Keynote on Entrepreneurship at the IBCN Conference, Coimbatore

Look at famous entrepreneurs, Google search them - Steve Jobs, Ambani, Lakshmi Mittal, our own AVM, Karumuthu Thyagarajan Chettiar, AMM and many others - they can be inspiring and look extraordinary, they may seem overwhelming, they are icons.  Let us not forget they started out just like you and me.

Can we learn from these great entrepreneurs? Of course we can.  

Research indicates that great entrepreneurs may not have great qualifications but they have certain traits that led them to success. They are role models for entrepreneurs and we can learn from their successes and failures.

These successful entrepreneurs are always LOOKING OUT, KEEPING their EYES OPEN for the next possible opportunity.

The theme of my session was keeping our eyes open.

 

The six I’s:

1.       Ideas

2.       Information

3.       Instinct

4.       Initiative

 

5.       Inspiration

6.       Institutionalisation

If you would like to get a copy of the presentation do email me drpalan@smrhub.com

Entrepreneurship

The topic of entrepreneurship is a very popular one among students of business and administration but it has not always been so. During the time before 1960, many economists had understood the importance of entrepreneurship yet tended to underrate it. To start off, they laid their attention on big companies not realizing the fact that it is actually the newer and smaller firms that generate most of the new jobs. Additionally, the role of the entrepreneur to organize new productive resources to increase the supply seemed not to be important among the dominant school of economies, which were only interested in managing consumer demand by promoting product purchase from customers.

During the 1970s, everything about the previous concept of entrepreneurialism has changed because economies primarily concerned with demand have failed to prevent constant inflation. The economists during that time have begun to worry about the fact that productivity was increasing much less faster than before. This has made them more interested in the supply of goods and services and this is where the entrepreneurs earned their break.

The importance of entrepreneurship has been realized and understood during this time and after because it holds at least four social benefits: it fosters economic growth, increases productivity, creates new technology and it rejuvenates the competition in the market.

One of the main reasons why the economists of that time started placing their eyes on the small new firms is that they seem to have provided the most jobs within their economy. In the United States alone, more than four fifths of all new employment comes from small firms. Out of all these openings, more than 30 percent are provided by businesses that have been around no less than 5 years. Yet not all small businesses are job creators but only those that are relatively young and expand rapidly during their early stages.

Being able to produce more goods and services with lesser labor and having other input increased much less rapidly especially in the US in the 1970s compared to 1950s to 1960s. Many of the economists conclude and still believe that this is the most fundamental problem that is plaguing the country. The greater reason why interest in entrepreneurship has increased is that they have recognized its role of raising the productivity of the country.

Also, a major impetus that has propelled their drive to research about productivity measures is the international competition during that time. The conclusion as to why people should take the importance of entrepreneurship seriously is that in order for countries to maintain a high standard in living, they should be productive in their business sector.

Visit

http://www.evancarmichael.com/Home-Based-Business/5967/Importance-of-Entrepreneurship.html

How Difficult Conversations Can Lead to Positive Change

How Difficult Conversations Can Lead to Positive Change

From Training Industry Blog


Picture yourself having a conversation with a person you know is smart and committed to her work but often complains about a situation and feels stuck even when others offer her advice. You want her to quit focusing on the problem and try something new. You’ve given her feedback, but the conversation just circles back to what's not working.
This is a typical leadership scenario where traditional conversation skills don’t work. The leader must delve deep in the conversation to help the person see the situation more broadly and recognize how they might be sabotaging their success. This will probably be an uncomfortable conversation, but it’s also the best opportunity to help them change and grow.
In order to define who we are and make sense of the world, humans develop patterns of thinking that they strongly protect. This protective nature constrains the brain, making it difficult for people to objectively examine their thoughts. People get stuck protecting their points of view. It takes strong reflections and questions to break through the barriers and create self-awareness.
To help someone think differently about a situation:

