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WHAT MUST AN ENTREPRENEUR ASSUME WHEN STARTING A BUSINESS

What Must An Entrepreneur Assume When Starting A Business: 10 Useful Tips

Posted on By Sumeet Sinha, MBA

An entrepreneur can touch the sky in just a few months or can take decades to get to the peak but a person who gives his/her best will always taste success. Before we dive deep into ‘What Must An Entrepreneur Assume When Starting A Business, let’s understand a few things about business and entrepreneurship first.

So, What Must An Entrepreneur Assume When Starting A Business? (Jump To Section)

Starting a business is demanding as you have to arrange funds for your business, search for a marketplace, register your business, and many more things. But, having said that, being an entrepreneur is not as frightening as some people might think. 

Yes, it is demanding and one has to bear the risk but if you want to be an entrepreneur, you have to be confident in your abilities. And if you are confident and savvy then you will be a successful entrepreneur sooner or later. Not every person can be successful in his/her first attempt and if you want to be successful then you have to make a lot of effort. 

The primary goal of an entrepreneur must be to create value for people or ingeniously solve a problem and not only focus on only making profits. Entrepreneurs should strive to be creative and not focus primarily to make money. Before starting a business you should know some basic definitions of terms such as entrepreneur, entrepreneurship, enterprise etc.

Page Contents

  • Who is an Entrepreneur?
  • What is Entrepreneurship?
  • 8 Steps in The Entrepreneurship Journey
  • How to Start a Business?
  • What are the Benefits of Starting a Business?
  • What is Business Environment?
  • So, What Must An Entrepreneur Assume When Starting A Business?
  • How to Become a Successful Entrepreneur?
  • 8 Myths About Entrepreneurs and Entrepreneurship
  • Conclusion

Who is an Entrepreneur?

In most layman’s terms, a person who establishes and grows a new business is an entrepreneur. You have to be savvy enough as well as smart, and confident if you want to be an entrepreneur. Creating a business is not an easy task as it needs proper planning, facing challenges, getting funds, manpower, and many more. 

Entrepreneurs should get used to risks, failure, long hours, etc. entrepreneurs are sharp enough to manage money. An entrepreneur develops a business model.  You must know that entrepreneurs and entrepreneurship are different things. Let us understand what is entrepreneurship.

What is Entrepreneurship?

When you wish to work for yourself and start a business by yourself then this process is called entrepreneurship. Entrepreneurship is the art to convert your creative ideas into a monetizable business. 

These are four types of entrepreneurship:

  1. It can be Social entrepreneurship 
  2. It can be a Scalable startup 
  3. It can be a Large company
  4. It can be Small business

8 Steps in The Entrepreneurship Journey

Given below is a list of things that can help you to discover your entrepreneurial spirit–

1. Discover Yourself

First of all, assess what are your strengths and what are your weaknesses, and what you enjoy doing, and start with what you want to do. Discovering yourself will help in giving you the initial impetus. 

2. Explore The Opportunities

Step out and find out the needs, wants, and problems so that you can get the opportunity to fulfil these needs. Opportunities are not always present, you just need to look hard enough. Don’t give up as it may take time to find them. 

3. Come Up With Ideas

One should try to develop and create new ideas to overcome problems and meet the opportunities of the customers which is one of the major parts of this process.

4. Make Robust Plans

Entrepreneurs should focus on making proper plans, research, and creating strategies. Planning is very important and the right plan can take you to your dream goal. You can get some help from some experienced people for coming up with the necessary plan. 

5. Raise Capital

One should aim to attract new capital, potential investors, or partners for raising funds. Capital and funds are the backbones of an enterprise and without the required funds you can’t survive in the market for long. 

6. Launch The Start-Up

In this step, one should be ready to launch his/ her enterprise and start developing his/ her customer base and the basic frame of operations.

7. Fuel The Growth

Growth is an important process as stagnancy is dangerous for anything. An entrepreneur should always try to expand and grow his enterprise. The growth of your business will help you to reach newer goals. 

8. Build an Enterprise

Enterprise is an outcome that is made by an entrepreneur in his/her able guidance of entrepreneurship. Enterprise is the setup for which you started dreaming and working. It is your asset which includes your capital, machinery, types of equipment, goods manpower, labour, and much more.

