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Murray is Managing Director of Strachan and Partners, a specialist business advisory consultancy, and Chief Executive of Albyn Ventures, a business investment group. He also holds a number of non-executive Chairman and director positions in a diverse range of companies throughout the UK, many of which he is a shareholder in. He is also Vice Chairman of the Entrepreneurial Exchange in Scotland.

Friday, 3 February 2012

Guest Blog: Risk And Reward by Martin Beard

A good friend and colleague Martin Beard has written an interesting piece this morning in response to the "outpouring of public angst against bankers, so-called fat cat businessmen, and even the capitalist system".  Martin very importantly highlights the one group which are out there, trying to make a difference, the entrepreneurs!  He believes, as do I, that we need to speak out on behalf of these people, "because they are the opposite of those accused of being irresponsible, and they are in danger of getting lumped together as a force for bad rather than for good ........ and without them there will be no counterbalance to those who just want the rewards without the risk!"

Martin explains why he thinks most entrepreneurs are different:

1. They are true believers in risk and reward, they put their houses and savings up as collateral, they sink huge amounts of unpaid hours into their dream, they live often on the breadline for years just to reach their goal. And yes, some of them fail, and lose substantial amounts of cash as well as face, but many just regroup and start out again.
2. Almost every entrepreneur starts out as a small business, and they understand and face all the challenges that SME’s have on a day to day basis. As their businesses grow, most remember that time and the lessons they learnt, and their companies are better for it. How interesting would it be to take a top Director from a bank and put them in an SME?
3. Most entrepreneurs I know are people experts. Why? Because they have had to convince people to buy from them / work with them / work for them / supply to them. Most are not politicians adept at playing the corporate game, what you see is what you get!
4. Lastly, entrepreneurs know the full facts about ownership, and they understand the value of the business they have built. Reward comes in dividends from the growth of the company, not bonuses; capital security not salary; and ultimately their real reward comes when they sell the business on and they can finally release the charge over their house and assets.

Well said Martin!

If you wish to read the full blog then please click through to Martin's website and Blog the "Beacon" http://beacon.uk.net/risk-and-reward/ 


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