Where get money from???

I guess more than many times everyone who is thinking of having his own business addresses this question to himself. Yes, where get money from and as much as possible, for as long period of time as possible and at as the smallest interest as possible. This is the topic I am going to discuss further. 

But first I will refer to the statement of Henritta Lake, small business correspondent on The Times, 
  “A business is like any other growing organism – forget to water and nourish it and it will quickly wither. ”

But obviously before watering you have to plant it first. That is you need finances initially for. For bootstraps it is common to have either 3F-s strategy: family, friends and fools or personal savings. There are lots of examples of nowadays famous people who started their own business from bootstrap financing; let’s take Steve Jobs and his partner, Steve Wozniak, who sold a Volkswagen and a programmable calculator to build the first Apple PC . 

Borrowings from a bank remain the most popular form of external financing. But the problem here is that not every bank will provide you with a loan or overdraft without your profitable financial statements. 

One of the most promising ways to raise capital is lending from venture capitalists, they have money you need and will supply it by using a stock in your company, and they actually share the risks, while banks will participate only if the risk is minimal. Moreover, for venture capitalists, the more the risks the higher return is expected. Business plan plays a main role here, this is what a venture capitalist wants to see, a detailed and accurate account, therefore it reflects the ability of entrepreneur to both manage and operate its business, and make the realistic decisions to ensure the success. It’s crucial not to loose the control over your business, not to pass it to venture capitalists. 

In this new environment, we have to deal with tough requirements of traditional credit sources and the incredible valuations bestowed upon successful entrepreneurial companies that go to public. Leasing, debt financing, joint ventures, research and development partnerships, mergers and acquisitions, and financing from positive cash flow are still some of the most promising techniques for raising capital . 

  Financing Growth, Grant Thornton, p.21, 1999 
  JIBS Entrepreneurial Growth (Spring 2008) Study Guide. 

  The Ernst & Young Guide to Financing For Growth., Garner, Daniel R, p.54,

References

  1. Philip A Wickham, Strategic Entrepreneurship, p. 240 Forth Edition, 2006

  2.Unleasing the Right Side of the Brain, Robert Williams and John Stockmyer, 

  3.Corporate Creativity: How Innovation and Improvement actually Happen, Alan G. Robinson and Sam Stern, 1997, p.52

  4.W. Edwards Deming, The New Economics, 1994, pp.108-109

How to raise creativity?

Again and again I am coming back to the comparison between entrepreneurship and football game; since I can see something in common between them, let’s take the team, for instance. 

It goes without saying that the match is entirely depended on its players, teams as a whole. And it means that you need to be extremely careful when hiring people you going to work with, it is like when you going to date someone, you choose one and the best among thousands, because you are going to work with those people and you spend most of your time with them. You have to build both strong and competent team, who you can trust to, who you can rely on. That is very important especially nowadays when it becomes rather easy either to sell or to buy information or idea. Team building is one of the most important and vital component of success that should be paid attention on. 

Moreover, it’s also significant to know that if you want to be innovative you need to raise creativity in your team members. But how, whether it’s possible- that’s the question.
If your coworkers have inherited talent of creating you are lucky, if not, there are some techniques that can be helpful and efficient, anyway it’s also useful to train this ability.


Many classic creative thinking techniques make use of one or more of methods such as evolution, synthesis, revolution, reapplication, changing direction. The first that came to my mind is Brainstorming (“Applied Imagination” by Alex Osborn) which is probably the best known and certainly one of the most powerful for idea generating for specific problems. It helps to break out of the habit-bound thinking and to produce a set of ideas from which we can choose. 

To encourage parallel thinking the technique of Six Thinking Hats by Dr. de Bono is used. This method doesn’t describe the labels of thinking but six different directions, ways of thinking that can be used in problem-solving. 

To create the associations for idea generation the technique of Talking Pictures by Brian Clegg can be taught, when you need to split up into teams, take a digital camera and make photos as many as possible. Each group should use the picture provided to create associations that occur to them and then use these associations for idea generation.

As for as training creativity is concerned its also possible to use LARC (Left and Right Creativity) , The Journalistic Six (six general questions that can create another view of problem solving), Historical Examination, Blocking and Block Busting that includes: uses for, improvements to, what-iffing, attribute analysis, analogy and metaphor, trigger concepts. 

As we can notice there are enough creativity techniques that can be used. And implementation one of them certainly depends on the problem itself. 
 
