Entrepreneurship vs. Employment: Examining the Risk

Posted At : May 3, 2010 4:16 PM | Posted By : Marita Greenidge
Related Categories: Starting a Business,Inspiration

By Kathy-Ann Fletcher

On examining the reasons why there is some hesitancy to become entrepreneurs or why it sometimes does not even cross our minds to consider being self-employed, I realise that the majority of the blame should be placed firmly on the shoulders of socialisation.

Traditionally, we associate entrepreneurship with risk and salaried employment with security and a nice little nest egg for our retirement. We settle for an average lifestyle because we are afraid to take the risks linked to entrepreneurship and self-employment.
A student of entrepreneur Warren Tracy is credited as saying, "Entrepreneurship is living a few years of your life like most people won't, so that you can spend the rest of your life like most people can't”. Many won't take the risk associated with entrepreneurship, that's why many won't live the life that being a successful entrepreneur can afford.
For many may see the business opportunity in the market but not many will calculate the risk and take advantage of all opportunities before them. They will settle for life in their comfort zone, the known above the unknown or at least how we perceive it.
I believe that we may have somewhat misguided perception. We may be overestimating the risk of being self-employed while underestimating the danger of being employed for someone else whether in public or private sector.
I am not advocating taking uncalculated risks. I am advising that we should not be afraid once we have examined the possibilities from all angles considering the risks and the benefits to take that first determined step into the world of self-employment. 
Money - Recently, I had a conversation with a friend of mine who owns her own business. While she was quite enthusiastic about her business and the big plans she had in store, she did have one concern. She stated that sometimes she wished that she was still employed elsewhere because that way she would get a certain salary at the end of the pay cycle. However, she persists ahead in her quest at this early stage because she knows that before her lies awesome potential to make money, more so than would lie with her previous employment.
Failure – new businesses especially small businesses are susceptible to failure. Even one wrong decision can cause the business to fail. However, there are businesses that succeed and grow to become great revenue generators for the entrepreneurs, employees and even the country's economy.
Market conditions – The new company may not have the capacity to survive sudden changes in the economic atmosphere. It works both ways; any negative conditions can weaken the company. Additionally, any new opportunities can cause problems if the company is not equipped to handle them. However, with the correct amount of planning ahead of time and with a certain level of flexibility, new companies can overcome this obstacle.
Family issues – An entrepreneur at least in the early stages, spends long hours working to establish the business. This may present personal and family issues. When I was younger my mother missed graduations and other family events due to being at her company. This caused some tension within the family. Entrepreneurs have to prepare for such tensions and handle them appropriately with their families.
Salaried employment has its own risks
Considering the risks of entrepreneurship without considering the rewards can cause one to run straight to the seemingly secure world of employment. However, employment for others carries its own risks as well.
Lack of control – You do not have final control over the company. The creative path of the company may be out of your control. Even if you have the right to make suggestions, you don’t have the final say. Therefore, you may have to sit and watch the company take routes that you are not comfortable with.
Financial insecurity – You have a fixed salary. This means there is not much potential for your salary to increase beyond your agreed salary. Also, if your bosses are squandering the finances of the company, it may affect their ability to pay you and you just may get laid off. Therefore, the financial security that we saw in being employed for others is not that secure.
Permission – You have to ask permission from your boss to work for other players while still in his or her employ.
Life is full of risks regardless of the route you take to achieve your ambitions. Therefore, don’t discount entrepreneurship due only to the risks associated because you will be robbing yourself of its rewards.
There is the greater potential for profit, the ability to control the creative path of your company and the reward of following your dreams on your terms to be gained by stepping into the life of an entrepreneur. By becoming an entrepreneur you can create the environment whereby you can fully utilize your talents, skills, knowledge, and creativity.
Once you take the time to realise that while there are risks associated with entrepreneurship, the rewards justify the investment you will make financially and emotionally in establishing your own company. Therefore, don’t be afraid to take that calculated risk towards financial and creative control of your livelihood. 

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My Introduction to Shepherding

Posted At : April 27, 2010 7:17 PM | Posted By : Marita Greenidge
Related Categories: Shepherding,Starting a Business

By Marita Greenidge

It was only a few months ago when I was sitting on a couch at Accra Beach Hotel listening to Dr. Basil Springer explain the concept of the CBET Shepherding Model™. (You can find more information here). He was contracting my company to do a marketing plan for the soon-to-be launched Barbados Business Enterprise Corp. (BBEC). It was my first major assignment.

