Friday, May 9, 2008
Thursday, May 1, 2008
What what is the Problem
Years ago an individual came into my office seeking a management position within my company. During our inventerview I asked him about his background and things he had done in the past. As he was young, his resume was short. He had however, started a food stand at a local mall.
I was impressed by his courage. I asked him how it went, what had happened? His answer was a reasonable answer but uncovered a common misunderstanding about the role of management. For all intents and purposes the interview was over. He did not understand his role as manager of his own company, how could he understand his role as manager of part of my company.
He explained that the main problem in opening his food stand was that he was undercapitalized and therefore it struggled and eventually he had to close it. Being undercapitalized can handicap any business, and businesses do fail for the lack of capital. But being undercapitalized was not the problem, it was only the scapegoat. The problem that his small food stand had was lack of management. It was managements responsiblity to know how much capital would be required to successfully run the food stand. Blaming the problem on being undercapitalized indicated to me that he did not understand how to be a manager.
So many people tell me that they want to go into management, because they like people or that they are good with people. I want to throw up. What they see is that managers don't do any work, but they just talk to people. That managements role is to manage people. Managements role is to manage everything.
If there is a problem, you can be certain that it is a managment problem.
Are there not enough customers? Its managements problem. Their marketing plan is insufficient, or they are in too small a market. Perhaps they have hired incompetent sales people.
Are profits low or costs too high? This is a management problem. What is management doing to control costs or raise prices or increase value to the customer so that prices can be raised? Who has management hired to solve these problems.
It is said that a fish rots from the head down. In every case, regardless of how small or insignificant any business that is struggling with low profits, high employee turnover, declining sales, the problem is always the same: Its a management problem. The answer is always the same also. MANAGEMENT, GET IN THERE AND FIX THE PROBLEM.
I was impressed by his courage. I asked him how it went, what had happened? His answer was a reasonable answer but uncovered a common misunderstanding about the role of management. For all intents and purposes the interview was over. He did not understand his role as manager of his own company, how could he understand his role as manager of part of my company.
He explained that the main problem in opening his food stand was that he was undercapitalized and therefore it struggled and eventually he had to close it. Being undercapitalized can handicap any business, and businesses do fail for the lack of capital. But being undercapitalized was not the problem, it was only the scapegoat. The problem that his small food stand had was lack of management. It was managements responsiblity to know how much capital would be required to successfully run the food stand. Blaming the problem on being undercapitalized indicated to me that he did not understand how to be a manager.
So many people tell me that they want to go into management, because they like people or that they are good with people. I want to throw up. What they see is that managers don't do any work, but they just talk to people. That managements role is to manage people. Managements role is to manage everything.
If there is a problem, you can be certain that it is a managment problem.
Are there not enough customers? Its managements problem. Their marketing plan is insufficient, or they are in too small a market. Perhaps they have hired incompetent sales people.
Are profits low or costs too high? This is a management problem. What is management doing to control costs or raise prices or increase value to the customer so that prices can be raised? Who has management hired to solve these problems.
It is said that a fish rots from the head down. In every case, regardless of how small or insignificant any business that is struggling with low profits, high employee turnover, declining sales, the problem is always the same: Its a management problem. The answer is always the same also. MANAGEMENT, GET IN THERE AND FIX THE PROBLEM.
Saturday, April 19, 2008
FEAR
Most people have no idea what it means to own their own business. Although many people think being their own boss would be great, others fear the responsiblity of it all. Many would be entrepreneurs enter a business venture with little or no preparation, others spend their entire lives thinking about it without ever venturing past their own insecurities, thus squandering any opportunity of bringing their ideas into reality.
I have been an entrepreneur all my life. It is in my blood.
When I was twelve years old, I started a neighborhood summer football league. Each street was organized into a team of from 4 to 6 boys. We wrote up player's contracts, played our league games on Saturday at 10:00 in the morning. The league lasted two seasons, then I believe the competition with the NFL proved to be our undoing.
Later, after graduating from the University, I immediately started a small part time business that did collection and foreclosure work for mortgage companies. It was a small idea that was designed to give me a little spending money. I had no idea that it would grow. But grow it did.
After a month or two of pocket change, I called on a mortgage company that agreed to send me a considerable amount of work. After a few months of doing only a few inspections a month and billing out less than a few hundred dollars, this new client would boost my billings to several thousand dollars a month. I was extatic!
That was the beginning of taking small business management seriously.More on the growth of that business later.What I hope to be able to do in this blog is to create a forum to assist others in developing their businesses.
With my own experience as an successful entrepreneur, business manager, international consultant and lecturer on entrepreneurial issues at the university level, I believe that I might be able to assist some of you that may be struggling with your business.I hope so, nothing would make be happier.
Dad
I have been an entrepreneur all my life. It is in my blood.
When I was twelve years old, I started a neighborhood summer football league. Each street was organized into a team of from 4 to 6 boys. We wrote up player's contracts, played our league games on Saturday at 10:00 in the morning. The league lasted two seasons, then I believe the competition with the NFL proved to be our undoing.
Later, after graduating from the University, I immediately started a small part time business that did collection and foreclosure work for mortgage companies. It was a small idea that was designed to give me a little spending money. I had no idea that it would grow. But grow it did.
After a month or two of pocket change, I called on a mortgage company that agreed to send me a considerable amount of work. After a few months of doing only a few inspections a month and billing out less than a few hundred dollars, this new client would boost my billings to several thousand dollars a month. I was extatic!
That was the beginning of taking small business management seriously.More on the growth of that business later.What I hope to be able to do in this blog is to create a forum to assist others in developing their businesses.
With my own experience as an successful entrepreneur, business manager, international consultant and lecturer on entrepreneurial issues at the university level, I believe that I might be able to assist some of you that may be struggling with your business.I hope so, nothing would make be happier.
Dad
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