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Enterpriship – The Art and Science of Entrepreneurship, Leadership, and Management

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Every individual who starts, owns, or is a member of the management team of an enterprise, should strive to build sustainable advantage. Sustainable advantage is essential to value creation because cash flows become predictable and reliable over long periods of time. As a consequence, it is easier to plan for investments in new endeavors and to maintain contingency reserves for downturns.

Building sustainable advantage requires proficiency in the disciplines of entrepreneurship, leadership, and management. Collectively, these three disciplines embrace “enterpriship.”

Enterpriship is both an art and a science. Art is an occupation that requires both knowledge and skills; science is method for systematizing knowledge. Through both knowledge and skills, enterpriship provides a systematized approach to building sustainable enterprises by employing the techniques of entrepreneurship, leadership, and management.

Entrepreneurship is a competency for starting, developing, and assuming risk for an enterprise. Leadership is a competency for aspiring, inspiring, and motivating others. Management is a competency for directing and controlling events and activities – management as a “team” has the authority and responsibility for the enterprise.

Being proficient in all three competencies requires experience. Entrepreneurs may lack the leadership and management competencies, leaders may lack entrepreneurial and management competencies, and managers may lack the entrepreneurial and leadership competencies to build a sustainable enterprise.

Upwardly mobile entrepreneurs have to demonstrate to investors that they can build large markets. Lifestyle business enterprise owners, such as dry cleaners, hairdressers, professional service providers, restaurateurs, and retailers, are responsible for everything in their businesses. Executives and managers in larger enterprises are under constant pressure from investors to generate quality earnings on an ongoing basis.

The enterprise depends upon the use of all three enterpriship competencies as do the employees, customers, suppliers and investors.

When entrepreneurs start enterprises, they tend to focus on the benefits and features of their products and/or services. Intrapreneurs, who are agents of change in established enterprises, tend to do the same thing. However, focusing on products and/or services alone is insufficient for building sustainable advantage over time.

Without people there is nothing in business. Processes must be effective and efficient at delivering quality products and/or services conveniently. If an enterprise can’t deliver, a competitor will.

Hence, the management team collectively must be proficient in entrepreneurial, leadership, and managerial roles that dictate successful people-oriented, process-oriented, and product and/or service capabilities.

The entrepreneurial role is both process-oriented and product-oriented, through which innovative ideas are transformed into value at every stage of an enterprise’s development.

The leadership role is people-oriented, through which direction is set that others will follow to achieve results – equally applicable to top-level executives, team leaders within functions, or anywhere in between.

The managerial role is process-oriented, through which resources (time, materials, and supplies) are applied to activities to achieve results.

These three roles embrace the planning and policy development, deployment and execution, and performance measurement activities of the enterprise. Deployment means positioning the resources of the enterprise in the best markets for its products and/or services. Execution means getting things done through people and processes effectively and efficiently.

Unless the management team employs these three enterpriship competencies collectively to address people, process, and product and/or service capabilities, the enterprise will be unable to build sustainable advantage over time, and will ultimately decline, and maybe fail.

If the management team can systematize building sustainable advantage through the effective and efficient use of people and processes, then there more time to spend on developing the benefits and features of products and/or services. Enterpriship provides the approach…

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Source by Nigel Brooks

Views: 1

January 31, 2020
Automobile Business Plan – Four Steps to Success

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Like other business plans, the contents of an automobile dealership business plan cover four primary steps towards success. These steps are “opportunity”, “capacity”, “activities”, and “results”.

Opportunity

The industry, customer, and competitive analysis in your business plan proves the opportunity. This should identify that customers in your local market are in need of a dealer of the type you’ve chosen to be because competitors are not fully serving their needs, or because their demographics are changing (more population, richer, poorer, more families, etc.) The opportunity could also be that a certain combination of services by your dealership could improve on what competitors are currently doing. The overall industry situation should look ahead to how the car sales market will be doing six months, one year, or more in the future, when the dealership will actually be open.

Capacity

The experience of the management team, your license as a car dealer, and the financial resources the partners can bring to the table cover the capacity of the entrepreneur to jump on this opportunity. Funders reading the business plan expect that there will also be an element of cash missing from the entrepreneur’s capacity at the moment. Otherwise, they would not be reading the plan in the first place.

Activities

Marketing and operations plans cover the activities the company will engage in to bring in car buyers (and car sellers if you are a used car dealer as well), and run the business as efficiently as possible. As a small car dealer, consider how you can make up for this lack of scale, and the cost savings that come with it for dealer chains, through creativity and hard work.

