Entrepreneurship
An entrepreneur can be defined as someone who is in control of
his or her own destiny and who makes things of economic
consequence happen.
To be an entrepreneur you have to have a particular kind of
mindset. That is, you have to have; 1) a strong desire, 2)
perseverance, 3) initiative, 4) persuasive skills. 5) a winning
attitude and 6) a bottom line mentality.
To begin with you should write down your concept as to what you
economically want to do as precise as you can in only one
paragraph. But in doing this you have to watch out for the
various traps that exist in developing a concept. They are; 1)
it wont work, 2) you can't make any money on it, 3) there is no
market for it, and 4) there can be unpredictable customer
behavior; But also remember this; that the customer has to pay
at least 5 times the direct cost of a product.
Now there are three types of Business entries you should
consider. They are; 1) Starting from scratch whereby you should
be prepared to take 5 to 8 years to start a business, 2) Buying
an existing business whereby the risks are less by saving time
(1 year) for the business to be operational, buying cheaper
assets, and by assuming cheaper financing, and/or 3) in buying a
franchise) whereby the risk would only be about 30%. Also you
could be an Entrepreneur within a company as well.
The ideal business actually should have; 1) no investment, 2) an
identifiable market, 3) a low cost supply, 4) minimum government
regulations, 5) good price-cost ratio, 6) frequent buyers, 7)
favorable tax treatment, 8) a good distributing system, 9) news
value, 10) technical fashion obsolescence, 11) perish ability
and, 12) weather proof ness
Three types of business plans should be written once your
concept of a business starts to materialize. They are; 1) The
Feasibility Plan, 2) The Operational Plan and, 3) The Financing
Plan. Financing for the business could be accomplished by; 1)
cash from customers, 2) sub-contracting, 3) your own money, 4)
borrowing (from as few as possible) or 5) by leasing.
The Management team, if you decide to assemble one, should
include; 1) the creator, 2) the driving force, 3) the marketer
(the marketing strategy should be to find the competitive edge
either in quality, price, or service) and, 4) Moneybags. Then
you should give each of them part of the rock and teach them to
listen to others.
This knowledge came from a film entitled "Winning Entrepreneur
Style" by the University of Southern California.