The Entrepreneur Process of Opening a Business - Essay Example

? Introduction The process of opening a business is referred to as the entrepreneur process. An entrepreneur has a crucial role of identifying a business opportunity and nurturing it to become a variable business. Developing a successful business is not an easy task since an investor has to adhere to a multi-step process consisting of four main phases in order to achieve his or her goals. They include identifying and evaluating an available business opportunity, developing a business plan, accessing the resources required and managing the business enterprise established (Henry & De, 2011). The stages identified above are intertwined meaning that there is no stage that can be implemented in isolation. This therefore implies that every stage in the entrepreneur process is important for any business to succeed and entrepreneurs should have an understanding of the process before venturing in any business. Some stages in the process do appear to be more important than the other stages. The truth is that each phase is as important as other phases and that each phase must be completed in a systematic manner in order for the business venture to be a success. The first phase for implementation is identifying and evaluating a business opportunity. Secondly, the entrepreneur should develop a business plan then access the available resources to start the business and lastly manage the newly established business (Henry & De, 2011). Each of the phases is analyzed below in order of their importance. Identifying and evaluating a business opportunity The phase is also referred to as the business innovation model. This stage is viewed as the most important as no business venture can start without an idea. Identifying a opportunity is not that easy since an individual must analyze carefully identify an existing gap in the market (Baron & Shane, 2008). At this stage, you identify a need that exists and formulate a model on how best you can satisfy the need. Entrepreneurs should answer questions on the existing market by conducting a market research. You should analyze the audience that is likely to purchase the product. Thereafter, you should carefully screen the audience’s feedback on acceptance or rejection of the new product. In case an entrepreneur wishes to introduce an existing product, he or she should analyze the existing competition and the market penetration strategies may be adopted. Additionally, at the identification stage, one should determine he or she would need patent rights to protect his or her innovation (Baron & Shane, 2008). Completion of the identification of a business opportunity paves way for evaluation of the opportunity. This is the most important element in the whole entrepreneur process as it will enable the entrepreneur decide on whether to venture into the new business or abandon it. It enables him or her to compare the projected returns and the required resources for the investment (Kuratko, 2009). The evaluation process accesses the duration of the opportunity, its perceived and real value, the returns and risks associated, whether the venture fits the goals and skills of the entrepreneur as well as its uniqueness in creating a competitive advantage in the competitive environment. The estimated market size and the duration in which the opportunity may exist provide the basis of accessing the rewards and risks. The risk reflects the capital employed, the market, technology and the competition involved. The capital required is often used as the basis for evaluating the returns and risks (Fayolle, 2007). A viable business opportunity should promise high returns than the amount of money invested and should have low risks. Additionally, it should be able to make higher returns in a short of time after establishment. The goals and personal skills of an entrepreneur should fit the opportunity. It is important that the entrepreneur dedicate his or her time and effort for the business to be a success. Although most people start a business and hope that the desire and dedication will be developed along the way, normally the desire does not materialize. Therefore, any entrepreneur must believe in the business opportunity and sacrifice his or her time and resources to materialize the idea and manage the resulting business (Kuratko, 2009). Opportunity analysis also known as an opportunity assessment plan provides the basis of decision making on whether to act on a business opportunity or not. It comprises of a description of the service or product, evaluation of the entrepreneur, assessment of the opportunity and the resources required to actualize the idea into a viable venture and the sources of capital required to establish and expand the business. Developing a business plan This is a summary of how the entrepreneur plans to organize a business venture and implement activities for the business to succeed. Developing a good business plan is essential, as it will facilitate the exploitation of the available opportunity. This phase is time consuming bearing in mind that the entrepreneur has never prepared a business plan before and that he may not be having the finances required to do a quality work. Despite the challenges, the entrepreneur has an obligation in ensuring that a detailed business plan is in place before establishing the business. Determining the resources required The resources for actualizing the opportunity must be estimated and the possible sources of funding identified. Entrepreneurs should not underestimate the required resources since shortages will delay the completion of the process in time. The estimated resources should be available at the right time for the purpose required. Additionally, care should be taken when selecting the sources of capital (Fayolle, 2007). A prudent entrepreneur should seek capital from the sources with friendly terms. Managing the enterprise This is the forth and phase in the entrepreneur process. It involves managing the newly established business venture in line with the business plan. The way in which this stage is implemented largely determines the outcome of the investment. A prudent entrepreneur is expected to identify and employ a suitable management style and structure. Additionally, a variable for success should also be determined and aligned with the goals and objectives of the business (Henry & De, 2011). The entrepreneur should establish a control system that can correctly identify any problem so that it can be corrected. Successfully implementing this phase mean that you will have succeed in establishing a profitable business venture. Influence on delivery of health services and products The entrepreneurship process has influenced the delivery of health services and product. The health professionals are now able to start their own businesses without seeking formal employment. The process has helped the practitioners to locate a market gap and tap the opportunity after careful screening. The entrepreneurship process makes the health practitioners to reflect on their individual skills and abilities before making a decision on venturing into the business (Fayolle, 2007). This explains why most clinics are successful. The process has also helped in improving the quality of the healthcare services and products since the practitioners are keen on the customer’s needs. In conclusion, it is evident that the entrepreneur process is an effective tool in ensuring that a business is a success. The steps described above provide guidance to any entrepreneur for his business to succeed. Potential entrepreneurs are hence encouraged to follow the steps as they work towards being successful business personalities. References Henry, C., & De, B. A. (2011). Entrepreneurship and the creative economy: Process, practice and policy. Cheltenham, UK: Edward Elgar. Fayolle, A. (2007). Entrepreneurship and new value creation: The dynamic of the entrepreneurial process. Cambridge, UK: Cambridge University Press. Baron, R. A., & Shane, S. A. (2008). Entrepreneurship: A process perspective. Mason (OH: Thomson/South-Western. Kuratko, D. F. (2009). Entrepreneurship: Theory, process, practice. Mason, Ohio: South- Western Cengage Learning. Read More