One of the first questions investors ask an entrepreneur when considering an investment in their company is whether they have any intellectual property (IP) in the form of patents or copyrights. Substantial investments are often required in research and development to create products before than can be sold for a profit. And as the value …
Determining the value of a company begins by asking the question of value to whom and for what purpose? A company has values both intangible and tangible value to different people for various reasons. Here for example are some intangible values. A company is of value to its employees, as it provides for their livelihood. …
Ideally an entrepreneur would maintain complete control over the growth of their enterprise from beginning to end, never requiring outside investors to fund it. It is possible to self-finance a new enterprise. Serial entrepreneurs often have sufficient funds from a previous venture to fund a new one. An entrepreneur may have accumulated savings they can …
While many startup enterprises begin unprofitable, an enterprise that does not eventually become profitable will find it difficult to grow and impossible to attract investors. As obvious as this is, seeking profitability is often deemed an amoral if not in fact an immoral pursuit. It is claimed money is the root of all evil in …
When markets are viewed as being produced rather than acquired (Marketing) an Objectivist entrepreneur’s view of competition changes dramatically from the norm. Competitors are not viewed as enterprises one attempts to destroy but rather surpass and potentially replace. This may or may not result in another enterprise failing. This is sometimes referred to as “creative …
While marketing efforts promote the value of a product or service, it is the responsibility of sales to seek out customers who will benefit from it and thereby validate its value in the market through sales. But what principles should guide a salesman’s efforts? What are a salesman’s incentives and motivations? Are they the same as …
Marketing research is often viewed as essential for finding a market need and assessing what customers want. Marketing is also responsible for promoting the enterprise’s products to acquire market share. While these are common ways of thinking about marketing, are they in fact correct? Should marketing be responsible for finding and assessing the needs and …
An Objectivist entrepreneur is motivated to pursue an idea for their own purposes, applying their creative ambitions to produce something of value. The execution of their creative abilities toward a purposeful goal is self-rewarding, self-fulfilling and the source of their motivation. But does the same motivation apply to an employee? Or are incentive and motivation …
Compensation in all its forms, salaries, wages, benefits, profit sharing, stock options and perks is certainly an incentive for an employee even if ideally not the source of their motivation. Can an executive be paid too much? Can a wage earner be paid too little? Who gets to decide? For an entrepreneur actively seeking the …
Companies usually organize employees that share common activities and responsibilities into teams and groups. Teams meet for a variety of reasons ranging from simply exchanging information to collective decision making. There are varying opinions on the use and effectiveness of meetings. Bill Gates is quoted as saying “You have a meeting to make a decision, …