South-Western - Management  
Head of Ohio-Based Firm Gives His Suggestions on Small Business Management
Topic Entrepreneurism
Key Words Entrepreneurial process
InfoTrac Reference CJ114934837
If your textbook came with an InfoTrac passcode, click here to login on InfoTrac.
News Story

Robert Hisrich, author of Small Business Solutions: How to Fix and Prevent the 13 Biggest Problems That Derail Business, makes suggestions for avoiding common pitfalls when starting and managing a business. No matter where the business is based, entrepreneurs tend to make the same mistakes, according to Hisrich. He has found that entrepreneurs often have trouble staying focused, managing their cash flow, and coming up with a market niche.

Starting a business should begin with choosing a business idea, testing it to see if it will fly, then building a venture based on that idea. He recommends that owners stick to the basic entrepreneurial process: identifying and evaluating an opportunity; developing a business plan; identifying the required resources; and managing the new venture.

Generating a unique business idea is a challenge. Todd Finkle, professor at University of Akron, suggests that you should look at what will have an impact on the world, instead of your pocketbook. Hisrich recommends creating a focus group, brainstorming with others, or doing a problem inventory analysis.

Two of the biggest mistakes entrepreneurs make involve not seeking the right advisors and not establishing the correct organizational form. They should consider risk, in terms of liability; finance, in terms of raising capital and tax considerations; control, in terms of who runs the business; equity, in terms of who owns the company's equity; and continuity, in terms of transferring ownership.

Providing proper compensation is key to hiring and retaining good employees.

Small Business Solutions urges entrepreneurs to create and maintain core values; build strong brands; develop competence in terms of attitude, knowledge and know-how; insist on ethical behavior; use a good leadership style; and implement sound succession planning.

Questions
1.

Does this article focus on the macro view of entrepreneurship, or the micro view? Explain.

2.

The article states, "He recommends that owners stick to the basic entrepreneurial process: identifying and evaluating an opportunity; developing a business plan; identifying the required resources; and managing the new venture." How does this compare to the entrepreneurial process discussed in your text or lecture?

Source "Head of Ohio-Based Firm Gives His Suggestions on Small Business Management," Akron Beacon Journal, Ohio Knight Ridder/Tribune Business News April 5, 2004.
Instructor Discussion Notes Discussion Notes
These notes are restricted to qualified instructors only. Register for free!

Return to the Entrepreneurship Index

©2004  South-Western.  All Rights Reserved     |