Results

Finally, the projections of business success and financial section of the plan show the results that you and investors should expect. If results take into account the full costs of the methods you’ve described, and include adequate compensation for staff and key team players, readers will be less likely to question elements on the cost side. If your revenue projections are based on reasonable, researched assumptions about the car buying behavior of your local market, then readers will be more likely to accept this side of the projections as well.

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Source by P. R. Kennedy

Views: 0

January 28, 2020
CFD Trading Benefits

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Contracts for Difference (CFD) are attractive trading instruments to many traders. This financial derivative has numerous benefits that draw the attention of amateur and expert traders. CFD trading is very flexible and an efficient alternative to traditional investing.

Here is a list of reasons why CFD Trading is popular among traders:

No stamp duty

A stamp duty is a tax imposed on numerous acquisitions, including selling real estate, cars, and assets belonging to a business. Remember, CFDs give traders the opportunity to speculate on markets without physically owning the underlying asset. Since you do not own the underlying asset, you won’t have to pay stamp duty.

Trade in both rising and falling markets

Another solid advantage of CFD trading is that traders are not restricted to open in only one position. CFDs are very flexible financial instruments because it can make you trade in both falling and rising markets, allowing you to produce more effective strategies for more profit.

Margin Trading

One of the most notable aspects of CFD is that you can trade using margin. This means you don’t need to purchase the full value of an asset to open a position, you only need to deposit a fraction of the actual trade size of each transaction. For example, you have a CFD share for $100, if your broker has a margin requirement of 5% then you only have to pay $5 to open the position.

Trading using a margin means you can multiply your profit although it is important to recognize that losses can also be multiplied in margin trading. Thus you can lose more than your initial deposits.

Hedge Positions

CFDs are one of the best hedging tools for traders. If you are anticipating a loss in your current position then you can limit your potential risk by using a CFD to hedge your position. For example, if you have a short position in an asset that is accumulating losses, you can open a long position to balance your losses. The long position will start to gain profits once the prices move in the upward direction.

The foreign exchange market has numerous features that attract investors and traders alike. One notable feature of this immense market is that it is a decentralized marketplace – trading transactions don’t happen on one centralized exchange. In the Forex market, fx trading is conducted electronically or over-the-counter which means transactions happen electronically.

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Source by Stephanie Torres

Views: 0

January 28, 2020
Investing 20,000 Dollars – Ways to Double it in a Month

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$20,000 is a lot of money but $40,000 would be nicer, so let’s explore what you could invest that money in and consider possible scenarios that can double it in a month or less. This type of money is quite a decent amount of capital, however, it is not enough to buy real estate without taking out a loan. To double your money at any level is quite a feat, but as you will see, not impossible.

First, a word about risk. All investors look at the downside or the risk profile of a potential investment before they even think to consider investing, no matter what the promised returns are. Risk is an important consideration and it would do us good to define the ideal risk free investment so we can picture better what to look for.

First, when you hand over your money to another, that is the underlying cause and underpinning issue of risk. You have to trust and you have to hope that your money will be returned with the promised interest yield. When you hand over your money in most situations all you get is the evidence that your money is with them. You get no tangible collateral in exchange for that money.

Consider a house on the other hand. A house, or any tangible item for that matter that has an existing liquid market, is a large piece of collateral and you have direct control over that asset in exchange for the money you paid. This means you can control the value to a degree and this is an important point.

To double $20000 in under a month, you could look at a land investment. A paper re-hab, unlike a normal re-hab where you roll your sleeves up and paint a house, a paper re-hab is one where you fill in a few forms and immediately increase the value of land. For instance you could purchase a lot that is close to an industrial area and re-zone it industrial from residential. Providing there is a distinct shortage of industrial land in the area, you have just increased the value of that land tremendously. Or you could put in the paper work to split the block to subdivide. This would mean you have 2 lots almost worth the same as the original. This type of value manipulation is crucial to your risk profile and the ultimate level of returns.

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Source by Terry Hart

Views: 0

January 8, 2020
Cash Flow Statement Manipulation

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Unlike in the accrual accounting world, cash flow is an efficient way for investors to measure a company’s financial health and operational strength. The whole idea of recognizing revenues when realized or realizable can be tricky when an investor has to make a financial decision regarding a certain company. Whereas, having a good understanding of where the money is coming from and how it is being used is much more helpful for an investor. However, calculating and analyzing cash flow isn’t as easy as finding the difference between what money came in and what money went out in a company’s cash register. The difficulty arises from the tricks that companies use to manipulate their cash flow statement. Companies often try to promote the good and hide the bad in their financial reports, which is why the cash-flow statement has seen some manipulation over the years. The following explains how this is done.

