There are always existing need for entrepreneurs to act as managers and managers to act as entrepreneurs. Yes, this type of management called entrepreneurial management was needed in both small businesses and large corporations. The problem comes in large corporations where there is a need for entrepreneurial spirit to fight with bureaucratic potentials in the company. After some period of time when the startup business goes in the next levels of a business life cycle the growth of business is inevitable and because of that there come a need of management.
Entrepreneurs are associated with words as risk, change, short time, dreamers, luck… These words are contrary from the managerial principles.
The Journey of an Entrepreneur
Let’s cross through journey of an entrepreneur:
- Business Startup – Entrepreneur. In these level entrepreneurs are risk takers, innovators, dreamers, change stimulators… They don’t have time for formalization and planning every next step that will be taken. The only thing that they worried is a success of their idea – the business. They don’t have time to manage their and activities of their employees because they want to change the look of the world with their ideas.
- Business Small Growth – Entrepreneurial Manager. This is the period when startup finish and business start to grow. Now, they are still dreamers, risk takers, change stimulators and innovators. However, in the same time they must be managers. They have more and more employees and because of that, there is a need of management. But, this is the situation where an entrepreneur can control the whole activities of their businesses. This is entrepreneurial management.
- Business Big Growth – Manager. In this period business growth cannot be controlled from the entrepreneur. There is a big need for managing in the business. The importance of innovation is not reduced but an entrepreneur cannot innovate all business things and manage in the same time. This situation is called the entrepreneurial dilemma because an entrepreneur must choose between different roads for business development.
The real time to start with managing as an addition to the entrepreneurial spirit in the business is when some of this indicator appear:
- Business start to growth.
- Business has more employees.
- There is a need for motivation.
- There is a need for controlling.
- There is a need for rules.
- There is a need for staffing.
- There is a need for organizing.
If one or more of these indicators become true then we must start to think about implementing management.
10 Steps to Entrepreneurial Management
Here are 10 steps that is needed to implement entrepreneurial management:
Step 1: Discover real time to start with managing.
Step 2: Start with delegating tasks that was not important for business growth.
Step 3: Start thinking as a manager.
Step 4: Make rule books.
Step 5: Start with organizing.
Step 6: Make a controlling system.
Step 7: Measure efficiency and effectiveness.
Step 8: Stimulate innovation not only from you but also from all employees.
Step 9: Think about strategies and plans.
Step 10: Focus on changing and managing in the same time.