MODULE 6: Successful Business Entrepreneurs

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Successful Entrepreneurs

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Learning Objectives:

By the end of this lesson, students will be able to:

1. Learn the three indicators of business success
2. Enumerate the ten rules for small business success
3. Identify the ten secrets of successful entrepreneurs
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What Must Be Learned

Three Indicators of Successful Business

What is success? When asked this question, entrepreneurs will give different answers. Some says;
 Success is achieving independence;
 Power, acclaim and money;
 Having friendship, practice
 Rising from failure etc.
Success is tough to define. A business normally passes through several milestones, that when achieved, proves
that the business is on the right tract. These milestones serves as indicators that the business is growing and
expanding_ in the right direction.
A successful business does not happen overnight. You don’t start a business, and expect it to earn profits the next
day.

First Indicator: Achieving the Break-even Point

After determining that your business ideas is feasible, you should begin to focus your efforts in business
development. This involves:
1. Market research
2. Cost calculating to see if you can make money
3. Determining prices
Before launching your business, you need to know the one-time costs you will incur for star-up. A new
entrepreneur must also calculate a very important piece of data: the broken point. The break-down point shows
what level of sales (in unit volume or dollars) is needed to offset all fixed cost of doing business and the variable
costs of producing products. Fixed costs are expenditures on which the level of sales has no effect, including rent
and loan or lease payments. Variable costs are directly affected by sales will automatically lead to high profit. But
profit only comes after you have exceeded your break-even point.
Achieving the monthly break-even point is the first indication that your business may be viable. At this point
though, the proprietor still has n income. Break-even means that expenses are equal to revenue. Profit is zero.
The paycheck for a proprietor is profit.

Second Indicator: Earning a Living Wage

A living wage is just that: one that your family can live on. This stage is similar to having regular paying job with a
stable paycheck. At this point the small business entrepreneur is doing as well for him/herself as they would be
working for someone else of a similar level. There is nothing left over.
A business as yet has not demonstrated an ability to generate a return on investment. Most small business fall
under these categories earning just enough to yield a living or respectable wage for the owner.

Third Indicator: Achieving Real Profit

Your investment becomes a successful business only when it can move beyond the respectable wage category
and contribute real profit.
Real profit is cash left over after a respectable wage is provided. The ability to earn real profit is the dividing line
between owning a job and owning a business. At this stage, your business not only provides you with a
respectable wage for time spent, but also able to pay you back with all the cash that was invested. It goes beyond
payment for any principal on debt or income taxes owned. After paying all the obligations of the business, all of
the cash profit that is generated is discretionary cash. It is not obligated by loans or other debts.

10 Rules for Small Business Success.

Here are ten rules to make sure our business grow and prosper.
1. Find a Niche. For small business, it is best to find a niche. A small company with limited resources can
efficiently serve niche markets. Concentrate your efforts on a narrow market offering. This entails sticking
to what you do best and becoming an expert in that field. Realize that it is not possible to be good at
everything. By concentrating on a fairly narrow market niche, you may be able to avoid head-on-collision
with bigger competitors. Try to limit your offering. Example, construction of porches and decks and be the
best retailer for this segment.

2. Be small, yet think big. The most common question of small business starts-up is “ How can I compete
with my big competitors?” Small businesses have inherent advantages over big businesses, including:
a. Flexibility
b. Ability to respond quickly
c. Able to provide a more personalized advantages of those areas that represent the strengths of small
companies.

3. Differentiate your products. Present the benefits of your products and services to your customer,
highlighting the unique solutions it offers to their problems. Avoid being a copycat; study but do not copy
your competitors, and package your product distinctly.

4. First impression counts. Strive for accuracy and quality the first time around. You often do ot have a
second chance to make a good impression. This entails:
a. a well laid out store
b. courteous staff
c. personal voice over the phone
If you are a one person business working in a home office, remember that you are the center of your
business and marketing efforts. Everyone you come in touch with is potentially a client or a referral to
another client because they are either impressed with school skill at providing service or product. Make
sure that you are always presentable, professional in your ways and knowledgeable about your business,
 5. Good reputation. it is imperative that you build good reputation for the quality of your products and
services. Remember that two things guarantee success: high quality goods and superior service. Always
aim for quality. If you are a tax consultant, strive to prepare a totally accurate, perfectly done tax returns for
your clients.