• Listen deeply. When you're listening for emotional triggers and blocks, you're listening at a very deep level. In return, people feel profoundly seen, heard and understood. Although there may be discomfort when you share what you hear, the emotions dissipate and results in more meaningful conversations and stronger relationships.
• Challenge the beliefs that created the frames. What assumptions do you hear? What is she expecting to happen that is only speculation?
• Ask about what appears to be the underlying fears and needs, logical or not, that are keeping the patterns in place.
• Use reflective statements (checking out what you see, hear, and sense) and questions to help people actively think about their thinking, which can change beliefs and behavior.
• Don’t shy away when the person shows emotions. When you make people stop and question their thoughts, their brains frantically try to make sense of the new perception, causing a moment of discomfort. Then a burst of adrenaline could cause an emotional reaction - anything from nervous laughter to anger - before an insight emerges. When you ask them to articulate what they now see and think, you have a chance to change their minds for good.
• Choose an emotional keyword. Before starting the conversation, choose an emotion you want to feel. When a person reacts, remember that if you are angry or disappointed with them, they won’t be open to having additional conversations with you. Select one word to use as an emotional anchor you can go back to when your own impatience, anger or fear arises. Consider what you want the other person to feel—inspired, hopeful, or courageous? Then occasionally remind yourself to feel this emotion too.
• Hold the person in high regard. You have to believe in the person’s potential even if you were disappointed in their "stuck" behavior. There has to be mutual respect for the conversation to be effective. Consider what the person has done well in the past and what is possible in the future. Hold the person in high regard even before you enter the conversation. The person will sense your respect and hope for them even if the conversation feels difficult.

Discomfort felt in the moment of uncertainty opens the mind to learning. The perfect time for a discomfort zone conversation is when a person is stuck in one perspective and resisting advice. Leaders can use these conversations to help top talent think through problems, see situations more strategically and grow beyond their limitations.
The most successful leaders participate in helping others create new realities, said Joseph Jaworski in his book, "Synchronicity." The conversations might be uncomfortable, but profound and lasting learning happens. If one of the greatest purposes of being a leader is to help people grow, then all leaders should know how to navigate uncomfortable conversations.

         

About the Author

Marcia Reynolds

Marcia Reynolds, PsyD, travels the world speaking and teaching classes in advanced coaching skills, leadership and emotional intelligence. She is the author of three books and has been quoted in major online and print publications in the U.S. and Europe. Her new book is titled, "The Discomfort Zone: How Leaders Turn Difficult Conversations into Breakthroughs".
Reynolds was fifth global president of the International Coach Federation and is currently the President Elect of the Association for Coach Training Organizations (ACTO). She is the Training Director for the Healthcare Coaching Institute, a coaching school and division of The Pyramid Resource Group focused teaching leaders in the healthcare industry. She also works with training organizations in Russia and China.
She holds a doctorate in organizational psychology and two masters degrees in communications and education. Her experience includes 16 years in leadership positions in training departments for healthcare and high-tech corporations. You can reach her at marcia@pyramidresource.com

I believe anyone can accomplish great things. Regardless of who you are or where you’re from, if you have an idea, you can make it happen. This approach to life has helped me to achieve goals and accomplishments far beyond the NFL, including starting my own business while still playing football. I used my power approach, not the same power I might have used on the field, but a simple five-step mantra to help anyone start a business. Visit http://www.entrepreneur.com/article/241705 to view the full article. Visit mphonline.com to get a copy of my book: The Global Journey of an Asian.

