Entrepreneurship attracts each professional, but no one exactly know the exact steps to become an entrepreneur. However there are some fundamental rules, which one has to follow. In this article we are going to know about Entrepreneurship & what it takes to be an entrepreneur ? An entrepreneur is an individual who creates a business, bears most of the risks and enjoy most of the rewards. The entrepreneur is mostly seen as an innovator, a source of new ideas, goods & services. Entrepreneurs who are successful in their startup are rewarded with profits & fame. Those who fail, suffer losses.
- An entrepreneur creates a new business firm, which aggregates capital and labor in order to produce goods or services for profit.
- Entrepreneurship is high-risk, but also can be high-reward as it serves to generate economic wealth, growth, and innovation.
Entrepreneurship is one of the resources economists categorize as integral to production, the other three being land/natural resources, labor and capital. An entrepreneur combines the three of these to manufacture goods or provide services. They typically create a business plan, hire labor, acquire resources and financing, and provide leadership and management for the business.
Entrepreneurs commonly face many obstacles when building their companies. The three that many of them cite as the most challenging are as follows:
- Overcoming bureaucracy
- Hiring talent
- Obtaining financing
Entrepreneurs Impact the Economy
An entrepreneur acts as a coordinating agent in a capitalist economy. The entrepreneur moves various resources, both tangible and intangible, promoting capital formation. In a market full of uncertainty, it is the entrepreneur who can actually help clear up uncertainty.
For being an Entrepreneur, one must have following qualities.
1. Ensure Financial Stability
This first step is not a strict requirement but is recommended. starting out with an adequate cash supply and ensuring ongoing funding can only help an aspiring entrepreneur, increasing his or her personal runway and give him more time to work on building a successful business.
2. Build a Diverse Skill Set
Once a person has strong finances, it is important to build a diverse set of skills and then apply those skills in the real world. Once a diverse skill set is built, it gives an entrepreneur a toolkit that he can rely on when he is faced with the inevitability of tough situations.
3. Identify a Problem to Solve
an aspiring entrepreneur is able to identify various problems to solve. It is important to combine steps three and four so it is possible to identify a problem to solve by looking at various industries as an outsider. This often provides an aspiring entrepreneur with the ability to see a problem others might not.
4. Solve That Problem
Successful startups solve a specific pain point for other companies or for the public. This is known as “adding value within the problem.” Only through adding value to a specific problem or pain point does an entrepreneur become successful.
5. Passion to Action
They invariably involve industrious people diving into things they’re naturally passionate about.
6. listen to your customer
When starting out, it’s essential to personally handle sales and other customer interactions whenever possible. Direct client contact is the clearest path to obtaining honest feedback about what the target market likes and what you could be doing better.
7. Shrewd Money Management
Through the heart of any successful new business, venture beats the lifeblood of steady cash flow—essential for purchasing inventory, paying rent, maintaining equipment and promoting the business. It’s essential to keep personal and business costs separate, and never dip into business funds to cover the costs of daily living. Of course, it’s important to pay yourself a realistic salary that allows you to cover essentials, but not much more.
what it takes to be an entrepreneur?
Embarking on the entrepreneurial career path to “being your own boss” is exciting. But along with all your research, make sure to do your homework about yourself and your situation.
A Few Questions to Ask Yourself:
- Do I have the personality, temperament, and mindset of taking on the world on my own terms?
- Do I have the required ambiance and resources to devote all my time to my venture?
- Do I have an exit plan ready with a clearly defined timeline in case my venture does not work?
- Do I have a concrete plan for next “x” number of months or will I face challenges midway due to family, financial or other commitments?
- Do I have the required network to seek help and advice as needed?
- Have I identified and built bridges with experienced mentors to learn from their expertise?
- If my offering is going to replace an existing product in the market, how will my competitors react?
- Have I identified my target customer base for the initial phase? Do I have scalability plans ready for larger markets?
- Have I identified sales and distribution channels?
Questions That Delve into External Factors:
- Do I have a plan about getting the necessary resources and skilled employees, and have I made cost considerations for the same?
- What are the tentative timelines for bringing the first prototype to market or for services to be operational?
- Who are my primary customers?
- Who are the funding sources I may need to approach to make this big? Is my venture good enough to convince potential stakeholders?
- What technical infrastructure do I need?
- Once the business is established, will I have sufficient funds to get resources and take it to the next level? Will other big firms copy my model and kill my operation?