Many professionals come to this point of realization there exists no dream job and if you want to pursue your own passion, the best way to do is to start your own business and become an Entrepreneur.
Entrepreneurship is not an easy thing to do in this competitive world, 1/3 businesses fail in their first three years and are unable to pursue what they started.
Gary Vaynerchuk, one of the top Entrepreneurs in the United States, created episodes for Five years on daily basis for his youtube channel.
Gary grew his father’s company from $3-60MM in sales during his tenure at Wine Library.
Entrepreneurship is finding a gap in a particular marketplace and introducing a new business model in the market. Initially, it is a small business started by an Individual or a group of friends. Those who perform this activity are called Entrepreneurs.
Top 10 reasons why people start their own business and become Entrepreneurs are:
- Entrepreneurs don’t like bosses. They want to start their own business to become their own boss
- Entrepreneurs look to work for the passion they have. Since passion is necessary to motivate yourself in completing certain tasks so they start on their own.
- Entrepreneurs see how certain business operates come up with new kind of a business model, so in order to practice it, they start their own business.
- New ideas boggle in the mind of an Entrepreneur and they want to introduce the idea generated to the potential customers.
- The main motive to start a business and become an Entrepreneur is to increase one’s income and generate profits through business activities.
- Entrepreneurs want to experience how it feels to operate as a business owner and what it takes to become one.
- Entrepreneurship increases Networking Opportunities immensely. Professionals in the industry regard highly of Entrepreneurs and want to spend time more with them.
- Entrepreneurs want recognition in their industry. When certain business idea succeeds in the market, the recognition will be an obvious thing a person will get.
- Entrepreneurs want to build their own brand and want to go long term in the market.
- Entrepreneurs are thinking for the society, how they can help to change the lives of people, in return they can earn some profits for society.
Types of Entrepreneurship
1. Small Business Entrepreneurship
Small Business Entrepreneurship is when a business is launched at a small level targeting a specific population and implemented for customer convenience. There are hundred thousands of examples for Small Business Entrepreneurship.
Finding Retail Opportunities and opening up a retails shop like Grocery, Shoes and Cloth Retailing, introducing a particular service different to the existing market are Small Business Entrepreneurship.
2. Scalable Startup Entrepreneurship
Scalable startup Entrepreneurship is when an Entrepreneur launches a Business Idea and he knows that initially, the investment is high but once the product/service is well established the reproduction costs are very low and margins of profit become very much high.
The product/service launched can become the next big thing in niche markets.
This idea can change around how people think and how the target industry operates.
A product/service introduced in Scalable Startup has a very high potential of Growth and Entrepreneur has to collect the right amount of Investment in order to kick start.
3. Corporate Entrepreneurship
In order to thrive in the market and sustain customers, corporations mostly invest in Entrepreneurship ideas and adopt new methods for doing business.
The process of discovering new ideas, planning, and execution all takes place within the organization.
This is called Corporate Entrepreneurship and this is done to increase growth rate and revenue for the organization.
4. Social Entrepreneurship
This type of entrepreneurship can be for non-profit, profit or simultaneously both.
For e.g., finding solutions to problems like environmental hazards people are facing today, introducing products to promote cultures, providing social service and many more.
How to find Business Opportunities
How to find Business opportunities is mostly asked by people who are hesitant to become Entrepreneurs and are not risk takers.
If you are ready to take a risk and Decided to become an Entrepreneur then Finding a Business Opportunity is not much of a problem.
Here are key processes to find Business Opportunities:
1. Keep your eyes open
The power of observation is mostly underestimated and this can bring numerous business ideas if you can observe on Daily Life Activities.
Each activity you perform from visiting a nearby convenience store and doing window shopping in Malls, just keep your eyes open and see how things are getting done.
2. Communicate with people, colleagues, professionals
Communication is what will genuinely lead to becoming an Entrepreneur. In my opinion, this is the only vital thing to become a Successful Entrepreneur along with strong product/service.
Communicate with people every day you meet and inquire about how things are going. If you are doing a job somewhere, communicate with your colleagues, company customers effectively and things will absorb better in your mind.
3. Read Business Newspapers
To keep a constant check on Businesses, find yourself a good business newspaper to read.
Research on what kind of newspaper covers the industry you are interested in and subscribe to daily/weekly subscriptions.
4. Follow Business Trends on Social Media
People like to talk about business and entrepreneurship ideas.
Follow these kinds of professionals and bloggers, continuously check what they have to say about your industry and keep yourself updated.
5. Attend Entrepreneurship Conferences and Webinars
If you regularly check Newspapers, online blogs then you will surely get updates on upcoming conferences and webinars.
Even governments and firms hold sessions for small businesses, you need to attend them and keep an eye on the opportunity which arises.
Decide what you are passionate about
As an Entrepreneur, if you are not passionate about your Business Idea then there is no fruit in wasting investment and time.
