Do you have a great product that you think is the need of the hour? Can you provide a service that will make business processes faster and more profitable? Embark on a journey of entrepreneurship development by showcasing your groundbreaking product or service that addresses the current needs.
If yes, then what is stopping you from building your very own startup? It is understandable if the idea scares you a bit. The beginning often is the most difficult part of the journey. But once you take that first step, with hard work and determination, you will surely achieve your goal.
But to become one, you need to know what entrepreneurship development is.
Entrepreneurial development or the concept of entrepreneurship development, is the process of developing a product or service. This product or service must provide solutions to a consumer in need.
It involves organizing the product or service development process. One needs to network and market it to generate profit. The product or the service can be new or a valuable addition to an existing one.
Still, confused about where to start? Do not worry. We bring to you the 11 steps of the process of entrepreneurship development in full detail.
Entrepreneurship development begins with identifying a business idea. To launch a startup, it becomes very important to have a clear view of what it is that you want to do. You need to identify the need you will be fulfilling. The main focus is on satisfying the needs of your clients.
This is followed by researching the industry to study the feasibility of rolling out your product. During the process of entrepreneurship development, one needs to assess one’s strengths and weaknesses.
Planning is of utmost importance. It is necessary to know what to do, when, and how to do the work. Moreover, planning reduces the chance of meeting problems in the future. It might be challenging to scale your small business successfully and efficiently. This calls for a brilliant strategy and works from several departments inside your firm, be it Sales, Marketing, Finance, or Production.
Additionally, as a startup, you might have to be the jack of all trades before hiring expert staff. Therefore an overall knowledge of all business functions is required.
Realistically, starting a business involves hundreds of processes, but we’ve condensed the main 11 into a blueprint to define entrepreneurship development. Learn how to establish a startup and build and grow your firm.
To help you better grasp what is entrepreneurial development, each stage is described and explained in length in the following article. Don’t worry we’ll make your entrepreneurial development journey easy.
Let’s start with the fundamentals.
Research is the first step in an entrepreneurial journey. Market research must be done to identify the needs of the consumer. The problems they encounter or the issues they have with the existing product or service.
The entrepreneur needs to understand whether he or she has the necessary skill sets or capabilities to provide the solution that the prospective customer wants.
Being passionate about a particular product or idea alone doesn’t guarantee an entrepreneur’s success. She should be aware of the challenges involved in starting a business and the risks that need to be taken. She must be able to see the bigger picture of how her product or service would satisfy the needs of the consumer.
Once the entrepreneur identifies her business idea, the next step is to come up with a business plan. Developing a business plan is one of the crucial steps of the entrepreneurship development process. A business plan is a document that outlines the goals of the business. It mentions the strategies to be adopted to execute them. It specifies the financials involved, and how the firm can lead to making a profit.
The simplest version of it is the lean canvas, which is a single-page document that clearly describes the different aspects of starting and growing a business.
The lean canvas includes the following points.
Identify the areas or problems faced by a segment of the consumer. The problem can be a common one or something that bothers the entrepreneur herself.
List down the solution to the problem stated by him. This should be done with great detail.
You must be conscious of the condition or the asset that puts him in a favorable business condition over his competitors.
A clear idea of the target audience for the product or service is required. Be aware of the potential customer so that targeting them would help promote the firm and reach a wider audience.
Every firm’s growth should be tracked by monitoring certain key parameters or metrics. For instance, these metrics can include the number of visitors to the business website or the physical store, customer satisfaction, lead conversion rate, etc.
Every firm incurs a certain cost to set it up and keep it running. The cost structure comprises the key resources that a firm has to spend to keep generating resources.
The revenue stream refers to the channels through which the firm generates money. There can be multiple streams through which money comes to the firm.
Business structures are of different types including partnerships, sole proprietorships, corporations, and limited liability companies (LLCs). Each structure has its own merits and demerits. Which one should be chosen is subjective and relative. One has to choose the structure that suits his or her firm and provides the maximum benefits.
After making the plan and choosing the right layout, the entrepreneur has to register the firm with the state where the firm will be operated. She can consult an accountant or an attorney to help her complete the process.
A significant aspect of any business is the funds involved in setting up the firm. It is vital to get it going for the beginning period. A system has to be in place to monitor the income and expenses of the firm.
The owner has to ensure that there is enough money to sustain himself during the initial days of the operation. The entrepreneur can approach investors for funding or apply for a loan.
The most important part of a successful business is effective marketing. The entrepreneur has to invest a considerable part of his or her effort and finances to create an effective marketing plan.
This can be done through online and/or print advertisements or word-of-mouth propaganda. One has to ensure the visibility of his product or service among prospective customers by applying targeted marketing strategies.
A business is successful only with a robust team of workers who share the same vision as the entrepreneur himself. The workers or employees are expected to have the necessary skills and experience to execute their work. The entrepreneur should ensure that his employees are provided with adequate training so that all of them work in a synchronized manner.
Having an organized and focused approach to achieving business goals is important for an entrepreneur. This approach paves the way for scaling greater heights.
