Summary
This article is a review of the stages that every entrepreneur usually goes through to reach the level of general president of their own international corporate, starting from the initial idea of a micro business.
It is divided into 7 sections, which briefly describe the general situations facing the modern entrepreneur.
Followed by topics such as: how is every entrepreneur; the difference between entrepreneur and businessman; type of risks must take every company to boost its growth; aspects of any expansion in companies consolidation of the company and its market; its participation in the stock market and finally the diversification of its investments.
The businessman as an individual
Much has been written about entrepreneurs, but really, little has been characterized by describing the real stages they go through, until they became great entrepreneurs such as Carlos Slim, Bill Gates and Donald Trump, just to mention a few cases.
Every company has its beginnings based on three characteristics: the idea, the capital and finally its administration.
This can be carried out from a single person who has all three points or by several partners.
Call the entrepreneur who has the idea and concept of a product or service to perform, an investor who makes available the capital necessary for the initial start-up and maintenance of the business and, last but not least, the person who will be in charge to be accountable and to manage the new business to be started.
Most of the articles and books published always focus on the typical characteristics that people must have, in order to become good entrepreneurs, such as: entrepreneur, motivation, wide vision, creativity, open mind, discipline, perseverance, honesty, love of work, leadership, teamwork, humanistic culture, incorporating qualities and integration of internal and external elements to the company, respect for ecology, prudence, strength, patience, perseverance, cooperation, passion for product or service excellence offered and, finally, provision of service-sense-social responsibility.
Daniel Goleman, Doctor of Psychology from Harvard University, is the creator of a new concept applied to the businessman, as well as, to the new leaders (Political and Managerial) and, all kinds of workers; called "Emotional Intelligence".
This new concept of intelligence, which promotes personal and professional excellence, ensures that higher levels of leadership and efficiency are achieved in companies, through self-knowledge, self-confidence and self-control, commitment, integrity and skill. to communicate with others.
Points that develop, with the ability to change qualities such as empathy, initiative, adaptability and persuasion.
Those qualities take us back to what we already know or at least we are aware that they are characteristics that every entrepreneur should or should have today.
But realistically, not all of us can get to have all the good personal qualities, we could come to consider that all of these qualities mentioned above can be developed if one wanted, but we would never have the high, balanced and prefect levels as psychologists tell us..
"Each head is a world" and we all think and behave in a totally different way, it is true, also that there are behavior patterns or indicators to measure the capacities, qualities and abilities, but the performances and results of each individual will always be very particular seen from a very meticulous perspective.
These patterns are what I intend to refer to in this article, in order to classify them in stages of consolidation of companies.
The entrepreneur who became an entrepreneur
The most common case that encourages us to start a business is the personal need to be your own owner.
Dreams in life, goals specifically speaking, also lead us to start a business.
The initial idea of the first business, therefore, starts from the creativity of being able to create or offer something totally new, from a passion or personal taste that gives you motivation to put it into practice in your daily life; There are also cases of implementing something that did not exist in the area, so to speak, observed some idea of a business or company and, you transfer that idea, to carry it out in your place of residence or simply where you think it convenient that it can work. motivated to achieve a satisfactory monetary gain.
This last option is taken by the workers, who seek to ensure their old age.
Therefore, what differentiates an entrepreneur from other people, is to realize or carry out that idea or dream.
Obviously, not all creative people necessarily serve as entrepreneurs.
Many people are dedicated to offering or selling creative ideas.
Being clear, that the so-called entrepreneur in its early stages will be the person in charge of undertaking that idea, carrying it out into reality.
Its quality will be to see that latent opportunity to be able to start something concrete and with possibilities of economic success.
A company must fulfill its main objective, which is the generation of economic wealth for the entrepreneur or his group of shareholders or partners.
In Mexico, there are many companies that, at the beginning, do not have an accounting system, that is, they only have poor control of entries and exits, and their income is not used efficiently in the expansion of the business.
Ultimate reason why most first-time businesses are unprofitable and bankrupt.
Therefore, entrepreneurs who are organized in their business will have a greater chance of success with their company.
Next step, expansion
This need to be an organized person, with a business culture (distinguish between investment, savings and personal expenses) and a broad vision of things.
It manages to achieve, the use of a general balance and, income statement for decision making, together with the control of sales and inventories, which demonstrate a serious basic administration of any consolidated company.
This businessman has separated what corresponds to the company to continue operating with increases in expenses and costs, seeking not to stagnate, and the expenses of his house.
But even so, it is mostly the case that an external push is needed, in order to expand the business to a level that achieves greater economic benefits.
