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an essay on the importance of a business plan
an essay on the importance of a business plan
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Key Concepts and Principles of Entrepreneurship In The Art of the Start, Guy Kawasaki recommends several key principles that are important for “anyone starting anything” as suggested by the sub-title of the book. Kawasaki’s main focus in this book is entrepreneurship and the process by which a successful business can be created and maintained. Kawasaki suggests five core concepts of successful entrepreneurship: causation, articulation, activation, proliferation, and obligation, along with many key principles for each concept. The first key concept is causation; the art of starting a business. One must possess a reason or a true desire in order to become an entrepreneur. Along with this desire, one question should be asked before starting …show more content…
Bootstrapping is when an entrepreneur starts a business with little capital. Kawasaki says, “Entrepreneurs can bootstrap almost any business” (80). This business model has low up-front capital requirements, short (under a month) sales cycles, short (under a month) payment terms, recurring revenue, and word-of-mouth advertising which could beneficial to a beginning entrepreneur. The art of recruiting is employing those that are better than you; those that have more to offer the business, including their weaknesses. Don’t underestimate what they could possibly do for the future of the business. The last principle of activation is the art of raising capital. Pitching plays an important role in this principle; however, offering your investors a real picture of what your company is about is most important. Disclose everything about your business. Don’t leave anything in the closet for the investors to find out later, which could damage credibility. Kawasaki also suggest that an entrepreneur’s beginning investors could include venture capitalists, foundations, friends and family …show more content…
The art of partnering can be a challenging part of a business. Good partnering can increase cash flow, accelerate revenue and reduce costs; however, a bad partnership could mean the opposite. Kawasaki states that, “a partnership is simply a matter of implementation” (151); finding someone who can help get the business going. An important part of this principle is putting an “out” clause in the partnership deal. Allowing a way out helps the partners not feel stuck in a deal that is not working. This can actually encourage longevity with the partnership. The next principle of proliferation is the art of branding. Kawasaki suggests that applying the art of branding comes from the classic Ps of marketing: product, place, price, and promotion. Additionally, prayer could be added to this list. Kawasski refers to this last P as “proselytization,” which is process of converting others to your beliefs or doctrines, instead of prayer (167). The art of branding “requires creating something contagious that infects people with enthusiasm” (167). An entrepreneur needs to get their customers excited and zealous about their product. This will promote free advertising as customers spread the word to those around them. The last principle of proliferation is the art of rainmaking. A rainmaker is someone who generates a large amount of business. The first step of rainmaking is to get
An entrepreneur starts a new venture not only to succeed but ultimately to have the venture grow. Before an entrepreneur begins a strategy of growth and building wealth for the venture, several key fundamental puzzle pieces must be in place. This paper will explore five of these fundamentals and describe the importance of each one. It will go on to compare and contrast three growth strategies available to a business.
Starting and building a prosperous business is an ambition of many entrepreneurial minds and has for
Considering the risk and reediness are important factors for a business owner. What happens if the business fails? There are many reasons why startups fail however; the most common are poor management, and business capital. For example, to make a lot of money from a new venture, you need financial resources to capitalize on the opportunities. That means attracting investors that requires relinquishing control and equity of the business, which requires relinquishing control of the business decisions. The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls that can sink a Startup explores the different problems a business owner faces as they open up a new business. The problems range from partners, hiring, investing, and role predicaments.
Bootstrapping a startup is when an investor attempts to fund his or her startup from personal finances or from the revenue of the newly started business. This comes with many advantages as well as disadvantages. One of the biggest advantages to self funding your business
"Entrepreneurs who start and build new businesses are more celebrated than studied. They embody, in the popular imagination and in the eyes of some scholars, the virtues of "boldness, ingenuity, leadership, persistence and determination." Policymakers see them as a crucial source of employment and productivity growth. Yet our systematic knowledge of how entrepreneurs start and grow their businesses is limited. The activity does not occupy a prominent place in the study of business and economics.
There in an increasing demand for entrepreneurs, our school entrepreneurship program help teach learners as they grow to be entrepreneurs. entrepreneurship is ...
Entrepreneurship incorporates unconstrained imagination and a readiness to settle on choices without strong information. The entrepreneur may be driven by a need to make something new or assemble something unmistakable. As new ventures have low achievement rates, the business person should have impressive tirelessness. Because of this, the entrepreneur may have the best risk of achievement by concentrating on a business sector corner either too little or too new to have been commanded by built up organizations.
