Any advice on managing a business?

[Long,Jeran]

My name is Jeran Long and I am 15 years old. In my school we have an entrepreneurship class and in that class we create a simulation company, I got elected president even though I'm one year younger than everybody else. The problem I have is 1. That no one listens to me and 2. That they don't listen to reason. To reach our BEP (break even point) we must produce 262 products in 7 weeks. We can hardly even reach 16 products per week. I voted to change the price so that our actual BEP was less than 262.However no one voted with me, it is impossible for us to possibly finish the way we are going and every one (except me) seems fine with it. Now one of the problems with the BEP is that the original designers of the product grossly underestimated the cost ot produce it. They had initially said that it cost 0.40 dollars to make one and now we find out that it actually costs 2.03 dollars. I'm worried that if I can't handle a small problem like this I might not be able to actually manage a company. Normally if they proposed an idea like this in a real company they would be fired, however since this is a course I can not fire anyone, just remove their pay/demote them, also this is supposed to be a team effort after all it's our company not my company. Any ideas?

[StealYourDreams]

I have no idea how corporate structures work in Canada, but if you were in the United States I would say that you were the highest ranking officer/director of your organization and as such you are the one responsible for doing what needs to be done.

Do you need to vote on all matters? Probably not. You as the elected leader set policy, you not the employees. If the majority doesnt like the way things are going your stint as president will be short lived. In the meantime, if you've been asking and getting resistance it's time to start telling.

[GlobalIT]

First thing I would do is build your team. What I mean by that is layout the roles and responsiblities need to complete your task. Next meet with the group and say here are the roles that need to be filled select the top role that your abilities can do. Hopefully you will have a role for everyone that is your top choice. If not you our the leader so choose only the required number, make sure everyone agrees with there role before you start your project. Hope your project is still going on....

[wa_success]

My name is Jeran Long and I am 15 years old. In my school we have an entrepreneurship class and in that class we create a simulation company, I got elected president even though I'm one year younger than everybody else. The problem I have is 1. That no one listens to me and 2. That they don't listen to reason. To reach our BEP (break even point) we must produce 262 products in 7 weeks. We can hardly even reach 16 products per week. I voted to change the price so that our actual BEP was less than 262.However no one voted with me, it is impossible for us to possibly finish the way we are going and every one (except me) seems fine with it. Now one of the problems with the BEP is that the original designers of the product grossly underestimated the cost ot produce it. They had initially said that it cost 0.40 dollars to make one and now we find out that it actually costs 2.03 dollars. I'm worried that if I can't handle a small problem like this I might not be able to actually manage a company. Normally if they proposed an idea like this in a real company they would be fired, however since this is a course I can not fire anyone, just remove their pay/demote them, also this is supposed to be a team effort after all it's our company not my company. Any ideas?

Hi Jeran

It's nice to see young business minds on this forum. I can truly appreciate the frustration that results when team members are not open to reasonable ideas. However you have to understand that everyone is open to other peoples ideas. I would suggest that you first listen intently to what they have to say. This shows that you are willing to hear them out and consider their ideas. This allows them to feel part of the team and allows you to analyze their reasoning. This way you can explain to them why your ideas make more sense (if in fact they are the most reasonable solutions to the problem). Leading a team is one of the most valuable skills you can learn and one that corporations will pay handsomely for. But just like everything else in life leadership skills take practice and lots of trial and error.

Also keep in mind that people are not necessarily fired when decisions don't work out. Many companies expect their employees to be creative with problem solving and sometimes this results in failure. All you can do is learn from your mistake and move on. That being said, estimating a cost per unit of .40 and having the actual cost come in at 2.03 is an impressive miscalculation that most employers wouldn't tolerate.

Anyways good luck with the project, let us know how it goes.

Phil

[alluwanted]

As Phil rightly said, 'listen' is the key.
Then analyse why $ 0.40 has become $2.03. It is just not possible. If it is a product, see if you can get it manufactured from some where else, if it is not available already at cheaper cost elsewhere.

Reducing the target 0f 262 or BEP is not the answer. Profit is important. Aim big and be realistic too. Aim to sell 400 and even if you sell 275, you would have achieved BEP. Now you are concentrating on 262 and you tend to reach lower figures.

While you say others are not listening to you, just wear their shoe and see the situation from their eyes!

I am avaialable to discuss as a devil's advocate ! You answer my quesions and you will kniw better, how to manage.

As a 15 year old, you seem to be doing good. Keep up the good work.

All the best.