Establishing 'Making it Happen' as a 'Formal & Predictable' Discipline

Entrepreneurial Way of Managing Business	Entrepreneurial Way of Managing Customers

Execution-MiH ENCYCLOPEDIA → Execution Making-it-Happen → SECTION - Entrepreneurial Execution →

CHAPTER -

Entrepreneurial Way for Managing Finance

This chapter goes into the details of financial management traits of an entrepreneur, which should be applied in organizational context. This includes 'spending money as it is mine', 'looking at a business plan as if I am the investor', 'buying only what I need and not what I want' and 'protecting cash with your teeth'.

Topics

Do procurement as its your own money

All commercial & procurement systems and guidelines can be outweighed by a engaged-mind which takes buying decision as if it was his own business. The key is not only to get the minimum price for a given purchase, but also in questioning, rationalizing, modularizing and phasing the purchase itself. In the consumption-driven personal and business culture, an entrepreneurial mind provides the hope for limiting the acquisitions which are directly linked to money-making.

Protect your cash with your teeth

Businesses are spoilt with easy corporate debt & equity funding. Cash-protection can be best learnt by the entities, which do not have the external funding. Protecting cash mind-set drives a business to keeping a sharp eye on unproductive inventory, minimize the sales to cash turnover period, have a zero time-lag between delivery and raising the invoice, raise real-time quotations and have a online link between customer preferences and procurement.

Create or review a business plan, do it as if you are the investor

When you review a business plan as if you are the investor, you would question the assumptions with much more rigor. You would look for the possible failure points and back-up plans. He will feel a significant stake in the success of the plan.

Estimate your business requirements, so that you are buying only what you need

Economic downturn in recent times has amply indicated the organizations money-making machine stayed intact, even though most of commercially compelling projects were cancelled. An entrepreneur will go beyond cost-benefit-analysis numbers (based on futuristic assumptions), and look at the 'impact of not doing', link to money-making-machine, and core-effectiveness.

Make investments post thorough diligence

Purchasing of an asset for an entrepreneur is a significant decision, as asset does not only have a front-end cost, but also a life-long maintenance cost. A commercial mind-set is not caught in 'legacy' trap and is not bitten by the temptation of buying the latest & greatest. He thinks many a times before going for an upgrade, he tries to get the maximum out of what he has before he adds more. He is not caught in the throw-away consumption culture. In other words- Maintain timeless culture of being conservative in spending.