Entrepreneurs – Invest in Yourself

Many articles and books have been written about entrepreneur investing in businesses and property. Our blog has alluded to investing, especially in their people.

Entrepreneurs should also invest in themselves.

How do you invest in yourself? What have you been doing to improve your skills, thinking, knowledge, perspective and so on? Entrepreneurs need to invest in themselves by continually improving themselves – not only as business leaders, but also as individuals, marital or other partners, family persons, and social and community leaders.

Investing in yourself provides emotional and spiritual rewards that far exceed material ones.

Ravi Patel

www.patelCFOservices.com

Entrepreneur Planning

Most Entrepreneurs undertake normal planning for their businesses in one form or other – whether it is strategic, operational, or financial for the short-term, annual or multi-year.

Depending upon the stage of growth of their company, Entrepreneurs should also consider other forms of  “Entrepreneur” planning – contingency, exit, succession, estate, wealth, and so on.

The maturity of the company, the soundness of the organizational structure, and expectations of the Entrepreneur affect such planning. Some Entrepreneurs, especially workaholics, tend to put off  “Entrepreneur” planning. For long-term success and peace of mind, Entrepreneurs should pay attention to this type of planning.

For more info, please contact us at Patel CFO Services (www.patelCFOservices.com).

Ravi Patel

www.patelCFOservices.com

Maintaining Organizational Structure

When Entrepreneurs start their businesses, they are often used to doing  mostly everything themselves. As they slowly grow the organization, they build a structure with people in key functional positions and clearly defined supervisor-subordinate relationships.

Due to their founding the company and established relationships with initially-hired employees,  Entrepreneurs sometimes bypass the established organizational structure and direct employees at lower levels. This also encourages these employees in turn to bypass their supervisors and deal directly with the Entrepreneur or CEO.

While emergencies and critical decisions require a breakdown in the organizational hierarchy, organizational structure and the established supervisor-subordinate relationships need to be maintained to facilitate people to “Do the Right Things” and build companies for long-term growth .

This does not imply that Entrepreneurs should not maintain relationships at all levels in the organization. Instead, Entrepreneurs should cultivate an environment where the key management team and supervisors are the decision makers within their sphere of responsibility instead of relying on or promoting all significant decisions to be made by the Entrepreneur or CEO.

Ravi Patel

www.patelCFOservices.com

Spending versus Investing

Entrepreneurs watch, as they should, their cash outflows very carefully. But, do they realize if they are spending or investing their money?

Spending money involves payments for costs of goods and services (such as inventory, supplies, labor, travel), compliance requirements (taxes, fees, licenses), or overhead (rent, utilities, office expenses). These provide short-term benefits.

Other forms of payments or outflows have returns over a period. These are usually for marketing, hiring, training, improvements, real estate, machinery and equipment, and such.

Differentiating between spending and investing is useful for decision-making. Controlling spending and investing wisely offers the optimum path for Entrepreneurs.

For more info please contact us at Patel CFO Services at www.patelCFOservices.com

Ravi Patel

www.patelCFOservices.com

Working Capital Improvement

Entrepreneurs should be and are often focused on cash management in their businesses.

Improving your working capital is a part of overall cash management. Entrepreneurs sometimes focus on receivable collections as a means to improve working capital. While this is a significant component of working capital, Entrepreneurs should broaden their scope.

Improving working capital requires a review of all components of working capital and developing specific plans to improve every item.

For assistance in this area, please contact us at Patel CFO Services at www.patelCFOservices.com

Ravi Patel

www.patelCFOservices.com

Brainstorming Sessions

How do you generate new ideas for growth,  improvement and profitability?

Have you as an Entrepreneur considered Brainstorming Sessions as a source of new ideas? Your employees can play a valuable role in this activity.

Brainstorming is not only a creative exercise, but it also involves your employees and makes them feel like valued contributors. When having Brainstorming Sessions, make sure you follow certain basic guidelines to make the events productive and successful.

For more info please contact us at Patel CFO Services at www.patelCFOservices.com

Ravi Patel

www.patelCFOservices.com

Business Incorporation 101

Most Entrepreneurs when starting a business are often focused on the operational aspects of the business. While this is important, do not forget the legal and tax aspects of starting a business.

Is your business incorporated? Is it a C-corp, S-corp or LLC?

These simple questions have a tremendous bearing on the liability issues affecting your business and personal assets and associated tax ramifications.

It would be wise to plan these issues ahead of time. Changing the tax or legal structure is possible later, but may prove to be more expensive.

For more information,  please contact us at Patel CFO Services at www.patelCFOservices.com

Ravi Patel

www.patelCFOservices.com

Entrepreneurs and Nepotism

Entrepreneurs who have family-owned or single owner businesses sometimes have  family members in the business. These realtionships can take the form of joint ownership, customer-vendor, or employer-employee.

How do you manage these “business” relationships with relatives?

It is often a difficult situation and unless managed carefully, it can be detrimental to your business. While it is easy in theory to stipulate that all such relationships shall be strictly “arms-length,” nepotism can creep in and cause significant issues with other employees, owners, customers or vendors.

While resentment due to nepotism may not always be brought to the surface, Entrepreneurs should be sensitive to nepotism issues in their businesses and manage them carefully.

Ravi Patel

www.patelCFOservices.com