Case Study Of Entrepreneurship

Entrepreneurship
Name
Institution

Entrepreneurship Smooth-Root suffered heavy financial losses following the economic plunged in 2007. As an international company, it needed to change its business model to cater for the broad market. The company’s president Jeff Smith claimed to have made a huge business disaster as a novice entrepreneur (Smith and Steck, 2014). He maintained that he operated a construction company that built daycare centers for another contractor. The contractor later failed to pay him resulting in a court case. Such challenges are not unique to Smith only as most budding entrepreneurs suffer similar consequences. Hence, new entrepreneurs must furnish themselves with systemic principles before starting

Thus, it is crucial to decide on the type of entity before registering a business. Taylor (2016) argues that the business framework legally influences everything from tax filing to personal liability in times of crisis. Importantly, one should understand that starting a business means that the business owner plans to remain liable for all obligations and debts. In that case, a sole proprietorship is a good option. If two or more people are involved in the business, they can register as a partnership. However, if the proprietor wants to separate personal liability from that of the company, the only viable alternative is a limited liability corporation (LLC). An LLC can pay taxes, own property, take liability, sue and get sued or sign

Smith advises potential entrepreneurs to avoid venturing into “me too” markets with high competitiveness already (Smith and Steck, 2014). Some of the questions to consider are whether the market is flooded with successful or bad businesses. Both bad and good competition affect success in the field. Moreover, I must brand and market my business to surpass the competition.
Furthermore, Smith advises potential entrepreneurs to prevent avoiding failure. He posits that “Most successful businesspeople have gone broke once or twice, you learn from the experience and gain a better perspective on what’s realistic” (Smith & Steck, 2014). The principle gives me the motivation required to operate a business without being scared of failure. I am inspired to venture into activities that may expand my business and make it survive for many years.
An entrepreneur should know his or her customers as people. Customers are the backbone of any business since without them the company cannot sell anything. Roth (2011) posits that having a personal relationship with employees can help a company understand their likes and dislikes. Such a relationship can assist in the improvement of customer service and stay ahead of the