Money Management from a Business Perspective

Good article from Kaz Domagalski. Visit articles base.com Administrating a business is very similar to organizing a home environment, with all the different expenses to consider preventing the business from going under with deficits and bankruptcy. A business has "children" in terms of all the employed operatives engaged hand-in-glove and with utmost efficiency to make sure that the business finances float above break even. There is however, one main focus for a business to thrive and exist in security and balance, and that is the knowledge of knowing how to manage money in your business, especially with overhead and operational expenses. Overhead And Operational Expenses Overhead and operational expenses are all billings, including phone, postage, insurance, vehicle expenses and all general outflow of financial allocation in order for a business to run competently. These include the wages and payroll system for all the employees, and staff who handles administrative jobs. Also in this respect are the different community utilities such as the water, electrical and gas services. Another consideration would be the internal service personnel costs such as the security, and janitorial services. Finally, all these are subjected to the different taxes incurred for the building, business, benefits of employees and other imposed expenses from the local government. Without appropriate and substantial external or personal funding for any of the areas mentioned, any business will surely have a hard time operating at maximum efficiency and would be in danger of consigning the whole venture to risk of either being overrun by competitors or be shadowed by loans and outstanding bills. Wages And The Payroll System Employees and administrative staff are dependent on the wages and salaries they pick up from the administration of a business. One should consider this as the lifeblood of any entrepreneurial endeavour. Too high an hourly rate in wage and one would expect a negative profit for the business. A small hourly rate would result in employee dissent and probable risk of key employees migrating to competitors who pay larger salaries The employee wage rate is equally as important as balancing the allowance of kids if compared to a home environment. Incorrect or ill-advised allocation of available funds, neglecting budgets, or over budgeting will affect other areas in the business that would have benefitted from appropriate financing. Utilities Public utilities are organizations that maintain the infrastructure for the public and business services. As such, they are subject to forms of public control and regulation ranging from community based groups to local government monopolies. The term ‘utilities' refers to services, both maintenance and administrative, provided by these organizations and consumed by the public and business. Natural gas, electricity generation, electricity retailing and tele-communications are key business elements which should be respected when critical budgeting decisions are projected. Internal Services Internal services which include janitorial and security services are equally important to businesses. As the company grows and becomes a more complex organization, larger buildings will require adequate facilities for an expanding workforce. These two services should not be neglected as their importance not just for physical security and hygiene but aesthetically reassuring from a visiting clients perspective. Furthermore, if the business is engaged in manufacture, warehousing or retail, a security service is essential to provide the sense of security to clients as they will be entrusting their hard earned cash and resources in exchange for services or goods that the business offers. Taxes Paying taxes on time is a major obstacle faced by companies, especially small, recently started businesses by the end of the financial calendar. Business taxes can be summarized simply by calculating your total revenue, reducing this amount by as many tax deductions that are currently available and then paying tax due on the remaining amount. Sounds easy! However, filling in lengthy forms and ticking respective boxes requires expertise to avoid errors and, before going any further, the first thing to consider which is crucially important at the end of a financial period is hiring a professional team of tax experts working for you. You may believe that you are able to do this work yourself, and maybe you can. But, consider money well spent on a team of professionals to help you do it better.

Business Plan

How to Start a Business: Business Plan This article by Brian S. Mahoney from articlesbase.com is a great one. Millions of people want to know what is the secret to making money. Most have come to the conclusion that it is to start a business. So how to start a business? The first thing you do to start is business is to create a business plan. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. A professional business plan consists of ten parts. A business plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. A professional business plan consists of ten parts. Executive Summary The executive summary is often considered the most important section of a business plan. This section briefly tells your reader where your company is, where you want to take it, and why your business idea will be successful. If you are seeking financing, the executive summary is also your first opportunity to grab a potential investor's interest. 2. Company Description This section of your business plan provides a high-level review of the different elements of your business. This is akin to an extended elevator pitch and can help readers and potential investors quickly understand the goal of your business and its unique proposition. 3. Market Analysis The market analysis section of your business plan should illustrate your industry and market knowledge as well as any of your research findings and conclusions. This section is usually presented after the company description. 4. Organization and Management Organization and Management follows the Market Analysis. This section should include: your company's organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors. 5. Service or Product Line Once you've completed the Organizational and Management section of your plan, the next part of your business plan is where you describe your service or product, emphasizing the benefits to potential and current customers. Focus on why your particular product will fill a need for your target customers. 6. Marketing and Sales Once you've completed the Service or Product Line section of your plan, the next part of your business plan should focus on your marketing and sales management strategy for your business. 7. Funding Request If you are seeking funding for your business venture, use this section to outline your requirements. 8. Financial Projections You should develop the Financial Projections section after you've analyzed the market and set clear objectives. That's when you can allocate resources efficiently. The following is a list of the critical financial statements to include in your business plan packet. 9. Marketing and Sales Once you've completed the Service or Product Line section of your plan, the next part of your business plan should focus on your marketing and sales management strategy for your business. 10. Appendix The Appendix should be provided to readers on an as-needed basis. In other words, it should not be included with the main body of your business plan. Your plan is your communication tool; as such, it will be seen by a lot of people. Some of the information in the business section you will not want everyone to see, but specific individuals (such as creditors) may want access to this information to make lending decisions. Therefore, it is important to have the appendix within easy reach. How to make your business plan stand out. One of the first steps to business planning is determining your target market and why they would want to buy from you. For example, is the market you serve the best one for your product or service? Are the benefits of dealing with your business clear and are they aligned with customer needs? If you're unsure about the answers to any of these questions, take a step back and revisit the foundation of your business plan. The following tips can help you clarify what your business has to offer, identify the right target market for it and build a niche for yourself.

