns. This year, the procrastinators have company as the economy makes tax issues more complicated for everyone.
Changes in the tax laws due to economic stimulus efforts mean some owners need more time to gather information and complete their returns. And Edward Smith, a partner with the accounting firm BDO Seidman in Boston, noted that many companies have smaller staffs this year, so getting the 2009 books closed, a necessary step in the tax filing process, has taken longer.
“It doesn’t leave a lot of time to do returns,” Smith said.
Some owners routinely get an extension because it gives them more flexibility in funding certain retirement plans. This year, many others with cash flow problems will get extensions in the hope they’ll have the cash to make plan contributions before the new deadline of Oct. 15 comes around.
Here’s a short guide to getting an extension for filing your tax return:
THE MOST IMPORTANT THING YOU NEED TO KNOW
Getting an extension doesn’t let you off the hook for paying your taxes by April 15. As the IRS says on its Web site,
http://www.irs.gov, “an extension of time to file is NOT an extension of time to pay.”
The government requires taxpayers filing for an extension to make a good-faith estimate of how much tax they owe and to pay that amount by April 15. If they don’t, they’ll have to pay late payment penalties and interest on their unpaid taxes.
Many owners are in the predicament of not only being unable to file their return, but also not having enough money to pay their taxes. They should go ahead and file for an extension, make an estimate and pay whatever they can. They also might want to apply for an installment agreement with the IRS.
The IRS does have an option for owners who are in extremely difficult circumstances. They can file form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship. The form requires you to “provide a detailed explanation of the undue hardship that will result if you pay the tax on or before the due date.” A general statement of hardship won’t do.
You’ll also need to give the IRS a statement of your assets and liabilities and an itemized list of your income and expenses for the past three months.
REASONS FOR GETTING AN EXTENSION – AND REASONS NOT TO WORRY ABOUT IT
If you’re not ready to file because you’ve been dawdling or are disorganized, you probably should get an extension.
If you rush to meet the April 15 deadline, you risk sending in a return that has mistakes or omissions. You can amend your return, but many tax professionals believe that could raise your chances of being audited. It also costs your business time and money to correct and submit your return. So getting an extension and getting your return right may be a smart move.
If you don’t have all your information together – for example, if you’re trying to get up to speed on tax law changes, or waiting for a partnership return is completed – you should also consider an extension.
Extensions are also a huge help for employers whose cash flow is shaky and who want to contribute to retirement plans. The contribution deadline for many plans is the due date of the employer’s return, including extensions. So those who opt for an extension have until Oct. 15 to get the money together.
Smith noted that some business owners get extensions as a matter of course because of the flexibility they offer on retirement plan funding. That trend helps puncture one of the big myths among taxpayers: that getting an extension makes you more vulnerable to an audit. Many business owners get extensions year after year, and the IRS doesn’t have enough people on its staff to target everyone who gets more time to file.
Smith noted that the IRS doesn’t select returns for audits until about a year after the filing deadline. The agency has a computerized system that pulls out some returns for closer examination.
“It’s just apples and oranges,” Smith said of the supposed link between extensions and audits.
THE MECHANICS
Getting an extension is pretty simple. A taxpayer needs to complete Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, and send it either electronically or by regular mail or overnight delivery service before the filing deadline. Be sure you get proof of mailing either from the post office or the delivery service you use.
Form 4868, which you can download from the IRS Web site, is short. You need your name, address, Social Security number and the estimate of your tax liability.
If you send a payment, you can either enclose a check with a paper Form 4868. Or you can use one of the payment services listed in the Form 4868 instructions.
The Associated Press
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