What Must An Entrepreneur Assume When Starting A Business

How to Start a Business?

  • First, you need to research the market. Searching will help you to discover if there is any potential business opportunity for your plan or not. Without proper planning, you should not move ahead.
  • You must make a blueprint of your business plan so that you can establish your business as per the blueprints.
  • You must also arrange capital for your business. Without investment and funds, no business survives in the market.
  • You must select a suitable business location for your plan. The location should be such that it suits your business and help you make your plan successful.
  • Then you must select an apt name for your business. The name has to play an important role in highlighting your business in the business world. A name is very important for an overall first impression.
  • You have to register your business. It is very important to complete the legal formalities to register your business/enterprise. So that you should not face any problems while running it.
  • And at last, you have to club all the points to reach the desired goal. As all the points mentioned above are as necessary.

What are the Benefits of Starting a Business?

Listed below are the top 5 benefits of starting a new business.

1. You can live your life as you want

People who create their ousinesses are free to do anything. They can stay in their hometown or can go out of the country. In short, they live life on their terms. They don’t have to work 9-to-6 as an ordinary workers/employee. You can enjoy your private life without any distractions from work.

2. You have a lot of say in the business decisions

When you run your own business you have a lot of say in your business such as what happens at your company, the status of the market, and many more. You can also make decisions that you see fit and which can benefit your company. 

3. You can choose the employees you want to work with

When you are an employee, you don’t get to choose the co-workers or the people you want to work with. But when you create your own business you can hire whoever you want.

4. You can make bold bets

People who are in ordinary jobs do their ordinary tasks daily. They don’t get opportunities to face challenges but an entrepreneur faces challenges in their business regularly which gives them opportunities to learn something new and be creative on a regular basis. 

5. You can follow your passion

If your passion is to become an entrepreneur and set up a new enterprise, you can fulfil your dream and follow your passion. And this passion will take you to your dream world.

What Must An Entrepreneur Assume When Starting A Business

What is a Business Environment?

There is a continuous dependent relationship between a business and its environment. This relationship helps you to strengthen your venture. The business environment assists you with business risks and opportunities. This also helps you to build an image of your business. This helps to meet the competition and to learn more.

Let’s Understand the Characteristics of Business Environment

1. Unity of external forces

The business environment is the sum of all the factors even the factors which are outside the business and the factors over which your business has no control. These consists of investors, suppliers, customers, and many more.

2. Indivisible Part of the Business

The environment of a business is a very important part of the overall business itself. No business can be successful without its environment. Businesses need their environment for its support. 

3. General and specific forces

These factors are present outside the business. They are of two types – specific and general.

General Forces

These forces indirectly influence the working of your business. for instance, legal, political, and social conditions. 

Specific Forces

These forces directly influence the working of your business. For instance, consumers, suppliers, investors, etc.

So, What Must An Entrepreneur Assume When Starting A Business?

There are many things that an entrepreneur must take into account while starting a business or a new venture. Here, we are discussing ten assumptions you must know while starting a business. These assumptions will let you kickstart your entrepreneurship journey.

1. It Will Take Considerable Amount of Hard Work

It is said that hard work is the key to success and the statement is very true. An idle person cannot achieve anything in his life. Without hard work, a person can’t be called successful and one who works hard will reach the goal. Hard work is the main factor. Hard work starts from the beginning and goes till the end. 

Starting your business/venture requires a lot of dedication, sacrifices, and precious time. Making blueprints of your project is not sufficient, you should have complete dedication as well.

2. Will Power Will Get You Through Tough Times

Will power is the internal power that helps you to attain everything in your life. It is your inner determination to achieve something. Starting a new business/venture is not as easy a task as one might think. But at the same time, it is not as difficult as to get frightened before starting either. If you have strong willpower and a focus to do something then nothing is impossible. 

Your passion and your willpower will never let you down. Arranging funds, getting loans, creating investments, and making a place in the market is not easy but if you have a strong will, you will succeed.

