Entrepreneur : Things to do to Reduce Stress

May 6th, 2008

Running your own business can be both rewarding and fun. But it does not end there. Alongside all the joys and the rewards are pressures that make doing business very stressful.

For many entrepreneurs, the most common source of stress is the workload. As people would say, “If you want to become successful, you have to work extra hours”. This is particularly what is happening on many entrepreneurs. They work harder and longer. And the pressure is different if you are running your own business than working 40 hours a week.

Stress also mounts up because of several tasks related to work added by the responsibilities at home. Usually, moms have tasks at work, at the same time, have to do chores at home. Further task is contributed by the responsibilities to her kids.

Another stressor is the financial aspect of the business. Seldom to we see businesses without dept. Most of them have certain amount of loan somewhere that needs to be paid. This causes great stress on the part of the entrepreneur; balancing of funds and converting all the expenses into income. Getting back the investment quickly adds stress to entrepreneur as well.

Entrepreneur has to make decisions correctly and quickly. And for those who are only beginning to introduce themselves to this kind of environment, it may be very stressful.

All these contribute to the problem of an entrepreneur. To reduce the stress from these, here are some things you can do:

Start at your desk – Clutters can contribute to the present stress you are experiencing. So before doing something today, make sure that you clean up all the mess and put away the things that do not have to be on your desk. A clean desk will be more pleasant to work on.

Device a system – Daily planners will make things easier for you. If you have lots of things to do, do not intent to finish them all at the same time. Make a schedule when to do this and when to do that. Thinking the all the tasks that need to be done will not solve your problem. Do them one at a time. In this way, you will certainly accomplish one after another.

Multiply yourself – If you think you cannot do an enormous task on your own, hire people who can help you. Remember that one good trait of a successful entrepreneur is he knows when to seek help. Two heads are better than one and four hands are better than two right?

Make a business plan – Everyday, you are tasked with several things to do. In order to get things organized, it would be better to make a plan and stick to that plan. This will keep you on track and prevent you from doing things that you don’t need to do. Remember that time is crucial in running your own business. Time means money so better make the most out of every second that passes. Make sure that you know where you are heading at with the plan you have devised.

Designate tasks – You cannot do everything. But even if you do, you cannot make it efficiently. Why? Because you are too occupied with the thought that you have so many things to do. Make sure that you designate tasks to the right person. In this way, things would not be so hard and things will be done fast.
Learn the business everyday – As days progresses, you will surely have some rises and falls. These are called experiences. Learn something from these experiences so that the next time you encounter the same thing, you would know what to do. In this way, you will avoid the same mistake you have done before.

And finally… relax – Stressing too much will not do any good to you. What you should do is to relax. This will let you think properly. Remember that you are making crucial decisions every now and then and you cannot make correct decision if you are always tensed. Take time to breathe and take time to clear your mind from all the worries in front of you. Soon enough, you are back on track better and livelier.

Evolution

May 6th, 2008

Man has unlimited wants which has to be satisfied with limited resources. Over the centuries man has tried to find an answer to this problem. Three distinct different approaches to manage this resource have been attempted.

Traditional - In the traditional approach to managing the economy is giving the highest priority to farming and agriculture. Farming was given the highest importance since that was the biggest employer in the economy. The jobs in this system of economy is passed down from one generation to the next (e.g. a farmers son would be a farmer).There was not much thought given to improving the efficiency or technology of farming in any formal way.

Command – This system of economy functions by the direction of a single central command. Usually this could be a leader (e.g. King , Draconian Dictator, a central council – communist council). The central command decides which industries in an economy are important and the wage rates and allocates number of people for each task in the economy. Interest rates and property ownership and taxation are decided by the central authority. It is characteristic to have extensive research and development centres to improve efficiency and reliability.

Market – In the market system of economics the importance to various sectors of economy are given priority to this potential in giving back profits, thus most profitable industry is given the highest priority. The wage rates, Interest rates are determined by market forces (i.e. Supply and demand). Individuals are free to choose their occupation. Research and development to improve technology is done by private sector.

There is also another hybrid system. Most countries have a similar system of economic management to this.

Mixed system – In the mixed system the priority to industries are set mainly using the market system but are also protected and a social importance is given to certain sectors even though it might not be very profitable. Interest rates and wages are open to market forces but there are certain minimum levels of wages already set and maximum interest rates that are set too.

Types of Unemployment

May 6th, 2008

Structural unemployment occurs when an economy of a country does not have the capacity to employ those people who are seeking work. The solution would be to increase businesses and industries so that economy would grow and thus increase its capacity to employ more people. Where there is sever structural unemployment the workforce tries to migrate to countries where there is employment available.

Cyclic unemployment occurs when there is a recession in the economic cycle in an economy. This usually could be solved within a few months to a year or two, when the economy grows again.

Frictional unemployment occurs when people are unemployed while changing jobs. This type of unemployment usually is not that important as this is short lived and there is opportunity to get employed in a short period of time.

Forces of Globalization

May 6th, 2008

Globalization is the process of businesses and people of one nation trading among and within other nations without barriers to trade and exchange (i.e.: exchange of skills and occupations).

The Driving Forces

Some countries produce certain types of goods cheaper and more efficient/appealing then other nations, for example French perfumes are known to be the best in the world while the Swiss are renowned for their watches. We can therefore say that France is better at producing perfumes than watches in reference to Switzerland. Suppose a French company decides to sell perfume to Swiss directly this is called direct trade.
While most of globalisation is to do with direct trade it is not so clear cut. In a globalized world the French company selling perfumes might have research laboratories in France and production in Holland and may outsource their bottling to a company in India and have it transported by a German company to Switzerland. A few decades ago this scenario would not have been possible even in a reasonable theory the logistics to bring about such a process would not nave existed. This is for many a reason:

Recent advancements in transportation has made transporting products from the factory faster within the country

(by train Since the invention of the most primitive trains in 1550 (horse drawn)1 which travelled at an average speed of 10MPH Improved efficiency and grater capacity of trains (modern trains has made it cheaper and faster to transport products via trains trans-country/trans nation, trans continent.

Road transport has come a long way with highways and freeways being able to move goods in a very short period of time, and advancements in engineering has made transporting large amounts of goods in container carries cheap and safe.

Air transport is a relatively new form of transport compared to Rail and road transport but it plays a vital role, its one of the foundation blocks of globalisation. Air transport and moreover the invention of jet aircraft has shrunk the world, with the number of airlines around the world growing rapidly and the entrance of low cost long haul air crafts evermore lowering the cost of flying.

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May 6th, 2008

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