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by
Dan Perkins
Steven
Rogers has written a
fascinating new book entitled, The Entrepreneur's Guide to
Finance and Business: Wealth Creation Techniques for Growing a
Business. McGraw-Hill is the publisher.
Rogers
is professor of finance and
management at the
J.L.
Kellogg
School
of Management at Northwestern
University.
He is also associate director of the school's highly acclaimed
entrepreneurship program. Unlike many of his peers, Rogers
is grounded in both the
academic world and the real world of business. His
compelling style and larger than life presence have made him a
favorite among the students and faculty alike.
Fortunately for the reader, Rogers
brings both his enthusiasm and
expertise to his writing. The Entrepreneur's Guide to
Finance and Business is not just another academic
textbook. Rogers
is a passionate writer, who
weaves his life experience along with the experiences of
countless other entrepreneurs, including minorities and women, into his academic analysis and theories.
At times Rogers' book reads like a novel. In
the preface of his book, he
shares many formative
experiences from his colorful, but economically challenged
childhood. Rogers
grew up in Englewood, a poor,
tough neighborhood on Chicago's South
Side - a world away from the spacious and collegiate surroundings
of Northwestern
University's Evanston campus where
he
currently spends much of his
time.
Rogers' introduction to
entrepreneurship came at an early age. He tells how his
mother sold used furniture at weekend flea markets to support
him and his siblings. From the age of 5 on up, Rogers
was working - either for his
mother or at odd jobs that helped the family make ends meet.
He
was rescued from a cycle of
poverty by a program called A Better Chance, which
sends academically gifted students from low-income areas to
schools where their potential can be realized. Rogers
went on to
Williams College, where I first met him, and then on to Harvard Business School.
While
at Harvard, Rogers
dreamt of owning several
fast-food restaurants. He applied for and was admitted
into McDonald's franchisee program during his second year of
business school. While still in school, Rogers
began working in a McDonald's
restaurant located near the school. His MBA classmates
were shocked to see Rogers at the restaurant flipping
hamburgers and cleaning restrooms. That situation taught
Rogers an important life lesson. He writes, "There's a
certain level of humility that all entrepreneurs must have.
You want to talk about risks? Taking risks is not just
about taking risks with your money; it is about risking your
reputation by being willing to be the janitor. If you
don't have that mindset, and you can't handle that, then
entrepreneurship is not for you."
At
a time when entrepreneurial life has been romanticized and
elevated to mythic proportions, Rogers brings the reader back to
reality with his honest, no-holds-barred approach to identifying
what entrepreneurs need to know to succeed. He argues
that what business owners need most is a solid understanding
of finance. He cites a recent survey that found that
business owners are weakest in the area of financial
management - accounting, bookkeeping, the raising of capital
and the daily management of cash flow. Rogers
responds to this need by
presenting financial information in a clear, concise and
helpful manner. He first establishes the purpose and
components of an effective business plan. From there, he
proceeds to explain financial statements, including the
reporting of revenues, expenses and cash flow. Subsequent
chapters deal with business valuation and debt and equity
financing.
While
Rogers covers the fundamentals that every business person
should know, his aim is to equip current and future
entrepreneurs with the knowledge they need to value and
acquire existing businesses. Building a business from
scratch is a much more difficult undertaking. Early on, Rogers
identifies reasons why
people choose to become entrepreneurs. While some
cherish the independence that an entrepreneurial life allows,
others are motivated by a desire to pursue their unique
talents and interests.
Rogers
observes that some people
become entrepreneurs to lead certain lifestyles, while others
are motivated primarily by the prospect of achieving wealth.
To
succeed, business owners must balance multiple disciplines
simultaneously - marketing, product development, production,
distribution, administration and personnel. Each of
these disciplines commands business owners' attention
eventually, and each can have a dramatic affect on the
financial condition of the enterprise. Steve Rogers' new
book gives existing and prospective entrepreneurs a clear
overview of what is at stake, and he provides the tools to
help them maintain control. I highly recommend The
Entrepreneur's Guide to Finance and Business for the
entrepreneurs on your Christmas list.
The End
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