Entrepreneur

Entrepreneur

What is an entrepreneur?

An entrepreneur is a person who creates a new business, carries the majority of risks and enjoys most of the awards. Entrepreneurs are generally seen as an innovator, new ideas, objects, services, and business / or the source of the processes.

Entrepreneurs play an important role in any economy. These are the people who have the skills and initiatives needed to estimate the needs of the present and the future and bring good ideas to the market. Entrepreneurs who are successful in taking the risk of the startup are rewarded with benefits, fame and continuous growth opportunities. Those who suffer losses and become less prevalent in the markets

Entrepreneur

How an entrepreneur works

Entrepreneurship is one of those resources which classify economists as an integral part of the production, the other three are land / natural resources, labor and capital. An entrepreneur connects the first three of these to make goods or provide services. He usually makes a business plan, hires labor, receives resources and financing, and provides leadership and management for business.

Entrepreneurs usually face many obstacles while building their companies. Three of them are the most challenging, citing bureaucracy, hiring talent and getting financing.

How an Entrepreneur Receives Financing

Given the risk of a new venture, the acquisition of capital money is particularly challenging, and many entrepreneurs deal with it through bootstrapping: To use sweat money to reduce their labor costs, using their own money Financing the business using methods like reducing inventory and factoring. Receipts

While some entrepreneurs are the only ones struggling to get small businesses on the field alone, others are armed partners with greater access to capital and other resources. In these situations, new firm ventures can get funding through more traditional sources such as capitalists, angels, hedge funds, crowd sourcing or bank loans.

Entrepreneurship Definitions

Economists have never done a consistent definition of 'entrepreneur' or 'entrepreneurship' [the word 'entrepreneur' comes from the French verb entrepreneur, meaning 'to get started']. Although the concept of an entrepreneur was present and known for centuries, classical and neoclassical economists left the entrepreneurs with their formal model: They believed that the right information would be known for the perfectly rational actors, who would take the risk or search Do not leave any place. It was not until the middle of the 20th century that economists seriously attempted to incorporate entrepreneurship into their models.

Three thinkers were central to incorporating entrepreneurs: Joseph Schumpeter, Frank Knight, and Israeli Kirzner. Schumpeter suggested that entrepreneurs - not only the companies - were responsible for creating new things in search of profit. Knight focused on entrepreneurs as the carrier of uncertainty and believed that they were responsible for the risk premium in financial markets. Kirzner thought of entrepreneurship, which was a process that carried forward the quest.

Why are entrepreneurs important for the economy?

In Economist-Speech, an entrepreneur works as a coordinating agent in the capitalist economy. This coordination takes the form of moving resources to new potential profit opportunities. The entrepreneur transports different resources, both promote tangible and intangible, capital formation.

In an uncertain market, it is an entrepreneur who can really help to clarify the uncertainty, because he decides or believes the risk. To the extent that capitalism is a dynamic profit-loss system, entrepreneurs do efficiently search and continuously manifest knowledge. Established firms face competition and challenges from entrepreneurs who often leads them towards research and development efforts. In the technical economic context, the entrepreneur interrupts the curriculum towards the steady-state balance.

How do entrepreneurial economies and countries help

Entrepreneurship can have a positive impact on an economy and a society in many ways. For starters, entrepreneurs make new business. They invent objects and services, which result in employment, and often the wave effect is created, which results in greater development. For example, after the introduction of some information technology companies in India in the 1990s, businesses like call center operations and hardware providers in affiliated industries also started offering support services and products.

Entrepreneurs add in gross national income. Existing businesses can be restricted to their markets and can eventually reach an income limit. But new products or technologies make new markets and new properties. And the increased employment and high income contribute to the tax base of the nation, thereby increasing the public expenditure on public projects.

Entrepreneurs create social change. They break tradition with unique inventions that reduce dependence on existing methods and systems, sometimes make them obsolete. For example, smartphones and their apps have revolutionized work and revolution around the world.

Entrepreneurs invest in community projects and help charities and other non-profit organizations, to support reasons beyond their own. For example, Bill Gates has used his wealth for education and public health initiatives.

