Franchise Attorneys and Franchise Consultants: Critical Evaluation Questions to Ask
Evaluating franchise attorneys and evaluating franchise consultants can seem a daunting task. But the firm a company selects to assist its entry into franchising, refine existing franchise efforts or make franchise opportunity investment decisions will have profound consequences. While asking for a list of references is one approach (and when is anyone ever dumb enough to provide a bad reference?) there are more objective criteria that are not dependent on selectively disseminated information.
By addressing the nine Franchise Questions, topics and subcategories of information discussed below, you will eliminate virtually 95% of the individuals or firms you are considering. Then efforts can concentrate on evaluating the 5% cream of the crop (especially franchise attorneys) that truly merit consideration:
A. FRANCHISE EXPERT:
The #1 factor in evaluating so-called expertise – are the principals really franchise experts? There are objective criteria to determine this:
(1) Have they qualified and been allowed to testify as a franchise expert in court and arbitration proceedings? Being involved as a franchise expert in the franchise litigation process gives a sensitivity and radar for detecting and avoiding future franchise problems.
(2) How many books on franchising have been written by the principals?
(3) How many franchise articles have been published in journals or magazines?
(4) What is their franchise-related teaching experience? (see topics E and F below)
(5) What is their depth of experience in the franchise industry? (see next topic below)
B. EXPERIENCE IN THE FRANCHISE INDUSTRY:
(1) Length of time the firm has operated exclusively in the franchise industry?
(2) Experience on both sides of the franchise fence – working with franchise companies (franchisors) as well as with individual investors (franchisees) who have purchased a franchise?
(3) Past experience principals have owning and operating a franchised business? This factor is absolutely critical. If the principals have owned and operated a franchise, they bring a unique perspective and radar for avoiding future franchise relationship problems from disgruntled franchise owners.
C. COMPREHENSIVE TRAINING & ONGOING SERVICES; CONTROL SYSTEMS:
(1) Can (and will) the firm train your personnel to operate and manage your new franchise company? Remember, you’re entering an entirely different business, one requiring new skills and abilities. If this topic is not addressed in detail, you might as well earmark the franchise fees received when you sell franchises for a future franchise litigation war chest;
(2) Will the firm help you review and update operational (franchise operations manual) and legal documentation (franchise offering circular) on an ongoing basis?
(3) Has the firm developed, and will they help you put into place, franchise marketing, sales control and legal compliance programs during the critical implementation (start-up) phase of your franchise program?
The existence of these programs is essential to ensure only the cream of franchise applicants are allowed to enter the network, and to create a series of documented files should a dispute arise in the future. Most of the legal risk in franchising occurs during the franchise marketing cycle when franchises are sold. If your company’s done a good job here with these programs, then you’ve eliminated most of the risk.
D. LEGAL: FRANCHISE ATTORNEY
(1) Is the law practice devoted exclusively to franchise law?
(2) Total number of franchise disclosure documents (formerly called franchise offering circulars) drafted and reviewed?
(3) Experience filing franchise registrations and working with state examiners in all 14-plus franchise registration states?
(4) Experience represeting franchise companies as well as persons buying a franchise? Knowing both sides of the fence is a tremendous asset.
E. ACADEMIC: UNIVERSITY & COLLEGE
Experience teaching franchise courses at graduate and undergraduate university levels?
F. ACADEMIC: PROFESSIONAL
Experience teaching franchise courses to franchise attorneys and general practice attorneys?
G. BLEND OF BUSINESS & LEGAL SKILLS:
Specialist franchise attorneys and law firms produce tight legal agreements (sometimes overly so leading to future franchise relationship problems) and usually adequate franchise offering circulars. Setting aside the overly tight contract issue, the problem is most franchise attorneys – franchise lawyers are not capable of making sound, strategic business decisions and providing practical, ongoing advice. Some franchise consultants, on the other hand, have good business sense, but lack the requisite legal skills. Questions:
(1) Does the firm have the proper blend of business savvy and in-house franchise legal expertise? It’s always a big plus if the franchise attorney also has an MBA. You can do a Google search with these twin attributes (franchise attorney MBA) and narrow the field considerably.
