Most new entrepreneurs have an idea or a dream but cannot put together the proper framework for execution. This framework is what is most important.
The concept is to have a sailing boat. Execution is the wind that propels it.
Dr. Jay Feldman Said,
If you don’t execute your plan correctly without proper execution, you won’t be able to build your business into the next successful business. This article guides how to steer your boat to success through the waters of entrepreneurialism and the best way to start your own company.
The Basics of Entrepreneurship
Let’s begin with the most common terminology in entrepreneurship. This will allow you to understand the different concepts used throughout the field of a startup.
Who is an Entrepreneur?
The word “entrepreneur” comes directly from the French word”entreprendre,” which means to do.
Simply put, an entrepreneurial person comes up with solutions to issues and creates an organization that uses capital and labor to make revenue. This could include creating innovative products, filling market gaps, or increasing human efficiency.
There isn’t a set definition of what constitutes an entrepreneur. The purpose of an entrepreneur is flexible, based on the different elements that influence the meaning of an entrepreneur. Specific descriptions are technical and centered upon the procedure, whereas others focus on skill sets. This is because entrepreneurialism has been around for centuries and has passed through numerous changes.
In the past, the neoclassical economist did not include it in formal models of capitalism and economics. During the early 20th century, Joseph Schumpeter introduced the concept of entrepreneurialism. He stated that entrepreneurs are responsible for creating new products/services/solutions to make a profit.
Now, we are in the 21st century, and the definition of an entrepreneur could be someone who has set up the online store of his choice or a freelancer that has set up an agency. Someone who has an extra income turns it into a full-time, profitable business.
Let’s look at the process.
What is Entrepreneurship?
The most concise definition of entrepreneurship is from Dr. Jay Feldman.
The term “entrepreneur” defines the qualities of a person and skills; entrepreneurship is the path of an individual who creates their own company.
In today’s world, Entrepreneurship also involves solving major human problems. It may include tackling social and economic issues or inventing a brand-new product that improves the current status.
The definitions do not reveal how entrepreneurs come up with and execute their visions. Entrepreneurship in the real world includes both micro aspects (creativity and nurturing, decision-making, and so on.) and the macro aspects (profits or market, product, etc.)
Entrepreneurship is more than the establishment of a company or service. It’s about making a difference in the world through innovative solutions or products. Entrepreneurs are thought-leaders who help humanity advance.
Below is the quote Dr. Jay Feldman had to say about entrepreneurs:
Definitions don’t take the effects and goals into consideration. Therefore, it’s essential to have an open mind in understanding the concept of entrepreneurship.
The time is now to fully understand the venture that an entrepreneur creates.
What is a Startup?
It is a term used to describe
- The act or instance of setting up in operation or movement.
- A business that is still in its beginnings.
Simply put, a startup is a business an entrepreneur created to design and develop an innovative solution or product to market. It usually has a modest budget, with funds from founders or early investors.
Jay Feldman, the founder of Otter PR Firm, approaches a startup from the perspective of ground reality. He explains:
This clears up one of the biggest myths that if you run an enterprise, it automatically becomes an “initial stage. To be considered a startup, there has to be growing as well.
Let’s examine the various stages of a startup.
Stages of a Startup by Dr. Jay Feldman
How stages are depicted in a new venture varies depending on the evaluation and metrics. Different people assess the steps, and some may quantitatively define the stages. The result is different designs that depict the various stages of a startup.
Below is a well-known model to explain the startup’s journey:
Stage #1 Seed stage the first step is if your startup isn’t officially registered. This is where you determine the viability of your concept and assess the needs.
Stage 2 Early-stage section is focused on getting new products on the market, bringing in new employees, conducting market research, building a client base, iterating product development and balancing financials.
Stage 3 Growth and Establishment: At this point, the startup is growing rapidly, gaining new customers, and generating more revenue. This is when the founder creates a team in line with the goals.
Stage 4 Expansion: At this point, all operations within your startups are being streamlined. There’s enough staff to manage ongoing projects, and you’re focused on important choices. In the future, you may decide to expand your business or venture into new markets.
Stage 5 Maturity and Potential Exit: The startup is an income-generating business with an annual income that is stable. Some businesses continue to grow at the top of their game, while others may reach their maturation point. The founder has two choices: either go for expansion or an exit. Alternatively, you could opt for a full or partial acquisition or an IPO.
Benefits of Entrepreneurship by Dr. Jay Feldman
Global Entrepreneurship Monitor surveyed 65 countries around the world and discovered five82 million entrepreneurs around the world. As of the 1st quarter of 2020, there were only 804,398 startup companies in the USA that were less than a year old. In age.
