Entrepreneurial Success of Weldon Walker - Research Proposal Example

ENTREPRENEURIAL SUCCESS OF WELDON WALKER, OWNER OF ENGINE CLEAN TECHNOLOGIES By Entrepreneurial Success Of Weldon Walker, Owner of Engine Clean Technologies Introduction Statistics show that over 80 percent of all entrepreneurs or start ups go bust or close down within three years after getting started. However, there is a small group, comparatively, that seem to thrive and are successful as entrepreneurs; they just seem to get better even in the worst of economic times (Wagner 2013). The reason they are able to thrive is down to individual characteristics, traits, and habit among the successful entrepreneurs; the economic environment, circumstances, and pure lack may help entrepreneurs become successful, but there must be other reasons why some succeed and others don’t. According to Steenerson (2014), the reason why some entrepreneurs are wildly successful and others are not is due to their appetite for the uncomfortable. Some entrepreneurs, for example, come up with novel ideas that can solve people’s everyday problems, and everything looks practical and rosy on paper until they try out the idea/ product/ or concept. Many entrepreneurs report the feelings of discomfort that come with product/ service disapprovals, discouragement, and being told something has no future or value. When such instances occur, entrepreneurs usually have two choices, to try again or just to let it go; those who keep trying likely succeed, those who look for something more ‘acceptable or promising’ just keep running around in circles, eventually becoming failures. This paper attempts to find some of the reasons some entrepreneurs succeed by interviewing a successful entrepreneur based in Manchester, involved in cleaning car and motor vehicle engines. Engine Clean is a small firm, employing twelve people and working out of three petrol stations, with the head office being in Manchester; the company’s entire business operations are in Manchester. Purpose of the report This report aims at unearthing some of the reasons why some entrepreneurs just seem to keep going and achieving phenomenal success in whatever enterprises they choose to pursue, earning money while also being a positive asset to the society. While several theories and studies have been done to unearth the reason some entrepreneurs fail and others don’t, this study is important because it gets information from an individual entrepreneur who has succeeded where most fail or don’t fare too well. The results of this study will add to the existing body of knowledge on the reasons why some entrepreneurs succeed while a vast majority fail or fare poorly. Theory that underpins the analysis (entrepreneurship) The analysis will be based on the social capital theory which states that collective action is facilitated by resources inherent in human beings and their relations with others. Entrepreneurship is a skill that can be learned, practiced, and perfected; not a talent that some are born with and others are born without. It comes down to personal character traits that enable individuals to keep trying, keep improving, and keep learning until they become masters. Methodology This project was undertaken by using qualitative research methods of using primary data obtained though interviews with the respondent. The respondent was selected randomly from a list of five potential respondents that had been targeted for this research, three agreed to take part in the project while the other two refused to participate. The qualifying criteria for being selected was that the entrepreneur has been in business for at least five years, and their business venture is successful in terms of revenues, assets, and profits. The first five targeted entrepreneurs were selected randomly; according to Glenerster and Takavarasha (2013) randomly selecting research participants is a good way to conduct research as every individual of the target population is given an equal chance for selection. The research questions were developed to be used for the interviews and tested on two respondents, observing their reactions and manner in which they answered the questions. The questions were then refined to be used to view the final respondent who was randomly chosen from the remaining three possible participants. The interview was conducted in a face to face setting at the entrepreneurs’ offices. Before conducting the interview, I had done due diligence on the business and obtained its records from HMR filings and returns. The results of the interview were then analyzed and used as the basis for discussions of this research project. I got the entrepreneurs permission to record our interview session for future reference so that the analysis would be based on facts and I would not miss out anything important; I also took note while conducting the interview.The analysis of the interview responses were descriptive, with the respondents’ reasons and responses rewritten and analyzed based on previous research and other theoretical concepts of why some entrepreneurs fail while others thrive. Conclusions were then drawn after the analysis and discussion of the interview responses. Ethical considerations This research project faced many ethical issues, the important ones include the strong urge to just search around the internet and use a previous similar research that fit in with the aims and objectives of this study. This was overcome by doing what any potentially successful entrepreneur would do; I opted to get out there and look for possible and willing respondents and conduct the interview myself. Another ethical issue that arose was a strong temptation I had to pretend I was from a renowned business magazine and wanted to use the interview results with a successful entrepreneur for a feature story in the magazine, just to get the possible recipients’ interested. This was after getting little or no attention or responses from the previous targeted participants and it became frustrating. However, I decided to get on with it, spoke frankly and concisely about the purpose of my research and why it was important, until I got interested individuals. Interview questions and results i. You have been in business for six years now and grown from an annual turnover of £ 60000 in 2009 to a current annual turnover of £ 7200000 in 2014, how was this possible? Well, first, our success has been down to team work, hard work, and commitment to the highest standards of customer service. ii. Could you expound a little more, like what was your market entry strategy, and what activities ensured you were successful? We started with a team of just three, including myself; I had seen an opportunity among the low income earners and people with a little money who bought second hand cars, but had issues with passing the MOT for starters, and wanted to have their engines operate more efficiently. I had a similar problem myself, being an enthusiast in green or clean energy systems; I felt my car was polluting the environment too much, always had pings, was too