What can entrepreneur do to lessen chance for failure and increase odds for success - Essay Example

DQ1: Entrepreneurship What can entrepreneur do to lessen chance for failure and increase odds for success The methods by which entrepreneurs could lessen chances for failures and increase odds for success could be seen in terms of the following: 1. Offer people better services at reasonable rates, compared to other rivals and competing firms. 2. Employ efficient and effective staff who could perform work diligently 3. Control over costs and monitor superfluous expenses which reduce revenues and need to be eliminated or reduced. 4. Know the trade thoroughly and act judiciously without taking any hasty decisions. 5. A start-up company may be slow to gain market acceptance and control over market.

Therefore, it would need to accept initial failures to pave way for ultimate success. The main reasons for failures for start up companies could be in terms of the following: 1. High expectations without the framework, or infrastructure necessary for meeting them. For instance, marketing targets need to be realistic, taking stock of market demands and how well it could be met; targets should also consider whether the present conditions could justify extra investments and how these should be executed. 2. A proper budgeting procedure needs to be formalized and strictly adhered to, taking into account the budgeted revenues, costs and profits. 3. Regular comparisons between actual performance and budgeted performance need to be carried out, and causes for variances analyzed.

Should there be major variances or deficits between budgeted and actual performances, it needs to be investigated and remedied during next Budget Committee Meeting and pending issues should be sorted out. 4. The most important aspects regarding start-up companies could be seen in terms of soundly establishing the business, seeking and retaining customers. "Nations, states, regions, firms, even individuals compete on their ability to accumulate, aggregate, and apply their assets to create value in new ways for increasingly diverse customers all over the world.

" (Atkinson and Andes 2008, p. 3). 5. This could only be done by providing extra value in terms of product, services and utilities. In a competitive market, the main question that needs to be answered is "Why should customer X use our services instead of ABC Company's services. The companies that could provide robust answers to this question would ultimately be winners, and not losers. 6. Thus differentiations in quality, pricing and servicing are distinct aspects that are hallmarks of winning companies, whereas, an uninterested attitude towards customers and employees, could result in lowered performance.

Ultimately it is the attitude that matters. The entrepreneur with a positive attitude, who is able to take things head on, without any kinds of doubt, or trepidation, and yet is fully confident of his own abilities to succeed, would be the ultimate winner. In the final analysis, the entrepreneur who wins is the man who thinks that he can win. Fears of self-doubt, or hesitation could be the ultimate path to failure and despondency, especially in competitive business environment like the present ones.

Therefore, entrepreneurs need to gather their resources judiciously, make optimum use of opportunities and also offer others the scope for self-improvement and development through hard work and sincere, dedicated efforts to achieve company's goals and objectives, both in short term and also on long term basis. Bibliography ATKINSON, Robert D., and ANDES, Scott. (2008). The 2008 State New Economy Index: Benchmarking Economic Transformation in the States. [online]. The Information Technology and Innovation Foundation. P. 3.

Last accessed 9 February 2009 at: http://www.kauffman.org/uploadedfiles/new-state-index-2008.pdf