Key Factor Contributing to Entrepreneurial Success - Essay Example

The paper "Key Factor Contributing to Entrepreneurial Success" is an outstanding example of an essay on business. Transforming a business initiative into a flourishing business can be a challenging task. A good thought does not propose that it will be developed into meaningful business reality. In order to be successful, an entrepreneur may not only need to have a bright business idea but instead needs to have multiple skills to encounter the pitfalls and challenges that will hinder his way while implementing the business idea. For this purpose, an entrepreneur needs to seek information and knowledge from his own environment through various sources that may assist in tackling the problems and issues arising during the business development phase. The environment may play a role in the entrepreneurial success and the entrepreneur is needed to admit the importance of this role and should not confine the process to him but let the societal roles that may provide assistance, play their part. Accepting and understanding these environmental sources of information might help the entrepreneur in developing a proper business (Holt).

Successful entrepreneurship relies on various factors such as the personality traits of an entrepreneur as well as the economic environment of the entrepreneur. The major role in the entrepreneurial process is that of the entrepreneur, so the personal characteristics are quite relevant in playing a part in the successful entrepreneurial activity. Apart from personal traits, there are many other factors leading to the successful transformation of a business notion into a business reality. The main aspect of the planning process. As the primary factor in any sort of activity, the plan needs the most attention as being an integral part of the management process. Once the plan is appropriate, realistic and well defined, the implementation process itself becomes practical (Dollinger 30).

So the key area in entrepreneurial success is the business plan preparation. A good plan must entail the description of the product, the potential customer, financial needs and sources that will be utilized to fulfill the financial needs. The planning should be done keeping in view the business environment, the type of market that will be targeted, the economic and political situation of the market. So in order to plan effectively a thorough analysis of the market is needed. The market analysis is important not only for the entrepreneurs but also for every major business entity as the rapid globalization has made the business market dynamic. The planning process must also include the financial forecast for the budget required for the implementation process, the costs (including the financial and economic) as well as the Cash Flows that will result afterward for a small period such as say five years. The most important of the planning process is financial planning as businesses need the money and for a successful business financial management is essential.

Besides effective planning, the most important aspect that is required for the success of a business is the ability to adapt to changes in the environment. The adaptability as being an essential biological phenomenon plays a vital role in the successful business at each step of business development. As the ability to change according to market demand is the key to the success in the business world, so the business idea may be a success but it may not work for all ages and will need appropriate innovation with the passage of time (Wascher).