When looking at a cash flow statement, there are three sections that the statement is divided into: operating, investing and financing. The most important section to an investor would be the operating section because this is where one can find the money a company is generating from its operations. Investors want to see more cash generated from a company’s operations rather than from borrowing or equity transactions.

Unfortunately, it is not always clear where a company is generating its cash from. One way company’s skew their operating section is through the misclassification of inventory purchases. The costs of purchasing inventory that eventually will be sold to customers, should be classified as an item in the operating section of the cash flow statement. However, some companies disagree and feel that purchasing of inventory is an investing outflow, which would increase operating cash flows. One should question this method of accounting because large investing outflows shouldn’t occur as part of a company’s normal cost of operations.

In addition to misclassifying inventory purchases many companies capitalize some expenses which increases a company’s bottom line. When a company capitalizes costs, they write off the cost of an asset gradually, in installments, instead of taking all the costs at once. This allows companies to record the cash going out as an investing activity, because the cash going out is considered an investment, rather than a deduction from net income or the operating section. As a result, the companies cash flow from operations will remain the same and look much better than it really is.

Next, companies give their operating cash a boost by selling their accounts receivables. This speeds up a company’s cash collections, but it also forces the company to accept fewer dollars than if the company had waited for customers to pay. This action can have a negative impact on a company’s operating section. The decline in accounts receivable means more cash has come in through the sale of receivables, but this would give investors the wrong message. By accelerating collections a company isn’t improving operations, they are just finding another way to boost the operating section of the statement.

Another cash flow statement manipulation is through the account payables. Sometimes there is a substantial increase in the accounts payable line item which would mean payments are not being made to suppliers. If these payables are left open for a long period of time, then a company receives free financing, which increases the operating section inaccurately.

All of these examples are ways that companies can easily manipulate their operating section. These examples give companies an opportunity to show that they have more money at their disposal for operating expense than they actually do. For instance, in 2000 Enron reported it had over $4 billion cash flow from operations, which in reality was overstated by $1.5 billion.

This manipulation caused Enron’s stock value to increase, which in turn led to Enron’s collapse. Another example in 2002, Tyco International delayed paying its executives their first quarter bonuses to increase the company’s operating cash flow for the quarter. This move caused the company’s operating cash flow to wrongly increase by $200 million.

The above examples show how easy it is for the cash flow statement to be manipulated.This goes to show that investors should be careful when looking at this particular financial statement. An investor should be consciences of any manipulation that can cause dishonest financial information. In conclusion, the cash flow statement is the most useful financial statement to an investor, but just as cash easily switches hands, the cash flow statement can just as easily be manipulated.

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Source by Ryan M Henzes

Views: 0

December 30, 2019
Basics of Money Management

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Money plays an important part in our every day lives and making the most of what we have will help us live a life free of financial pressures. By learning some basic rules, you can make life easier for yourself and for those who depend on you. Here are my basic rules.

Rule one. Don't borrow money for consumable goods. What are consumable goods? They are stuff that lose value over time. Stuff you want but can live without. Examples are electronics, subscriptions to magazines, auto mobiles etc.

Rule two. Live within your means. In other words, spend less than you make. I know that may sound hard if you are on a tight budget but to just take easy credit when it is available to you is simply inviting financial disaster.

Rule three. Become financially educated. This can only be done by reading all you can about the various investment options available to you. There is really no excuse for not being kept up to date with all of the financial news because there is so much information on financial matters available on and offline.

Rule four. Diversify. A mistake that some investors have made in the past is to put all of their eggs in the one basket only to find that the company they invested their money in went bellyup. Prudent investors diversify. That is spread their money around in various companies to minimize their risk.

Rule five. Keep good company. There are people about who have bad attitudes toward financial planning and money in general and if you spend too much time with these people there attitudes can affect your thinking.

Rule six. Take responsibility for your own finances. Some people will ask others for advice just so that they have someone to blame if things do not work out for them. A financial advisor will tell you to do this or that but at the end of the day it is your money and you are the one who reaps the rewards when the markets are up or takes a hit when they are down.

Rule seven. Take a long-term view of your investments. Investing your savings is a long-term game and in order to take advantage of the gains in the markets you have to take a hit sometimes which means not panicking when the markets are going down.

Rule eight. Keep the big picture in mind. In other words have a target or goal in mind. Are you saving for a house deposit or your retirement?

