Too often business owners experience much difficulty in transitioning from founding entrepreneurs to working business managers. They may possess extensive knowledge and skills in their industry and field, yet have little awareness of the "business of the business" The everyday, mundane operational, monitoring, and human relations skills are not what inspired and motivated them to launch their dream enterprise. But the "devil is in the details" and these management necessities are what will keep the venture afloat and prospering. Many businesses born of a feasible idea and a good market opportunity do not survive the start-up launch and the subsequent entrepreneurial obstacles which never seem to go away. They often remain in such a survival mode until failure. No matter if they endure three, five, or ten years, without a successful transition from entrepreneur to manager, the ten years or so of experience is really only one year experience ten times over. The Entrepreneur Manager - The Business Man's Business Plan will assist with this transition and the management functions of planning, organizing, leading, and controlling; all essential to manage a growing, profitable business. It is the entrepreneur manager's business plan and hands-on tool.

$$$ The Entrepreneur Manager

The Business Man's Business PlanBy Daniel R. Hogan, Jr.

AuthorHouse

Copyright © 2009 Daniel R. Hogan, Jr., Ph.D.
All right reserved.
ISBN: 978-1-4490-1135-2

Contents

Introduction: Entrepreneurs as Leaders and Managers.....................xiiiChapter 1. The Entrepreneurial Process..................................1Chapter 2. The Management Process.......................................23Chapter 3. Management Skills............................................39Chapter 4. Staffing, Training, And Motivating...........................55Chapter 5. Communication................................................69Chapter 6. Conflict And Stress Management...............................85Chapter 7. Planning.....................................................95Chapter 8. Financial and Cash Flow Management...........................119Chapter 9. Financing and Funding........................................141Chapter 10. Ethics......................................................181Chapter 11. Exit Strategy...............................................195Final Thoughts..........................................................203About The Author........................................................205APPENDIX................................................................207A-1 Business Plan Outline...............................................209A-1a The Business Plan Presentation.....................................233A-2 77 Questions Every Business Plan Should Answer......................235A-3 Questions for Business Managers/Entrepreneurs.......................239A-4 Business Loan Checklist.............................................241A-5 Venture Capitalist Due Diligence Checklist..........................243A-6 Patents, Copyrights, Trademarks.....................................249A-7 The "C's" of Credit.................................................251A-8 Hogan's 1% Rule.....................................................255A-9 The Entrepreneurial Process.........................................257A-10 SBA Loan Programs..................................................259BIBLIOGRAPHY............................................................273GLOSSARY................................................................275

Chapter One

THE ENTREPRENEURIAL PROCESS

"To open a business is easy; to keep it open is difficult." An ancient Chinese saying

During my early banking career a former customer and business-owner advised that he did not know how to spell entrepreneur, nor did he know what it meant, but everyone said that he was one. He was without formal education but he was a master at his business. An expert in the petrochemical industry with much hands-on technical skill, a dynamic motivator of employees with excellent pragmatic communication skills, and a true leader who was always able to clearly enumerated the objectives before his company and to have others share in the vision of achieving the ultimate goal.

From the conception of the business idea, he and other entrepreneurs followed the entrepreneurial process to become a successful owner-manager by starting, growing, and managing a profitable business. They all have a strong passion for the business with targeted focus on their customers and products/services; demonstrating unfailing persistence and tenacity in pursuit of their vision.

That entrepreneurial process through which a new venture is created and an existing venture is sustained is as follows:

The decision to become an entrepreneur; to be their own boss and work for themselves, to pursue their own ideas, and to realize the financial rewards

The development of a successful business idea, to recognize and seize the opportunity, to generate feasibility ideas from industry and competitor analysis, and to develop an effective business model

Taking the steps to move from an idea to an entrepreneurial firm, taking the calculated risks and building a new venture team; writing, rewriting, and revisiting the Business Plan (Appendix A-1), assessing the new ventures financial strengths, viability and sources of funding; overcoming adversity

Managing and growing the entrepreneurial firm to maturity while maintaining the entrepreneur spirit, innovation, and culture with constant emphasis on the five "Ps" of marketing success (People, Product, Price, Promotion, and Place)

There is no one or simple definition of what an entrepreneur is; most would agree that it is someone who recognizes a marketing opportunity, assembles the resources to seize the opportunity with a willingness to accept the risk in pursuing the vision to create something of value and reap the reward for the effort and sacrifices. Someone with the ability and talent to convince others to join in the effort either with their energy, time, talent, and capital to share in making the dream a reality; the entrepreneur is an innovative visionary with effective communication skills to motivate others to share the vision and endure the sacrifices to reap the ultimate harvest of personal and financial satisfaction.

Surprisingly there are many that answer this call; many seeking opportunity for financial independence, monetary rewards, the recognition and accolades of others, and personal satisfaction. Some with well-planned efforts, carefully thought-out and researched, others, rather carelessly, with little thought toward the feasibility of the vision or to the capital requirements to reach fulfillment of the venture and with what to do, how to manage, if success is realized. Those that start a business with little regard with managing and growing that business, with dangerous inconsideration for all who may follow, join, or do business with the venture is not an entrepreneur but an opportunist. A few do so quite deliberately to seize a momentary personal reward no matter whom else may be hurt, but most are well-intentioned and simply not aware of the difficulties and pitfalls ahead, nor the management and people skills needed to succeed. Failure, often perplexing failure, is the usual result. Quickly the entrepreneur must realize that if this vision is to become a reality, if the venture is to grow profitably with the ability to sustain itself, management skills and a talented team must be acquired.

As a rule entrepreneurs normally do not have the resources to launch an enterprise. They must convince others to participate with money, time, effort, talent, and commitment. To solicit others to join in and to believe in their vision requires some of the management skills and traits necessary to grow and operate the venture. Most notably are communication skills and traits of trust, honesty, and integrity.

All of the boring skills that by the entrepreneur's very nature are contrary to his reason for going into business, to his personality and thinking, are required. He must obtain a working knowledge of them and must surround himself with those who can compliment him with these abilities. Besides the technical skill of the industry entered, which usually all entrepreneurs possess, are the following:

Writing and Oral Communication

Business Management

Time Management

Listening

Ability to Organize

Network Building

Coaching

Planning and Goal Setting

Decision-Making

Marketing

Finance

Accounting

Negotiation

Cash-Flow Management

...