(2) Can the firm produce good legal documentation (franchise disclosure documents) and help you edit (or create) consistent operational documents (such as the franchise operations manual, training program, etc.) If your franchise agreement says “x” but your franchise operations manual or advertising materials say “y” about the same issue, be prepared to pay hefty franchise litigation fees and deal with franchise litigation attorneys in the future.
(3)Can the firm provide competent and practical ongoing advice in critical areas like effective franchise marketing, media decisions, interviewing franchise buyers, adopting the best franchise organizational structure, implementing a franchise advisory council, etc? Mistakes made in these areas can easily cost the franchise company tens, if not hundreds of thousands of dollars.
H. CONTRACT FAIRNESS:
Does the firm give you an option of choosing between:
(a) an hourly rate and
(b) a flat contract amount, where you don’t have to worry about accumulated hours and an unknown total amount?
I. RED FLAGS – BEWARE OF ANY OF THE FOLLOWING:
• Combination teams where one entity does one part of the project and another the other part. For example, a consulting firm does planning, and operational documentation, while an attorney “they know very well” writes the legal documentation.
• Or, a variant of the above, the company in the “fine print” of its contract, requires your attorney (who you obviously have to pay) to review and approve everything they do because the company (it says) is not rendering legal advice. Actually, by providing documents that affect legal rights, they are rendering legal advice, but in an illegal manner. It’s called the unauthorized practice of law. You end up paying two attorneys – yours and theirs. Besides the expense, it sets you up for future franchise problems. Their attorney represents who? The franchise packaging group, of course, and definitely not you. He or she is typically a recent law school graduate who hasn’t figured out what they’re doing is illegal and could cause them to lose their license to practice law. Besides that, they represent the franchise consulting group, whose interest is to churn as many franchise packages per year as possible. You end up with a bad franchise disclosure document and sloppy franchise operations manuals. To save time, the franchise agreement gets watered down so it’s easier to push through some franchise registration states. Some of the “t’s” may be crossed and some of the “i’s” dotted, but not most of them. The end product are documents that set you up for future franchise litigation difficulties.
• Firms that advise you to franchise your business, and they’ve never seen your business! You’d be surprised how often this happens.
• Firms that say they’ll write your franchise operations manual for you. How someone, who knows absolutely nothing about your business, could ever come close to anything but a mediocre product at best, is a frightening thought. The use of boilerplate manuals produced by consulting groups is yet another future litigation time bomb. You are the true expert in your business. With competent guidance and editing, you’ll be able to produce a professional and workable operations manuals, if you don’t have these already.
• Pricing quotes that seem exceedingly high or low (especially “do-it-yourself” franchise kits).
• If you are buying a franchise, BEWARE of any attorney recommended by the franchise company. Even worse, beware of franchise companies who say you don’t need to use an attorney. There are a couple of these online.
• Firms (or individuals) that have EVER been sued for fraud, misrepresentation, the unauthorized practice of law or violating any franchise law. DON’T FORGET TO ASK THIS CRITICAL QUESTION!!
©1990-2008, Kevin B. Murphy, B.S., M.B.A., J.D. – all rights reserved
For more informaton, consult the Franchise Foundations website.
E- BANKING ? RECENT TRENDS IN INDIA
E- BANKING – RECENT TRENDS IN INDIA
INTRODUCTION
Initially, the Indian banking system was domestically oriented at the time of nationalization in 1969. National policy objectives where the guiding force and banks were primarily involved in mobilizing domestic savings, lending funds to specific sectors of the economy and raising resources for financing public deficits. Technology in Indian banking has evolved substantially from the days of back office automation today’s online, centralized and integrated solutions. Once cannot think of ATM, Internet, mobile and phone banking or call centre services without the help of technology?. However, the irony is that most of those products have more of technology and less of banking. Let us look of how banking has changed as a business over the last one decade.
