Acumen for management of various business issues is essential for an entrepreneur.
The following inventory will help one to assess the relative strengths and abilities that will be expected out of him/her for taking-up the entrepreneurial role:
1. Organizational Acumen:
Ability to plan, organize, direct and control the various resources is the basic requirement for setting-up any enterprise.
The entrepreneur must be able to:
i. Choose a right location for his business.
ii. Choose the right breed of animals.
iii. Choose the right kind of people for his enterprise.
iv. Manage the various resources to facilitate optimum utilization.
v. Handle legal issues.
vi. Understand partnership agreements and other contracts.
vii. Comply with government regulations.
viii. Obtain appropriate business licenses and permits.
ix. Comply with tax laws.
x. Comply with labour code.
xi. Insure the business.
2. Financial Acumen:
Financial acumen refers to the ability of borrowing money, managing money, analyzing the financial statements and handling credit and collection primarily.
The entrepreneur must be able to:
i. Determine how much money is needed to start his business.
ii. Forecast the need for additional capital or cash.
iii. Identify appropriate sources for short-term-long-term financing.
iv. Negotiate loans.
v. Do book keeping.
vi. Establish and use financial records.
vii. Set-up a cost control system.
viii. Analyze overhead cost.
ix. Prepare basic profit and loss statement.
x. Prepare an annual or quarterly budget.
xi. Understand profit-loss statement and balance sheet.
xii. Understand current credit policies of the government and private agencies.
xiii. Use various collection techniques.
xiv. Know how to go to small claim court.
3. Marketing Acumen:
Marketing acumen refers to the ability to identify and target customers and being able to successfully push one’s product into the market.
It includes the ability to:
i. Determine the territory in which he wants to operate.
ii. Determine the market and sales potential.
iii. Determine the type of customers he will serve.
iv. Assess the size of the market.
v. Determine the needs and expectations of the customers.
vi. Distinguish his product from other products.
vii. Create awareness regarding his product.
viii. Motivate the customers to buy his product.
4. Competing Acumen:
In this fast track world, competition is inevitable and hence the acumen to compete with others is must, no matter operating at whatever small level.
It includes the ability to:
i. Find out how the competitors are doing.
ii. Analyze how the competitors attract and retain their customers.
iii. Determine how one’s firm will be different from the competition.
iv. Set a competitive hourly labour rate.
v. Prepare an estimate of the costs for providing the services.
vi. Negotiate contracts or deal with other parties.
vii. Develop an adequate promotional strategy.
viii. Design promotional materials.
ix. Prepare and decide a budget for advertising.
x. Use of quality of workmanship and customer service as a promotional tool.
5. Operational Acumen:
Operational acumen refers to the smooth conduction of business operations especially with the management of the channel partners and the supply chain.
It includes the ability to:
i. Buy supplies from the best source, at the best price possible.
ii. Buy reliable equipment with adequate warranties.
iii. Negotiate contracts with suppliers.
iv. Use techniques for controlling material inventories.
v. Set-up quality control techniques.
vi. Coordinate own work schedule with the convenience of other parties.
vii. Set-up a system for recording orders.
6. Knowing the Basics—Foundation Acumen:
One of the foundation acumen or abilities that should be present in any person interested to establish a poultry or dairy unit is the various components of such business and the estimated cost of creating that infrastructure. This is the very foundation for starting any enterprise and hence before all other abilities, acumen to judge the structural and financial framework is an absolute prerequisite.
Ability to Judge Poultry Enterprise Requirements:
1. Establishing poultry breeding farm with low input technology birds and also for ducks/turkey/guinea fowl/quail/emu/ostrich, etc. ― 30 Lakhs
2. Establishment of feed godown, feed mill, feed analytical laboratory ― 16 Lakhs
3. Marketing of poultry products (Specialized transport vehicles, cool room storage facilities and retention sheds for birds, etc.) ― 25 Lakhs
4. Egg grading, packing and storage for export capacity ― 80 Lakhs
5. Retail poultry dressing unit (300 birds per day) ― 5 Lakhs
6. Egg/broiler carts for sale of poultry products ― 0.10 Lakhs
7. Central grower unit (12,500 birds per batch and 4 batches per year) ― 20 Lakhs
Ability to Judge Dairy Enterprise Requirements:
1. Establishment of small dairy farms – Ten animal unit (buffaloes/cross-bred cows) for milk production ― Rs.30 lakhs per unit (up to ten animals) ― (i) Any non-poperation flood areas, (ii) The total cost depends on the infrastructural facilities required.
2. Purchase of milking machine/milk tester/bulk milk cooling units, etc. ― Rs.15 lakhs, Milking machine, milk-o-tester, bulk milk cooling units (up to 2000 its capacity).
3. Purchase of dairy processing equipment for manufacturing indigenous milk products ― Rs.10 lakhs per unit ― (i) Unit cost depends upon the quantum of milk to be handled and the type of products to be manufactured (ii) The total cost depends upon the investment on civil structures, type and source of machinery.