Entrepreneurs rapidly understand the commercial environment of markets. Economy is driven by markets, if demand is elevated extra work needs to be done and production increases. There is an additional demand for new and better products and services as the demand for it increases. Entrepreneurs are quick to exploit market opportunities and its potential. A successful entrepreneur considers the chances of success within the economic context. More factors such as culture, labour, work force, infrastructure and trade regulations are also considered when exploiting an opportunity.
The Entrepreneur is, “an individual who takes initiative to bundle resources in innovative ways and is willing to bear the risk and/or uncertainty to act” (Hisrich, 2013). The entrepreneurial process is unique onto itself; for it does not merely involve the taking of tremendous risks, but also evokes some of the most creative and innovative characteristics of the individual. This dynamic process pushes the aspiring entrepreneur to his/her limits in a quest to take full advantage of particularly identified available opportunities in the marketplace. Among the entrepreneur’s objective is to adopt and effectively implement processes and procedures which would grant him/her the ability to meet the needs of potential customers. Furthermore, as the entrepreneur toils away in an effort geared towards creating something new or adding value to a product or service; the ultimate goal is the success acquisition of significant wealth. For the aspiring entrepreneur there are various successful examples of “Corporate Entrepreneurship” which can serve as sources of motivation. Some of these Corporate Entrepreneurships include: Hewlett-Packard Company, Microsoft Corporation, Apple Inc, and Dell Computers Inc.
Many career fields in this day and age have little too no requirements for what demographic they are to hire, but there is a rapid growth of certain types of demographics in this century. The business field is no different, there are no requirements to who they will hire, as long as you are able to perform it doesn’t matter your race, ethnicity or credo. A diverse workplace is one that has representation from several different types of people. The career that I hope to someday pursue is entrepreneurship, an entrepreneur can be anyone of all ages, races or ethnicity’s. The entrepreneurship career is all about having a great idea for a business that you personally believe will succeed. I believe that I have all of the qualities that are needed
We learned a lot of things in this course, but I think the most important lesson I learned is that it’s not easy to be an entrepreneur. I was surprised to hear in the first class that 80% of startups fail, but after reading The Art of Start and E-myth Revisited I understood why this happens more often than one might expects. Some people start their own businesses for the wrong reason and some start with wrong mindset. I’ve always thought that if someone has a brilliant business idea and hardworking they will succeed and grow their business. However, now I know that there are many things to consider before starting any business. In fact, there are many strategies that an entrepreneur could follow to achieve success, such as know your customers, work “on” the business, and how
To be a successful entrepreneur, there are steps that one must follow when starting a new enterprise. These steps are termed as the process of entrepreneurial which is the systematic method of preparation of an enterprise that consists of four steps. The four steps are fundamental to the success of an entrepreneur venture. The four entrepreneurial processes includes discovering, assessing and opportunity, developing a business plan, establishing resource needs, and managing the resulting enterprise (Barringer & Ireland, 2010). Each individual step is vital for the start of an entrepreneur venture and for an entrepreneur to achieve their entrepreneurial goals. This paper will discuss the four steps of the entrepreneurial process,
Entrepreneurship is an important aspect of social, economic and community life. It can be viewed as a critical factor to economic growth as well as a way of addressing unemployment (Nolan, 2003).Entrepreneurs are people who are persistently focused on identifying opportunities, they seek to create something worthwhile while taking into account foreseeable risk and rewards associated with the efforts (Nolan, 2003). Furthermore, entrepreneurs are frequently understood to be individuals who discover market needs and establish new business to meet those identified opportunities. The following assignment will firstly discuss the types of entrepreneurship, secondly it will discuss the reasons people become entrepreneurs, and thirdly it will discuss the importance of entrepreneurship.
Entrepreneurship mindset is not a knowledge that can be acquired, but a proclivity that can only be pertained through accumulated experience. It is an indispensable constituent in the practice of business as well. This is the mindset of creating something from nothing and looking at the world not the way it is, but the way it should be. Moreover, it is the catalyst for economic development of a country and an engine that sustains the present state of developed countries.
According to The Oxford English Dictionary, an entrepreneur is “a person who sets up a business or businesses, taking on financial risks in the hope of profit”. Entrepreneurial development has become extremely important, because it is crucial to economic expansion. Entrepreneurs produce and provide goods and services for customers and consumers to purchase. The items that billions of people rely on daily are formed as products from business, and most of the time are designed by the entrepreneurs themselves. Therefore, entrepreneurs occupy a dominant position in the economy. Entrepreneurs actively pursue disequilibrium in the wants and needs of customers, and the goods and services that are available. They use their energy, creativity, intrinsic motivation, and passion to generate a solution to this imbalance in a market place, and thus businesses are born. However, entrepreneurship is not an end location, but a process. One must combine the key elements of entrepreneurship in order to successfully create a business.