This paper begins with the definition of e- banking, Internet Banking, Mobile banking, ATMs, Debit card and Credit card and electronic fund transfer, Anywhere banking and product and services.
ELECTRONIC BANKING (E-BANKING)
It is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used interchangeably.
E-banking are the buzzwords in the global commercial activities today E-banking or electronic banking refers to conducting banking activities with the help of information technology and computers.
E-banking is a mix of services which include Internet banking, Mobile banking, ATM kiosks, Fund Transfer System, Real Time Gross Settlement (payment & settlement system), Credit/Debit/Smart/Kisan Cards, Cash management services, and Data warehousing, Operational data for MIS and Customer Relationship Management. Latest innovations in technology like broadband transmission, internet access via mobiles (GSM) and WebTV will further provide impetus to digital revolution.
Further, banks are looking forward to scan the image of a cheque which can be zapped to another bank, into the depository and back to customer’s bank.(BSO,2006) Banking transactions can be carried out 24 hours a day using these methods. In fact concept of Anytime, Anywhere banking is making it easy for customers to access their money more conveniently. It has been established that increasing the role of technology in a service organization can serve to reduce costs and often improve service reliability (Lee, 2002).
INTERNET BANKING
The Internet banking is changing the banking industry and is having the major effects on banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasized that Web is more important for retail financial services than for many other industries. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 – minimum functionality sites that offer only access to deposit account data – to Level 4 sites – highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance. In other words a successful Internet banking solution offers
ü Exceptional rates on Savings, CDs, and IRAs
ü Checking with no monthly fee, free bill payment and rebates on ATM surcharges
Credit cards with low rates
ü Easy online applications for all accounts, including personal loans and mortgages
ü 24 hour account access
ü Quality customer service with personal attention
Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from a browser— software that runs Internet banking programs resident on the bank’s World Wide Web server, not on the user’s PC. NetBanker defines a ” true Internet bank” as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks. To date, more banks have established an advertising presence on the Internet— primarily in the form of informational or interactive web sites—than have created transactional web sites. However, a number of Banks that do not yet offer transactional Internet banking services have indicated on their web sites that they will offer such banking activities in the future. Because Internet banks generally have lower operational and transactional costs than do traditional brick-and-mortar banks, they are often able to offer low-cost checking and high-yield Certificates of deposit. Internet banking is not limited to a physical site; some Internet banks exist without physical branches, for example, Tele bank (Arlington, Virginia) and Bank net (UK). Further, in some cases, web banks are not restricted to conducting transactions within national borders and have the ability to make transactions involving large amounts of assets instantaneously. According to industry analysts, electronic banking provides a variety of attractive possibilities for remote account access, including:
Availability of inquiry and transaction services around the clock;
worldwide connectivity;
Easy access to transaction data, both recent and historical; and
“Direct customer control of international movement of funds without intermediation of financial institutions in customer’s jurisdiction.”
Main Concerns in Internet Banking
In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers’ privacy and protect against fraud. Banking Securely: Online Banking via the World Wide Web provides an overview of Internet commerce and how one company handles secure banking for its financial institution clients and their customers. Some basic information on the transmission of confidential data is presented in Security and Encryption on the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that your account information is protected from unauthorized access:
Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access the system.
Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.
Digital certification procedures provide the assurance that the data you receive is from the Infinity system.
INTERNET BANKING SERVICES
Save your time and effort with CIB Internet banking
View
Your own accounts and your related ones
Credit and Debit cards
Funds
Time deposit, Saving certificates
Loans
Treasury bonds
Latest transactions of current month
View, print and save your monthly statements (since year 2004)
Transfer
Between your accounts
To another CIB account (Digital signature required)
To your credit card
To another CIB credit card (Digital Signature required)
To any charity you choose as a fund raising
Request
Checkbook
To change your mailing address
To inquire or complain
To add related account (Power of attorney, parent/child or account with different customer number)
To manage supplementary cards
To dispute credit card
To make External transfer ( Digital signature required )
Digital Signature registration
Also
Stop your credit card
Subscribe in Alerts service (SMS /E mail)
Download CIB forms
AUTOMATED TELLER MACHINES (ATMS)
The cash machine or automated teller machine (ATM) as it is more formerly non is the most visible and perhaps most revolutionary element of virtual banking revolution. ATM are self service vendor machine that help the banks to provide round the clock banking services to their customers at convenient places without visiting to the bank premises. They enable the banks to transact more business by offering various services in cost effective way on one side and to get more customer satisfaction on the other. To avail the ATM services customers are provided with ATM card, which is a small plastic card with magnetic strip, containing information about the name of bank, name of the customer, card number, validity period and signature panel. The magnetic strip contains information about the customer which enables the banks to verify ihe identity when the card is inserted at the slot provided in ATM.