Dr. Springer was very passionate about the shepherding component of the model, a term I had never heard before except with reference to sheep. Much like Twitter added a whole new meaning to the word generally associated with birds, Dr. Springer was well on his way to evolving the meaning of the word generally associated with tending sheep. He explained that shepherding would help reduce the failure rate for businesses. And I believed him.
There was something quite innovative about the CBET Shepherding Model™. It offered a way for entrepreneurs to develop solid foundations for their businesses. It wasn’t simply about giving funds, which many entrepreneurs identify as a hindrance to getting a business off the ground; it was also about helping the entrepreneur put the right systems in place to maximize the return on money invested.
Running out of cash is often cited as one of the main reasons businesses fail early in their life cycle. Running out of cash usually happens as a result of cash mismanagement. So suppose there was a way to help entrepreneurs more efficiently manage their cash? Whatever that “way” was, it would probably prolong, even enhance, the life of the business.
That way is shepherding. 
Many entrepreneurs “don’t know what they don’t know” so they need guidance in building each functional business area so the business can poised for global success.
BBEC was to be the management company for the Barbados Entrepreneurs’ Venture Capital Fund. The Fund would be the main funding source for entrepreneurs. Yet the model wasn’t as simple as “entrepreneur approaches the Venture Capital Fund” for capital. No, Dr. Springer recognized that entrepreneurs needed help even before they reached that stage. Many persons don’t know how to pull together an adequate business plan; they don’t know how to make a formal pitch to a venture capital board. However you don’t want good ideas to “fall through the cracks” because an entrepreneur lacks the skills to package an idea in a way a board will be see as viable.
This is another reason shepherding is important. The shepherd helps the entrepreneur who has a great idea package the idea so any funding organization would recognize its potential. The shepherd doesn’t do this alone. He/She works with a team of business advisors in various specialty areas (law, marketing, finance, etc.) to assist where necessary. On top of that, the shepherd helps the entrepreneur generate sales or leads even before the entrepreneur approaches the VC Board.
Shepherds and business advisors are paid for their services. The money to pay these individuals however is advanced from the Seed Capital Fund. The only thing an entrepreneur needs to bring to the table is passion, commitment and a brilliant idea.
You market what you believe in and I believe that the CBET Shepherding Model™ is the economic development model of the future, especially for developing states. In five years we should be able to tell if my beliefs are well-founded. I’ll keep you apprised of our progress.

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Networking With Ease For Small Business Start-Ups

Posted At : April 22, 2010 9:24 PM | Posted By : Marita Greenidge
Related Categories: Starting a Business

 

By Corey Graham 2.0

Networking is a key ingredient to the success of any small business start up. It’s important for the persons who are involved in the new business to be in tune with what is happening in their market or industry.  

The easiest way to network, I have observed is to have your name proceed you. It’s always easier to meet new people when they already have the appetite to meet you or they are at least curious about you. It’s pretty much like they have given you a stage to perform. They have given you their attention and they are expecting for you to wow them.  

Your name should always precede you! Yes, yes I can hear some of you out there thinking that this advice is not for you. Is this the big idea? Some are saying with a bit of attitude. I need to get known first? Or you might be saying I don't need to be any celebrity with journalists following me around and people staring at me wherever I go.  

These are all valid arguments but I am going to challenge you that the reality is that.  

Human's like humans not organizations.  

Sometimes we forget in our approach that people like to interact other people. As we build up our organizations brand and spend hours focusing on how to create a great customer experience with our product of service. We don't spend as much time developing our personal brands and professional personalities.  

I don't mean for you to be walking on a red carpet in designer wear with hundreds of photographers and journalists trying to get close to you.  

So we have established that you don't want to be known by everyone out there or you don't want to be a household name. So we are getting somewhere now. Networking is like anything else in life, you need to set a clear aim or vision for what you want to accomplish. 

Who do you want to network with?  Do you want to grow your contacts in a specific area? Do you want to get to a particular individual? Invited to a special group?

Once you have been able to create this clear picture of what you want to get you might realize that your aim might centre around some of the following.  Meeting potential clients, suppliers, freelancers, competitors, policy makers and other players in your industry right? Basically you would like your name to be an "office name" with these people.  

