Personal Development in Entrepreneurship and Business Venturing - Example

Institution : xxxxxxxxxxx Title : xxxxxxxxxxx Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2016 Introduction Before embarking upon a business venture, entrepreneurs have to spot viable opportunities. One way of doing so is to identify how to solve an existing consumer need in the market. Successful entrepreneurs are those that have come up with solutions for such needs. This is mainly the reason why customers always prefer their options to those of competitors. However, times have changed. The days when entrepreneurs had to spot opportunities are long gone. The intensity of competition in the market has meant that entrepreneurs need to create ideas in order to acquire an edge over the rest. This is what marks the difference between the progressive entrepreneurs and those that operate like the rest in terms of waiting for opportunities to emerge in the market. The perfect example of such a company is the American technological giant Apple Inc which has constantly been introducing new innovations. Some of its innovative products include iPod, iPad, iPhone, and most recently Apple Watch. All these products have created entirely new industries and provided new platforms for communication and entertainment. Their impacts in the market were so massive that competitors within the industry had to come up with products to counter its own. Apple is the perfect embodiment of a progressive entrepreneur that keeps scanning the market in order to create opportunities. From this real life example, I have learnt the need for entrepreneurs to think out of the box to generate viable business opportunities (Zimmerman 2012 page 727). In the course of my studies, I have had to work in a group comprising of various members. This has been critical in acquiring skills to coexist in harmony with others. My group drew members from diverse background and at first it seemed as though the obvious differences would stand in the way of accomplishing the task at hand. However, this has been the complete opposite. The diversity in the team has gone a long way to make it stronger due to the different perspectives of members. I have noticed that this is what entrepreneurs need while seeking partners. They should not always seek parties with similar demographics or mindset. Sometimes it would be much better to have partners with complementary skills, resources, or ideas in order to form a stronger team (Van Auken page 272). Even though some opportunities might seem viable, it is always advisable to test each. This is because some are short lived and cannot return the resources sunk in their pursuit. My group had several ideas on the table and was torn on which to settle upon. We had to rely on Kepner-Tregoe methodology to eliminate several options before settling on the suitable ideas. The process involved brainstorming sessions and analyzing each opportunity in isolation. The strengths and weaknesses of each had to be laid bare before making the final decision. Currently, the market is awash with organic products. Perhaps this is due to the increasing awareness levels on healthy lifestyles, a factor that has lead most consumers to shun inorganic offerings in favor of their natural counterparts. One concept that stands out in entrepreneurship is effectuation. This mainly implies getting started with the meager resources that one has at their disposal while making acknowledgements to the possible fluctuations of the market conditions. This factor is very simple but separates the entrepreneurs from others in the market. An entrepreneur is an individual that aspires to capitalize on any opportunity in the market with the little resources they have. Others will wait until the time is right or when they have sufficient resources to fully take advantage of an opportunity. But this will never happen. It is very few individuals that have enough resources for whatever that is on their mind (Anne 2014 page 795). The majority of the entrepreneurs make do with the little that they have. Business Model & Futures Thinking The business model was critical in identifying various activities necessary for our business to roll out operations. It also went ahead to describe in detail their implementation. The process of creating the business model gave as a clear perspective of the business and was crucial in prioritizing activities. As a dealer in organic juice, we figured that organic and natural products were the main inputs in our product. However, there is insufficient supply of such products in the vicinity and we had to think of ways to source these inputs. This involved reaching out to importers and suppliers of such products to ensure we never run out of stock. After a careful consideration, we also figured that we could diversify our business to include additional organic products. This was necessitated by the volatility of the external market which constantly puts entrepreneurs relying on single product lines at risk. As a result, they are always predisposed to experience losses when a downturn occurs in the industry they deal in (Trimi and Berbegal 2012 page 449). By diversifying our offering we would have shielded it from such risks not to mention broaden its revenue streams. In terms of the business model, I have learnt not to make too many assumptions. This is where entrepreneurs get it wrong. And it is worse when assumptions inform an entrepreneur’s quest from the beginning (Leschke 2013 page 79). One has to consider what would happen if these assumptions contain fallacies. It would be catastrophic for an entrepreneur to go out after an opportunity when the underlying information is wrong. The best way to go about this process would be to approach seasoned entrepreneurs or business angels with a proposal or. Better yet a trusted individual would be the best person to consult. The reason is because others might have hidden motive and proceed to implement the idea in the proposal afterwards. Marketing Marketing activities to a large extent determines its success. This is due to the fact that some entrepreneurs might have the most innovative product in the market but fail to capitalize on it due to low market awareness levels. Before consumers go out to make purchases, they must be aware of the existence of a product. Therefore, we figured that this would be the most iconic section and channeled all efforts towards formulating the best marketing strategy. All the strategies aim at attracting the customers and ensuring constant sales in the organization. In this regard, we settled on quality products coupled by an aggressive marketing campaign. We want to be known as a dealer in quality organic juices. The best to do this would be to live up to the expectations by providing the best quality juices in the market. Of course we should also reach to the target market to inform them of our existence and