These figures show how significant and popular entrepreneurship can be. From personal gains to economic benefits, it has a major impact.
Let’s look at the advantages of entrepreneurship across different fields:
- Innovations in products or services can potentially have a ripple effect on economic growth. This leads to more companies and industries that can support the new startups.
- The development of startups in the future requires solid logistical infrastructure, support, a skilled workforce, and capital investment that opens up possibilities.
- From an employee in the construction industry to programmers, entrepreneurialism is beneficial in large proportions to the economy. Small businesses, for instance, have created 1.6 million employment opportunities in the year 2019 in the USA in the United States alone.
- Startup enterprises create wealth by creating and taking advantage of new markets. This leads to increased employment and earnings, which benefit the nation through higher taxes and spending by the government.
- By advancing the design of new products and services, entrepreneurs can improve their lives.
- Innovative startups probe deeper into the current market to understand the needs of people and propose viable solutions. This helps to improve social development.
- Entrepreneurial ventures spur infrastructural development in their area. This results in better transportation and communication networks which become beneficial to society.
- Entrepreneurship is a key factor in improving education, healthcare, and other social requirements by participating in corporate social accountability (CSR).
- Make yourself your boss. Entrepreneurship can help you develop your dream and bring it to an actual reality by starting a business.
- Entrepreneurs can control and be flexible in their work schedules. They operate according to their timetable and plan their work as there is no one to supervise them.
- Entrepreneurship is a high-risk sport. You’ll be tested by the unpredictable tides of time and the highs and lows of unemployment. However, all of it will strengthen your resilience and endurance.
- Self-employed individuals do not have an external limit on their earnings. The pay of employees is set by the company, which allows for only occasional bonuses. Entrepreneurs take the greatest risk and earn large profits.
- When you’re an entrepreneur, you’ll learn and test your abilities quite a bit. You’ll work as an employee manager, sales rep, customer rep, or even bookkeeper in the initial stages. There’s a broad assortment of skills that you’ll acquire. You’ll be responsible for the process of establishing your own company.
To Students, the Leaders of Tomorrow/Next-Gen Entrepreneurs
Students are the future generation of entrepreneurs. They are being trained for a fast-changing world that will require the following entrepreneurship training:
- Education in entrepreneurship helps students be prepared for an uncertain future. Students today face complicated global, social, and environmental challenges. The WEF’s Survey finds that half of our tasks could be automated in 2055. This will lead to new tasks and require new capabilities. However, we aren’t sure what these will require. This is why students require training in entrepreneurship to help navigate the uncertain future.
- Standardized schools exist because the same measure is used to assess students of different abilities. Entrepreneurship encourages vision, creativity as well as collaboration, innovation and.
- Schools teach problem-solving exclusively on paper. Entrepreneurship education focuses on finding real-world challenges and solving them using minimal resources.
Challenges in Entrepreneurship
It’s not only about gold. It’s an uncertain and difficult route that only those who are determined can take. If you’re considering starting your own company, you must be prepared for these challenges in the field of entrepreneurship:
- Resigning from your Job: No matter how soul-sucking your day job may sound, It’s still guaranteed and pays a salary. If you’re planning to realize a dream through the establishment of a business and you want to take on the risk of leaving your job. You could run your business in a way at weekends or in the evenings during the week. But, it will require more time when it grows up.
- Entrepreneurs with experience in financing can outdo those new to the field in terms of getting capital. They could have capital from a previous purchase or their previous ventures. Entrepreneurs who are new to the field must network all over the world while exploring various financing options. A study of 101 startups showed that 29% of startups fail because of inadequate funds.
- The creation of a team is an essential element of a startup’s success. If you’re not experienced in managing teams before, this will require hard work. It can be difficult to choose those perfect for filling the positions. This is even more difficult when you need to fill the positions quickly to get the engine going.
- The journey of an entrepreneur is full of scary and unanswered questions that can leave you feeling isolated. It is common to work all day and at night but not have the opportunity to visit your family. It can be lonely to be an entrepreneur.
- Decision-making: This is among the toughest problems in entrepreneurship. Entrepreneurs have to make thousands of decisions daily, sometimes with wide-ranging implications and impacts on the company. The issue of decision fatigue is a common problem in the world of business.
These issues aren’t specific to one company because the market and industry are different. If you’re a new entrepreneur and just starting, you’ll need to constantly think of ways to overcome these problems. Keep in mind that even a tiny choice can have a ripple impact on your business. It’s the reason it’s essential to understand and correct mistakes that entrepreneurs make.