Lesson 6

This week has had great readings and videos about how to be a successful entrepreneur.

There are three areas we should know before starting a business:

1. Know the industry:  I do not think people start a business without knowing anything about the industry. We should first investigate and analyze how the industry works, who will be our competitors and customers, what are economic and legal barriers, etc. Another useful thing I learned is to build a network of personal relationship within the industry even before starting our business. 
2.  Understand daily operations: Despite knowing a lot about the industry, our business could be disorganized if we do not understand daily operations such as accounting, production, finances, or general business principles.
3. Develop the ability to raise money: Although money is an important financial source to start a business, it is considered the least valuable of the areas. However, a business cannot survive without having the ability and capacity to generate profits and positive cash flows.

I think this reading is very helpful because teach us the best way to start a business. If we do not know how to manage a business, our dream job may become a nightmare.