Theo Paphitis locus control
Locus control is the ability to be in control of both failure and success. As such, Locus control is a control orientation. Theo Paphitis exhibited locus control through a psychological construct showing control orientation as main aspect of his personality. Theo Paphitis locus control is seen through a wide range of ramifications towards satisfaction in life, which in itself is indicative of response to success and failures along the continuum of business and throughout his life. He has worked hard to set up retail business success among other enterprises to become the king of retail. Locus control is observed across his ability to respond to his businesses effectively throughout. He knows how to develop a concept, turn it into a business, manage this business, and keep it competitive.
In his biography, Theo explains his background as a concept through which optimism, drive to success, and a consistent desire to succeed was a formula for his locus control. At 15, he was a school snack shop shopkeeper and at 16 as a tea boy in Lloyds. His drive for a better life saw him work for a Swiss watchmaker, At 20, Theo was looking for a well paying job and at the same time, thinking of setting up his own business. He observes that no one wanted to give him a job and it made him clamor to succeed. He ventured in property where he managed his first big break before tapping the mobile phones markets by acquiring NAG Telecom.
Early in the book, Enter the Dragon, Theo Paphitis is emphatic about one being in control of things. The context is about being innovative and ready to achieve goals within set periods. According to Theo, setting goals and coming up with a clear set of steps on how to achieve your goals is important in business. Theo Paphitis main point in this chapter is to empress a goal as a dream with an expiry date hence one needs to react to it as soon as he incepts it.
A strong character: Paphitis (2008) explains that a strong character is indicative of focus and a desire to achieve. This strong character is backed by skills and competencies that allow management of the business and the subsequent success as observed by Maria (2010).
Theo Paphitis desire to achieve
Failure to secure a well paying job and a consistent turndowns when went look for one inspired him to conceptualize beyond this impasse. Theo Paphitis remarked that no one would give him a job when he asked for one. He further explains that he could not understand how any of those un-educated interviewers who examined him during interviews got their plush jobs. This shows a psychological construct indicative of propensity and self-drive. Theo did not look himself down rather found he more able and capacitated in comparison to others. Theo rather than going ahead in job search saw opportunity in the property boom and invested his teen earnings and it handsomely paid off.
The desire to achieve helped him become more able to identify opportunity and turn it into business. When he invested with his friend in the property finance sector, Theo was young, but his desire to achieve provided him with business acumen. He became intuitive, perceptive, and creative. He could forecast and invest in the right market just at the right time. After the Property finance investment, Theo saw a trend in the telecoms; he turned the property finance profits into mobile phone services by buying NAG Telecom. His financial ability helped him secure talks with Ryman Stationers.
Taking initiative: According to Theo Paphitis book, Enter the Dragon, to become a dragon involves taking initiative and creating sustainable businesses. It is all about optimism. The underlying success in business is based on boundless objectivity seen only in successful business leadership today. Taking initiative revolves around being optimistic even when there are business downturns. The business problems experienced today should be viewed as challenges and should be viewed positively and turned into opportunity. According to Yuvurani (2010) unfortunately, pessimism has inhibited such abilities with many would be successful entrepreneurs lacking the boundless font of optimism required to facilitate success in the business world.
Vision, creativity, and innovation: Liles (1974) points out that firm creation is considered as the core of innovation. Entrepreneurship and innovation have been viewed as having intrinsic value for the role they play as economic drivers. Creating firms and products under the firm’s flagship is creativity and innovation. Paphitis insists that entrepreneurs should be objective to achieve this zone of business leadership where they come up with products and successful services for the markets.
Theo Paphitis attitude to risk and failure
Risk takers are business leaders who manage to set up a business from scratch, which takes a great deal of courage as contextualized by Public Innovators (2010).Towards the end of the book,’ Enter The Dragon’ Theo advices entrepreneurs to have a penchant for failure. Theo insists that failure is a blessing in disguise. However, Theo explains this concept as null since in his opinion, there is nothing like failure but a problem in planning and execution. Investing in a wrong stock can be a failure in the forecasting stage. However, a low turn over after the introduction of a good product can be a poor marketing strategy.
About risk, Theo Paphitis makes use of the principle ‘if you don’t risk, you risk not hoping.’ Investing profits from one venture in another show his aptitude for risk. He takes risks though he forecasts before going about the investing process. Theo contextualizes risk as a variable, which entrepreneurs should minimize. Theo explains that he is a greater believer in risk as the most reliable source of reward. Theo Paphitis business philosophy is based on risk-reward calculus, where once you take risk, you get a significant hunk of fiscal rewards and corporate foothold. However, Theo advices on the risk-reward ration stacking up; hence, your execution should be based on facts and enough forecasting. He insists that if these do not add up to satisfy, you do not take the risk.