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Source by Robert Alan Stewart

Views: 0

December 29, 2019
Things to Know About Intraday Trading

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Traders make quick gains in intraday trading:

Intraday trading, meaning single day trading, is a preferred choice for several investors that want to square off their deal before the end of a single day session. By squaring off the deal, it means that the trader would have to the sell and buy or buy and sell in the single day before the market ends. For instance, if the trader purchased 200 shares of XYZ Company during the open market hours, then he has to sell the same quantity of stocks of XYZ Company before market closing and vice versa.

Online trading account:
To start intraday trading, one needs to have an online trading account. In online trading platforms, the investor should indicate in advance that the orders they are placing in the market are meant to be for intraday trading. Hence, it is not transferred to the account, and this position indicated under the intraday trading system is squared off automatically under the system if the investor does not do it before the market closes. However, if the stock is purchased on the delivery basis, then it is transferred to the Demat Account, which might happen after 2-3 days and then the trader can decide to either hold or transact on those stocks.

Invest in right type stocks:
Selecting the right stocks is very important in intraday trading to obtain maximum profits. Here traders should deal in liquid stocks instead volatile stocks. They must trade in right correlation stocks after research and track the market trend before picking the shares.

Benefits:
Several traders find intraday equity trading as an attractive option because the charges levied by the broker for the stocks traded are less than in the regular delivery system trading. Also, achieving high margin gains is possible in a day trading, wherein transacting multiple times of your investment value is permitted based on the policy of the brokerage firms. Moreover, the other benefit one gets is that these stocks are not carried overnight. Hence, the share price fluctuation due to external events will not affect the trader.

While intraday equity trading is seen as a smart option to make quick money on a daily basis, traders should understand the day trading strategies to make money gains and avoid chances of losses as this form of trading is riskier than investing in the regular stock market. Begin trading with the amount that you can afford to lose without facing financial difficulties. Moreover, when booking profits, do proper research; follow the intraday trading indicators to make a comprehensive strategy for maximizing returns.

Reasons why traders opt for intraday trading:

Some traders have a short-term trading vision and look for a quick exit from the market, ie, once their position reaches the minimum level of profits, they exit. These traders usually deal with the volume of transactions to make significant gains. They do many buys, sale transactions, and at times exit their position within minutes. Other traders go on the trend for intraday trading, make fewer purchases and sales and act patiently. Also, some take up intraday trading, when some significant event occurs, as they expect that specific stock to go up or down, due to the event.

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Source by Aaryan Sharma

Views: 0

October 10, 2019
Easy Ways Of Turning Bitcoin Trading Volatility In Your Favor

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It would be true to say that Bitcoin has enjoyed a real explosion as far as popularity goes when we are talking about cryptocurrency. This very popular cryptocurrency has hit among investors, traders and consumers and everyone is working to make a kill trading in Bitcoin. It has so much to offer as far as lower fees, transaction speed and increasing value which could be the reason why most people choose it for their trading. This is, however a turbulent market and to make it big you need to be a very smart trader when selling and buying it. With dedication and discipline, you can turn Bitcoin volatility in your favor. Here are simple but effective ways you can do just that.

Keep up with the latest Bitcoin news

News items may not all have an impact this currency, but the truth is that there are some items that could greatly influence its price. By gaining access to Bitcoin related news and live news feed for typical news, you could end up catching something on time so you make decisions that will bring you good luck with your trading. It helps to always be up to date with Bitcoin news and other unexpected news that could have an impact on its performance.

Use stop losses to your advantage

Whether you are just starting with your trading or you have been at it for a while, you need to be prepared for times when losses are inevitable. Nobody trades expecting to make a loss but the chances are always there hence the need to implement a reliable stop loss plan. The valuations fluctuate regularly and you need to be prepared for bad days. The market offers tools that you can automatically set to stop losses before they have severe impacts on your profits. Whether engaging in Bitcoin futures markets, CFD or cash, ensure that you use stop loss to keep open positions protected.

Understand technical analysis inside out

This is very important before joining the trade. Considering that there is no governing body or bank to influence valuation of Bitcoin, you need to be your own judge in more ways than one. If you do not understand market fundamentals and you do not even know how to analyze price charts or read price actions and applying indicators you are doomed to make the wrong moves. Remember the price models are speculative largely making it important for you to know all technicalities that truly matter.

Be prudent with your leverage

Leverage has the ability to boost your gains or magnify your losses too. If you are too much with your leverage then you will tend to be a little reckless with managing your money and this blows out the trading account at the end. On the other hand being too careful with your leverage can hinder performance considering premium trades may not perform to full capabilities as expected. When it comes to Bitcoin trading, you need to do a balancing act to enjoy good returns.

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Source by Shalini Madhav

Views: 0

October 8, 2019