Entrepreneurs: Do’s and Don’tsAvimanyu Datta, Ph.D.

Take a good look at yourself• Courage• Action Oriented• Leadership• Positive Attitude• Optimistic• Enthusiastic• Passionate• Confident• Innovative• Creative• Opportunistic• Visionary• Architect and Builder• High Need for Achievement

• Not Afraid of Failure• Determined and Persistent• Promoter• Flexible and Adaptable• Pioneer• Agent of Change• Tolerant of Risk• Tolerant of Ambiguity• Pragmatic• Independent• Not Willing to Work for Others• Clever• Resourceful

Note:Never start a venture if you are tired of what you are doingNever Start a Venture if you think it as a quick cash opportunity

Time: You will never have enoughBudget time carefullySuccess takes time. Spend a lot of time in developing

relationships with suppliers, distributers and customers.

Don’t forget about running the business while you are out generating new business.

PreparationInvest a lot of time in finding new

business, franchiseDon’t share ideas with everyone. Find an ide and an industry that excites

you. Set up an advisory committee Hire professionals with complementary

skills. Get a good Accountant and an Attorney. NetworkTalk to entrepreneurs, bankers in the area

PreparationInvest a lot of time in finding new

business, franchise. Visit people in other cities, towns

who have started new venturesVisit other franchise locationsJoin industry groups that share

best practices. Invest time to prepare your

Business Plan.

Management Never EasyBe perceptive and flexibleBe willing to adapt your strategyLearn to say NO.Never do too many things at one

timeListen to customer’s and

employees complaints and ideas. Learn about innovations by

suppliers.

Business PlanEverything cannot be planned.Formalize a business strategy,

especially an exit strategyIdentify as many potential pitfalls as

possible. Translating a good idea into a profitable

business is the key. Don’t treat risks as gamble. Formalize a

strategy for every risk. Reality will be different from

expectations

StrategyDare to be differentBe opportunistic and receptive to feedbackDifferentiate your business on the basis of quality,

service and other value added services. Never cut corners. Always maintain strong support

and quality despite economic downturns. Expand only when you know you can meet the

rising demand that comes with expansion. You will be spending a lot of time attracting new

businesses. Be committed to continuous improvement and

continuous innovation Be prepared for change…nothing remains the

same.

Human ResourcesYour business is as good as your

people.Hire the best and compensate

them wellDelegate based on your

shortcomings. Trust your employeesDon’t hire friends.

LegalConsult a legal counsel when you

start your business. Don’t represent yourself in legal

mattersCreate an Incorporate (Inc.). This

one someone can sue the business not the partners as individuals

Follow all regulations and obtain all permits

FinanceHave proper funds to cover unexpected

spendingResist Temptation to spend profits freely.

ReinvestForecast how long you will have negative cash

flows before it becomes positive. Get a credit line immediatelyDon’t jeopardize life savings on business.Banks rarely lend money to start businesses. Don’t buy things that you don’t need. If you

do, you may need to sell things that you need.

Business Opportunity

Select a product or service with a clear demand. Or create a string case for a future demand.

Sell something that people need and want in any economy.

Look for a niche in existing marketDon’t enter a market where a product is

readily available and is inexpensive (commodity).

Don’t get into an over saturated marketExploit opportunity in emerging and or

changing industries.

Suppliers Value and establish relationship

with suppliersDon’t tie your entire business

with one vendorDon’t be afraid to ask your

supplier for lower proce

Closing Point!Start a Business that someone

else will be willing to buy. Know when to exit. Sell when

things are good.