Exam 5: Managing Entrepreneurially

As an entrepreneur,you need to be able to retain the good employees you have hired.The main reason is that when talented employees leave a new venture,________ can be negatively affected.

Before preparing a business plan it is important to examine the viability of a proposed venture idea.To do this it is good practice to complete a(n)________.

Max DePree,the former head of Herman Miller,thinks organization leadership is similar to that of leading a jazz band.He says that the leader of a jazz band has the "beautiful opportunity to ________."

A Mature Café (Scenario) Sarah has been operating and growing her café in an upscale neighbourhood for almost five years. She is happy with how the business has continued to increase in revenues as her customer base has become loyal over the years. She has just over 30 employees, two of whom are managers. The lease on the space is coming up for renewal and this has brought up the notion of leaving the business and exploring other interests she has in travelling through Africa and Southeast Asia. Sarah has worked hard and she wants to be sure she gets as much out of the business as she put into it. Another factor is the increasing competition in the area and the sinking feeling she has that it will be next to impossible to differentiate her business from the big chains opening on several street corners. Her fear is that her sales may have plateaued and there in fact will be a decrease in sales in the near future. -More than five years ago,Sarah was careful to think about what she would do if things did not go according plan-in other words,if business took a serious downturn.Business is fine right now,but she can see the writing on the wall,and although selling is an option,she would rather stick with it and try to take the business to a new level.When she first planned the business,she also developed a Plan B,also known as a ________,and in reading it has uncovered some great ideas that she had forgotten about.

When entrepreneurs start hiring employees for their young ventures,they typically look for people who ________.

To help retain talented employees,entrepreneurs encourage them to stay with the venture by offering ________.

All organizations start small,and as they grow,the original founders are always at the helm and maintain control throughout the life of the business.