Basics and Essentials of Being an Entrepreneur - Assignment Example

Entrepreneurs get motivated through the positive changes in their businesses and money is not a major source of motivation for them there is no age limit defined for entrepreneurs. People with more experience and knowledge are usually preferred by venture capitalists (R. Barringer and Ireland).
Firms:

There are three types of firms in entrepreneurship.
Salary Substitute:
It is a firm that provides its owner with the same level of income which he would have earned through performing at a conventional job.
Life Style Firm:
It is a firm that provides opportunities to its owner to pursue any lifestyle as their career and then generate their living out of it.
Highly Entrepreneurial Firm:

Then there is a highly entrepreneurial firm. It brings new products and services into the market by creating and acquiring opportunities without caring for the resources in control (R. Barringer and Ireland).
OBJECTIVES FOR BECOMING AN ENTREPRENEUR:
There are three major objectives and reasons behind becoming an entrepreneur. Firstly a person being an entrepreneur stays their boss and they are no authority or commanding head over him. There might be partners or shareholders in the company but the major boss is the owner itself. Secondly, entrepreneurship gives opportunity to the passionate entrepreneurs to pursue the dreams their ideas and turn them into reality. Thirdly, although the financials and monetary benefits are not the major concern behind any entrepreneur's work big and major financial rewards are attached too which are much greater than the incentives earned through conventional jobs (R. Barringer and Ireland).

BASICS AND ESSENTIALS OF BEING AN ENTREPRENEUR
Five essentials could be referred to as an entrepreneurial base. They are:
Timely:
Entrepreneur has to launch its business at the very exact point of time when the business finds opportunity and great demand in the market and all the calculations and analyses of feasibilities show positive results.
Accuracy:
The target market of the firm should be defined very accurately and segmentation must be done properly after thorough market research.
Attractive:
The products and services sold by the business must have a good attraction to the target market and the ability to capture those targeted consumers.
Durable:
Further, a business model should be sustainable for a longer period and it must have the capability to expand and sustain itself in a long run.
Value Addition:
Opportunity should be anchored in a product or service so that it generates or add some value for the buyers in some way (Thomas).
FEASIBILITY
To launch any entrepreneurial firm it is a must for the entrepreneurs to check the feasibility of their business model in all ways. The different types of feasibilities that are must for entrepreneurs to analyze are:

Product Feasibility:
The company should evaluate whether the product includes any core competency which would help it gain a competitive advantage. Further, it should research to get aware of the product’s desirability in the market and its demand in the targeted segment. Some other important factors to be considered are: whether the product makes sense or not, whether is it a reasonable launch, whether will it make consumers excited about it, does it hits any social trend, does it enjoy any environmental advantage, does it takes an advantage of gap present in the market, is it adding value to consumers or solving their problem and is the launch at the right time (Graaskamp).

Industry Feasibility:

Then the overall industry and the target market for the new launching business are analyzed. The industry’s attractiveness is tested and its parameters are observed such as: whether it's new or old, its growing or at maturity, whether operating margins are high or low, is it fragmented or concentrated and whether the market grow or shrink. Further, it is tough to reach the target market or easy to reach and capture it (Graaskamp).

Organizational Feasibility:
It evaluates whether the company has enough management, expertise and organizational competency to launch the business. It is usually evaluated on two factors; management prowess and resource sufficiency (Graaskamp).
Financial Feasibility:
Through the financial feasibility,y entrepreneurs evaluate the amount of cash required for the startup, they gauge the financial health of similar businessesbyh evaluating their financial statements andmeasuringe the realistic cost of the complete venture (FAO Corporate Document Repository). Read More