Ryan Ho's Entrepreneurship Blog

Blogging on topics revolving around entrepreneurship.

July-31-11

Six Entry Levels Of Business Start Ups

posted by ryan

To determine and analyze if a new business can succeed or fail depends on the entry levels of the entity which it enters and exits respectively.

Majority of the businesses start small and expand accordingly based on their profitability. Only a couple of large scale business entities are able to start a new company on a large scale with a huge financial budgets.

Most aspiring entrepreneurs often fail even before they could even get a foot-hold and have the business steady and running.

There are a couple of entry levels that clearly demonstrates if the business will succeed or fail based on the entry in the short term perspective if the business owner doesn’t change strategy.

I hope this entry helps individuals in determine the level of start ups they are able to start, and come up with the necessary strategies required to take the business to the next higher level.

Size of financial ability determines probability of success, and most successful enterprises often acquire other businesses to get a head-start.

Level One

It is what many new business owners start and fail in, the term used is a start up. Before the business can even start operation (like a plane unable to start) the business face a couple of difficult problems in preventing the entity from even moving forward. Critical problem such as financial is the main concern restricting the even the growth.

This is often a one-man-show (OMS) business where the owner does anything and everything, left on their own to prove their worth.

Level Two

Start up business owner has minimal capital and him/herself to ensure the business is even able to continue operation into the first year period. Having to pay for products, services delivery fees, rental and their personal expenses. Funds are depleted much faster than predicted and the business close its shutters permanently having to repay their loans with installments, keeping them away from re-entering the business arena.

Also considered a one-man-show operation, but at times, they may only be able to hire another part time assistant to help out with the business. Future is not guaranteed.

Level Three

Business has no issues with funding, able to meet estimated business expenses for at least three to five years of operations. The only issue is the inability to hire talents, and grow the business, reasons could be due to poor employment guidelines, no proper appraisal, employees feel unhappy and dejected in the employee in particular with the superiors inclusive of a destructive boss limiting the employees to release their potential and talents to their fullest.

This is what many employees may use as a learning platform to gain the experience they need to run a new company before going to a better company to help grow the business.

As for the business owner, he/she will take the experience as a tuition fee and gain experience to recoup more funds for another shot in the business.

Level Four

Entity has got no issues with both manpower and financial funding from investors, but the both the head and in-charge pays well, lets temporary succeed clouds their vision and take matters into their own hands refusing to listen to advices from the very talents they recruited and soon find business sliding down gradually until it is at risk of elimination from competitors who are hot on their heels.

An example of such a business will be the Blackberry who are facing intense and much stronger competitors such as andriod – HTC and iphone – Apple. Talents all flock to bigger enterprises,  leaving the business in lurch, as Blackberry mobile apps have stopped development and is only on a demand supported basis, unlike bigger competitors who still have developers willing to create apps to create and spur new demand for the mobile phones with larger market shares.

Level Five

Enterprise has generally no problems dealing with both financial and manpower issues, but what’s left are those surround business expansion both locally and globally, low connections of important networks and help from experts in different fields to aid the growth of the enterprise to a higher level.

An example is how many overseas companies wanting to have a slice in the China market, Linkedin, Google having much difficulty penetrating market due to lack of local connections and poor support from the locals.

Level Six

The enterprise has got no problems nor difficulty in all aspects, pulling resources, funds, networks, and creditability based on excellent remuneration where talents are given room for flex their muscles and funds to even fail in order to come up with the next big thing both from internal and external sources by buying over potential businesses limited by funding issues.

Bill Gates is the only business for Microsoft to date that has no problems doing business in both Eastern and Western nations.

 

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February-24-10

Time

posted by ryan

Time is a measurement system of a unit. It is a measurement of a period or interval.

Everyone has the same amount of time twenty four hours a day seven days a week fifty two weeks a year and so on. Time is so unique that nobody can create extra time for anybody.

The poor can only have maximal twenty four hours per day, while the wealthy and successful businessmen have X numbers of twenty four hours, and it is based on the number of business partners, employees they have working on a project, repeating doing the same thing to produce products, services for sales and profit to the business.

With increase help and paying people in-exchange for their time, the businessmen thus can increase and better utilize his time on more profitable business to further increase his wealth accumulation process.

Businessmen thus in a way is buying time from people, leverage on business partners and employees which is mutually beneficial to all the parties involved with agreements to the terms and conditions attached.

While time can actually be bought, but nobody can buy back lost time, time which has passed can never ever be bought, which brings me to opportunity cost, when the timing is right, a business proposal is in front of you wanting to invest and be part of it, if you miss it that time, in future when they succeed, you cannot turn back time thus you live a life with regrets and nothing else.

We can buy time but we cannot buy lost time since we cannot turn back the clock. Instead of living with regrets, why not make the best use of time to do what we like, go after our dreams, passion or wealth.

If you are clueless about opportunity cost, there is a daily repeating event in the neighbourhood near you. Just start queuing up for free newspapers everyday, at time you may be in the front, but what happens if you are at the back of the queue without any free newspapers left. That is the lost of opportunity. You can choose to wake up early, take action by queuing or find shortcuts.

If you lose it, you cannot find it back, since the newspapers are all given out with no spare copies. It is identical to doing business. Just with the exception of business where money comes into the picture.

If you know Microsoft, Google and Facebook could be what it is today, if there is a opportunity for you to invest when they are still unknown, you have found the perfect opportunity that once lost, it is lost forever for good or bad depending on your perspective, time is important, so make sure you know how to look ahead and invest in visions, not dreams.

Today at this date, I have an opportunity for interested parties, I’m not sure how long or short this limited opportunity to work with successful businessmen will last, but if you understand the value of time, do not hesitate to contact me,

I’ll get back to you if you show interest in wealth accumulation, moreover whatever I am doing right now, it is tested, proven with time and results from seniors who have being there, done that. I’m learning from businessmen who plans on building companies, if you want to be part of it, why not now, ask me for more details.

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