Entrepreneurship is related to founding of the new companies, which try to find the space for their new products and services on the market.
People who start new business mainly think that there is a space for their products and services on the market and that customers will buy their products and services in the quantities sufficient for their business to survive and become profitable. These are mostly the existing businesses, but there are also completely new businesses and services which are estimated to have a chance with the customers.
All these things are obvious and logical for the new companies, but the same thing also has to be done by the companies which already exist and have their business operations and which are often very successful in doing their business.
The problem, particularly in Serbia, is that the companies mainly are not aware of this and even if they are aware that it would be good for their business – either they do not have time, habit, knowledge, organization, capable director or they simply can not begin this from multitude operative obligations. It is similar situation as with exercising – you’ll notice that only the persons who have a great figure like to exercise.
All these things have to be done, because it is the only chance to protect a company from the competition and from the new aggressive companies which bring new products and services on the market. A company which does not improve or upgrade the existing business or which does not introduce new business ideas and new businesses, risks to be surpassed in the business in which it is a leader at some moment.
The necessary phases in organization of business activities, as a precondition for establishing a good company, are:
Preparation of business operation plans – increasing of revenues, reduction of expenses and monitoring of their realization. Availability of pre-defined data related to business operations of the company enables commencement of preparation of the business operation plans, whereas control of implementation of such plans enables the precise insight into successfulness of business operations of a specific company. Preparation of business operation plans is a norm in business operations of modern companies, particularly privately owned joint-stock companies.
The first stage in a properly organized approach to the entrepreneurship or to development and growth of business operations of a company, is a business plan the company prepares and adopts for the forthcoming period.
Absence of the plan of future business operations of a company speaks that such company does not think about its business, but it only deals with daily operative jobs, as well as that it does not have an organized impact on its business activities, but the future of business operations of that company decisively depends on the external factors.
Existence of high-quality plans of business activities of a company, which are realistic and competent, guarantees that the company has recognized potentials for its business activities on the market, that it has higher-quality offer than the competition or that such company has some innovative solutions for the new products and services, which give a chance for such company to dramatically improve its business operations, as well as to increase its share on the market.
A high-quality business plan and its successful implementation testifies that the company knows how to handle its business and that it has a realistic and good prospects.
Control of the business plan implementation indicates that the company holds its business under control, which is a necessary precondition for successful handling of business operations.
Rewarding and penalizing
The system comprises corrective measures which are based on implemented (realized) plans and accomplished results. The beginning of such system functioning denotes the beginning of establishing a modern company, creating thereby the conditions for the entire team to function coherently, aimed towards the joint objective. This also means that both the company and the employees benefit from the high-quality performance of the job.
Motivation is a vital precondition for high-quality business operations of a company, so that the employees would perform their jobs in the best possible way and that they would be interested in successful business operations and growth and development of the company in which they are employed.
A high-quality system of motivation of the employees, by means of the pre-defined rewarding and penalizing, is a very demanding and professional task, because, if it is not performed in a high-quality manner, it can be counterproductive.
A consistent and impartial implementation of the system of employees’ motivation within a company is highly important, because when it is properly implemented in a company, such company starts to handle its business operations on much higher level than before.
Absence of the system of motivation, i.e. the rewarding system, which substantially motivates the employees for their best performance, occurs frequently in the companies in Serbia and it is a result of a completely wrong attitude of the company owners and the management that they do not have any reason to reward their employees, because the highest reward for the employees should be the fact that they work for them. This is something that is incomprehensible in the developed economies, however, in this area psychology frequently has precedence over the economy.
The best professionals are always the most inexpensive, regardless of how high their salaries are.
New business ideas
It is necessary to establish precisely defined procedures – when, how and to whom the new business ideas are to be presented, adopted and rewarded. In circumstances with highly intensified market competition, it is necessary to activate the entire intellectual potential of a company, because the new, high-quality ideas are the product the easiest to sell. This principle represents a norm in business operations of all leading companies on the world market, which have discovered that their largest developing potential lies in their employees.
All previously stated stages, which represent precondition for successful business operations of a company, can remain without any result if the company is not successful in its business and if the market and the clients do not recognize it.
Even when a company is successful in its business, the problem is that it can never be ensured that the company keeps its clients and a good position on the market forever, because there is a permanent struggle with the competition and with the clients’ choice.
The clients always buy what they like and nowadays an offer of products and services, as well as broadness of the market, is almost unlimited. It is therefore necessary that each company constantly tries to have the best-quality offer on the market and that no other company surpasses it’s offer. The problem is that the companies are preoccupied with their current issues and they do not have time to deal with development of their business. Leading companies that have established excellent business, logically think that they do their business excellently and that no other company can endanger their position and therefore, they do not feel that it is necessary to deal with development of their business. Such companies become completely taken by surprise and unprepared to the reply of their competition – which suddenly starts to offer and sell a considerably better and more favourable product on the market.
The way for preventing these occurrences is to become aware of them, as well to establish the organized procedures within a company, at which management of the company, as well as all employees deal in an organized manner with discovering of the new products and services which will be successfully sold on the market and which will provide a prosperous future for that company.
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This stage is highly problematic and it is relatively rarely implemented in a high-quality manner even in large and successful companies, in which the other segments of their business activities are organized on the highest level.
The main reason why the companies in Serbia are not dealing with their development in an organized manner and why they do not possess an organized model according to which their employees propose new business ideas and which defines how these ideas are analysed, adopted, implemented and rewarded, is absence of awareness that it is the most important activity within the company and that the future of the company depends on whether the employees deal with the future of their business. Many companies think that they themselves can not have an impact on the future of their business – they wait what will happen on the market and then follow the trends.
Other reasons for not dealing with development of the business are: lack of time due to operative obligations, incompetence of the director, absence of positive work atmosphere and human relations, etc.
Development of the business, leadership, knowledge management, brainstorming, motivation of the employees to participate in development of a company, represent central topics within the management theory of the developed economies and they are the main messages of all the most important leaders in theory and practise of the economy and management.
The companies in Serbia have to start to deal with their development, as well as with the intellectual potential of their employees as with their primary activity, because the companies which do not act like this, surely do not use their entire potentials, which leads to occurrence of the problems in business operations of such companies and creates a large risk for their future.
Quality of your product
A high-quality realisation of a company on the market is guaranteed only by the company’s decision that the highest possible quality of its product or service shall be the main objective which all the employees strive to. Such strategic business principle guarantees that you have done everything that is necessary to perform your job in the best possible way.
To accomplish this, it is necessary to establish within the company the best possible attitude towards the job, clients, partners, environment, as well as the best human relations, synergy, etc. Synergy and the best possible relations among the employees, who strive towards the same objective, have become a norm in managing business operations of all leading companies on the market. Management of a company has to create such high-quality relations among the employees; otherwise the company will face a large business problem, having in mind the fact that the business is a team sport.
For all the above mentioned reasons, the companies have to possess organised procedures and permanent activities which guarantee that the company deals in the best possible way with its own development and improvement of the products and services.
A permanent tendency towards the top quality of their products and services is the best possible way that the company succeeds in its business.
Quality also has to be the main criterion in the relations towards the clients, employees and environment, both in business and in life.
Business is a team sport and the best players, who jointly rejoice for the scored goal, because it is a success of the whole team, are required for the successful business.
Thoughts of smart people tell us that they have similar perception of the business and life and if this is the standard propagated by the most important leaders in management, then it should be the road the Serbian companies should take.