Who is Really Taking on More Risk: Franchise Owners or Entrepreneurs?

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Are you an entrepreneur, a business person or successful business person?

Entrepreneurs are risk takers in business. They often lack the experience of successful business people who know how to effectively manage the businesses they start.

The difference may be in the management control systems that are so important to success in business.

While this may seem obvious to some, the reality is that many get started in business without a clear understanding of what needs to be done in order to be successful.

Certain business skills and knowledge are important to business success. These skills can be learned or purchased (in the form of employees.) When one at first gets lucky in business, they lose the opportunity to acquire these skills.

The business grows in the absence of these skills until, at some point, luck runs out. A business lucky in choice of location or in obtaining key customers may find that this is not enough.

They may expand the business.

They may not clearly understand where the money is going or a trusted employee may be stealing from them. The business owner often considers these events to be out of their control or just bad luck.

In reality, they are more likely the result of poor management control systems that should be in place for any business.

The ultimate goal is to understand your business. You may work in the business or manage it from a distance. There may be a single location or multiple locations. It is important to understand what works and does not work within the business, and to have sufficient information to improve the overall results.

This usually means that the business should be capable of being operated without the daily presence of senior management but with an ultimate end result of increased profitability.

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About this Entry

This page contains a single entry by Perry Shoom published on April 25, 2013 11:49 AM.

See How Easily You Prevent Employee Dishonesty & Improve Customer Service was the previous entry in this blog.

How to Improve Your Franchise Sales Process -Save the Date- May 21st is the next entry in this blog.

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