Original Publication
March 18, 2000

Entrepreneurialism - Opportunity for Growth

by Donna Vicker, MBA

Employment with job security is no longer a sure thing. Today, most people are facing job insecurity.

Business owners know that despite the risk of starting a business and the responsibilities that go with it, there is a measure of security in being an entrepreneur. You may be the last to get paid, but you'll also be the last to get fired! And, as business owners, we are in the position to do more than just wait for the axe to fall; we can chart our own destiny.

Major corporations have been rethinking their strategies for years. They have been rethinking policies, procedures and strategizing to maximize the value of every action. This is nowhere more evident than in their purchasing strategies which, for the most part, mean fewer but larger suppliers.

How do we position ourselves for an economy that will continue to prosper and grow? The most important strategy that we must implement is managing growth. In fact, we need to look not only at growth management but growth potential.

With more and more competition, increased market share is not necessarily the way to accomplish growth. We can make it happen by improving the quality of our goods, lowering our prices and enhancing our services to the customer. If we increase capital investment that may enable us to lower our costs, thereby increasing our profit margin. However, that can well be a long process.

Acquisition can make growth happen faster - and it happened a great deal during the 1990's when the largest companies made downsizing part of their everyday language and corporate mergers were the only way to stay at the top.

Partnerships afford growth opportunity when a lack of financing precludes acquisition. While this is not an easy task, a partnership can effectively combine two different disciplines in a related field and enable you to compete in a bigger market arena.

It is important to know what's happening in your industry - not just who's buying what, not just what the competition's selling and at what price. We need to analyze trends and become part of what's happening and what will happen. This may sound simplistic, but for those of us who are wrapped up in the daily struggle to survive, it difficult to step back and analyze. Professional consultants, business school programs and trade associations can help out.

Growth is all about planning, potential and forecasting. Major corporations are not reluctant to invest time and money into training; smaller businesses too need to stay current with new technology and procedures. Business plans are a necessity for any new business; they are a map of what to do and how to go about doing it. Business planning is also essential for growth.

Technological changes, which happen quicker than the speed of light, that are unaccompanied by training are certainly not likely to be utilized properly or timely. They will not be cost- effective either. Also, training without strategies coming first will be as effective as getting you to your destination as a ship without a compass.

Growth is cyclical. It is a transition leading to rebirth. This is why entrepreneurs must continue the trend of starting new companies. Out go the old and in come the new and this keeps the economy continuously growing.

The secret of confronting potential obstacles is to do so before the marketplace does. Therefore, owners of new businesses must constantly keep their eyes wide open to what is happening both in their industry and in the entire economy as well. Banks may lend us the money, but they want to make sure we will pay it back. They need to know how; they will ask us our strategies, our plans for future growth. Our employees want to be reassured of job security. Growth and success are the reward for us taking the risk of starting new companies.

We all hope that our presence contributes to society; and that someday someone may benefit from our having been out there. But the economy depends on our economic success. It's up to us to develop the strategies and position our businesses to assure their success.