When they are making, big decisions and having big discussion you want to be present right? You help chart the course forward and be aware of the challenges in your industry right? 

Quick Tips on Networking

You got to look a networking like a continuous activity. Its about following up with the people you meet.  
 

Be approachable

This is a simple one. Are you approachable as opposed to accessible. You might want to double check that you are making it easy for the people to approach you. They are simple things that make the world of difference - moving around at the cocktail party - invite/encouraging other persons to contact you. Now of course to get to this point, you might need to make sure you are present at the events the people you want to meet are attending. As a small business start up its critical that you are present at these gatherings to be up to date with your market and industry. 

Say something profound 

Give intelligent and smart input at any appropriate forums - meetings, seminars etc. When the time comes be prepared to speak. This might seem like an obvious point, but it is something that is often overlooked. You might have a room full of quiet people and after you speak, you might be a little disappointed by the response. The interesting thing is that that comment might get that person you really wanted to me coming up to you to find out more about you.  

Be in the media

Where possible make yourself available to speak with the media. In a Web 2.0 world this might also take the form of taking the time to write comments on interesting articles you might read online / to participate in online discussions. 

Follow up

This is the most important thing to networking. You have got to work the network. It’s important that you follow up with those persons you meet at cocktail events. 

All things considered networking is easiest when you are doing it consistently. When you are doing your homework by making sure to follow up with those you find interesting and remaining accessible. Networking, meeting new people becomes automatic. It can make the world of difference in your small business start ups.

Corey Graham 2.0

 

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Believe Big!

Posted At : April 19, 2010 10:33 PM | Posted By : Marita Greenidge
Related Categories: Starting a Business,Inspiration

By Kathy-Ann Fletcher

“Believe Big. The size of your success is determined by the size of your belief. Think little goals and expect little achievements”. David J. Schwartz Author.

 
There is a shift taking place in the thought-pattern of Barbadian entrepreneurs toward the pursuit of their dreams. It is promising to see young Barbadian entrepreneurs no longer limiting the extent of their success by restricting the scope of their vision. This has not always been the case as entrepreneurs especially small business enterprises, would place a ceiling on their own success out of a misguided belief that there was a barrier to what they could achieve.
 
However, we currently have Barbadian entrepreneurs pursuing dreams that not only have the potential to make them great financial and professional successes, but also possess the capacity to improve or enhance the lives of their community, island and even the world. While this may sound like an exaggeration to you, we have products designed and created right here in Barbados whereby these innovations were in use before they were commercially adopted by other parts of the world.
 
Take for example, solar energy which had its commercial presence here for over 3 decades via the solar water heaters now produced by three significant companies. These were established here years before 'going green' was even a buzzword globally. This is inspirational to young entrepreneurs and evidence they can be trailblazers in their chosen field.
 
Do you know what a local chain of beauty stores, a regional conglomerate and a global fashion empire have in common? They are all dreams young Barbadian entrepreneurs are actively pursuing. These are big dreams. They require dedication, ingenuity, commitment and a determination to persevere even in the face of opposition but they are not out of the reach of these enterprising individuals. 
 
Many current and past entrepreneurs have been a victim not of a lack of creativity or ingenuity but to thinking themselves out of their dreams. We have been socialised into thinking that the size of our country dictates the magnitude of our potential for success. For example, when we confide our dreams to persons that we trust, the response is often ‘how reasonable is that’ or ‘that is too risky’ or ‘that dosen’t sound viable’. This response combined with our own self-doubt causes us to scale down our vision or abandon our dream altogether. We back down out of guilt or because we believe thinking big is selfish or worse yet you don't want to have the reputation as 'that fool out there chasing pipe dreams'.
 
However, the change is coming that shows that our success is not determined by the size of our country but rather by the breadth of our dreams and the depth of our thought. Take a look at those who have been largely successful in this country and on a global scale. They did not achieve their success by restricting themselves due to self-doubt or by adhering to the warnings of their naysayers. Their accomplishments were due to the capacity to think big and aim high on the pursuit of their dreams and getting out there and putting their plans into action.
 
Technological advances such as the internet, economic agreements and the ease of travel are all facilitating global reach for Barbadians who have an ingenious product/service idea and are bold enough to think big and put those thoughts into action. By taking such a bold step, entrepreneurs are not only investing in their own success, they are also investing in Barbados' economic and social development and stability. 

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