The following functions can be performed on ATM.
Withdrawal of cash, cheques or drafts. the ATM will immediately printout receipt for the same
Deposit of cash, cheques, or drafts,. The ATM will immediately printout receipt for the same.
Updated balance of customer is appeared and screen and will also been printed on a transaction slip.
Transfer of money from one account to another account can be done.
A customer through ATM can obtain many account statements.
A customer can ask cheque book /detail account statement through ATM. these are mailed to customer later on the bank employee.
A customer can maintain joint account for which he can get an additional card on the name of the other joint account holder.
All the branches of bank are providing with an on- site, on-line ATM. A customer can operate his account any ATM of the bank across India, it is a concept a any where banking.
P.C Narayan, president of global trust bank , classifies shared ATM networks into two kinds viz. “parent child” and “peer to peer”. A good example of parent child would be a large size bank. Which has a lot of ATMs and which it could be to smaller banks to be a large banking together to build a national ATM network.
ANYWHERE BANKING
With expansion of technology, it is new possible to obtain financial details from the bank from remote locations. Withdrawals from other stations have been possible due to inter- station connectivity of ATM. The Rangarajan committee had also suggested the in station of ATM at non- branch location, Airports, Hotels, Railway stations, office computers, Remote banking is being further extended to the customer’s office and home.
CREDIT CARDS/DEBIT CARDS
The Credit Card holder is empowered to spend wherever and whenever he wants with his Credit Card within the limits fixed by his bank. Credit Card is a post paid card. Debit Card, on the other hand, is a prepaid card with some stored value. Every time a person uses this card, the Internet Banking house gets money transferred to its account from the bank of the buyer. The buyers account is debited with the exact amount of purchases. An individual has to open an account with the issuing bank which gives debit card with a Personal Identification Number (PIN). When he makes a purchase, he enters his PIN on shops PIN pad. When the card is slurped through the electronic terminal, it dials the acquiring bank system – either Master Card or VISA that validates the PIN and finds out from the issuing bank whether to accept or decline the transactions. The customer can never overspend because the system rejects any transaction which exceeds the balance in his account. The bank never faces a default because the amount spent is debited immediately from the customers account.
What is Inter Bank Transfer?
Inter Bank Transfer is a special service that allows you to transfer funds electronically to accounts in other banks in India through:
v NEFT – The acronym “NEFT” stands for National Electronic Funds Transfer. Funds are transferred to the credit account with the other participating Bank using RBI’s NEFT service. RBI acts as the service provider and transfers the credit to the other bank’s account.
v RTGS –The acronym “RTGS” stands for Real Time Gross Settlement. The RTGS system facilitates transfer of funds from accounts in one bank to another on a “real time” and on “gross settlement” basis. The RTGS system is the fastest possible inter bank money transfer facility available through secure banking channels in India.
MOBILE BANKING
Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone.
Mobile banking is a way for the customer to perform banking actions on his or her cell phone or other mobile device. It is a quite popular method of banking that fits in well with a busy, technologically oriented lifestyle. It might also be referred to as M-banking or SMS banking. The amount of banking you are able to do on your cell phone varies depending on the banking institution you use. Some banks offer only the option of text alerts, which are messages sent to your cell phone that alert you to activity on your account such as deposits, withdrawals, and ATM or credit card use. This is the most basic type of mobile banking.
