Essential Drucker Chapter11: The new venture

The new venture has an idea, a product or a service. It may even have sales, costs, revenues and profits.
But what it doesn't have is a "business," a viable, operating, organized "present" in which people know where to go, what they are supposed to do, and what the results are or should be. It has to make sure of being "managed," to survive.

Thomas Edison was the one who refused to be "managed" by professional management team. His companies collapsed once it got to middle size, and was saved only by replacing him with professional management.

Entrepreneurial management in the new venture has 4 requirements.

1. Focus on the market.
2. Financial foresight, especially planning for cash flow and capital needs ahead.
3. Building a top management team long before the new venture actually needs one
and long before it can actually afford one.
4. Entrepreneur's own role, area of work, and relationship.