The three components of the task of management that appear to be particularly relevant in the interactive context are sense-making, interacting and developing solutions. Some of the resources and operations that a business requires will be owned or otherwise controlled by that business. Sure you can ask for a little more than you need in hopes that the negotiating brings you down to the amount you truly need for funding . A risk premium is added to compensate the lender for assuming the risk that the principal will not be repaid.

Be Humble

And it s one you can use even if you didn t happen to be born with a silver spoon in your mouth or an oil well in your backyard. (That s doubly true if, as is the case with many entrepreneurs, both descriptions apply to you.) Collateral is just something the banker can seize and sell to get back some or all of the money you ve borrowed in the event that everything goes wrong and you can t pay it back with profits from operations. Hold regular, mandatory meetings. Neither do you have the time or money to start educating potential customers about why they need your product or what it can do for them.

Insurance requirements

Cornelius Vanderbilt plied a boat between Staten Island and New York. Are you in control of your sales volume? As customers we automatically expect to have to pay upfront for the products or services we buy, even if we have to wait ages to actually take delivery ' and the internet has made this even more prevalent. Advertisers are not going to spend money advertising on sites few people visit, and, for the first few years at least, not enough people will be visiting yours.

Whats your best target market?

But there s no reason that only serial entrepreneurs should get the benefit of regular business-planning sessions. Repetition can be an effective way of learning: It drills information into our memories. But a good place to begin analyzing the span of control for most organizations is in the range of six to eight. Bankers tend to be more formal than venture capitalists and more concerned with financial strength than with exciting concepts and impressive resumes.

Embrace what you don't know, especially in the beginning

Your time is too precious to waste on small details. This strategy works best when brand loyalty is high and there are perceived differences between brands. It's better to tell customers one thing likely to be important to them rather than everything that may be important about the product. They sometimes also provide what may seem like very cheap capital.

A real decision is measured by the fact that you've taken a new action

They're great at doing work tasks, which causes them to focus on doing what they're comfortable with instead of doing what makes the most money or produces the highest returns. Stephen Girard once trusted his drayman to buy a shipload of tea worth $200,000. Say a supplier s analysis of customer records shows it has a knack for developing long-term profitable relationships with moderate-sized companies that emphasize excellent service, price at a premium level, and provide only the best merchandise. Management is no different.