An entrepreneur is someone who creates a business around a new product or service, a particular problem or even a hobby in which he’s super enthusiastic about. But in order to turn that product or idea into a profitable venture, the entrepreneur must take certain steps to get there. With that in mind, here are some typical steps, decisions, and actions the novice entrepreneur must execute to bring his company to fruition.
The Discovery Phase
Some entrepreneurs have an almost innate proclivity to become their own bosses. Perhaps their fathers own businesses and they simply follow in their footsteps. Of course, they’ll need to learn the ropes to become proficient at a particular trade or business. Other times, individuals have sudden epiphanies that make them realize they have real potential profit-makers. Whatever the case, the entrepreneur must eventually decide if the idea or concept is worth investing in and whether it is sustainable, according to Entrepreneur.
After the idea is conceived, the next step of the savvy entrepreneur is to create a business plan. The business plan is a person’s blueprint in turning a concept into an actual business. A solid business plan should include everything from the description of the company and products to an analysis of the market and how the products will be advertised, according to the U.S. Small Business Administration.
Finding Financial Resources
An entrepreneur cannot start a business without money. Thus, he must decide if he’s going to finance his own venture, borrow from a wealthy relative or get a loan from a bank. In some cases, entrepreneurs may even create S corporations or limited liability companies so they can get financing from shareholders. While an entrepreneur can raise a significant amount of funds by establishing an S corporation, he will lose some control over the business. This tradeoff is something an individual really needs to mull over when financing his business.
Managing the Company
Companies don’t stay the same size forever. If business owners want to grow their businesses, they’ll eventually have to hire people. In the interim, however, it may be more advantageous to outsource certain functions like accounts payable or marketing research. This is generally a cheaper option as the entrepreneur won’t have to pay salaries or health benefits when he outsources specific jobs. Another consideration is deciding how to structure a company when employees are eventually hired. Entrepreneurs who sell a large variety of products may decide a product organizational structure will work best for operational purposes.
Adapting and Changing
An entrepreneur must continually monitor the market and garner continual feedback from customers. This is to better ensure customers’ needs and wants are met. And monitoring the competition and marketplace enables a business owner to know when to upgrade his products so he can continue to maximize his profits, according to Entrepreneur.