From employee to entrepreneur By Angela Ihunweze www.angelaitambo.com.ng 080 33 28 04 53 Visit www.angelaitambo.com
Outline Who is an entrepreneur? How is different from owning a small business? What is an entrepreneurial venture? As an employee which should you choose? What to do before venturing into entrepreneurship? Identifying entrepreneurial opportunities? How to choose an entrepreneurial venture? What you need to do to start well in this career? How to prevent failure in entrepreneurship? Final words of wisdom It is time for questions
Who is an entrepreneur An entrepreneur is an individual with the following characteristics:- Who spots an opportunity in the marketplace Assembles the required resources to take advantage of this opportunity, most times his or her own funds is used as start up capital This opportunities may not be new to the market place, however what makes it different is that these individuals turns these ordinary opportunities into something extraordinary! They are visionary and very observant and current about what goes on in the society to see where they can get their next big hit They are very patient and self motivated and are driven by the passion to give life to their business and see it succeed. They take careful calculated risks and this means they don’t just throw money on any idea that comes their way it must have a substantial market need.
How is different from owing a small business? Most small businesses are set up as lifestyle businesses to provide immediate income for their families and a job for the owner manager, therefore the following are found:- There isn’t ingenuity in the choice of business idea, that is why there are a lot of copy cats, because Mr. x is making money then it means I can to This results to over saturation of a particular business and invariably some fail, because of the law of demand and supply There is no desire to expand, although most entrepreneurial ventures start small with limited funds and grow from that seed Owners don’t see any need to embark on any form of training or empowerment to improve on their business skills, and this leads to bad and unethical business practices. As a result of the fact that most of these businesses are created out of trends and momentary business opportunities any slight shaking in the market place can affect them adversely
What is an entrepreneurial venture?There are mostly improvements on things we are used to e.g ABC busThey are niches; initially it serves a few customers as a result of the law inertia, but eventually grows e.gThere spark innovation e.g Dudu OshunThese businesses create all types of jobs e.g Omatek Computers
As an employee which should you choose?The incumbent employee has the following to traits:- His or her commitments to his present place of employment and thereby is limited by time As a result of his or her commitments to paid employment already his or her lifestyle and that of his or her family is tied to it In-experience of managing an entrepreneurial venture. Given the above limitations , it is our belief that any individual that falls within this genre and is contemplating entrepreneurship has the following at the back of his or mind
As an employee which should you choose?Part2 The Uncertainty of events in Nigeria especially as it concerns job security The high cost of living that makes ones salary inadequate for daily upkeep The desired lifestyle during retirement If that is the case, it is our advise that such an individual should invest in a small business, which already has been ascertained to generate immediate revenue with little business and managerial skills required E.g a corner shop dealing in products that are the trend of the moment which wouldn’t affect his or her job
As an employee which you should choose Part 3 The second type of employee falls under the following genre; Tired of paid employment Preparing for uncertainity About to retire or down sized or right sized Already retired and still has active life to use and idleness is not an option Desirous of creating an empire that will not only create wealth but will be socially responsible to alleviate poverty in the community as well as create jobs
As an employee which should you choose Part 4 Such an individual should consider creating an entrepreneurial venture that will encompass all these ambition, however caution;- Should understand that such ambition must start small so as to ensure proper structures are laid It will require extreme prudence and caution in the choice of business opportunity It will require patience as well as a financial plan in place to cater for his or her physiological needs e.g food, shelter e.t.c Running such a venture requires constant up date of business techniques so as to be equipped for the challenges that comes with such a venture
What to do before venturing into entrepreneurship? Have a financial plan which will enable you set aside a sum to cater for your upkeep during the period of inertia Create a nest egg, which is a portfolio of investments which can generate income while you focus on this venture, e.g invest in mutual funds, government bonds, fixed deposits, shares, if you can afford it real estate. This will ensure you don’t become desperate to recoup your investments and truncate the business immediately Consider your personal goals, which includes motive for starting the business, your physical conditions, your level of business literacy. This will enable you choose the right business that suits your personality, and enable you seek for the right help in terms of business skills
Identifying entrepreneurial opportunities Entails the ability to recognize and estimate value circumstances in the following areas:- Political/legal e.g. Elections, Litigations Social/cultural e.g. Arts and crafts, tourism Economical e.g. Financial services, banks Demographics e.g. population growth which leads (Housing, Social services, gender rights) Natural e.g. environmental hazards, meteorically Technological e.g. Information technologyWhich is conducive to turn into an entrepreneurial venture
Identifying entrepreneurial opportunities part 2 In recognizing such opportunities the following should be understood:- Successful opportunities are disguised in form of challenges, unmet needs of a group of individuals These opportunities often are found from the following places;-1. Prior experiences got from the work place2. Bad experiences got from a similar business3. Through hobby/personal interest4. Environmental scanning An idea isn’t the same as an opportunity, for a business of any nature to succeed it must have substantial market need.