Mobile Payments – The Road Ahead
Over the years mobile phones have become an indispensable accessory for almost every individual. This ever expanding reach of mobile phones have made them a gadget which can be conveniently used for staying connected with the world, using internet for banking & other purposes, receiving SMS alerts etc. besides of course its basic function, making calls. With the rapid growth in the number of mobile phone subscribers banks have been exploring the feasibility of using mobile phones as an alternative channel of payments.
Mobile phone provides a way to reach out to people in isolated areas and can help in big way in the financial inclusion. For example in India, more Indians have mobile phones than bank accounts. Mobile Payments can be defined as information exchange between a bank and its customers for financial transactions through the use of mobile phones. Mobile payment involves debit/credit to a customer’s account’s on the basis of funds transfer instruction received over the mobile phones.
Mobile payments services generally involve the collaboration of banks, mobile payments service providers and mobile network operators (MNOs). The service can also be provided as a proximity payment system, where the transactions are independent of the MNOs. Payment for goods and services via mobile, offered by many companies, use contactless payment over mobile phones to pay for on- and off-street parking in specially demarcated areas. First conceptualized in the 1990s, the technology has seen commercial use in this century in both Scandinavia and Estonia. End users benefit from the convenience of being able to pay for parking from the comfort of their car with their mobile phone, and parking operators are not obliged to invest in either existing or new street-based parking infrastructures.
32 banks have been given approval to provide mobile banking facility in the country by the Reserve Bank of India. 21 banks have started providing these services. Mobile banking is a secure application, which takes care of end-to-end encryption of data in transit to offer banking information and transactions. Banks are now permitted to offer this service to their customers subject to a daily cap of Rs.50,000/- per customer for both funds transfer and transactions involving purchase of goods/ services. Transactions up to Rs.1,000/- can be facilitated by banks without end-to-end encryption. The risk aspects involved in such transactions are addressed by the banks through adequate security measures.
MOBILE BANKING SERVICES
Away from home, bills can be paid or money sent to the loved ones or balance enquiries done anytime 24×7!!! That is what State Bank Freedom offers -convenience, simple, secure, anytime and anywhere banking.
Mobile Banking Service over Application/ Wireless Application Protocol (WAP)
The service is available on java enabled mobile phones over SMS/ GPRS where the user is required to download the application on to the mobile handset. The service can also be availed via WAP on both java and non java phones with GPRS connection.
The following functionalities are available in the application based service/ WAP:
• Funds transfer (within and outside the bank –using NEFT)
• Enquiry services (Balance enquiry/ Mini statement) , cheque book request
• Demat Enquiry Service( (Portfolio value,Request for DIS booklet, Value of holdings, statement of charges, Transaction status etc.)
• Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations, Subscriptions.
• M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV connections and receive recharge pins for DigitalTV/Videocon d2h, Merchant payment, SBI life insurance premium).
Business Rules governing Mobile Banking Service over Application / WAP.
The Mobile Banking Service will be available to all the customers having Current/ Savings Bank Account(Personal segment). The customers will have to register for the services.
Daily transaction limits for fund transfer/ bill/ merchant payment is Rs.50,000/- per customer with an overall calendar month limit of Rs.2,50,000.00
The service will be carrier-agnostic i.e. all customers can avail the mobile banking service with the Bank irrespective of the service provider for their mobiles.
The service is free of charge. However, the cost of SMS / GPRS connectivity will have to be borne by the customer.
Mobile Banking Service over USSD (Unstructured Supplementary Service Data)
Mobile Banking Service is now available on non java mobiles without GPRS connection also.
The service is currently available with Aircel, Idea, MTNL (Delhi) Vodafone and Tata Docomo connections.
The service is session based and requires a response from the user within a reasonable time.
The Daily Transaction limit is Rs1000/- per customer with an overall calendar monthly limit of Rs5000/-.
The following functionalities are available in USSD based Service:
Funds transfer (within the bank)
Enquiry services (Balance enquiry/ Mini statement)
Mobile Top up.