6. Constant improvement. Entrepreneurs should not be rigid in ways of thinking in their quest to improve
their products and services. You risk being left behind by the fast-paced competition if you cling to the “
this is how we’ve always done it” kind of thinking. The business environment today demands that you need
to come up with new solutions fast.

7. Listen to your customers be market driven: Listen and react to your customer’s needs. Customers
need t feel that they are important to you because they are. When you focus on your customers and gain
their trust, they will not only recommend you but they will also remain loyal to you. Remember that
personal recommendation and word-of-mouth are the least costly yet most effective marketing strategy for
your business.

8. Plan for success. Understand the power of planning.

A good plan helps you:
a. increase your channels of succeeding and can
b. define your business concepts,
c. estimate costs,
d. predict sales
e. control risk
A good plan tells you where you are going and how to get there. Going into business without plan is like
driving into a foreign land without a road map.
9. Be innovative. Innovate your offerings constantly, keeping pace with technological changes. Use change
as springboard to improve your products, procedures or reputation. innovation should also cover your
operations from pricing, promotion, customer service, distribution, etc. keep your eyes of doing things and
apply those that can improve the quality of your products and efficiency of your operations.
10. Work smart- As an entrepreneur, you need to possess self-confidence, plus a never-ending sense of
urgency to develop your ideas.
Studies have shown that the individuals who succeed in entrepreneurship are:
a. far-sighted and can accept things as they are and deal with them accordingly.
b. they know how to manage their time, realizing the importance of leisure in as much as work.
c. they are oftentimes quick to change directions when they see their plans are not working.
d. more importantly, they recognize their weak points and move on to nurture alliances and acquire the
skills they need to put their business on the right tract.
e. they realize the importance of working smart, knowing that it is not the quantity of work you do, but
what you do and how will you do it

10 Secrets of Successful Entrepreneurs

Running a one-person business is creative, flexible and challenging way to become your own boss and
chart your own future. It is about creating a life, as it is about making a living. It takes courage, determination, and
foresight to decide to become an entrepreneur.
Is there a way to determine whether you can be a successful entrepreneur, or you are a better off to work
for somebody else? There is no formula for success. However, most successful entrepreneurs share these ten
characteristics.
1. Think success. To attain the king of success that you want, you need to “dream big”. Every success story
starts with big dreams. You need to have a clear vision of what you want to achieve. But it doesn’t stop in
dreaming alone.
2. Be passionate with what you do. You start a business to start any or all part of your life. To attain this
change you need to develop or uncover an intense, personal passion to change the way things are and to
live life to the fullest. “Success comes easily if you love what you do”. Entrepreneurs who succeed do not
mind the fact that they are putting 15-18 hours a day to their business, it is all about “patience and hard
work” which can only be attained if you are passionate and crazy with your tasks and activities.

3. Focus on your strengths. Let’s face it; you cannot be everything to everybody. Each of us have our own
strengths and weaknesses. To be effective, you need to identify your strengths and concentrate on it.
Seek help or assistance in areas that you may be poor at. To transform your weakness and strength,
consider taking hands-on learning or formal training.

4. Never consider the possibility of failure. Ayn Rand, in her novel” The Fountainhead” wrote” It is not in
the nature of man—nor of any living entity, to start out by giving up.” As an entrepreneur, you need to fully
believe in your goals, and that you can do. Successful entrepreneurs are those who analyze and minimize
risk in the pursuit of profit. As they always say “no guts, no glory”.

5. Plan accordingly. You have a vision and you have enough faith in yourself to believe that you can
achieve your vision. How to get your vision? To achieve your vision, you need to have concrete goals that
will provide the stepping-stone towards your ultimate vision. Put your goals in writing; not doing so just
makes them as intangible fantasies. You need to plan each day in such a way that your every action
contributes to the attainment of your vision. Intense goal orientation is the characteristic of every
successful entrepreneur. They have a vision and they know how to get there. Your ability to set goals and
make plans for your accomplishment is the skill required to succeed. Plan-plan and plan- because without
which failure is guaranteed.

6. Work hard. Every successful entrepreneur works hard, hard and hard. No one achieves success just by
sitting and staring at the wall every single day. Brian Tracy outs it out this way, “You work eight hours per
day for survival; everything over eight hours per day is for success.” Working hard will be easy if you have
a vision, clear goals, and are passionate with what you do.

7. Constantly Look for Ways to Network. In business, you are judged by the company you keep-from your
management team, board of directors, and strategic partners. Businesses always need assistance, more
so with small business. To succeed in business, you need to possess good net working skills and always
be alert to opportunities to expand your contacts.

