Entrepreneurship: The concept, application, processes, practice & prospects - Final part

The Five STAGES of a Business's (Entrepreneurship) Life Cycle:

Arguable some books minimize the stages or phases of business life cycle to just three or more. For the emphasis of this write up, we focus on the five below.

1• Pre Start-Up Phase: The key issues here are the; Testing Concept Feasibility, Developing Business Plan, and Acquiring Resources (Capital) and Personnel.

2• Start-Up Phase: The second phase considers key variables like Finding Customers, Building a Structure, and Generating Positive Cash Flows.

3• Growth Phase: This stage tackles issues like Generating Positive Cash Flows, Human Resource, and Sources of Financing.

4• Maturity Phase: This stages is critical as the business needs to be focused and well balanced to retain and maintain its successes and accomplishments. It includes doing and taking notes of the following: Innovating, Customer Retention, Professional Management, Efficient Management of Resources, Performance Appraisal, Motivation and Incentive to Workers, Strong and Robust Control systems.

5• Rebirth or Decline (Exit) Phase: This is the last stage of the business life cycle which determines the rejuvenation and revamp of the business, or the steep decline of the business for a possible liquidation and insolvency. We can be rebirthing our start-ups or winding off our enterprises.

My (KAILANI’S) Opinion on STAGES of a Business's (Entrepreneurship) Life Cycle:

1. Inception and Conception stage.

2. Penetration and Breakthrough stage

3. Staying or maintaining Relevance stage.

4. Growth and Expansion stage.

5. Exit/Decline or Death/Rebirth stage.

For the avoidance of doubt, I proposed the stages or phases of enterprise’s life cycle to be: Inception and conception, penetration and breakthrough, staying/maintaining relevance, growth and expansion, and exit/decline or death/rebirth to reflect simplicity and relativeness of our business environment and unique challenges in Africa.

I strongly believe we can easily relate to my opinion quite easily and realistically. The take home message is, we (enterprises/businesses or entrepreneurs) should all strive to know the stages of our business cycles and take necessary steps such that it represents the unique dynamics of our economic ventures. This to a large extent will effectively aid our business operations, sales performance and accomplishments of set goals.

The Challenges/Solutions of Entrepreneurship (Faced by Entrepreneurs):

1. Cash Flow Management

2. Hiring Employees

3. Time Management

4. Choosing what to Sell

5. Delegating Task

6. Marketing Strategy

7. Cash/Capital

8. Strapped Budget

9. Business Growth

10. Self-Doubt.

Challenge is part and parcel of our daily strides and endeavors. Likewise with enterprise or business ventures, we are vulnerable to be hit by serious challenges. We are susceptible to forces and dynamics beyond our reach and at most times, such forces and dynamics are above our control. As an entrepreneur or enterprise with the mindset of a ‘going concern’ and being in existence for the foreseeable future for an economic benefit, we should constantly work at such challenges daily.

Examples of such challenges as an entrepreneur or enterprise we ought to be conversant with and take into account are: cash flow issues, recruitment, timelines and deliveries, product/service to render, deputizing/supervision, advertisement (marketing), money/capital, budgeting, growth of the business, and self-confidence.

I urge us all to take these challenges into account and customize it to reflect our peculiar entrepreneurial circumstances. As well, take ample time to understand fully the “how”. “what”, “when”, “where”, “who/whom”, and “why” questions on the challenges you face with your business or entrepreneurship.

Proposing answers or solutions to your unique and typical challenges you faced with is your half way guarantee to success, prosperity, and growth of your enterprise. Solve and work on the challenges (problems). Success, prosperity, continuity, and growth is guaranteed.

Proposed Solutions to the Challenges:

1. Accept easy and convenient payment modes, issue electronic invoices and receipts, delay payables and quicken receipts.

2. Opt for excellence targeting, sort creativity, look out for a problem solver, engage a critical thinker, and retain a multi task performer with a great interpersonal relationship.

3. Ensure discipline, punctuality and adherence to timelines. Efficiency and optimal productivity should be inculcated in workers.

4. Be confident on the 'what, why, when and how' of your sales and always better your products with packaging, price, promotion and customer satisfaction.

5. Delegate to competent and capable hands in clear task to perform, and supervise as often as you can to ensure excellence and target accomplishment seamlessly.

6. Use mediums and platforms of marketing that brings the best results and translate into huge sales and profits.

7. Never consider going in for debts financing or loans. Plan your short, medium and long term cash requirements along with the vision and mission (growth prospects) of your business.