Gift Cheques
Need to give a gift but do not know what would be appreciated by the receiver? Purchase our attractive Gift Cheques available at all our branches in denominations of Rs 101/-, 201/-, 501/- and 1001/-. Gift Cheques do not attract any charges and come with an attractive free envelope.Encashable at par at all SBI branches, with no identification requirements. No time limit for encashment. Purchases can be made in bulk.
CONCLUSION
Information technology has played a vital role in the advancement of banking system. The reach of Indian banking to every individual is possible because of the computerization process adopted by banking sector. Information technology has not only simplified the operation but it has also given a great comfort an individual who does not have a good knowledge of IT but need to access banking in an optimum manner.
In can be conclude that more introduction of IT alone will not be sufficient to bring necessary performance improvement and get the competitive edge but intelligent people are required to use such intelligent tools. They even though IT management is a challenge flow in future banking scenario, marketing mix technology is going to be the challenge.
REFFRENCES
Books and Journals:
1) Asdas & Barosa; “Banking sector Reforms- towards new face of Indian Banking. The management Accountant. ICW AI WAY 2001.
2)Sugan C. Jain, “E-Banking”, 2006.
3) Abhay Jain and B S Hundal, “Barriers in Mobile Banking adoption in India”, Aug- 2006, Vol.v, No.3, p:8.
4)Premkumar.N B and Esther Gnanapoo.J “E-Banking the essential need of today” Kisan World, March 2008, Vol.35,No.3, PP:17-19.
5)Vasudevan V.,”Theory of banking”, S.Chand & Company Ltd., Delhi, Nov -1986 P.43.
6)”A study of the Trends and issues in implementation of E- Banking,”Dr.Meena Mathur, Zakiya Khan.
Websites
1)http://www.banknetindia.com
2)http://www.rbi.co.in
3)http://www.indianbankassociation.org
4)http://www.polaris.co.in
5)tech quest 2003
6)IBA- Indian year Book 2001
The Art of Entrepreneurship
The classic entrepreneur reveals attributes and competencies that are worth emulating. Anyone can become an entrepreneur by gaining these entrepreneurial attributes.
Throughout the world, it is a fact that the most knowledgeable people at school usually are not those who make it in life or in the world of business. These intelligent ones are often surpassed by those who time after time endeavor to succeed because, they use their qualifications to look for jobs and do not desire to make it on their own.
Entrepreneurship is very crucial to the development of any economy in the world today! Every economy that has witnessed speedy growth has done so because of the existence of a pulsating private sector. Entrepreneurship really represents the only hope of employment for the hundreds of thousands who graduates from our various educational institutions each year throughout the world because, the public sector currently employs less of these graduates.
The New Webster’s Dictionary of the English Language defines an entrepreneur as ” someone who runs a business at his own financial risk.” It is therefore important that we all develop the art of entrepreneurship, master how to reduce risk and how to make our businesses bloom. Entrepreneurship is an art, meaning, certain requisite skills and special abilities must be acquired and developed.
Let us discuss those skills that will make you an excellent and successful entrepreneur.
Skill #1: Learn to identify an opportunity.
It is said that opportunity is seen with the mind and not the eyes. Therefore, it is important to develop our minds so to easily identify great opportunities all around us. The developing of our minds to spot opportunities begins with a change of the way we think. We are really the way we think. Therefore, the way you are make you see things differently. For example, in my country, there are two school of thoughts. One thought believe that graduates should humble themselves, combine their acquired skills to do the so call “dirty” works so to be rich. The other thought believe that graduates are the “special” ones and must sit in the glamorous offices.
But with time, I have come to the realization that, those who follow the former school of thought become the rich ones who end up employing those who follow the latter school of thought. You are really what you think! Opportunities have to be taken, but they seldom come long without a measure of risk attached to them. Opportunities when spotted, draw people in an inimitable way.
They release energy for their fulfillment and rouse people in an infectious way into doing the seemingly impossible. Just like young David in my favorite Sunday School Story of “David and Goliath”, David spotted the opportunity that will catapult him to richness and fame by fighting the ferocious Goliath when everybody backed off.