4. Establishment of dairy product transportation facilities including cold chain ― Rs.20 lakhs per unit ― (i) Unit cost depends upon the quantum of milk/milk products to be transported/handled and the type of products to be transported (ii) The total cost depends upon the investment on type and source of transport vehicle and machinery.
5. Cold storage facilities for milk and milk products ― Rs.25 lakhs per unit ― (i) Unit cost depends upon the quantum of milk/milk products to be stored and the type of products to be stored (ii) while the cost depends upon the investment on type and source of machinery used.
6. Establishment of private veterinary clinics ― Rs.2.00 lakhs per unit for mobile clinics and Rs.1.5 lakhs for stationary clinic. Area of operation from 8 to 10 villages having 5000 to 6000 cattle units.
An entrepreneur who has high level of administrative capability, flair and ability for decision-making, computational skill, delegation skill, organizational skill, good at communication and has a basic level of technical knowledge stands a much better chance of success than his counterpart who possesses none or low level of these basic abilities.
It is the possession of these scarce abilities, which confers an advantage on some people in becoming an entrepreneur. Besides these abilities, however, the entrepreneur also needs to be himself a generalist so that he can discharge his function without delegation, or to possess delegation and organizational skills.
The characteristics of an entrepreneur that contribute to success are the result of achievement motivation. A successful entrepreneur must be a person with technical competence, initiative, good judgement, intelligence, leadership qualities, self-confidence, energy, attitude, creative thinking, fairness, honesty, tactfulness and emotional stability.
7. Mental Acumen:
Mental acumen includes intelligence and creative thinking. An entrepreneur must be reasonably intelligent and should have creative thinking and must be able to engage in the analysis of various problems and situations in order to deal with them.
8. Visionary Acumen:
A small entrepreneur like livestock entrepreneur cannot be expected to be very highly visionary but he must be able to set clear objectives as to the exact nature of the business, the nature of the goods to be purchased and subsidiary activities to be undertaken. A successful entrepreneur may have the objective to establish the product or to make profit or to render social service.
9. Confidentiality Acumen:
An entrepreneur must be able to guard the business secrets; leakage of business secrets to trade competitions is a serious matter, which should be carefully guarded against by an entrepreneur.
10. Relationship Acumen:
The most important personality factors contributing to the success of an entrepreneur are emotional stability, personal relations, consideration and tactfulness. An entrepreneur must maintain good relations with his customers. He must also maintain good relations with his employees if he is to motivate them to perform their jobs at a high level of efficiency and commitment. An entrepreneur who maintains good relations with his employees, customers, channel partners (suppliers and distributors), creditors and the society at large has much higher chances of success.
11. Technical Acumen:
An entrepreneur must have a reasonable level of technical knowledge. This is necessary to have proficiency over the business operations and to tide over the change.
12. Business Communication Acumen:
Communication is said to be the process by which a sender sends a message across a media to the intended receiver. Communication ability is the ability to communicate effectively. Good communication also means that both the sender and the receiver understand each other and are being understood.
An entrepreneur who can effectively communicate with customers, employees, suppliers, creditors will be more likely to succeed than the entrepreneur who does not. In order to understand the essentials of effective business communication, one has to have a fair idea of the world of business itself. Business communication is distinct from personal communication as it has a different set of objectives.
In the discussion to follow, we shall be focusing on the various characteristics and features of business so that the needs of business communication become clear. Any business has certain distinct characteristics. This set it apart from other activities such as personal affairs, religion and charity.
Any business has certain distinct characteristics. These set it apart from other activities such as personal affairs, religion and charity.
i. Profit Motive:
Any business is known by its commercial character, i.e. the profit motive. At the end of the day, every business looks at its net earning. It looks to a healthy bottom line that is responsible profits, and generally not to exorbitant profits. There may be times when it incurs losses and will have to live with such losses.
While seeking profits is a necessary trait for any business, profiteering or seeking exorbitant profits from the customer is inimical to any business. Customers are the essence of any business and when they are no customers, there is no business. Customers are the source of income and profits for any business. Business communication should, therefore, aim at keeping the customer base intact and ever expanding.
ii. Competitive Nature:
Today’s business world is in intensely competitive world. Competition means that there are many players in the market offering identical products and services. As a result, have substantial choice of products, services, markets and sellers. In a competitive scenario, the producer or the service provider has to emphasize on the quality, price, durability and such features, which has product, or service provides in order to attract and retain customers.
This competitive situation is in contrast to the monopolistic situation where there is only one seller and hardly any choice. Business communication has to necessarily take cognizance of the nature of the market and evolve strategies appropriate to the competitive situation.
iii. Sustainable Results:
Businesses operate generally with a long-term objective. Barring some types of players and services that are short-term in nature, most other in business on a sustainable basis. Those players who are in business to make fast money and disappear are referred to as fly-by-night operators.
