March 7, 2012
To be a successful entrepreneur, individuals must build capacities in four key strategic areas – Operational, Management, Financial Management, and Personal capacities. Entrepreneur capacity building involves developing the combination of all four capacity elements, to provide the ingredients for a great entrepreneurial success soup.
Some of these capacities are gained through experience throughout your career, while others are learned through educational avenues. Some successful entrepreneurs are born with strong personality traits, and some behaviors are strengthened through learned responses in the business environment.
Here are the four key categories of capacity building leading to the development of successful entrepreneurs.
Operational Capacity Building
Having a brilliant understanding of an industry and business at ground level builds operational capacity. This of course involves working in a variety of business operations for a period of time prior to diving into entrepreneurship. This is where you gain valuable insight into what makes businesses tick. Understanding the dynamics on the floor, in the cubicles, in the field and out on the road, gives you the perspective on how to lead, organize and plan for operations.
Management Capacity Building
Taking operational experience one more step, gaining management experience in a field or business will be directly applicable to managing your own business. The valuable experience you gain managing operations, resources and people will give you the applicable tools for your own business. With a few years of management experience, you will gain management capacity and an understanding of responsibilities and accountabilities at that level… all precursors to managing your own company.
Through a combination of work experience and education, you need to be well-grounded and versed in managing finances. You need to be able to accurately estimate and build financial statements and to understand them. With gained skills, you will need to be able to analyze financial statements, looking at trends and indicators and what those all mean to your business. Financial reports provide key indicators and information on the business’ financial health…there is a wealth of information in the financial statements. Other parties, partners and financial institutions will be looking at you and your organization’s ability to manage finances.
Personal Capacity Building
Of extreme importance, if you don’t have some key personal, entrepreneurial traits you may be closing up shop fast. Some people are born with strong traits while other behaviors can be picked up along the development pathway. Demonstrating strong traits and behaviors such as dedication, perseverance, ambition, determination, strong-will, openness, honesty, transparency, fairness, etc may move you along the pathway to become a successful entrepreneur.
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© 2012 Strategy Plan One