How well do you perform the six entrepreneurial essential functions?
Like any self-sustaining economic entity from a Fortune 500 company to a part-time sole proprietor operating from a spare bedroom, in order to survive and thrive on your own, you must carry out six basic entrepreneurial functions.
Usually one of these activities will be your preferred function, what you get paid to do. But to become sustainable and profitable in business, you will need the ability to carry out all of the functions adequately and consistently whenever circumstances demand. While corporations and big businesses can hire personnel to perform these different functions, chances are if you are an entrepreneur or small business, you will find that you are a “jack-of-all-functions” with only mastery in one, at least in the beginning!
As you read through the following six functions, assess your strengths and weaknesses, preferences and natural tendencies. Take the time to indentify which of the functions is your preferred function, which ones come easy to you and which ones pose a challenge to you or seem difficult to you.
The six core entrepreneurial functions are:
1. Creating. In any operation, someone has to create the products and services that will be provided to clients and customers. Of course, most entrepreneurs are creative and are in business to provide their creativity to the marketplace. However, entrepreneurs are in business for business sake. These entrepreneurs may have to find existing business models to align with in order to survive in business.
2. Problem Solving. As with any business venture, problem solving is a huge part of day-to-day operations. Problems such as getting business, pleasing your clients and customers, and running your office effectively can leave a business owner wondering will they ever get to a point where all they have to engage in is delivery of service and/or products. Taking the time to think of contingencies and already having well thought out solutions to problems can make this less cumbersome.
3. Building. Every entrepreneur requires that someone roll up his or her sleeves and do the hands-on work that gets and keeps things running. Assembling, repairing, cleaning, maintaining and transporting describe the activities that fall under this category. If this function provides you with tension, consider outsourcing. You can incorporate the outsource fees into your pricing structure.
4. Organizing. Every operation needs someone to set up procedures, follow through, and carry out the day-to-day administrative tasks of operating as a business. I don’t believe that any entrepreneur can completely step away from administrative responsibilities. However, there are ways to make administrative duties less obtrusive on the other core functions. First, creating standard operating procedures, checklist, priority list and scheduling certain administrative task for certain days of the week can assist with stream lining routine activities. Likewise, a virtual assistant can be extremely helpful in assisting with redundant task.
5. Leading. In order to survive and thrive, every business needs someone to oversee, coordinate, manage, market, sell, and promote its products or services. This is another core function that can’t be totally designated out. However, hiring commissioned sales people and incorporating a diverse marketing mix that combines personal sales with impersonal sales will allow for an entrepreneur to maximize their visibility in the market place.
6. Improving. Last, someone has to work personally with the customers and clients, listen to their needs, satisfy their complaints, and identify where improvements need to be made. These kinds of interactions lead to the new and improved products and services that keep people coming back to you again and again. On line surveys, customer satisfaction cards in your place of business and quarterly phone calls to clients can be strategic ways to get feedback before situations become larger issues that can impact your client base and demand more time in the reactive state than on the proactive front.
“Know thyself.”
~The Oracle at Delphi~
