Entrepreneurship? Then Read This

Entrepreneurs design, build and run businesses. As one you must be able to create systems on how the businesses will run successfully.

Don’t let people deceive you that entrepreneurship is not for everybody, everyone has the capacity in them to build businesses that’s how God made us. Its either you are building your own businesses, or you are helping someone build the ones they have founded (Intrapreneurship). That’s what entrepreneurship is all about.

On systems

Entrepreneurship is not easy but its worth it. To make it easy, you need to start building systems and processes either before you start or immediately you start, systems help your business to run even when you are not there.
Don’t build the business around you but build it around your customers and the team.

People & Trust

Train your team so you can trust them, don’t employ people because you want to trust them, let people earn the trust by their contribution into the business.

If you have been running your business for more than two years and you can’t take a stroll, and nothing gets wrong? Then know that you are doing something wrong and be sure that even after 5years without you the business will still fail.

I developed systems even before I started any of my businesses. People, Systems and processes are the surest proof you need to sustain your business beyond you and the initial stage.

Simple Revenue, Profit and Cost Calculations

Making a profit in your business is a major indicator that your business is healthy; but note that profit is not all the money you generate in the business in simple terms it is

Profit = Total Revenue/Sales – Total Operating Cost/Expense

Operating cost are those cost that you incur while running the business these include
• Salaries
• Electricity
• Rent
• Water and other Bills
• Cost of producing the product, item or services.

Most entrepreneurs make the mistake of counting all their business have generated as their profit, so they spend based on the revenue, this is totally wrong, your revenue is not your profit.

In Simple terms revenue

Revenue = Cost of Item + Margin on Item or service

I have also noticed that a lot entrepreneurs don’t separate their personal expense from business expense, this is the beginning of fraud and bad corporate governance in an organisation. So the company owner see everything the company makes as his money and has the liberty to spend as he likes.
As a business owner you must be part of the payroll and your salary paid to your personal account just as others also get paid.

To move your small business to a different level you must set up structure and systems, this alone changes the outlook of your business to outsiders and potential investors, no one will invest in a business or take you seriously if it revolves around the founder only. It must be around the People, Products, processes and procedures.

To Your Success 
Lawrence Obi