Root planning problems
The previous statement is based on practice: over the past decade at least a thousand presentations and defenses of business projects have been reviewed, and I have helped many entrepreneurs to develop business plans for translating their ideas. And what was my impression …
The first common feature of start-up entrepreneurs is that, at the start, they are blinded by their “super-wonderful” business idea, love it, like a child born in the throes of it. From here – the blind and unsupported confidence that their idea is the best, the proposed value (good, product) is unique, and the market and society will simply be happy with this proposal.
The second similarity is, as a rule, excessive “economic expectations”. They say that only small investments are needed at the start, and in a year or two there will already be millions of incomes, jobs, decent wages and serious contributions to the budget.
I will give an illustrative example of the presentations of business projects attended by a professor respected by me (economist and marketer). To the question “Who are your main competitors?” The speaker gave a “wonderful” answer: “I have no competitors!”. To which the professor logically remarked that in this case no one needs the proposed product either. After the joke, he added seriously: “Most likely, you have not studied your market, because there are always competitors, if not today’s, so tomorrow, but not always, we know who they are or where to expect them.”
The main problem of the Russian small business, as already mentioned above, is not a lack of assistance from the state and financial resources from credit organizations. I don’t understand why we should talk about demagogic talk about the lack of attention to small business on the part of banks and government agencies. For many years there have been various state support programs, for example, “First Step”, “Business Start”, etc., within which aspiring entrepreneurs receive real financial assistance from the state in the form of grants from 300 thousand rubles to 1 million.
Many banks also have their own small business lending programs, including unsecured ones. The task of an entrepreneur is “extremely simple” – to shape your business idea into a business plan, in which you need to consistently and convincingly provide evidence of the realism and feasibility of a business idea. With what, unfortunately, most entrepreneurs are not always able to cope – as a rule, they lack the competence in marketing and economics. And these are the main sections of any business plan! We will talk more about marketing in more detail in the following conversations.
In order to start a conversation about the economics of entrepreneurship in the human language, let’s conduct a small marketing “warm-up”. If your idea is actually so great, answer yourself a few questions. First: why has nobody (yet) implemented her (idea)?
The answer that your idea no longer occurred to anyone else, immediately dismiss. Be sure to come … and more than once, and not alone. So, there are some obstacles (and not only financial ones!) In the way of the realization of the idea, which you simply can’t see. As soon as you answer the question “Why couldn’t others?”, An understanding will come, but do you have the ability (competencies) to cope with obstacles? Do you understand the value of your idea (product, service) for others (consumers) and how much they are willing to buy your offer? Or: for how much and in what volume do you need to sell your proposal in order for the project (enterprise) economy to be effective?
With the first question, I suggest everyone to work independently, since I do not know either your ideas or the barriers to their implementation. Each project has exclusively individual features known only to you personally. But with the rest of the questions, let’s understand together. Let’s start with a seemingly banal, but very important point: how does business differ from self-employment, and consumer value from exchange value.
numbering-small.png Entrepreneur and value created by him
The organization of any business requires the unification of many different resources – labor, financial, land, intellectual, informational, temporary, etc. This is an axiom. The lack of one resource can be compensated by the presence of another. For example, the lack of capital is filled by labor. Americans even have such a term “sweaty capital.” The lack of labor resources is replenished with temporary, informational – intellectual. That is, there are an unlimited set of combinations of resources for organizing the process of creating any values (goods) demanded by society (the market). The resources themselves will not unite, an initiator and a “accompanist” of the association is necessary – a specific person (or a group of people, but again driven by a specific person). Can such a person be called an entrepreneur? Yes and no.
It is impossible, if the process is completely organized according to the model, copied from already thousands of similarly organized processes.