business requires many resources such as buildings, vehicles, machinery or stock. Most can be purchased for cash although, as we have seen, there are ways of minimizing the investment needed. The one thing every business needs if it is to grow is people. Nevertheless, many entrepreneurs try to minimize the cost of people by doing as many things as possible themselves, despite the fact that this is not always a good idea as they may not have the necessary expertise. People cannot be purchased in the same way as other assets. They have to be attracted to join the business as employees or partners. Of course many new ventures do not employ anybody to start with, preferring instead to subcontract as many operations as possible. However, the only way you will grow is by recruiting appropriate staff, including managers, to deliver your product/service to more and more customers. Selecting, developing and managing staff will become a key activity, and it is something many entrepreneurs find difficult. When there is more than one founder, the issue of working with the other partners so as to become an effective management team can be just as challenging.
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