8. Willingness to Learn. You do not need to be a MBA degree holder or PhD graduate to succeed in your
own business. There a lot of entrepreneurs who did not even finish secondary education. Studies show
that most self-made millionaires have average intelligence. These people reached their full potentials
achieved their financial and personal goals in business because they are willing to learn. To succeed, you
must be willing to ask questions, remain curious, interested and open to new knowledge.

9. Persevere and Have Faith. No one said that the road to success is easy. Despite your good intentions
and hard work, sometimes you will fall. Some successful entrepreneurs suffered setbacks and resounding
defeats. Even bankruptcy, yet managed to quickly stand up to make it big in their fields. Your courage to
persist in the face of adversity and ability to bounce back after a temporary disappointment will assure your
success. You must learn to pick yourself and start al over again. Your persistence is the measure of the
belief in yourself. Remember, if you persevere, nothing can stop you.

10. Discipline Yourself. Thomas Huxley once said, “Do what you should do, when you should do it, whether
you like it or not.” Self-discipline is the key to success. The strength of will to force yourself to pay the price
 of success- doing what others don’t like to do, going the extra mile, fighting and winning the lonely battle
with yourself.

Entrepreneurial Success and Service Tips

Your life is the reflection of your choices you have made up to this point. Ten years from now the same will
be true. You are the product of your own choosing. Your future relies on the choices you make. You may be one
of the few and are satisfied with where you are today, personally and professionally. Then again you may be part
of the majority who is not. But either way you are where you are because you have chosen to be there. If you’re
not satisfied it is time to make an adjustment to your life’s choices.

Follow these Seven Successful Survival Tips:

1. Follow Opportunity Instead of Savoring Opportunity
This is hardest one of all. Most of us were brought up to seek out and cling to the security of 9-5 job. One
way t avoid getting caught up in this security trap is to set a confirmed time that you will leave you job.
Real worth and wealth is generated from within you. it comes from being prepared. Knowing how to spot,
act upon and capitalize from opportunities.
2. Get Things Done
What do you want for your work? You want results? The results of your hard work are everything. You
either succeed or fall. You make money or go under. Does this mean you should not get into daily
routines? Of course not. As long as your routine is helping you get a profitable result, then they are not
considered ruts, but pathways to success. Think of it this way. Efficiency is getting the job done right.
Effectiveness is getting the right job done.
3. Making a Profit, Not a Living
If you are still an employee, you probably know how much you will be bringing home next week. But with
your own business, you have to remember to focus on making a profit and that means high sales and low
overhead. To survive you must be focused on how you will make a profit today, tomorrow and next week.
4. Look for Opportunity, Not Mistakes.
Success is the result of making good decision. Good decisions are made from good judgment. Good
judgment comes from experience. Experience comes from bad decision. This doesn’t mean you should try
to make mistakes for experience. The key is to gain experience from the mistakes and success of others.
Seek out others in your field. Study why they are succeeding or failing. Don’t expect to make all the right
decisions and don’t let the fear of making mistakes inhibit you from pursuing new opportunities.
5. Know What People Want. Instead of Wanting What You Know.
What it all comes down to is knowing the who, what, where and why of your target customers. The
success of your business is not the sum total of the knowledge you have gained, it is still and always be,
the “sale”. Success is determined by what products sell and how well they sell. It isn’t what you know that
counts, it’s what your customers want. If you lose sight of this fact, you are doomed to failure. Never lose
sight of the fact that marketing your customers’ wants is your number one priority.
6. Keep the Vision Alive.
Never lose sight of your end goal or your dream of success. It is hard to get the daily job sometimes, but
keep your vision alive and let it steer you in your search for success. Let it be the drive that keeps you
going. Every morning before you start, do something that will bring you a little closer to your dream.
7. Work, Patience and Sacrifice.
Let’s face it, if it were easy, everybody would succeed. To succeed you dedicate yourself to doing what
needs done not working on the clock. You must have the patience and persistence to tough out the hard
times. Be prepared to sacrifice your time too often your social and personal life in the pursuit of success.
Nobody said it was an easy road to follow, and if they did…. They were lying.
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Learning Activity:
1. List down five successful entrepreneurs in the restaurant, hotel, and tourism industry.
2. What do you think are the factors behind their success?
Essay:
1. Explain the importance of achieving a break-even point to the entrepreneur?
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2. Discuss what is meant by achieving a real profit?
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Assessment: Quiz online