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How
to Start Your Own Business as an Entrepreneur
Introduction
The concept of
globalization and open economic policies have led the private sector to move
fast forward in the global business world. People with an entrepreneurial mindset
are always ready to rapidly sense the opportunity and make the best use of it.
They creatively exploit the changes in the business world and act accordingly
making economic gains.
Who
is an entrepreneur?
In simple terms, an
entrepreneur is a person who invests in his own business bearing the risk with
the intention to make profits. He is often a challenger and an initiator.
Entrepreneurs’ mindset
is different from the average that they often think beyond the circle. There
are several websites you can dive into that make you think positively and motivate you to take
risks.
Why You Want to Become an Entrepreneur
In 2012, Bosma has identified several reasons to become an entrepreneur. They are described as follows.
- Freedom of owning a business
Most
people value their own business other than doing a job because they do not want
to be controlled. Instead, they want to make their own decisions and execute
them in their businesses.
- Profit Orientation
Entrepreneurs
often identify opportunities in the market and invest their money to fill a gap
identified in the market. They make the best use of such an opportunity and
make economic gains earning profits.
- Hassle-free environment
An
entrepreneur is a sole decision-maker in his business. Therefore, he is able to
have a flexible and hassle-free working environment based on his likes and
dislikes.
- Financial Freedom
An
entrepreneur is able to gain financial freedom through the passive income made
and the entrepreneurial management style. This will lead to creating more funds
and is able to make investments using such income.
How
Should an Entrepreneur Start a Business?
An entrepreneur can
start his business in the following ways.
#1
Data: Market Research
Entrepreneurs are
able to identify business opportunities by doing market research and analyzing
the data collected. Here, the demand for the business, the current gap that existed
in the market place and how to fill the gap need to be analyzed by the
entrepreneur using the market research information.
#2
Business Strategy
Once the business is
decided, the entrepreneur should plan the business objectives which should be
specific, measurable, attainable, realistic, and time-bound. He should map the
business strategy for the business which supports the entrepreneur to achieve
his business objectives. In deciding the business strategy, the entrepreneur
could conduct
- SWOT Analysis – Internal Environment
- PESTEL Analysis – External Environment
SWOT
Analysis is used to assess the internal environment. Here, the strengths, and weaknesses
of the business and opportunities and threats to the business are considered. Weaknesses
and threats need to be converted into strengths and opportunities by correctly
identifying and analyzing relevant factors.
PESTEL
analysis is completely used to assess the external environment under political,
economic, social, technological, ecological, and legal factors which can have an
impact on the business.
Therefore,
an entrepreneur should be well-alert to the factors coming under SWOT and
PESTEL analysis and act accordingly to minimize the impact on the business.
#3
Setting up Business
Once the business
strategy is done, setting up the business can be done with the following steps.
- Business Registration
- Selecting a location for business
- Funding the business
Once
the business is registered, the location of the business is decided and this
should be done wisely based on the nature of the business. If the business type
is directly dealing with consumers, the location should be easily reachable by
the consumers.
If
it’s an online earning business, the location can be anywhere suitable to work
freely.
The
next main topic is funding the business. This could be done in the following
ways.
- Loan
- Partnership
- Donation
- Fixed Deposit
- Venture Capital
Once
the entrepreneur decides the value of the investment, he can choose the
suitable and easiest way to finance his business.
#4
Performance Evaluation
The entrepreneur
should carry out a performance evaluation of the business in order to identify whether
the business is on track. Here, the business should operate in a way to achieve
the business objectives set. The business strategy should be re-assessed
whether it is in line to generate the expected business results.
10
Best Businesses Ideas for an Entrepreneur
1.
Online reselling
There are several sites available for online reselling such as eBay, amazon etc.
2. Consulting
The websites such as Harpargrace and Current Advisory.co.za facilitate online consultations which help you in earning money online via online consultation.
3.
Online Teaching
Websites such as tutor.com and myprivatetutor.com facilitate online teaching and earn money online.
4.
App Development
5.
Freelance Writing/Content Writing
There are several freelancer websites such as Fiverr, Truelancer which facilitate earning money online by content writing and other online jobs.
6.
Digital Marketing
7.
Home Care Service
8.
Transcription Service
9.
Graphic Design
10.
Real Estate
Challenges
Faced by Entrepreneurs
- Lack of Planning
Lack
of planning may occur due to lack of knowledge of the entrepreneur, overloaded
work, and time management problems. This may worse impact on business in lack of
financial planning. Financial mismanagement may lead to financial losses and
liquidity problems.
Lack
of risk planning may lead the business to face unidentified risks which may impact
on the profit earning capacity of the business and also the going concern of
the business.
- Skilled Labor
Finding
skilled labor has become a common business problem in the current business world.
The right people with the right skills are essential for a business. Loss of skilled
labor or running a business without using skilled labor is a tragic situation
for a business.
- Proper Management Skills
An
entrepreneur should possess proper management skills to manage the business
otherwise, his decision making may go wrong. Good management will make correct
decisions and the business will operate on such decisions in long term. Proper
management covers financial management, strategic management and operational
management in the most suitable way for a healthy business.
- Lack of Customer Loyalty
Customers
shifting among brands, social trends and bargaining powers of the customers
would change customer loyalty for the business. Here, the entrepreneur should
be tactic in order to follow customer retention techniques, email marketing, etc.
to maintain its customer base.
- Lack of Technology Innovation
Business
world is fast moving in E-Commerce and highly connected with latest
technologies to connect with customer in product and service marketing and
purchasing. Therefore, the business should facilitate the customer to use of the
latest technology in making purchasing decision and also for the business in
sourcing finish products or raw materials at the highest quality and best
price.
- Lack of Funding
Entrepreneurs
may face challenges in funding the business. Funding requirements may get
differ in the flow of business than expected at the beginning. Therefore,
failure to fund the business on time may be a reason for a business to
collapse.
- Weak Competitive Strategies
Entrepreneurs
have to face fierce competition in the business world. Therefore, they have
to predict their competitor’s strategy and identify their initiatives at an
early stage to implement a winning competitive strategy. Weak competitive
strategies will lower the turnover of the business
- Weak Legal & Regulatory
Environment
In
most countries, the legal framework seems very strict toward businesses. A
rigid legal framework will often discourage entrepreneurs to start new
businesses and great entrepreneurial ideas may get vanished due to such legal
backgrounds.
Conclusion
In
this post, I have clearly explained the concept of entrepreneurship, how an
entrepreneur could start up a business, and what are the challenges faced by an
entrepreneur in running a business. Further, I have attached links related to
websites for anyone who is willing to start up an online business.
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