How to choose an entrepreneurial venture? From your arrays of opportunities, you should by now know that you can not invest in all , there must be a choice. To arrive at that the following must be done: A personal assessment, to ascertain the most suitable business that will suit your person. Since it is a life time project it will require you do something you will be passionate about even when the chips are down A feasibility analysis must be done to ascertain how feasible it will be to execute such a project in the given environment.
How to choose an entrepreneurial venture? Part 2 The business concept; what is the business?, who will be the potential customers? What value is been added to this concept that will differentiate it from the rest? How will it be delivered? Industry analysis; Is the industry where this concept belongs to ready for such a concept? Same with the various stakeholders that are meant to serve this industry ready or equipped to support this business concept? Market/customer, is the customer aware that he or she is in need of this business concept? Is the market ready for such a business concept (including the structures on ground)? Can it be cultivated and there possibility for growth? Management team required. What form of management is required? and do you have the requisite skills needed and can you attract the ones you don’t have?
How to choose an entrepreneurial venture? Part 3 Product/service development, what is required to make this business concept extraordinary?, Is it possible to acquire what is needed to accomplish these feats? These includes the raw materials To achieve all these will require funding to accomplish all the above. How much can kick start the venture on a small level? After careful analysis can it recoup its investments especially in the future as a result of growth? Risks and unspoken culture that exists, in every business especially in Nigeria there are unspoken cultures that exists and also consume money which can make or mar a new venture, this must be taken into consideration, when assessing the proposed opportunities that comes your way
How to choose an entrepreneurial venture? Part 4 In a nutshell the entrepreneurial venture you should invest in must:- Not be forced on you in any form Suit your personality and long term vision for your life Be passionate about it; in order to wait through the period of inertia Have a market demand even though small but has prospects for growth Generate sales and as well profits at least after the period of inertia Be morally, legally, environmentally compliant Pass the quick test:-1. Am I really interested in this opportunity?2. Is anyone interested in this opportunity e.g. employees, investors?3. Will people pay for what I’m offering, ones they aware of its value?4. Can it be nurtured?5. Is the environment e.g. politically, legal, industry ready for such an opportunity ?
What you need to do to start well in this career? Knowledge about the industry you are about entering. This can be got from trade associations, depending on the business concept you about to create. You will also be acquainted with the permits required, experiences from others which should not scare you rather enable you plan well. Undergo training in business management which is absolutely important, fortunately we have organizations that do just that e.g ANGELA ITAMBO COMPANY www.angelaitambo.com.ng Be acquainted with the technical issues of your business, it is by doing so, you can now research and create business offerings that will be needed by your target customers e.g Microsoft Bill gates Have a reliable and competent business advisory professional on whom you can retain till you take off well, he or she is meant to assist you with the following:-1. The various legal forms of organization and the most suitable for your kind of business, this must be one of the first things that should be done2. Liaise with other professionals in accounting, legal e.t.c to ensure you lay the right structures in your business3. Assist you build a business plan that will be suitable for the kind of business you intend to establish4. Provide you with counsel and keep you informed about any happenings that may affect your business
How to prevent failure in entrepreneurship?1. Be ready for the unexpected2. Be girdled with information, which means keep your nose to the ground3. Financial indiscipline is the easiest ways to ruin your career, that is why we suggest creating a nest egg and inculcating strict accounting practices, to check mate excesses4. Be ready to seek help at all times5. Time management is paramount in avoiding failure, that why it is ideal to either have a mentor or a business advisory professional on retainer ship6. There is no substitute in the following; Professionalism Planning Diligence Networking Reverence for your maker Almighty God
Final words of wisdom No matter how bad you think your situation is, be rest assured that someone wishes he or she was in your shoes Checking out isn’t the problem, drop that pride and go down to the trenches and get your hands dirty, if you are willing to do it in another man’s land why not here. Nigeria is your home. You are an original and not a cheap copy, therefore be aware that you were created for an assignment as an entrepreneur, it is up to you to find what that is, this is what differentiates an ordinary small business man or woman from an entrepreneur You need divine wisdom to pull through and this only comes from the Lord. It is the Lord that makes rich and adds no sorrow Quit worrying and relax, worrying will only make matters worse. See entrepreneurship as a career you want to excel in and you will be at the pinnacle of it all.
It is time for questions List three most pressing questions that bug your mind and send via e-mail:email@example.com. -------------------------------------------------------------- --------------------------------------------------------------2. -------------------------------------------------------------- --------------------------------------------------------------3. -------------------------------------------------------------- -------------------------------------------------------------- Thank you and God bless you Amen