They are distinct from the majority of players who wish to be in business today, tomorrow and the day-after. Large business organizations tend to acquire a perennial character. Business communication, to be effective, should recognize the long-term sustainability of results.
iv. Business Relationship:
Like any individual who has personal relationship, a business has its business relationship. These relationships are with customers, buyers, suppliers and others with whom one has to interact on an ongoing basis. It is these relationships, which sustain the business in the long run. Every business strives to make much relationship not only profitable, but also mutually beneficial. An important objective of any business communication would be to established, nurture and sustain such mutually beneficial long-term relationship.
v. Business Ethics:
Every business has its set of principles of a code of conduct. This code often outlines the dos and don’ts of its approach to business and customers. The code also articulates its duties and responsibilities as well as expectations. Every profession similarly has ethical values governing its business conduct. There are also wail laid down and understood fair practices for any business. Again effective communication aims at articulating business either and related qualitative aspects.
Everyone connected with communication should take note of such characteristics of the business and use appropriate methods and approaches.
Mastering the Skills of Business Communication:
Business the world over, have come to recognize the need for fast, accurate and effective communication in a common language.
Skill relevant for ensuring effective communication in the new business world includes the following:
i. Communication skills
ii. Listening skills
iii. Grammatical structures, vocabulary, idioms and pronunciation
iv. Presentation skills
v. Interpersonal communication
vi. Negotiating skills
viii. Social language for business
ix. Business writing skills
x. The art of good speaking
xi. Business simulation
xi. Telephone techniques
xii. Cross culture awareness
xiii. Electronic communication
A good communicator has to master numerous skills.
Communication Needs:
Any business organization will have to communicate with the several of people on an ongoing basis for a variety of reasons.
They include the following:
i. Stakeholder:
The process of communication should, effectively cover the entire stakeholder, viz. owners, employers, customers and the community. Employers and customers are particularly related in any organization and a wide variety of methods, types, channels and strategies will have to be adopted to effectively address their communication needs.
ii. Government Agencies:
Every business, in some way or the other comes within the ambit of Government and agencies may be national or central, provincial or state or local in nature. Quite often every business will have to comply with various government rules and regulations. Inadequate reporting could result in penalties. Every business has to necessary respect the law of the land. Communication between any business organization and the government has to be recognized.
iii. Trade Organization:
Every business generally has certain affiliation or membership with a trade organization or an association. It may be functional or geographical in nature. Such organizations generally work with the large interest of its member in mind. Communication with this segment becomes necessary.
iv. Competitor:
There may be various players who operate within the market and the marketplace. There are often occasions for them to communicate with each other. Notwithstanding the competitive nature, different players may arrive at some understanding to respond to the customers. They may even be occasions where there is a clash of interest that needs sorting out. For different reasons, a business organization may have to communicate with its competitors and other operators in the market.
v. Media:
A business often needs communicating or interacting with the press, television and other media. It may be for the purpose of advertisement or announcement or clarification or image building.
Not all communication that takes place between individual and groups is effective. Barriers apart, there are several factors affecting communication. These are conceptual clarity of the communicator, language used in communication, moods, and receptivity of the sender and the receiver and the timing of the communication.
Good communication is not a matter of an accident or a happening especially in any business situation; it calls for planed, organized and coordinate efforts.
There are several essential ingredients contributing to the success of the communication.
These are:
i. Clarity of purpose.
ii. Understanding of the process.
iii. Addressing the right target audience.
iv. Requisite communication skills.
v. Adequate information.
vi. Proper planning.
vii. Positive approach.
viii. Sincerity.
Effectiveness of communication also calls for avoiding extreme feelings, consistency, timeliness, use of appropriate modes and channels, cost consciousness and finally for feedback.
Communication takes place among human being. Therefore, the behaviour dimension assumes much signification. Human behaviour gets reflected through perceptions, attitudes, beliefs, values, norms and experiences. That is why it is said, “Meaning is in people, not in words.” Perception is described as the process of making sense out of events. It is essentially a matter of personal judgment. A good communicator has to realize that perception tend to vary from person to person and accordingly factor this realization into his or her communication.
Attitudes exert a strong influence on human relationships and consequently on the process of communication. They can be both positive and negative. A good communicator should recognize the importance of positive attitudes.
Values and value systems also influence communication. Values are seen as a standard of behaviour communication becomes effective only when values show congruence.
Norms and experiences too impact communication. People tend to interpret messages it terms of this facets. A good communicator develops a clear insight into human behaviour and uses it to his or her advantage.
Language is the vehicle of communication. According to an estimate, there are more than 3500 languages in the world. Each language has its own idioms, expressions, phrases and nuances. A good communicator masters and uses the language, which the addressee understands.
Business communication is distinct from personal communication and has certain specific characteristics. It has to be in tune with the business objectives. It should support the profit motive. It should recognize the competitive nature of business. It should work towards sustainable results. It should strengthen relationships. Finally, business communication should articulate business ethics.
Each business has its four major stakeholder—owners, employees, customers and community. Business communication should encompass all these sections. Additionally, it should also address government agencies, trade organizations, consumer forums and the press and media as well.
Business communication has many non-verbal dimensions as well. The several dimensions of non-verbal communication discussed in this article include the following:
i. Body language.
ii. Personal space.
iii. Gesture and posture.
iv. Facial expressions.
v. Timings, examples and behaviour.