Enterprise Books

Jill Fraser saw a hole in the market and she filled it. There are endless numbers of personal finance guides for people who work for someone. Likewise, there are numerous books on corporate finance issues. However, the high volume of calls Jill fielded at Inc. Magazine, reinforced her awareness that there were no guides to specifically help business owners with their personal finances. Jill Andresky Fraser, Inc. Magazine's well-known and respected finace editor, wrote this book as a personal finance blueprint for entrepreneurs.

As they pursue their american dream, many entrepreneurs may compromise the financial well-being of their families. We've all heard not to put all your eggs in one basket, but its hard for business owners not to do that. Half-a-million men and women start businesses each year, adding to the ranks of 15-20 million who already operate their own companies across the U.S. Yet only about half of these small businesses will survive for four years or longer.

Business owners receive pressure to put their company first, but Jill says "NO," you have to find a middle ground to value your family's goals and family's security and safety as you get your company running. She says that without ever bothering to articulate it; most business owners have a personal finance strategy that boils down to two words: my company. They often neglect to create a back-up strategy or safety net to safe guard their family's well-being. Entrepreneurs may not want to deal with the "mundane" but vital issue of "building a firewall" between one's personal and business finances until the business is solvent, goes public... or until it's too late financially! Fraser provides conservative strategies for coping with problems such as cash flow crises, extensive credit card debt, and the lack of family retirement and savings plans. She says to be sure you're always taking baby steps to protect yourself.

The self-compensation strategy is a tough one. Jill Fraser suggests the following strategy:

* As early as possible - ideally before the company ever begins operations, but if not then, soon figure out a minimum salary that makes sense for you.

* Do some family bonding about the self-compensation dilemma. You'll win emtotional support thatwill strengthen you during tough early days.

* Remember, this is temporary. Take a long-term view.

* Examine your self-compensation progress every six months during this early stage.

* When you're absolutely certain that there is no way your start-up can support even a tiny, token salary for you, reexamine this issue at the end of your operating quarter. Set a goal to pay yourself something as soon as it becomes feasible.

Franchise owners can also benefit from this book. They are given a blueprint for running the business side of the company, but there is no guarantee that personal goals will be addressed.

Mary Ann Campbell, CFP - MoneyMagic.com

Here's a book that gives you more answers than you want to hear. If you're an entrepreneur (own your own business), you may be in stage 1 (start-up and early days), stage 2 (stable and on a clear path to profitability) or stage 3 (profitable, stable cash flow, mature). In each phase, you have personal financial issues as well as corporate finance issues to address. You'll have a lot of questions looking for answers.

What better expert to counsel you than the researcher and journalist who gained so much popularity as finance editor of Inc. Magazine and editor at Bloomberg Personal Finance. She's been a writer at Forbes, the New York Times, and the Wall Street columnist for the New York Observer. As you can imagine, Jill Fraser knows her topic well. She presents a tremendous amount of highly valuable information and advice in succinct doses that always seem to be just the right length. Reading this book is like sitting in that comfortable chair in your living room chatting with a knowledgeable friend.

Want more? Fraser has brought a dozen well-known successful entrepreneurs to the party. They share their perspectives throughout the book, in focused commentary at the end of each section. I was impressed with the thoroughness of this book.

Want more? How about an eight page index in the back of the book and a full-page index of hot topics in the front of the book? As you turn the pages, you'll find more little surprises as the author keeps delivering even more than you expect. I'd recommend this book for every business owner, regardless of your stage of development . . . as well as for people who are contemplating going into business for themselves. Wish I'd had this book twenty years ago!

The only thing missing is an interview with the capitalist that closed the plant. If they tried and he refused the book ought to say so, otherwise it seems that at least a few pages could have been devoted to his side of the story.

All in all, though, a great book to read, as a counterbalance for all of us that invest thru our 401Ks and retirement accounts expecting great returns and divorced from how those returns are obtained (and at what cost to some people).

In the early half of the last century it was possible to go to the countryside for a picnic in a Ford Model T car, disassemble and reassemble it with a simple wrench and drive back home in the evening. Today we need computers to diagnose even a simple problem under the hood of cars tailor made to suit individual needs. Given the increase in complexity, explosion of technology and customer preferences, it is impossible for a single firm to ever think of manufacturing even half the components. (River Rouge will be remembered in history as the most ambitious plan of an automotive giant to make all parts of the automobile - including steel and timber from within the company. At best a fairy tale for kids of the twenty first century!).

This book is the summary of an excellent research study of the automobile industry in the 1990's with focus on Toyota and Chrysler. These companies have significantly different "governance structure" (the proportion of parts made in-house, procured from partner firms, and from arms'-length suppliers) from their competitors- GM and Ford. The firms that have a higher proportion of parts that are bought from partner suppliers have a clear edge over competitors that use arm's-length suppliers for the same parts. Extensive data has been collected, analyzed and tested to substantiate the statements made in the text.

Three characteristics that distinguish between partner suppliers from arm's length suppliers- Dedicated asset investments, Knowledge sharing routines and Inter-firm trust form the virtuous triangle that make these partnerships succeed. The results of such partnerships show clearly in tangible terms - Higher profitability per vehicle, better quality, faster time to market, and more new models for customers; the key parameters that enable Toyota and Chrysler to drive at top speed. "It 's not the big that eat the small but it's the fast that eat the slow".

Taking lessons from Toyota, Chrysler adopts concrete programs to consolidate its suppliers, integrate and partner with them to deliver higher value at lower cost to the customer.

Though this research is restricted to the automobile industry, the fundamental principles of "extended enterprise" can be extended across industries.

Highly recommended for all managers and a must read for those working in procurement processes. Next time your supplier drops in, think of this book and start a new relationship.