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| TO BIRTH OR MAKE?... |
There is a hot debate among serial entrepreneurs and
business school professors about the makeup of the successful
entrepreneur. Does he/she have the
analytical, risk-calculating, forward-thinking mindset to be a visionary,
planner, and executioner to make a business model work? How does the work ethic and business acumen
develop? Does a person bound to be an
entrepreneur need the college degree or are they just gifted enough at birth to make it happen?
My bias because of my proud educational background would
serve no justice to this post if I did not also evaluate my journey through
entrepreneurship and structuring others’ businesses. Considering the latter, this two-part post
will cover the normal requirements of entrepreneurship and how they can be met through
both formal and informal education.
The Dream Business Evaluation. It does not take much to have a dream to own
a business. But it takes a dose of realism to recognize if the business will work. In order to know this, there has to be some due diligence like a
feasibility study which answers the hard questions (e.g. Why would people buy
my product? How is it different than the competitors? Who are the competitors?
What does the market demand for the product vs. what will it take for me to
supply it to customers? How successful can it be marketed? What type of startup
funding is necessary to kick start the business? What is the long-term growth,
if any?).
These questions are similar to those in a business plan. No, the answers are not just spewed out because of talent. They have to be thought out well.
Of course, there are all kinds of examples on the Internet but a true business
school entrepreneurship program can teach the fundamentals for almost any type
of business and create a well-defined approach for the required analysis to
answer the questions to obtain funding, partnerships, and solid brand to outsmart the competition. These programs also
normally invite successful entrepreneurs to guest lecture and/or teach the
students, a priceless value for a true entrepreneur.
The Financial Purview. Yes the basic math
courses are necessary but they are not good enough. Learning how to balance the books, generate
profit and loss statements, identifying accounts receivables and ways to
understand the contributions to the bottom line is not an option for a successful
business owner. Of course an accountant
can be hired but checks and balances are what enable longevity for
businesses. Oprah still signs all the
checks coming out of her empire so she knows what is going on financially. If she does it, why shouldn't you?
The financial health of a company
cannot continue to do well if the business owner is too far removed from what
is happening. Accounting, business math, financial management, and statistics
courses are the bare minimum required to make sure the dollars being generated continue
to make sense. Additionally it reveals whether good money is being thrown after bad money.
The Long Network. There is no formula for networking but there
is a longer history and richer list of connections for individuals who have
attended top universities, B-schools, and law schools. (No disrespect intended for the lower-rated
schools, especially those named after the city and have no top shining alumni.) The more individuals you are connected to on
a collegiate level, the more likely to have a connection for greater opportunities.
Of course it is possible to have the parent
or neighbor or pastor who knows the ONE person to call to make things
happen. But the odds are slim to none
compared to those who have a solid alumni network of individuals who are
normally one-person removed from the individual that can give the break.
Balancing the Beam of Ownership. Nothing teaches balance like college. After enrolling in a minimum of 15 credits,
trying to have a social life, studying for exams, submitting papers, the love
story, and travelling home on the weekends to get some home-cooked meals,
balance will either be learned quickly or the mind will become settled on
being content with handling the bare minimum to get by in life.
This same balance needs to be
increased by a few levels for entrepreneurship.
Just like college, there will be long days with non-stop work, little sleep, economic struggles, Mountain Dew binges, and poor nutritional eating habits. College is the best
pit-stop to determine if you will sink or swim.
After all it’s better to make the mistake of not being able to handle
all the entrepreneurship-like pressures while in college rather than learning by losing life-savings or hefty investments in bad business.
Business basics and the connections to the correct people
who can help build the brand can of course be acquired through normal means of
networking and Internet research.
However a solid educational background will provide the most well rounded exposure required to not only do business but interact with individuals across multiple
industries and formulate thought leadership for better products and
services. Next week’s discussion will
take a look at what traits of successful business owners don’t necessarily
require the formal education. Score: Education 1 Gifted 0
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