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Being an entrepreneur is never just about having an ingenious concept or product that the market will surely love. Being an entrepreneur means more – it is about having a business with an aspiration, a goal, and one that will be sustainable.

In his business book,  marketing expert Josiah Go  discusses the core five tasks that an entrepreneur must accomplish in running a business. “The We Entrepreneur: Understanding the Five Tasks and the Five Treasures of Every Entrepreneur”, the 11th book authored by Go and his wife, Chiqui Escareal-Go, shares valuable lessons about entrepreneurship and the things that really matter.

 
“This book is not for entrepreneurs who just want to survive and be just one of the many faceless people in the market place. It is about understanding the critical building blocks of entrepreneurship to attain significance – on a business level as well as on a personal level,” writes Go, chairman and chief executive officer of Waters Philippines and chief marketing strategist of Mansmith and Fielders, Inc.
 

Divided into two parts, Go discusses the Five Tasks of an Entrepreneur while Chiqui shares her insights on the Five Treasures of an Entrepreneur. Located in the center  of his cross-like diagram is an exciting vision and mission surrounded by enduring cash flow, compelling value proposition, manageable execution issues, and attractive profit.

 

All five tasks, according to Go, “require attention simultaneously without compromise” as they will affect the business both in the short term and long term.

 

Task 1: Vision and Mission

 “Vision is what you want to be. It is inspirational and is a positive affirmation. The content of the vision statement must be important, meaningful, and challenging in order to be a relevant vision,” Go says.

Vision, according to Go, must be much bigger than you at the moment that it actually makes you excited and proud.  “All good leaders have an exciting vision for themselves and their organization, which they articulate to their people,” Go adds.

Mission, on the other hand, is the reason for your existence for others. It is not about gaining more profit but about you sharing your profit with others.

“Think not just of what business you are in at present but what business you want to be in. What will make you a top guy and give you happiness at the same time?” Go says. The vision puts the business on track while the mission is the heart of the business that gives its existence a purpose. As Go puts it, without vision and mission is like running without a destination.

 

Task 2: Compelling Value Proposition

 “A value proposition is a combination of product, service, and price offered to your target customers and consumers,” Go notes. “It is the initial step in formulating the entire marketing program and is within the control of the entrepreneurs.”

Product and price are fundamentally inseparable to the consumers that if you keep talking about the price, they are bound to ask about the product, while if you keep talking about the product, the consumers will eventually ask about the price.

A compelling value proposition convincingly answers the question “Why should consumers and customers try and keep buying our products?”

“It must be able to change their preference in your favor in a sustainable manner, hence the need for constant adjusting, updating, and reviewing of relevance versus direct competition and alternatives available,” Go says.


Task 3: Attractive Profit

Profit is a requisite in business. Consistent profit generation is a manifestation of the confidence of the consumers and customers, as well as the distributors toward the company’s products and services.
 
“Basic finance orientation teaches us that to maximize profit, it is best to increase volume as well as set the best price that would result in both revenue-maximization. But it must also be coupled with a cost that is manageable for greater bottom line impact without sacrificing the marketing investment needed to grow your brand,” Go says.

A business without profit is illogical.

 

Task 4: Enduring Cash Flow

There is a concept known as the wealth creation model that all entrepreneurs must internalize.

“Imagine three components on each corner of a triangle – cash, inventories, and receivables. An enterprise starts with cash or at least the equivalent of cash (like land or properties), then the cash is converted into inventories ready for sale and to complete the cycle, a third component, receivables, is introduced after the sales are made,” Go says.

To make a profit, an enterprise needs to make enough margins selling enough inventories above their fixed cost, then, it must ensure that receivables are collected promptly; after all, sales are not completed unless accounts are collected.

A business that is not liquid is on the verge of serious trouble. If there is a problem with the cash flow, ways must be formulated to have access to cash in order to meet one’s obligations.

 
Task 5: Manageable Execution Issues

There are three sides to a business opportunity – idea, money, and people. A compelling idea is the starting point for the entrepreneurial venture which will be funded by the money. The people will get the job done and accomplish the marketing objectives.

 

“Execution involves having the capabilities to get the job done. In Mansmith’s implementation workshop, we call this the 3Cs of capabilities – coordination, competency, and commitment. This helps in solving company’s obstacles by replacing traps with tools,” Go says.

A common problem in execution, Go adds, is when people create assumptions that someone else in the company will do certain tasks and when it turns out that no one has done anything, crisis results and fire fighting occurs.

“The time spent in fire fighting could have been used in coordination meetings to pinpoint responsibility, to agree on timetables, to create planning charts, and to monitor progress,” Go says.
 

Go suggests in investing in a good network and learning to anticipate in order to avoid wasting valuable resources, especially time, which is irreversible.

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