Who Is the Entrepreneur Entrepreneur is a person who habitually creates and innovates to build something of recognized value around perceived opportunities. In this definition, all words are key words: Entrepreneur – can be an individual entrepreneur, but also an entrepreneurial team or even entrepreneurial organization A person – emphasizes a personality rather than a system Habitually - just cannot stop being an entrepreneur Creates – starts from scratch and brings into being something that was not there before
Continued… Innovates – able to overcome obstacles that would stop most people; turns problems and risks into opportunities; delivers - sees ideas through to final application Builds something – describes the output of the creation and innovation process Of recognized value – encompasses economic, commercial, social, or aesthetic value Perceived opportunities – spotting the opportunity to exploit an idea that may or may not be original to the entrepreneur; seeing something other miss or only see in retrospect1
What Entrepreneurs Are Like• Personality factors – born/made ratio – 50/50, a synergy of genetic and environmental influence – motivation and emotion – independence, competitive spirit, challenge, wealth – behavioral characteristics – perseverance, determination, orientation to clear goals, need to achieve, opportunity orientation, creativity, persistent problem-solving, risk- taking, integrity, honesty, internal locus on control – personality attributes – preferred styles: extrovert/introvert; sensor/intuit; thinker/feeler; and judger/perceiver• Environmental factors – family background – entrepreneurial heritage – age and education – begin entrepreneurial activity early; are not over-educated – work experience – most entrepreneurs first gain some work experience in the line of business they later start up
What Entrepreneurs Are Like ( cont) Action factors make the difference – initiate change and enjoy it create and innovate – a continuous activity, seeing creative idea through to the end, and then start climbing another mountain exploit opportunities – able to see or craft opportunities that other people miss find resources and competencies – experts at exploiting contacts and sources network – expertise oriented; know when they need experts and how to use them effectively face adversity – resolve problems under pressure; turn problems into opportunities manage risk - not adventurers, but manageable risk takers; their success lies in caution, learning, flexibility and change during implementation control the business - pay attention to details and essential ratios; exercise strategic control over their business put the customer first - listen to the customer and respond to the customers feedback creates capital - financial, social, and aesthetic
7 Characteristics of Successful Entrepreneurial FirmsEntrepreneurs who are passionate about their ventures and communicate that excitement to potential investors, customers and mentors. The starting point of many great fortunes has been these seven simple steps.1. Set a goal and back it with a burning desire.2. Begin accumulating capital with a regular savings program. Nothing else is possible without this. You cannot move forward until you start a savings program.3. Use your current job as a springboard to later success. Learn while you earn. Take the long view.4. Experiment in business on a limited scale so you can learn the key abilities necessary for success.5. Search for problems, needs unmet, products or services you can supply of good quality at reasonable prices.6. Read everything you can find on your chosen field. Remain flexible. Be willing to change your mind if you get different information.7. Implement your plans with courage and persistence. Have complete faith in your ability to succeed and never, never give up.
5 Rules for Entrepreneurship.1. Find a Need and Fill It:2. Find a Problem and Solve It .3. Look for Solutions : Find a problem and solve it. Find a problem that everybodys got and see if you cant come up with a solution for it. Find a way to supply a product or a service better, cheaper, faster or easier.4. Focus on Your Customer : Heres the key to success in business. Become obsessed with your customer. Fixated on your customer. Think of the customer. Think of what the customer wants, what the customer needs. What the customer will pay for, what the customers problems are.5. The Source of Most Great Fortunes: Remember this, most great fortunes in America were started with an idea and with personal efforts. Most great fortunes were started with the sale of personal services. This is called sweat equity. In other words, instead of cash equity, put in sweat equity. Put in the sweat of your brow to begin your business. You can learn valuable lessons operating on a small scale.
12 Rules of Success1. Do what you love to do. Find your true passion. Do what you love to do a make a difference! The only way to do great work is to love what you do.2. Be different. Think different. "Better be a pirate than to join the navy."3. Do your best. Do your best at every job. No sleep! Success generates more success. So be hungry for it. Hire good people with passion for excellence.4. Make SWOT analysis. As soon as you join/start a company, make a list of strengths and weaknesses of yourself and your company on a piece of paper. Dont hesitate in throwing bad apples out of the company.5. Be entrepreneurial. Look for the next big thing. Find a set of ideas that need to be quickly and decisively acted upon and jump through that window. Sometimes the first step is the hardest one. Just take it! Have the courage to follow your heart and intuition.6. Start small, think big. Dont worry about too many things at once. Take a handful of simple things to begin with, and then progress to more complex ones. Think about not just tomorrow, but the future. "I want to put a ding in the universe”.7. Strive to become a market leader. Own and control the primary technology in everything you do. If theres a better technology available, use it no matter if anyone else is not using it. Be the first, and make it an industry standard.
12 Rules of Success ( cont)8. Focus on the outcome. People judge you by your performance, so focus on the outcome. Be a yardstick of quality. Advertise. If they dont know it, they wont buy your product. Pay attention to design.9. Ask for feedback. Ask for feedback from people with diverse backgrounds. Each one will tell you one useful thing. If youre at the top of the chain, sometimes people wont give you honest feedback because theyre afraid. In this case, disguise yourself, or get feedback from other sources. Focus on those who will use your product – listen to your customers first.10. Innovate. Innovation distinguishes a leader from a follower. Concentrate on really important creations and radical innovation. Hire people who want to make the best things in the world. You need a very product-oriented culture.11. Learn from failures. Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations.12. Learn continually. Theres always "one more thing" to learn! Cross-pollinate ideas with others both within and outside your company. Learn from customers, competitors and partners.
DOs and DONTs of a Successful Innovator DOs Analyze the opportunities Go out to look, to ask, to listen Keep it simple, keep it focused Start small – try to do one specific thing Think big – aim at market leadership DONTs Dont try to be too clever Dont diversify, dont splinter, dont try to do too many things at once Dont undershoot, or you will simply create an opportunity for competition Dont try to innovate for the future
Why Do Many Small Businesses Fail?2/3 of new businesses survive for at least two years, and only 44% survive at least four years. There are some common mistakes that can sink a business in no time. Give your new business venture a fighting chance by taking care to avoid these fatal errors:1. Overexpansion.2. Poor capital structure3. Overspending.4. Lack of reserve funds.5. Bad business location.6. Poor execution and internal controls.7. An inadequate business plan.8. Failure to change with the times.9. Ineffective marketing and self-promotion.10. Underestimating the competition.11. Lack of management ability12. Failure to select and use appropriate outside professional advisors13. Inability to market product or services effectively14. Over dependence on a single individual or on a predicted specific event15. Failure to understand capital requirements of a growing business16. Poor timing of expenditures due to poor planning17. Expedient rather than reasoned decision-making
Two Rules for Business Start-Ups1. Entrepreneurship is the art of finding profitable solutions to problems. Every successful entrepreneur, every successful businessperson has been a person who has been able to identify a problem and come up with a solution to it before somebody else did.2. Entrepreneurship is the art of finding profitable solutions to problems. Every successful entrepreneur, every successful businessperson has been a person who has been able to identify a problem and come up with a solution to it before somebody else did.
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