Functions of an Entrepreneur

Functions of an Entrepreneur

functions of an entrepreneurStefan Merath´s book “Der Weg zum erfolgreichen Unternehmer” (German version) is about becoming momentum with your business and being a successful entrepreneur.

In the very first beginning of the book he points out what the actual goal or function of a business is.

It´s all about creating value for customers. Profits, sales, customer satisfaction and growth are actually only consequences of creating value for customers.

One of the main parts of the book is about the tasks and functions of an entrepreneur. Merath separate them in six key functions:

1. Vision and core values

As entrepeneur we need to have a picture of what our business want to do for the customers – what we want to change.

It´s not about things like “customer loyalty” – it´s about having a vision. Microsoft stated once: “We want to bring a computer in each household!

The clearer a vision the more focussed we can work. But visions and core values can change as the world and markets can change. We should see visions static.

2. Strategy and positioning

How can we get the most outcome with at least input as possible. Strategy is short term compared to the vision.

3. External energies and growth

We can´t be successful without help and partners. If we want to do everything on our own we aren´t entrepreneurs – we are selfemployed.

As entrepreneurs we need to set up a business in a way it could still exist without us and it would be possible to sell the company without collapsing.

Growth is at least as important as external energies. When we hire a new employee – how do we integrate her? How do we motivate her? Growth is essentiell but has to be planned and controlled.

4. Clearing out permantly

Every business gets more and more customers, information, processes, products and so on over time. Some of them just aren´t useful and cost us a lot of energy. Some clearing outs aren´t a pleasure like getting rid of favorite customers you like to do business with but just don´t make any profit out of.

5. Implementation

Entrepreneurs have to take care of the effective implementation of the four points pointed out above.

6. Developing a personality

The business as well as the entrepreneur have to develope a personality. Once the business is growing there are only two options: The entrepreneur grows regarding the business or the business grows above the entrepreneur´s head.

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