Entrepreneurial ecosystem

There is research that reflects the high level of self-employment, can prevent economic development: entrepreneurship, if not properly regulated, improper market practices and corruption can occur, and by creating income inequality in many entrepreneurial societies Can. Overall, however, entrepreneurship is an important driver of innovation and economic development. Therefore, promoting entrepreneurship is an important part of the economic development strategies of many local and national governments around the world. For this, governments generally assist in the development of the entrepreneurial ecosystem, including entrepreneurial self-government sponsored aid programs and venture capitalists; They may also include non-government organizations, such as entrepreneurial association, business incubator, and education program.

For example, Silicon Valley of California is often cited as an example of a well-functioning entrepreneurial ecosystem. A well-developed venture capital base in this area is a large pool of well-educated talent, especially in technical areas, and a wide range of government and non-government programs promoting new enterprises and providing information to entrepreneurs And provides support.

Becoming an entrepreneur

After retiring his professional dancing shoes, Judy Shepard Mindset taught citizens a dance class to earn some extra cash. But they soon learned that women coming to their studios were less interested in learning the exact steps than losing weight and toning. After that, Shepard Meet trained the trainers to reach their daily routine, and Jazziris was born. A franchisee deal happened. Today, the company has more than 8,900 locations worldwide.

After the correspondence course for making ice cream, Jerry Greenfield and Ben Cohen saved $ 8,000 with a loan of $ 4,000, rented a Burlington, VT, gas station, and to make specially flavored ice cream for the local market Buy equipment. Twenty years later, Ben and Jerry earn millions of annual income in Hales.

Although "self-made man" (or woman) has always been a popular figure in American society, in the last few decades entrepreneurship has gained much romanticism. In the 21st century, examples of internet companies like the alphabet, fka google (GOOG) and Facebook (FB) - both have made their founders wildly rich - people are engaged in the idea of ​​becoming entrepreneurs.

Unlike traditional businesses, where often there is a defined route to follow, the path of entrepreneurship is the most mysterious. The one who works for an entrepreneur cannot work next and vice versa. He said, there are five general steps which are the highest, if not all successful entrepreneurs have done:

1. Ensure financial stability

This first step is not a strict requirement but definitely recommended. While entrepreneurs have created a successful business in financially flush (think of Facebook founder Mark Zuckerberg as a college student) in less time, starting with a substantial cash supply and ensuring ongoing money And only one interested entrepreneur can help, so that his personal runway can increase and instead of worrying about making quick money, rather than creating a successful business Give more time.

2. Create a diverse skill set

Once a person has strong finance, it is important to create different types of skills and then apply those skills in the real world. The beauty of step two is that phase one can be concurrent with one.

Skill sets can be achieved through learning and trying new tasks in real-world settings. For example, if an interested entrepreneur has a background in finance, he can move to the sales role in his existing company to learn the soft skills needed to succeed. Once a diverse skill set is created, it gives an entrepreneur a toolkit, which he can trust when it faces the inevitability of difficult situations.

3. Consume the content across multiple channels

The more important it is to build a diverse skill set, the same is needed to consume a variety of materials. This content can be in the form of podcasts, books, articles or lectures. The important thing is that content does not matter, that the channel which covers it should have diversity. An aspiring entrepreneur should always be familiar with the world around him so that he can see the industries with a new perspective, which gives them the ability to build a business around a specific area.

4. Identify a problem to solve

Through the consumption of material in many channels, an aspiring entrepreneur is able to identify various problems to solve. A professional proverb decides that a company's product or service needs to solve a specific pain point - either for a different business or for a consumer group Through identifying a problem, an interested entrepreneur is able to create a business around solving that problem.

It is important to combine three and four steps, so seeing the different industries as an external person it is possible to solve the problem. It often provides an aspiring entrepreneur with the ability to see a problem that others can not have.

5. Fix that problem

This is known as 'adding value to the problem'. Only an entrepreneur becomes successful by adding value to a specific problem or pain point.

For example, for example, you identify complex procedures for the appointment of a dentist for patients, and dentists are losing customers as a result. The price may be to build an online appointment system which makes booking easier to book.

Take Your Passion And Make It Happen

What are entrepreneurial success stories and what? They naturally include those people in diving who are naturally passionate.

Giving credit to the charge, "Find a way to pay for the work you do for free" Passion must be with the startup business owners, and the most important component is to help. While the prospect of becoming your own boss and amazement in fate, the entrepreneur is attracting the dreamers, it is possible to hang a person's own horn. Income is not guaranteed, employer-sponsored benefits go away, and when your business loses money, then your personal property can be hit - not only the lower line of a corporation. But following some tried and true principals can take a long way to spread risk.