Training is Big Business

I reproduce some ideas from from Bersin and Associates and Training Industry.com. One of the most important (yet often least respected) parts of business is corporate training. U.S. businesses spend on average over $60 billion per year in this area supporting an industry that includes hundreds of thousands of training professionals, content and tools providers, and technologies. Well this year, driven by the tremendous need for workforce skills, spending has exploded. U.S. spending on corporate training grew by 12% in 2012, the highest growth rate since we started our research. (Source: The Corporate Learning Fact book ®, Bersin by Deloitte). Training Industry.com estimates total spend both in source and outsource at US$ 307 billion with 42% outsourced. Growth is about 5% each year. This increase likely reflects three major forces shaping the US workforce: The need for specialized skills is increasing. Today, the top sought-after positions require extensive preparation and education to achieve company goals, reflecting the tremendous need for skills. Many high-value jobs (IT, manufacturing, sales, marketing, finance, etc.) require deeper and deeper levels of skills, and more than 60% of U.S. business value now comes from “intangible assets” – intellectual value. Workforce education and skills have atrophied. Employers tell us that despite the high level of unemployment in the U.S., nearly one-third of young candidates do not have the core reading, writing, and problem solving skills they need to be productive on day one. Many new hires need skills development in order to achieve their goals. Leadership development and succession management have become critical business needs. When we ask top HR executives to rank their top challenges, the #1 cited problem is “gaps in the global leadership pipeline.” Businesses have watched their workforce shift from baby boomers to younger workers and now should rebuild their leadership capacity. Such effort takes formal and informal training. Shift toward Informal Training As technology becomes widespread around the world, corporate training has shifted . This year companies grew their “informal learning” spending by 39%, demonstrating a steady shift toward social learning tools, knowledge sharing, expert directories, and other forms of information sharing. Mobile learning is now becoming mainstream. As this shift has occurred, the instructor led training industry has also evolved. Today, companies spend only about 30% of their total L&D spending on instructor-led programs and this level has flattened off. The early promise of “all online training” has not proved to work in many cases, and companies have settled into a world of one-third instructor-led and two-thirds technology enabled training. Many High-Impact Organizations Spend More In last 2012, Bersin launched our High-Impact Learning Organization Maturity Model®. This model breaks all training functions into four levels of maturity, using more than 10 years of research and studies of thousands of organizations. Our research shows that the high-impact organizations (those at levels 3 and 4) deliver significantly greater business outcomes than those at level 2, and more than 50% greater outcomes than those at level 1. This year’s Fact book, for the first time ever, breaks down detailed benchmarks by maturity level. While many organizations view corporate training and development as an expense, clearly the high-impact organizations see it differently. Companies at levels 3 and 4 actually spend 34% more money per employee than those at levels 1 and 2, showing that “reducing the cost of training” is not a sound strategy. Many high-impact organizations spend more, measure the impact of training more broadly, and get far more benefit. In fact our research shows that these companies not only perform at higher levels, they have higher levels of engagement, retention, and employee and customer satisfaction. The New Era of Global Skills Imbalances Today’s business climate is one of global skills gaps. New technology, shifting markets, and changing demographics mean that manufacturers, service providers, telecommunications companies, technology companies, healthcare providers, and many other industries live and die by their skills. As companies globalize their businesses, the ability to build skills has become a deep competitive advantage. The global economy may not be in full recovery, but the world of corporate training is. We believe this dramatic increase in spending demonstrates improved business confidence and the clear gaps in the workforce. Now is the time to revamp your L&D organization, and we are here to help you. From Bersin and Associates.