Decide on your own what thing inspires you and will drive you to be consistent for long periods of time.
When you’ve determined what you want to do then start researching and communicate with the people relevant to your business idea.
How to Generate Business Ideas
You can generate new Business ideas based on your problem-solving skills. There are hundreds of problem you see people face in daily life.
If you can come up with a solution and generate profit from it then maybe it is a great Entrepreneurial Idea.
The ways to generate new business ideas are:
- Identify Gaps in the Market Place. Find loopholes where existing companies have left the stone unturned and fill up the gap with your Entrepreneurial idea.
- Come up with the Solutions of Problems your potential customers face. Do some research and find where there are difficulties faced by people and what convenience you can provide to them. If you will make their lives easier, they will pay you for doing that.
- Adding Value to Existing Products or Service. Study existing products and services in your industry and check what value can be added to them which will be beneficial to customers.
- Spend time in the market among potential customers and understand their needs which aren’t currently fulfilled. Whoever person you will talk to, there will be existing some pain points and they will tell you once you inquire.
- Conduct a Market Research and see how competitors operate in your market niche. Gaining insights on how competitors operate and how their products and services are performing will give perfect ideas on how you can operate.
- Create a list of opportunities in the marketplace you are interested in. As you will be coming across a variety of ideas, you need to note down what opportunity is of interest to you and evaluate them later.
Evaluation of Business Startup Costs and Costs of Doing Business
This is the main part where most business ideas fail when they are unable to determine correctly startup costs and costs of running a business. In this phase, a thorough Market Research needs to be conducted.
The Market Research for the new Business idea should cover these 8 points:
- Is the new business idea proposed viable to proposed customers? Engage with potential customers and ask them about if they would be interested in buying your proposed product or service you intend to introduce.
- What should be the pricing of the new product/service introduced? – Analyze the pricing of existing products or service. Compare what value will be added by your business idea and set a price range according to that.
- Discover the likes and dislikes of potential customers – This will be essential in determining what your product or service should include.
- Estimating the demand for product/service – It will be helpful in planning the stocks, human resource capital required and financial capital.
- Estimating specific times or periods when Demand will be high – All businesses have peak times during certain times of the year when their demands of product or services are high, in order to fulfill all the orders, you’ve to plan before time.
- Understanding Customer Expectations – Customer has certain expectations from Brands. If you need to set up a brand for your company then you will need deep insights into customer expectations and meet them.
- How will the customers be motivated to your Business? – This will help in predicting what will be the Marketing and Adverting costs of your Business.
- Cost of Customer Acquisition – This is the formula to calculate how much average amount a company spends to acquire a new customer.
Estimating costs of Doing Business includes:
- Fixed costs
- What will be the variable costs of running a business?
- Expenses to comply with Government Regulations
- Taxes that will be imposed
Selection of Business Model
Selection of Business Model and implementing it can be a trickier part to Entrepreneurship. Based on your passion and all the market research including estimations of costs involved you’ve to select a Business Model and make a Business Plan.
First, you’ve to make sure, all the costs you’ve estimated fall within your Business Startup Budget and you are also able to sustain a few months cost of costs of doing a Business.
Double check if you are ready to take a risk and become an Entrepreneur.
When Business Model selected, start collecting resources to implement the business model.
The Business Resources you need to collect for starting a new business are:
This is most important in determining your business scalability. If financial resources are high in amount, you can survive in the competing market.
A business should have a backup of at least 6 months at startup to be successful.
2. Human Resources:
When starting a business, you’ve to connect with like-minded people and hire professionals relevant to your industry, partner with those who are able to match your work frequency.
Human capital is an asset for a company and you need to build the right assets.
3. Technology support:
Without technology support, business can’t thrive in this competing world.
You will be needing Customer Relationship Management Software, Inventory Management, and custom software development if you need customized technical support.
4. Business Location: Placing your business office in the right market is essential for new businesses to become successful.
You should consider 3 following factors in determining Business Location:
- Reachability of Potential Customers
- Reachability of Vendors
- Proximity to existing market
Continuous Evaluation of Your Entrepreneurship Activities
Becoming an Entrepreneur is not a onetime hustle but it requires continuous effort on a consistent basis. Make yourself accountable to your business activities and evaluate continuously your company’s performance.
Your Business Evaluation should consider these 7 points:
- Calculation of total weekly/monthly sales
- Growth percentage of sales
- Evaluating your customer service and if customers are happy with after sale service
- How many new customers acquired?
- Calculation of Margin of Profits
- Calculation of operating expenses and how they can be reduced
- Making a Strategy to Scale Business Profitability
I hope this guide about How to become an Entrepreneur and how to start Entrepreneurship with your own Business Model was a valuable read for you. Stay Tuned for more healthy articles.