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Peter BartaAbout entrepreneurship – orhow to build a successfulbusiness venture
About entrepreneurship Dilemma Construction 5 myths about entrepreneurship Or how to build a successful business venture
What is an entrepreneur anyway? For an economist, an entrepreneur is that person that brings resources labor, materials, and other assets into combination that make their value greater than before, and also introduces changes, innovation, and a new order. To a psychologist such a person is typically driven by certain forces – the need to obtain or attain something, to experiment, to accomplish, or perhaps to escape the authority of others. To a businessman , an entrepreneur appears as a threat, an aggressive competitor, whereas to another businessman the same entrepreneur may be an ally, a source of supply, a customer, or someone who creates wealth for others, as well as finds better ways to utilize resources, reduce waste, and produce jobs, others are glad to get.
Common behaviors for entrepreneurs Although being an entrepreneur mean different things to different people, there is a common agreement that all of them are driven by 3 common behaviors: 1. Initiative taking 2. Organizing and reorganizing of social and economic mechanisms to bundle resources in innovative ways 3. Accepts risks, uncertainty, and/or potential for failure
Construction8 questions to ask yourself before starting a business venture
Power of a businessMantra behind every successfulbusiness venture is repetitivelysimple: find a need or desire afterwhich identify a way through whichyou can fill that need or desire at aprice that the beneficiary is willing topay.Or even simpler then that find a pain(need or desire) and then offer theantidote (business venture offering) ata price which the beneficiary is willingto pay.
Power of a businessDon’t be like 95% of wannabeentrepreneurs who think they havea great idea and jump into businesswithout careful planning.
Who am I?Starting and running a business is a lot like running a marathon. There will be highs andlows, and the prospects are both exciting and scary. To maximize your chances, analyzeyour strengths and weaknesses.In order to be able to run a business you needdetermination, persistence, creativity, flexibility and a steep learning curve. Will you beable to develop and strengthen these characteristics. How does your business idea fit yourpersonal skills and goals?
What business am I in? Carefully define and detail what your product and/or service are. You can use these simple questions: • What problems do I solve? • What benefits do I provide? • Who are my target customers that would buy my product or service? • Consumers? Organizations? • Where are they located? • How will I reach them?
Is my business idea viable? In order to find out, market research is essential so that you can answer such questions as: • Who will buy my product? • Are there enough potential customers for me to make a profit? Identify and analyze what your competitors are doing, and how what you offer is sufficiently different to attract customers.
What is my market niche? • What is unique about me and my business? • What do I want to be known for? Hint Having a niche does not mean offering the lowest price. Any competitor can charge less. A market niche is what makes your business stand out from the pack.
How will my market my business? The marketing strategy you choose must do two things: 1. Reach your target customers and 2. Fit your business because you must continually market your business Hint: - When you start your marketing activities focus your activities on those clients that are easier and cheaper to reach - Count the clients to whom you can get free, or almost free, and test them as being your first market.
Question no. 6 How will I finance my business?
How will I finance my business?The flip side of the question, “Will I makeenough money?” is “Do I have enough moneyto get started?” In order to make generate some money you need to have a good product or service, and a real market for it. In order to sell your offering you need to ask for a price, in order to do that you should analyze: Similar product or services (ie. Different umbrella brands) Competing solutions (ie. Umbrellas, capes and raining hats) Substitute products or services (ie. Accessories, boots, etc.) For all the goods or services that you are offering you need to calculate the value of what you are offering to your clients through what they would lose if they wouldn’t buy your offering
Why do I need a business plan? Now that you’re decided to go into business and you have done your research, you are ready to write a BP. Planning ahead can mean the difference between success and failure.
Will I go into my own business? Are you going to run the marathon? Answering the above questions carefully will help you make a well informed decision. Remember: Even though there are obstacles along the way, a marathon always has a well-planned course to follow.
5 myths about going intobusiness for yourself Couple of myths about entrepreneurial ventures
Myth no. 1 I’ll try it out and see how it goes? Many people who are between jobs decide it’s as good a time as any to start a business. However, choosing to go solo by default is not a wise idea. Starting a business is very demanding and includes long working hours, financial investment, and, of course, no regular paycheck.
Myth no. 2 When I’m own boss, I’ll avoid corporate politics Just because you’re the boss doesn’t mean you don’t have anyone to answer to. You will have many more bosses than you ever did as an employee – bosses called “customers”, “corporat ions”, or “investors”
Myth no. 3 I’ll have more free time and flexible work hours If you think you will have time to spend on your hobbies, play tennis a couple of days a week, and schedule time off whenever you want, think again. The first few years you will most likely spend sixty to eighty hours per week getting your business running.
Myth no. 4 All I need is a good ideaThere are many wonderful ideas and products that have never seen the light of day. It’smuch easier to come up with ideas than to implement them.
Myth no. 5 After a few years, I’ll make a lots of moneyUnless you are lucky or backed by a venture capital, you probably won’t get rich quick.- In the first year of business, you may only make approximately 20% of your most recent salary- By years three or five, your profits can begin to grow substantially