It was risky for a young lad to fight such a giant but he went for it and succeeded. Change the way you think and your beliefs will change, change your beliefs and your expectations will change, change your expectations and your attitude will change, change your attitude and your behaviour will change, and when you change your
behaviour, you will lucidly and vividly see all the opportunities around you.
Skill #2: Prepare for hard work.
Yes! it is true that being an entrepreneur gives you the temerity of your time. That is, you decide where to go and at what time, which is not the case for most employees. That, not withstanding, should not pave way for slothfulness whatsoever. An entrepreneur works hard, though unlike most employees, he or she (the entrepreneur) receives the right reward for his or her labor. Entrepreneurs have time for nothing else other than work, real work. In the art of entrepreneurship, hands – on dedication is required and nothing less will be sufficient. Entrepreneurship means given your 110% commitment. All self – made millionaires would tell you this.
Skill #3: Doing something you love doing best.
In the story of David and Goliath, David had practiced on a countless number of times how to use his slingshot. In fact, it was his slingshot he used in the killing of bears which attacked his lambs. Therefore, when Saul, his King, offered him his glamorous armor, he opted for his slingshot with just five smooth stones. That was what he knew best. He also decided to fight Goliath to defend his people because to him David, he had been practicing the art of defense in the bush. So he did what he loved doing best and excelled.
Be passionate at what you intend doing. If you do what you love, you are going to be better at it with time. It is very important that you do what you love doing best because, you are able to rise again even if you fall short the first time as in the case of most entrepreneurs.
Skill #4: Prepare to take risks.
There are always some risks involved in any new mission and you have to be prepared to assess these risks, as they present themselves. Everyone, one way or the other takes risks in life. However, most of the risks most people take are the ones that do not bring about any life changing success. Rather, it is the difficult ones that bring the unbeatable prosperity that most people stay away from. In my favorite David and Goliath story, though King Saul offered part of his kingdom as well as good riches to any man that is able to conquer Goliath, everyone stayed away, including the most experienced soldiers of Israel. It was little David who risked his life, fought Goliath, and conquered him. No wonder he later became the king of Israel and very rich.
Most people are usually afraid to take risk. It is not the risk in any venture that makes them fail, but their fear to fail makes them fail. Successful entrepreneurs are not afraid to fail. They just hate to fail. Their passion to overcome risk and succeed makes them prosperous. Actually, passion is the combination of love and hate. Love for what you desire and hate for you abhor. As an entrepreneur, love to take risk but hate to fail in your risky actions. Stop telling yourself, “what will happen if I fail.” I am please that in all occasions, the little word “if” is used. The entrepreneur tells himself, “how can I fail.”
Usually, it the lack of the right knowledge that makes investing risk. When you know what you are doing, you overcome all risks and you succeed. It our ignorance - believing that what you don’t know is not important, makes some people fall in the world of business. Education is the key for the elimination of ignorance. The education should include: time management, cash flow management, management of people, accounting, investing (the science of money making money), understanding the markets and the law. Ignorance makes investing risky.
Skill #5: Developing a clear vision.
Entrepreneurship is about going somewhere and it begins with a clear vision. When your employees cannot ascertain where you are going and what you intend to achieve,
they will have a hard time getting excited about the journey and may result in abandonment. As an entrepreneur clear vision should first communicate your purpose. With your purpose, I mean the kind of “business” you are in, where you are going and why. Your “why” must be very strong, since it easily help you do the “how”.
Secondly, your vision should commune your picture of the future of your business. That is to say, what will your future be like, if your purpose is realized. Finally, your vision must portray your values, what you stand for as well as the principles you will make your in progress decisions. When your vision is persuasive, it communicates to people who you are, where you are going and what will guide your journey in the world of business.
Your vision is what keeps you and your business going, when times are really tough and will avert your business from stopping short or arriving at the wrong destination. I placed this skill last because, to me, all the other skills mentioned earlier hang on this.
You have what it takes to succeed. Go all out!
For an easy way to become an entrepreneur, please CLICK HERE.