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Energy management entrepreneur

Entrepreneurs may possess qualities that help them establish a new business, such as innovation and passion. To provide a new business venture with a more detailed direction, entrepreneurs can study entrepreneurial management. Understanding the structure needed to manage your own company can help you be successful as your business progresses. In this article, we discuss the practice known as entrepreneurial management along with why it’s important to have an entrepreneur management plan.

What is entrepreneurial management?

Entrepreneurial management is the practice of giving the innovation inherent in entrepreneurship a more solid management structure. Many new entrepreneurs have ideas for businesses they want to start, or products they want to create, but don’t know how to manage a small business effectively. However, managing a new venture and managing an existing company requires different methods and principles. Through entrepreneurial management, you can manage a growing business without limiting the creativity or passion of a startup.

Why is it important to have an entrepreneur management plan?

Having an entrepreneur management plan provides benefits like:

Establish clear goals

Within an entrepreneur management plan, you establish the goals you want to achieve with your startup. This includes short-term goals, such as launching your first product, and long-term goals, like generating a certain number of sales. Having clear goals can help everyone involved with the startup stay motivated, as they’ll know what they’re working to achieve. In addition, it helps you determine what actions you need to take to reach those goals.

Coordinate actions

It’s easier to achieve goals when everyone coordinates their actions. With an entrepreneur management plan, you determine what actions your startup needs to take and who performs them. Mapping these actions can also help you identify any missing actions before beginning and ensure that you assign each action to at least one person.

Improve resource management

Limited resources such as funds, staff and time may be typical for new business ventures since owners are working to grow a customer base is ins. Therefore, it’s important for entrepreneurial managers to ensure that they are using their resources effectively. Through an entrepreneur management plan, you can determine where to spend your resources before you commit them. This ensures you are using all of your available resources and using them in the best possible way.

Create performance standards

Through an entrepreneur management plan, you’ll define your desired outcomes and when you want to achieve them. You can use these as your performance standards and judge if your business is on schedule. For example, if you set a goal to launch your product in six months, you can check your progress in three months to ensure you’re halfway done. If you’re not, you can adjust your methods to make achieving your goal more likely.

Balance risk

An entrepreneur management plan establishes how the entrepreneur will balance their personal risk with their role within the company. Learning how to balance personal risks can help entrepreneurs better prepare for unexpected issues. For example, it may outline how much of their own money the entrepreneur can safely invest

Principles of entrepreneurial management

Entrepreneurial management has several principles, which aim to give entrepreneurs more control over the direction and success of their startup. Here are some principles to consider:

Mission and values statements

A mission statement is a description of why the entrepreneurial enterprise exists. The purpose is to define why you started the business and what you hope to achieve with it. A values statement describes the values you want your startup to embody. For example, the developer of a new mobile app for photographers may list values such as creativity and accessibility. For entrepreneurs, common values include:

• Innovation
• Diversity
• Curiosity
• Sustainability
• Courageous
• Passion

Specific goals

Entrepreneurial management includes setting specific goals for the new venture. Setting specific goals may help the entrepreneur manage their innovation in order to attain a certain outcome. For example, the app developer may establish a goal of 10,000 downloads by the end of the year. The entrepreneur would then focus on marketing, rather than developing additional features for the app.

Growth strategy

With a growth strategy, the entrepreneur determines how they’re going to reach their goals. They consider the resources they’ll need and how they’ll best use those resources. It’s important for entrepreneurs to take the time to plan out a growth strategy, to use resources efficiently. Common growth strategies for new businesses include market penetration, product expansion and diversification.

Organizational structure

An organization’s structure determines how work usually flows throughout the organization. For example, as the head of the business, you may assign your marketing manager with creating a new advertising plan, who then assigns different tasks to those working in your marketing department. The structure essentially defines the hierarchy of your business. It’s important for entrepreneurs to consider the best structure for their startup, to implement an efficient one. By creating an organizational structure, everyone knows who to report to, which aids in the decision-making process.

Right people

Hiring the right people is an important step for entrepreneurs to create an efficient team. As the business progress, they may decide which tasks they want to delegate and search for the right people to do them. The first employees are also important resources to help the business achieve its goals. When selecting a team, an entrepreneur may look for those who have the right skills and knowledge and are also comfortable working in a startup environment.