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Entrepreneur's Manual

This version was saved 14 years ago View current version     Page history
Saved by Ben Casnocha
on July 24, 2008 at 7:21:08 pm
 

The Entrepreneur's Manual by Richard White

 

(in progress - organization later)

 

Wealthy Founder Problem: Being wealthy is a significant handicap in a start-up situation. Almost all of our largest and best-run companies were begun by people who couldn't afford failure. Since they coudln't afford it htey didn't tolerate it -- and therefore succeeded. The hungrier you are, the less you will allow half-hearted attempts.

 

Milestones of a Start-Up:

  1. Discovery of a viable market segment
  2. Formation and development of an outstanding and well oiled founders team
  3. Funding
  4. Proper market penetration
  5. Growth stages to industry leadershiop
  6. Freeing of the founders so they may pursue their required life styles

 

 

Management By...

 

Management by objectives (MBO) means that executives set the company's objectives in clear view of every employee, so company goals come before individual's goals. In other words, it's the vision thing. Maxims:

  • Surround yourself with highest caliber people.
  • Enjoy the task of delegrating authority.
  • Insist on planning for both yourself and your subordinates. Be jealous of your time and budget it skilfully.
  • Have the courage to make decisions. Also have the courage to reverse them.
  • Know your responsibilites in-depth. Assume the corresponding authorities.

 

Management by exceptions (MBE) means that one sets up standard processes to handle routine cases efficiently, with management time being spent only on exception cases. That management work is then naturally incorporated into an update of the standard processes through process improvement. MBE also includes a process for flagging important "exception" cases, such as too high a return rate or too many late shipments or too high an employee turnover. Maxims:

  • Skill at recognizing problems is just as important as your ability to solve the problems once they surface. Implement control systems which "flag" problem areas before they affect effects.
  • For every effect, there is a cause. Cure causes and the effects will be cured and remain cured.

 

 

Management by motivation (MBM) allows employees to make as much in rewards as they do in pay, but also includes many instant-by-instant intangibles like even-handed praise and constructive criticisms. Maxims:

  • Nothing breeds success like success. Recognize successes (small, medium, and large) and compliment those who are responsible for them, and illuminate them for all team members to see and imitate.
  • Let your people know you -- what you stand for -- and what you stand against. Have a short fuse for dishonestites, failure syndromes, insincerities.
  • People who do things make mistakes. The more a person attempts, the greater number of mistakes you should expect.
  • The best managers are outstanding salesmen.
  • Success is comprised of both drive and ability. The function is multiplicative.

 

(some taken from Steve Colwell)

 

Foundations of Building a Company

 

Axiom One: In a free enterprise economy, there are always more dollars searching for viable and developed ideas than there are ideas searching for dollars.

 

Axiom Two: Your company must be the image of what your industry needs...the industry will not conform and be the image of what your company needs.

 

Oftentimes competition can't handle new upstarts. The old bromide, "That company really hasn't been in business thirty years...it has been in business one year thirty times."

 

Effective Output Efficiences: What percentage of output would you guess that most companies realize if everyone gave his fullest to his company?

 

Self-Discipline: The hurdles you must clear are unforgiving to the disorganzied person. Before you start each day, lay out the day's priorities and force yourself to stay on course.

 

Zest for life: Don't disguise your zest for living. Enjoy yourself openly.

 

Growth industry: Address a growth industry and your chance of getting VC increases by factor of 10.

 

Experience: Do homework on the industry you want to attack, but you needn't have all the experience most experts say you need. Indeed, sometimes fresh eyes and lack of experience in the industry is the helpful thing.

 

Lockerroom Lawyers: They say everything is illegal. If something seems logical to you, if it appears ethical, and if your actions will benefit all parties, you are probably safely within the law.

 

Establish Personal Mini-Incomes: Establish side personal streams of income to supplement your main job.

 

Axiom Three: Your sales price is totally a function of your product's value as seen by your customers. In no way is your sales price a function of your costs to produce your product.

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