This external push is the need to go to request a credit. The survival of this stage is characterized by the entrepreneur knowing how to evaluate and analyze that loan.
That is where financial information comes in, as a support for decision-making in all companies, without these tools, it will be unlikely to get credit at first.
"Nothing ventured nothing gained"
The first loan will be for the opening of a new branch, in most cases it is at the local level, moving on to municipal levels, until the state border limits can be crossed within the country of origin.
This whole process will take place over a long-term horizon, at a stage called market maturity in terms of the product or service offered.
Everything will depend on the number of distribution channels or the number of branches.
In this stage, which is the longest, the survival of the company with its respective expansions will depend on whether the credits or investments injected into the company are more profitable than the amount of the debt.
That is to say, that the financial flows of the company are so profitable, that it is enough to settle the debts or commitments made, allowing recapitalization for the company and economic benefits for the owner.
This maturational process of the company is where the businessman will demonstrate his leadership and decision-making capacity.
Since you will begin to delegate responsibilities to managers or branch managers, since this, will not be able to be in several premises or branches at the same time, you will necessarily need to trust and formulate human and financial resource strategies that allow you from your headquarters to be able to monitor and control your other businesses.
It will be observed that said entrepreneur, must have extensive knowledge in his field of work, incorporate knowledge of technological implementation and better administrative tools.
You will be well informed about internal and external issues that occur to the company.
And perhaps, the most relevant characteristic for the continuity of productivity and efficiency in any company, which is to be convinced and active in promoting aspects such as; the continuous training and formation of its workers and employees, promoting education in society, linking universities with companies. Creating a good working environment and broad professional development.
The consolidation of a great company
You should not always think of a large company, as we usually imagine them, instead it will mean that this business size already has detailed and advanced information, with cost accounting where it allows you to analyze profitability by product lines, which they generate and use budgets, which analyze with mathematical methods the inventory levels that they must maintain, etc.
They will use from the simplest of network technologies to the highest in production.
Having reached these high levels of business, our original entrepreneur becomes an advisor to his own company, becomes a president who has a cabinet or board of partners (or investors) who help him in making decisions about which it is the best way forward for the company.
This is where the entrepreneur, now named president of the company's board of directors, hires people who use their creativity to achieve continuous positive change for the company.
Continuous change and innovation will keep the company positioned in the market through remaining creative.
Characteristics of partial and not total change in the entrepreneur, occur during this stage, since the physical work employed in the initial business and the use of emotional intelligence are left behind to make way for the mental or intellectual work of a business culture developed and based on analysis, evaluation and the purest vision of leadership in human beings.
Quote on the Stock Market
In the large company, such high levels of wealth generation are achieved, as well as high costs and expenses (operating and administrative) that bank loans become insufficient and forces large corporations to resort to broader sources of financing.
Whether for the issuance of debt, allowing you to finance the company itself, reasons for capitalization of assets or reduce risk. Or simply invest in other assets or various investment funds.
When this broad financial world that concerns the Stock Market is reached, it provides a presence or name to international magnitudes in foreign markets.
Whether for export purposes, expanding the market value of the company versus the book value, increasing the value of the assets of the company. The businessman becomes one more cog in the great capitalist machinery of generating economic wealth, playing an important role in the national economy.
The basket of golden eggs
The entrepreneurial aspect, both can disappear throughout the aforementioned stages or can be further developed.
Large entrepreneurs, throughout the long business journey, continue to undertake other new businesses. In the end, they have investments in various headings, sectors, industries or companies in particular.
Either by starting them or supporting them with investments out of your own pocket.
A leader with a business vision, does not put all his golden eggs in one basket, he distributes them in several baskets, since there is always the risk that for internal or external reasons the golden egg basket falls and, If this businessman had all his investments there, he automatically loses all his work and wealth.
To conclude this article, I remind all those entrepreneurs or businessmen that the great empires did not fall due to external causes, but to internal ones.
Bibliography
- CALVA, Mercado Alberto. Do you have the profile of the new entrepreneur? June 1996. Acus Consultores, SC México.CALVA, Mercado Alberto. "The big microenterprise and the big micro". February 1998. Acus Consultores, SC México.] GOLEMAN, Daniel. Emotional intelligence in the company. 3rd Edition 2003. Edita Vergara. Spain.KIRZNER, Israel M. “The Entrepreneur”. University of Malaga, Spain. SANCHEZ, Yvonne and Gonzalo Cantarrero. Pocket MBA. 3rd Edition 1998. Edita Martínez Roca, SA Spain.