Your hands are getting dirty

When starting, it is necessary to handle sales and other customer interactions individually whenever possible. Direct customer contact is the most obvious way to get honest feedback about what the target market likes and what you can do better. If this is not always practical to be the only customer interface, then entrepreneurs should definitely train the staff to invite customer comments. This not only makes customers feel empowered, but rather happy customers are more likely to recommend the business to others.

Individually answering phones are one of the most important competitive edges that home-based entrepreneurs hold on their big competitors. At the time of high-tech Backlash, where customers get frustrated with automatic reactions and touch-tone menus, listen to a human voice and there is a definite way to entice new customers and appreciate existing ones - an important fact Some 80% of all businesses are generated from repeat customers, seeing that.

Contrastingly, while customers value high-touch telephone access, they also expect a high polish website. Even if your business is not in the high-tech industry, entrepreneurs should use internet technology to get their message. Startup garage-based business can have a better website than the $ 100 million company. Just make sure that a live human is at the other end of the listed phone number.

Learning about changing the course

Some successful business owners get full thread directly from the gate. Contrast: Ideas should be combined over time. Whether to re-design product design or changing foods on a menu, finding the right sweet spot is a test and error.

Former Starbucks President and Chief Executive Officer Howard Schultz initially thought that playing Italian opera music on the store speaker would accept the experience of the Italian coffee house, which he was trying to replicate. But customers looked at things differently and did not like Arias with their espresso. As a result, Schultz closed the opera and instead offered comfortable chairs.

Smart money management

Through the heart of any successful new business, the enterprise defeats the life span of the cash flow - it is necessary to buy inventory, pay rent, maintain equipment and promote business. The key to living in black is the harsh bookkeeping system of income versus expenses. And since most new businesses do not earn profits within the first year, so by putting aside money for this contingency, entrepreneurs can help reduce the risk of deficiency of money. It is important to keep separate, personal and business costs related to it, and do not immerse yourself in business funds to cover the daily living costs. Of course, it is important to pay yourself a realistic salary which allows you to cover compulsory but not too much - especially where investors are involved. Of course, such sacrifices can put stress in the relationship with loved ones who may need to adjust to a lower standard of life and may worry about risking the family's property. For this reason, entrepreneurs should communicate these issues well before time, and make sure that important loved ones are kept on the board spiritually.

The questions should be asked by entrepreneurs

"Being an Own Owner" It is exciting to pursue an entrepreneurial career path. But with all your research, make sure to homework yourself and your situation.

Here are some questions to ask yourself:

•  Do I have a personality, temperament, and mentality to take the world on my own terms?
• Do I have the necessary environment and resources to devote all my time to my venture?
• If my enterprise does not work then do I have an exit plan with a clearly defined timeline?
• Do I have a solid plan for the next I x months or will I have to face challenges due to family, financial or other commitments? Do I have a mitigation plan for those challenges?
• Do I have the necessary networks to get the network and help as needed?
• Have I identified and built bridges with experienced masters to learn from their expertise?
•  Have I drafted a full risk evaluation, including dependence on external factors?
•  Have I made a real assessment of my offering capacity and how will it be in the current market?
•  If my offer is going to replace any existing product in the market, then I know how my competitors will respond.
•  To keep my offer safe, will it be understood to get a patent? Do I have the ability to wait longer?
•  Have I identified my target customer base for the initial stage? Do I have scalability plans ready for big markets?
•  Have I identified the sales and distribution channel?
• Here are questions that are engrossed in external factors:
•  Does my entrepreneurial enterprise meet local regulations and laws? If it is not possible locally, should I move to another area?
•  How long does it take to get the necessary licenses or permission from the concerned authorities? Can I survive for so long?
•  Do I have any plans to acquire the necessary resources and skilled workers, and have I considered the cost for it?
•  What is the temporary deadline for services to bring or launch the first prototype?
•  Who is my primary customer?
•  What sources do I need to make this big? Is my enterprise enough to convince potential stakeholders?
•  What technology infrastructure do I need?
•  Once the business is established, will I have enough money to get the resources and move it to the next level? Will other big companies mimic my model and kill my operation?