Entrepreneurship involves a complete process of management of each and every resource at the disposal of an individual. The individual in this case is the entrepreneur.
Typically an entrepreneur identifies an opportunity and aims at closing the existing gap between the supply and the demand of goods and services.
An entrepreneur is open-minded and has to look in all directions for any existing opportunities. There are various characteristics of an entrepreneur which the successful ones must exploit. Flexibility is one of the key features of a successful entrepreneur in that they must be ready to adapt to the changing environment in the business world.
An entrepreneur also needs to be creative and innovative so as ensure efficient and effective use of resources as well as have the ability to identify new opportunities that others would not. Another key attribute a successful entrepreneur should have is the ability to go against conventional wisdom and take risks. The bigger the risk, the greater the returns.
The gap between demand and supply involves several stages such as production, distribution and sales. An entrepreneur needs to decide whether to be involved in all stages or just specialise in one stage.
One needs to come up with a master plan which assess all the costs, benefits, risks and opportunities of any undertaking. In this analysis the past, present and future factors should be considered as businesses exist in a dynamic world.
If one is involved in the production of goods or services, some of the factors to consider are; sources of raw material and other inputs, market demand, source and amount of capital, size and skill of human resource and the legal considerations of the products.
If one is involved in distribution, it is important to consider the transport modes and means available, their state, effectiveness and efficiency as well as the legal considerations. Another important factor is the gap between the demand and production in terms of location and timeliness.
Sales are the final step of the supply chain. Sales involves availing the goods or services to the consumer when and as they are required. The products need to be as per the wishes of the consumer. In this case, branding, re-branding, packaging, breaking bulk and advertising are some of the key elements in sales promotions.
In any business startup, there both external and internal environments. The internal environment involves factors within a business organisation such as capital, human resource and management. The external environment includes all factors that can affect a business in which it is not in direct control of such as political and legal issues, climate, demography and technology. A successful business must be able to change its internal environment depending on the changes in the external environment.
In choosing a business opportunity, one has to assess what they are good at, find out the existing gaps in the market, and set clear goals and targets which are useful in analyzing performance.
It is important to create a niche market as specialising improves quality and competitiveness of one’s goods and services. When you do that, aim to be the king of your specific area and an expert in your field.
Frederic Kerrest published an article on Harvard Business Review: Understand the Sacrifices Before Launching a Start-Up
Joe Robinson published on Entrepreneur magazine: The 7 Traits of Successful Entrepreneurs