urge them to try out our products (Kuehn, Grider, and Sell 2009 page 74). One characteristic of successful entrepreneurs is that they are able to cultivate good relations with customers. This often leads to loyalty which is desired by every entrepreneur since it often translates into sales. Therefore, we will try to develop relationships with the target market in every sense. In the first sense, we have decided to create pages on social media to interact with the fans constantly. This will also act as the platform for marketing and keeping in touch with the customers on a daily basis. In the course of the semester, I have come to realize that understanding the customer is critical to attaining success. This knowledge puts the entrepreneur in a better position to satisfy their needs. Out target market has embraced healthy living and we must provide them with the products to complement this lifestyle. Such consumers are very informed and demand only the best that the market has to offer. They are also ready to part with colossal amounts to access any product they desire. We have also realized that our target market associates price with quality. To them high price denotes high quality and vice versa. In line with the customer profile and situation, we have formulated strategies and offerings to suit their needs. First, we deal in the organic sector which complements healthy living lifestyles. All our juices are prepared from scratch with organic and natural juices as the main ingredients. We have also made it our mission to inform all consumers of our offerings. In line with their perceptions, we will charge a relatively high price. This is because customers will avoid our offerings if we charge a lower level since they will perceive our offerings to be of low quality (Jennings, Breitkreuz, and James 2013 page 489). Finance Finance ranks among the issues every entrepreneur has to get right from the word go. Whereas it is not advisable to build business around monetary benefits, it is best to make prudent decisions such that the business can support itself financial (Wadhwani 2012 page 223). Failure to this could lead to bankruptcy and eventual dissolution of a company. The financial aspect must be right from the word if the entrepreneurs are to make their dream a reality. As mentioned, we have settled upon a premium pricing strategy. Whereas part of the reasons warranting this decision deals with consumer perceptions, it mainly has to do with the high costs of running an organic business. In the first sense, organic farming is not widely practiced in the vicinity implying that we will have to incur additional costs to access our supplies. It is only fair to pass these costs to the customers if the business is to survive in the future. Furthermore, we cannot afford to charge a low price before breaking even. This is the point where an entrepreneur recovers the investment sunk in pursuit of an identified opportunity. After attaining this point, we can afford to slightly lower the price as the business becomes more and more stable. Appraisals Finally, I have learnt the importance of tracking progress after rolling out the implementation process. Sometimes it is very easy for consumers to get lost in the process of implementing their ideas and to forget the objectives formulated at the onset of the process. This is because too many events at one the market place and entrepreneurs could easily get disoriented. In other cases, some short lived ideas might emerge in the market causing the entrepreneur to lose focus in efforts to capitalize on them. But with constant appraisals, an entrepreneur can keep track of the progress made and make corrections when anomalies exist between the business model and objects and the performance results (Hiatt, Quinet, and Ariail 2015 page 110). This constant appraisal is crucial in keeping the entrepreneur on course to attaining the desired objectives. Conclusion From all theory applied in the reflection, I have learnt that entrepreneurs need to test various concepts. It is not advisable to rely on assumptions because discrepancies always exist between theory and the real world. After embarking upon an identified opportunity is when the reality will dawn. Therefore, it is crucial to be certain before sinking hefty amounts in pursuit of any opportunity. Another thing is to be sure to understand the market and customers. In many cases entrepreneurs fail to attain their goals because of the wrong approach. And this results from failure to conduct continuous market research. Some entrepreneurs conduct take long before conducting market research. The only time they even consider undertaking research is when getting ready to capitalize on an opportunity but this is not how it should be. The market research needs to be a continuous process. This is how an entrepreneur can track changes in the external environment and keep abreast with new market developments. But in the end, the entrepreneurs should also have contingency plans just in case the actions do not go to plan. The contingency is the backup plan and provides the entrepreneur with an alternative when fluctuations in the market conditions eradicate the identified opportunity. Bibliography Anne Støren, L., 2014. Entrepreneurship in Higher Education. Education & Training, 56(8), Pp. 795. Hiatt, M.S., Quinet, G. And Ariail, D.L., 2015. Opportunities and Challenges of Small Business Entrepreneurship: A Conversation With Daniel L. Eberly, Rla. Journal of Applied Management And Entrepreneurship, 20(3), Pp. 108-115. Jennings, J.E., Breitkreuz, R.S. And James, A.E., 2013. When Family Members Are Also Business Owners: Is Entrepreneurship Good For Families? Family Relations, 62(3), Pp. 472-489. Kuehn, K.W., Grider, D. And Sell, R., 2009. New Venture Assessment: Moving Beyond Business Plans in Introductory Entrepreneurship Courses. Journal of Entrepreneurship Education, 12, Pp. 67-78. Leschke, J., 2013. Business Model Mapping: Application and Experience in an Introduction to Entrepreneurship Course. Journal of Entrepreneurship Education, 16, Pp. 77-92. Trimi, S. And Berbegal-Mirabent, J., 2012. Business Model Innovation In Entrepreneurship. International Entrepreneurship and Management Journal, 8(4), Pp. 449-465. Trivedi, R.H., 2013. Entrepreneurship, Its Conceptualization and Teaching in Business Schools: Management Lecturers' Perspective. South Asian Journal of Management, 20(1), Pp. 38-61. Van Auken, H., 2013. Influence Of A Culture-Based Entrepreneurship Program On Student Interest In Business Ownership. International Entrepreneurship and Management Journal, 9(2), Pp. 261-272. Wadhwani, R.D., 2012. How Entrepreneurship Forgot Capitalism: Entrepreneurship Teaching And Research In Business Schools. Society, 49(3), Pp. 223-229. Zimmerman, J., 2012. Using Business Plans for Teaching Entrepreneurship. American Journal Of Business Education (Online), 5(6), Pp. 727-N/A. Read More