art-of-biz  

We had a quite a discussion with Cedric Muhammad, author of “The Entrepreneurial Secret to Starting a Business without a Bank Loan, Collateral or Revenue.”  The context for the discussion was the extreme environment in which we do business today globally.  I described the environment as openly hostile, meaning opposing or resisting our efforts to do business.  But, we concluded that entrepreneurs have the ability to tame this environment for success.

Cedric has an extensive background as an economist and entrepreneur.   He even formulated a business leadership model called “Hip-Hopreneur.”  A Hip-Hopreneur is an individual steeped in the hip-hop culture who is ready to become a power broker, business owner and political leader.  A Hip-Hopreneur is someone who appreciates the hip-hop art form and culture, as well as the responsibility of leadership and power to influence people around the world.  These are truly characteristics of successful entrepreneurs in any sector.  Entrepreneurs transform lives, communities and societies.

Cedric highlighted four key challenges faced by entrepreneurs at any time – capital, culture, communication and competition.  Each of the challenges when approached successfully enable entrepreneurs to navigate past a hostile business environment.

Looking at capital, we need to focus differently.  First, Cedric said entrepreneurs must view themselves and their ideas as the greatest source of capital.  Second, seek funding from your own social networks, e.g., college friends, family, church members.  Cedric emphasized that entrepreneurs often overlook the best source for accessible capital.

 Another point is that entrepreneurs go looking for funding before their concept is developed or proven.  Banks, venture capitalists and angel investors look for “bankable” businesses.  They want to make money, too!  When entrepreneurs start, they need to recognize the funding stages aligned with the business lifecycle.  Typically, when an entrepreneur first starts, he or she is at the pre-seed stage.  This is where your social networks can really help you out. 

Navigating culture and the competitive environment successfully is essential.  If you can tap into the culture that will support your business either as consumers, suppliers, etc., you will be amazed at the momentum you gain.

 In the competitive landscape, you need to be prepared for the shifts competitors may bring, such as disruptive technology.  The recent shift in Facebook’s prominence over MySpace is an example.  As Cedric put it, “it’s obvious MySpace didn’t see Facebook coming.”  But the story behind the story, which attests to the brilliance and adaptability of the entrepreneur, is that MySpace changed its business model to focus on its strength – communities around music and entertainment.

We also looked at how the current hostile environment evolved. A key crux was lenders providing funds not based on merit of your business venture or your personal credibility, but knowing they could re-sell the loans for a profit.  We moved from the foundation of exchanging value in our trade systems to exchange money without value behind it.  While the crisis occurred, it is moving people back into alignment so that our trade systems will work.  It’s a bit painful now, but necessary.

There are many other points made in the conversation that you don’t want to miss. Take time to listen to the recorded show.

Also, spend some time getting to know what Cedric Muhammad is sharing.  He brings insights to help you with your business.  Check out his three-volume book, “The Entrepreneurial Secret.”  You can also catch him on www.blackelectorate.com, www.blackcoffeechannel.com and www.cedricmuhammad.com.

Continue the dialogue about “The Art of Making Business Happen” at our online community – http://artofbiz.ning.com.  And listen to our weekly broadcasts at http://www.blogtalkradio.com/art-of-biz.

Signing off for now – peace and prosperity to you!