The Advice Most Important to Entrepreneurs in this Economy

The Advice Most Important to Entrepreneurs in this Economy
January 18th, 2010 Author: Guest Blogger
When I look back over the advice given by entrepreneurs featured on NewsonWomen.com in 2009, it becomes clear what entrepreneurs think is important. The number one topic mentioned again and again by entrepreneurs on how to be successful is “people” – who you work with makes the difference.
The second most popular piece of advice mentioned is finding your “niche” and capitalizing on the opportunities it presents. Coming in third for advice on the road to success is the “customer”, and treating your customers well so they become loyal. This is an unscientific study, but interesting nonetheless.
I was not surprised to find very little mention of financing or advice on how to fund a business in my review, even in this year of economic hardship. Entrepreneurs are by nature creative and innovative, and most aren’t trained in the area of finance. It’s well known women receive only a small share of the venture capital dollars available, so what choices do women entrepreneurs have? I guess it comes down to banking or bootstrapping (using your own money, growing internally and maintaining control of your company).
What do entrepreneurs know of finance and of bankers? When they seek financing, are they focused on the banker’s needs as well as their own? As a banker, I came from a traditional background well versed in the five C’s of credit:
Collateral
Character (the entrepreneur’s)
Cash flow (capacity to repay)
Capital (the money invested by the owner)
Conditions (economic environment, money use etc.)
Today’s financial mess is in a large part due to many bankers forgetting these simple rules. Bankers should be somewhat risk-averse, a far cry from the entrepreneurial personality. But these personalities don’t necessarily need to collide. They need to understand each other. Entrepreneurs need to understand the value of the five C’s of bankers. And bankers need to learn the five C’s of entrepreneurs – courage (to take the right risk), control (of their company and their destiny), commitment (to their dream and to growth), compassion (to their people and to their customers), and collaboration (among all). If this happens, 2010 could be the beginning of a beautiful friendship.”
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About the Bloggger:
Alice Krause, former Deputy Credit Executive of Chase Bank’s retail businesses, is Founder of the award winning www.newsonwomen,com, the daily news site that focuses on women’s achievements. News on Women reports on what women are doing in business, education, science and technology, philanthropy and the arts.