8. Your budget should be exact to match expenses to inflow and to cater for any variance in the calendar year of your business life cycle.

9. Growth comes with unexpected commitments, plan your growth and guide the expansion of your business to line with your long term vision and aspirations.

10. Be your own believer and number one motivator.

The solutions are directly responding to the challenges listed above. The solutions gives explanations and remedies on how the challenges can be rectified for the optimal accomplishment of set goals. As an entrepreneur or business, let’s be heedful of the proposed solutions and arm ourselves with it to ensure operational excellence, work progress, goals accomplishment and growth of our establishments.

Sources of Funding to an Entrepreneur or Start-ups.

I term it the Five (5) 'Fs':

1. Funds (Personal). Highly and strongly recommended.

2. Family (Support & Aid). Highly suggested.

3. Friends (Donations, Assistance & Partnership). Warmly welcomed and highly encouraged.

4. Fraternity (Associations, Groups, Cooperatives, Circles, etc.). Precision and clarity is decisive in welcoming this source.

5. Financing/Finance (Arrangements as: Lending, Borrowing, Loan, Credit, Leasing, Debts, Overdraft, etc.). This source is a ‘NO NO’ for a start-up or business. Highly and Strongly Discouraged (NOT RECOMMENDED).

The sources of funding to entrepreneurs or business can be from: personal funds, family support or aid, friend’s donations or assistance, cash or money from fraternity we associate with; and financing/finance such as debts, loans, borrowing, credit, etc.

As an entrepreneur or a start-up business, we strongly advice you shun away from financing or finance that comes with interest payment and other related strict conditions. A good business idea or plan should be able to finance not less than 70% of the total capital for such enterprise or business to smoothly take off.

Capital mix for an infant business is recommended to be: Equity (Assets) financing higher than Debt (Liability) financing. Meaning, the aggregate (sum of) money to the business (owner) should be more of: ‘personal funds, family support or aid, friend’s donations or assistance, and cash or money from fraternity we associate with’; than ‘financing/finance such as debts, loans, borrowing, credit, etc.’ that comes with interest payment and other related strict conditions.

To conclude, I wish to call attention to an aspect of this write-up which I deliberately withheld. That is, the Business Plan (Idea) Writing (Report).

As the name implies, Business Plan basically details everything on what the business or entrepreneur intends to work towards achieving with analysis on the: Technical, Managerial, Administrative, Operational, Marketing, Financials, Sales, SWOT, Entry & Exit notes, Legal, and other Planning tools. The business plan details the blue prints, operating framework, and essence (objectives and more) of the enterprise. The business plan is the going concern of the enterprise. Business plan is for a period of time and should be reviewed to capture prevailing realities of the business environment.

To stress on the concluding notes, I wish to reiterate how significant we need to place on the sets of philosophy, values, culture, principles, ethics, and standards we ought to carve for our businesses or person (owner/investor/manager). I have the strongest conviction that our values, standards, ethics, and principles ultimately defines our character and sense of business purpose. Let’s work on our values, standards, ethics, and principles.

Try to carve an organizational culture and philosophy for your business and person. That notwithstanding, it is our hope that you find the following suggested sets of values, standards, ethics, and principles worthwhile.

They include but not limited to: trust, integrity, honesty, trustworthiness, confidence, good rapport and personal relationship, respect loyalty.

Attitude and character, acceptance of failure and disappointment, concentration, focus, candidness, insight, foresight, oversight, competence, intelligence, smartness, know-how, professionalism, perfection, efficiency, effectiveness, strategy/strategic, tolerance, assertiveness, pragmatism, reliability, selflessness, eloquence, Proactiveness, determination, sacrifice, dedication, hard work, zeal, punctuality, time bound, conscious, boldness, calmness, precision, clarity, and to be confidential.

These sets of values, standards, ethics, and principles are what I refer to as the intangible makers of businesses or breakers of businesses. They can easily make and unmake you.

They be should be accorded all the necessary courtesies and be seen as a necessity, hence, always a WIP--- work in progress. Work on it now and always, as human as we are, our mood and emotions (sentiments) are unpredictable and highly volatile. Let’s keep ourselves in check and make efforts to keep our business (and individual) values, standards, ethics, and principles a top notch priority. Because, they define who we are and often is the lasting impression people have about us. Make the lasting impression of you be the very best.