Theo Paphitis success through risking millions depends on his innovative philosophy about investments. If you have a business idea, you should weigh the risks and the benefits of having this business idea become functional. You should identify the potential risk on your idea as much as possible to leave you with significant returns potential. This is why you need business research, planning, and strategy to execute it. You need to gather information by evaluating and assessing what others are doing, their success, failure and futures. Theo had bid for failed clothing franchise Woolworths and later pulled out. It only shows his penchant for risks and turning failure to success.
Socialization as a platform for business success
Networks today provide ideal platforms for business success, especially where startups are in question. Theo Paphitis advices that honesty is crucial in business and you should not fool yourself about it. Discussing your business idea is vital rather than conditioning yourself to believe in your perceived success potential. You need to be honest with yourself about your business idea. Your level of socialization can support your business idea and its eventual rollout. If you reckon it is commercial, you need to discuss with those you know are doing it. An initial research involving real-seller-consumer discussion can provide you with an insight about consumer interests on your product or service. If you try to sell and fail, but give away, you need to re-design your product.
To make your ideas a success, Theo Paphitis proposes taking advantage of friends and those in your networks ideas. He projects this is a little secret, which he honestly shares freely. Theo confesses that having made a significant amount of money from his businesses, he has never had a business idea let alone a plan of his own. He has borrowed and used other people’s idea to propel his corporate success. However, being social provide for the opportunity to listen to the ideas. Socialization in Theo Paphitis perspective is more of having time to hear moneymaking schemes being discussed, having fun during such a moment, and then making money from what you heard during such a socialization moment. In fact, Theo’s business philosophy is ‘make money-have fun and make money, a principle that falls right in place when the context of socialization is discussed.
In school, Theo was thirsty for fitting in business platforms, which allowed him, become a snacks shopkeeper at school at the age of 15. Unless you are affiliated with individuals and groups that think corporate wise, you risk being in inertia. Theo wanted to be alongside people who thought about business and practiced business. When Theo became successful, he was in football and prides his 8-year tenure as Millwall Football club chairman. Such a position and tenure is indicative of great exposure to various social setups, groups and affiliation, all which provide opportunity to learn something new. He starred as a judge in BBC’s Dragons Den program. Such levels of socialization provide opportunity to learn and listen to ideas.
Theo Paphitis ideology of resources
Theo is straight to the point about resources. In his book, he explains that cash is king. His advice is that, cash flow is the core to business processes. The profit brings he sense of having the business, hence keeps you happy, in his words ‘sane.’ However, there needs to be a turnover, which is an indicator or a parameter of growth and development of your business. This provides you with business vanity. Theo projects lack of cash flows as a heart attack for any business. Cash flow denotes cash that can continue to come after the business process, hence operations cost including rent, stocks, wages, and your benefits are achieved. He remarks that, you can go o without a profit but not without resources to keep you going.
To have sustainable growth, Theo suggests that you start small regardless of your financial ability. You do not start acquiring huge offices and hiring people, rather you should start by yourself and grow with the business. This approach helps you keep many of your resources, especially money rather than spending it on the business. For entrepreneurs who use this approach, they achieve growth and return on their investment. They are surprised to find that their saved money is added on by profits from the new business.
Summary
According to Russell (2004) success in entrepreneurship is not a complex web of ideology but the will to face challenge and innovate creatively. It is about understanding consumer needs and innovating products and services that fit these needs. Success in entrepreneurship is beyond selling but the incorporation of leadership to provide guidance in the process of satisfying client needs. Theo Paphitis has constructed a simplified viewpoint that allows any one with business acumen to increase his conceptualizing ability.
Public innovators, (2010) argue that internal locus influences events, processes, and decisions; it is an offshoot of a strong character and works along a continuum of confidence. Personal characteristics determine ones ability to achieve specific objectives in life same as how an entrepreneur can set goals and shape the future of his business. There exists a strong nexus between the desire to achieve and locus control where both reinforce the need to achieve consistently as insisted Financial Mirror (2008).
References
Russell, D. (2004) “Concepts of entrepreneurship” Blogtext.org, Free Blog. Web.
Financial Mirror. (2008) “Theo Paphitis to help Cyprus funding needs.” Xak.com. Web.
Liles, P. R. (1974) ‘who are the entrepreneurs?’ MSU Business Topics, Vol. 22, No. 1 pp. 43-55. Print
Maria, M., (2008) “Entrepreneurship: Theory and Practice The role of government policy on entrepreneurial activity: productive, unproductive or destructive?” Business and Small Businesses. Web.
Paphitis T. (2008) Enter the Dragon. London, Orion Publishing Company. Print
Peterson, R, A., & Berger, D. G., (1971) Entrepreneurship in Organizations: Evidence from the Popular Music Industry. Administrative Science Quarterly, 16, 1, pp. 97-106
Public Innovators (2010). “How can government strategically support social entrepreneurship?” Web.