smoky and inefficient. So while looking for solutions I came across a concept that I pursued and with help from some suppliers, managed to get a way to clean my engine without disassembling it or going through a complicated process. I entered the market by partnering with a petrol station with a garage and was able to get a few customers. I printed some brochures and distributed them myself to motorists and gave trials using a generator to prove that the engine was cleaned (de-carbonized). We would twelve to sixteen hour shift a day, but had problems with licensing issues and getting the device approved. Costs were a big challenge, so I applied for a bank loan and had to hire a financial accountant to help with the accounts, but basically we kept costs low to gain a decent cash flow. We kept seeking customer opinions and feedbacks, and at one point would go to clients’ premises to clean the engines at their homes under their close scrutiny. One thing I did was to give our staff freedom; freedom to develop ideas that we would then brainstorm through and arrive at a common resolution. This enhanced creativity, and I trusted my staff to do what was best, and this worked most of the time. iii. Did you have any challenges while developing the business? Yes, very many challenges; first with licensing issues, then being a totally new product people had doubts, was it going to damage their car engines, or invalidate warranties. Financing was of course a major challenge, sometimes cash flows would be negative, but at least we got venture capitalists as backers that helped us along, but this did not come immediately. Actually many times I thought about quitting altogether and getting something else to do, but I would just wake up in the morning and say ‘today I will do it better than yesterday’ iv. What can you say is responsible for your success? First and foremost I loved what I was doing, and every day I woke up with a renewed drive to go out there and do better than I did last time. The customer was also our guide; we did everything to meet and exceed customer expectations, in terms of educating them on the product, handling their concerns, and follow ups. In the first months, I would get customer details; their birthdays, anniversaries and send them a card, personally signed by our staff. This has continued to this day, we still send personally signed cards, albeit mostly in digital formats. We did our best to manage your costs; for example we still use a model where instead of renting out space, we agree with service station owners to become partners and we pay them a percentage from our revenues; this serves us well as we have no upfront commitments. Because we dealt with car engines, customers would invariably ask questions about their car, like the service light coming on, so w saw an opportunity for computerized vehicle diagnostics and now we have a fully fledged car service centre, including an MOT test centre. Those two units now contribute to one third of our revenues. Promotion is always a big thing for us, so we don’t miss car bazaars or car trade shows, w follow our clients through social media and conduct frequent customer surveys. Adopting Kaizen principles of continuous improvements and eliminating waste has been helpful in helping us lower our costs, maintain efficiency, a=while improving performance. Analysis The interview revealed key attributes and traits about the entrepreneur; first he takes the concept of teamwork to heart; most of the responses are about ‘we’ and not ‘I’. According to Bradberry (2011), teamwork creates a sense of common purpose that makes staff take ownership of the business creating an atmosphere ripe for innovation and success. Delegation and avoiding the danger of micromanaging also helped the entrepreneur achieve success; according to Black and Rossi (2001), letting staff take decisions, propose projects and generally manage themselves enhances productivity, a key factor for success. Engine Clean leveraged technology with an online presence, social media to enhance their service delivery and customer satisfaction. Also, the company took initiative to know their customers, including their birthdays and even going to the clients; premises to handle their concerns. According to Rasul (2010), knowing the customer is the most important decision an entrepreneur can make, it will ensure their loyalty and they will promote your business through recommendations. Customer satisfaction is a major reason the entrepreneur has succeeded; it is the sole reason why businesses exist. Despite challenges, the entrepreneur kept going, failure made him uncomfortable, and so he woke up the next day with a resolution to do better than yesterday; this is a significant trait for any entrepreneur to succeeded, don’t quit. By employing modern management practices like kaizen, the entrepreneur avoided wastes and became efficient; financial management and keeping costs low is very important for the success of an entrepreneur (Garcia-Alcaraz, Maldonado-Macias and Cortes-Robles 2014). In addition, his body language primes him for success, he is positive, enthusiastic, affable, projects a professional business image, and is an expert conversationalist and negotiator. Personal traits like self promotion, positivity, enthusiasm, having a positive business image and efficient financial management are prime factors for the success of an entrepreneur. Conclusion The study established the reason the entrepreneur succeeded was innovation, ability to be persistent, excellent customer service and relations with customers, team work, organization, letting employees make their decisions, and prudent financial management. The findings are consistent with the social capital theory that was used to analyze and discuss the results of the interview. References used BLACK, S. P., & ROSSI, J. P. (2001). Entrepreneurship and innovation in automobile insurance: Samuel P. Black, Jr. and the rise of Erie Insurance, 1923-1961. New York, Routledge. BRADBERRY, J. (2011). 6 secrets to startup success how to turn your entrepreneurial passion into a thriving business. New York, American Management Association. http://public.eblib.com/choice/publicfullrecord.aspx?p=678718. GLENNERSTER, R., & TAKAVARASHA, K. (2013). Running randomized evaluations: a practical guide. Princeton: Princeton University Press. Print GARCÍA ALCARAZ, J. L., MALDONADO MACÍAS, A. A., & CORTES-ROBLES, G. (2014). Lean manufacturing in the developing world: methodology, case studies and trends from Latin America. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=748935. RASUL, S. (2010). Secrets of a serial entrepreneur: a business dragons guide to success. Chichester, Capstone Pub. STEENERSON, D. (2014). Why Some Entrepreneurs Fail (While Others Wildly Succeed). Available: http://www.smallbizdaily.com/14752/entrepreneurs-fail-others-wildly-succeed/. Last accessed 17th Jan 2015. WAGNER, E. (2013). Five Reasons 8 Out Of 10 Businesses Fail. Available: http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/. Last accessed 17th Jan 2015. Read More