Entrepreneurship is the creation or extraction of value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values than simply economic ones.
More narrow definitions have described entrepreneurship as the process of designing, launching and running a new business, which is often similar to a small business, or as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit.” The people who create these businesses are often referred to as entrepreneurs. While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to “lack of funding, bad business decisions, government policies, an economic crisis, lack of market demand, or a combination of all of these.”
Decide on the Type of Business
It is often said that entrepreneurs are the backbone of the nation. Anyone with the passion and drive can become a successful entrepreneur as long as the planning and execution are done well. The first step to becoming an entrepreneur is choosing the ideal business. The business you choose will be determined by its feasibility as well as your own interests and expertise.
Is it Feasable?
You may be passionate about an idea, but if it is not feasible, you will never be able to make it successful. Feasibility describes how simple it is to accomplish something.
Many factors influence feasibility. For example, a dog bakery may be popular in a city with a high rate of dog lovers, but it would not survive in a city with a low rate. Before
moving forward with any idea, you must determine its feasibility. This requires an understanding of the market and your customers, which we will cover in-depth in later
sections. To determine if an idea is feasible, ask yourself the following questions:
- Do you have the necessary funding?
- Is there a market for your product?
- What is the outlook for the market?
- Can you price competitively?
- How would you operate?
- Would you have a sufficient customer base for long-term success?
What Are Your Interests?
Becoming an entrepreneur is not easy. If you do not enjoy what you do, you are unlikely to be successful. Before you choose your business, you must consider what you enjoy doing and think of a way to make this task profitable. Begin by making a list of your interests and see which ones overlap with feasible business models. For example, a love of animals could translate into a pet sitting service, or a love of cooking could translate into a food truck business.
Do You Have the Experience?
Experience and expertise are definite benefits to any business. They are often used interchangeably, but this is a mistake. This point and the next one will help define the
difference between the two while helping you identify your own experience and expertise. Experience is something that you gain from observation, encounters, and actions. Many
jobs provide experience. For example, working as a server provides experience in the restaurant industry, but it does not necessarily provide expertise. Once you identify your experiences, you can use them to help choose your business. Years in customer service, for example, would help prepare you for a business that is customer service oriented.
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