There may also be questions about how to motivate employers for creativity. Although rewards and incentives are widely used they can actually be either effective or counterproductive. Incentives and rewards provide extrinsic motivation; they motivate someone to work on something primarily as a means to an end – the reward . 

At the same time, it’s of course important for people to be treated fairly and recognized. However it’s important not to overpay here, you need to follow the balance. Talking about motivation methods we need to clarify that creative people don’t seek for money or reward at the end, they are actually doing what they like to do aside from whether they are paid or not, their final point is a result of creativity that comes from inside, not money. 

Besides, a company can use some techniques to increase intrinsic motivation for creativity such as, for example, it can create good, appropriate conditions of working for their employees, support them by social programs, give long-term loans and etc.  

By contrast, in the words of W. Edwards Deming: 
Some extrinsic motivation helps to build self-esteem. But total submission to external motivation leads to distraction of the individual. Extrinsic motivation in the extreme crushes intrinsic motivation .

In the conclusion I would like to say that to raise the creativity its vital to know who motivate to and by what means, cause not all of them (methods) are suitable for certain conditions at certain time with certain recourses. 

Pursuit of opportunities

To continue the metaphoric comparison between world market and football game, I would like to draw your attention on the business opportunity. 

As I said before the football field is like a world market where players are businessmen who are competing for being the first to have a ball, a business opportunity, since they have managed to do all their best that means they’ve scored the game. 

As it was mentioned at the lecture of Entrepreneurship by Jonas Dahlqvist, a business opportunity is a gap in the market which presents the possibility of new value being created. One more needs to be added, new value should be created better than whenever before. Entrepreneurs like football players are constantly thinking of how to do something differently and better or how to kick a ball until other players or competitors pass it ahead of you. 

However, having a ball does not mean that you have already scored the game, you have to do all your best to kick the ball into the goal, the same for opportunities, they are the ‘raw materials’ out of which the entrepreneur creates an ‘entire new world’ . 

At the same time there is a clear link between innovation and business opportunity. Well, if appropriate exploitation of opportunity means creating something new that is different and better, meanwhile innovation is itself something new and novel, then we can conclude that innovation is a means of exploiting a business opportunity. 

Moreover, opportunity is just a chance, and how best you make use of it depends whether you reach your goals of not. As far as market creates lots of opportunities however not every one can see and exploit them in an appropriate way. 

Travelling into the world of innovation and entrepreneurship

gazanna@yandex.ru | Панель инструментов | Справка | Выйти

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It’s always difficult to start doing something and it even doesn’t matter what exactly, say, building or constructing a house, or even doing a business. But why? Have you ever thought about it?  To start with you should have a departure point. That means your ability, your willingness, your idea finally because it’s what you want to make true and get satisfaction of. But no one can be sure of time or other conditions, no one can be definitely aware of that it will happen soon be cause it only depends on how smart you are, what strategy you prefer to use, how good you are in creation something. Here comes creativity the ability to make something new, unusual, extraordinary and better than anyone else maybe. Some people are really talented from their birth; some of them acquire and train this skill within their life. Being innovative means a lot nowadays, cause lots of companies are suffering from having shortage of talented people or resources to innovate something, or just they are not able to implement anything because of lack of knowledge how to do that. However, that’s not enough, that’s not the only thing you need to have if you do want start doing your business cause it deals not only with ability to create something new but it’s how efficiently you use it, it’s the way you can organize or build up the whole process, start up the engine, I would say. When you endeavor to do something you are some kind of entrepreneur which is always trying to utilize opportunities in an efficient way, or better to say, choose one and more appropriate opportunity that’s will lead him to achievement of his goals and gaining the benefits from that.  If speaking about economy as a whole, it is impossible not to mention entrepreneurship that is absolutely connected with the creation something novel using a viable opportunity for that. It goes without saying that you can actually start existing business but anyway it will be different from that maybe because of place, or you will add something that will make it unique or attractive for customers, or you will implement another organizational structure or productive cycle or new machines, devices, anyway you will need special appeal for make it looks better, for to be the winner, otherwise you wont succeed. It’s like a game, where you take the main role and the outcome usually depends on how good you are in it, what strategy and tactics you choose. It’s more like a competition between football players, who have one objective to kick a ball into the goal, and to do that they play using their tactics, thinking over every step they take. The football field is like a world market where players are businessmen who are competing for being the first to have a ball, a business opportunity, since they have managed to do all their best that means they’ve scored the game.

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