One of the two most essential things is to set up a system to track the progress of the firm. This will ensure focus. The other one is to have a list of things to be done so that the firm stays organized.
Also, read: 10 Tips For Entrepreneurs to Become Successful
Flexibility and adaptability are the two main factors in an ever-changing world of business. The business environment is dynamic. One must be willing to accept opportunities as and when they arise. Change must be embraced. Accordingly, alterations have to be made to the plan. This will ensure consumer satisfaction.
Entrepreneurship must not be a boring journey but an exciting one. Her passion for her business must serve as the motivation that keeps the business going even during times of difficulty. It is important that the entrepreneur stays motivated always. Every circumstance must be seen as an opportunity to expand the firm.
To determine where a business stands, it is essential to know what other firms are available in the market. One must be aware of the solutions their competitors provide. An entrepreneur has to research this by getting information from various sources. Be it, customers, conducting online and offline surveys, visiting other firms, etc.
The above steps to entrepreneur development form the basis of any firm. Adapting to changes, embracing opportunities on the path, and staying motivated are the keys to growing a firm.
Entrepreneurship development means improving the skills and knowledge of professionals. Entrepreneurship is the process of developing, organizing, running & setting up your own business & taking up financial risk to make a profit. Entrepreneurship Development helps in economic growth, job creation, and innovation.
According to Peter P Drucker, “Entrepreneurship is neither a science nor an art. It is a practice. It is knowledge-based. Knowledge in entrepreneurship is a means to an end, that is, by the practice.”
Entrepreneurship can be defined as several major innovations. These involve taking risks, coming up with new ideas, thinking creatively, and ensuring sustainability. For business success, individuals need to understand each of these ideas.
The Zomato, founded by Deepinder Goyal and Pankaj Chaddah, is used as a case study to understand the basic concept of entrepreneurship development. Deepinder Goyal was born in 1983 in Punjab, India. He completed his bachelors in Mathematics and Computing from Indian Institute of Technology, Delhi. Goyal is working in a company called Bain & Company as a management consultant. While working, he saw that there was a booming trend in menu cards. Then he started his own food-based startup.
Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah, who had set up a website that posted hundreds of restaurant menus and reviews of eating joints. They called their brand name “Foodiebay” and then changed the name to avoid legal issues and expanded their scope beyond just food-related services. Their website started becoming popular and they realized there was a big opportunity in the restaurant search business. They wanted to expand beyond their website, so they decided to make an app.
In November 2010, the brand was renamed as Zomato. It currently operates in 24 countries including Australia, Canada, New Zealand, etc. It provides information, menus, photos, ratings, reviews, and food delivery services. Zomato has a large number of user databases, with millions of monthly active users on its platform for food ordering, delivery services, and restaurant discovery. Partnering with various types of restaurants including local eateries and popular chains. In the past decades, Zomato also acquired Uber Eats India, Fitso, Blinkit (formerly known as Grofers), and many more.
Zomato is one of the most potential startups in India. It started as a food delivery platform and became a really strong presence. Today Zomato generates ₹3,288 crore in revenue and a brilliant future. Deepinder Goyal is also a visionary entrepreneur among the youngsters with an impressive net worth of Rs. 2,030 crore.
The above steps describe the basics behind setting up a business and growing it. It is also essential to focus on certain aspects described below:
To build a startup, it is important to understand how to do it. Entrepreneurship development helps one understand the intricacies of how to do so. Entrepreneurship development is the process of enhancing entrepreneurs’ knowledge and skills to help them carry out their businesses efficiently. It aims at strengthening and increasing the number of entrepreneurs.
The five stages of the entrepreneurship growth process are identification and evaluation of the opportunity, developing a business plan, resource gathering, company formation & management, and growth help to understand how it works.
Your UVP, which is often referred to as a unique selling proposition (USP), is a succinct statement that outlines the advantages of your offer, how you meet your customers’ demands, and what sets you apart from the competitors. For instance, the USP of Zomato is its content, the sole restaurant & nightlife manual with menus, pictures, and map locations
The numerous avenues via which a company receives income from the selling of goods, or the rendering of services are known as revenue streams. For example, the revenue stream of a cinema house is the sale of movie tickets, popcorn, and soft drinks. Revenue streams also refers to the passage through which revenue income comes.
Networking is an essential element for entrepreneurship development. A few benefits of networking are a few benefits of networking: a better reputation, higher visibility, a stronger support network, improved business growth, and more meaningful connections. The biggest benefit of networking, aside from assisting you in gaining new clients and advancing your profession, is that it creates new employment prospects.
The 4 types of entrepreneurship are:
1. Small Business Entrepreneurship – Most small business owners start with their own money and only earn money if their endeavor is profitable.
2. Scalable Startup Entrepreneurship – A business that develops technology for operations is frequently a scalable start-up.
3. Social Entrepreneurship – Mission-driven work is social entrepreneurship.
Large Company Entrepreneurship – A larger corporation creates a new division with the resources to act fast and significantly.
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