3. Be Ready For Scaling Success Quickly

Success and failure are inversely proportional to each other. Success, whether big or small, will bring smiles to our faces. Attaining the goal is success and is the need of every person. It gives you more confidence and satisfaction. Sometimes a person starts a venture with the feeling that he/she will succeed in a small period and will earn a hugh profits. 

But this is not the case every time. Things do not work like this. Success is not guaranteed. You may face failure too and risk is a major factor in any new enterprise. Success depends upon many factors, from how you have prepared the blueprint of the enterprise to the execution. How much research you have done and how much do you understand your venture? All of these things impact your success rate.

4. Build Good Mechanisms and Trust The Process

Success does not have any shortcuts. You can’t buy success with money. Only hard work is the key to success. One should just follow the proper process and go through the proper channel to taste success. No shortcuts will work. Worse yet, shortcuts can lead to mishaps. So to get success, your skills, your hard work, and your virtues will matter instead of shortcuts. Only Pure hard work can lead an entrepreneur to a successful entrepreneurship journey.

5. Failure – Big or Small – Is Inevitable. Learn From Them

Failure and success are two sides of the same coin. It is not every time that you will face success and it is not so that you will have to face failure every time either. Your ideas and your hard work may face failure at first but it is not a matter of losing heart. You should learn your lessons from them and move ahead. You can analyse the drawbacks in your work and overcome them to achieve your goals. 

Failure is not always bad but it gives you chance to improve yourself. It forces you to start with a new zeal and enthusiasm. You should not give up at first. you should try, try and try some more.

6. It Takes Time

The most common assumption of an entrepreneur when starting a business is time. It is very commonly said that “Time is money and money is time”. Time is very precious, valuable, and powerful. Setting up an enterprise requires a lot of your time, effort, and financial research and the most important of all is your time, which you have given to fulfil your dreams.

7. Believe in Yourself – Even If You Might Be The Only One

Nowadays the most frequent problem that people face is that they don’t believe in themselves. Believing in yourself is one of the most important things that you must do when starting a new business. It has been observed that people who believe in themselves are more successful. 

Believing in yourself makes you feel positive and confident. Confidence helps a person deal with tricky situations in a much better way. Believe in Yourself and confidence in your ability both should be part of an entrepreneur’s mindset. 

8. Patience is a Virtue

Patience reveals the character of a person and helps a person to face major mishaps. An entrepreneur should have abundant patience. Good things take time. In today’s world, people want quick results. As an entrepreneur, you must be calm and patient. If you are not, then it makes it a bit difficult for you to be an entrepreneur. Markets require effort and time to be profitable.

9. Take Calculated Risks, But Have a High Risk Tolerance

As entrepreneur, you have to bear risks while starting a business or running a business. Understanding the gravity of the situation, an entrepreneur should be ready to face all kinds of risks. Sometimes, initially, you may not get the required results and it took some time to reach the desired goals so you need to understand that the risk moves parallel to this situation. 

So, patience and backup are required to face the risk and entrepreneurs should always be ready to face such situations.

10. Profit and Loss Are Temporary

Profit is not guaranteed and you have to face loss sometimes but with your strengths, you can overcome your losses and can switch to profitability for your enterprise. 

What Must An Entrepreneur Assume When Starting A Business

How to Become a Successful Entrepreneur?

The following are some of the entrepreneurial characteristics that can help you become a successful entrepreneur.

1. Never give up

Real entrepreneurs never give up. Being an entrepreneur, you see many ups and downs but never give up on these uncertainties, face them. Facing problems builds confidence and makes you a real entrepreneur.

2. Inspire the people around you

Nobody is perfect. Everybody wants to be perfect in their field and wants to give their best. For that, you need inspiration and guidance. Give inspiration to those people who are in need and make them successful with your entrepreneurship guidance.

3. Stay Hungry

Always try to innovate and make your products better for people. Be hungry for better products and services.

4. Stay Foolish

To be productive in the market, entrepreneurs must never stop learning. This will help you to find out the solutions to the problems that you are facing and make your business fruitful. Entrepreneurship is not a one-day process but a lifetime process with a lot of continuous learning.

What Must An Entrepreneur Assume When Starting A Business

8 Myths About Entrepreneurs and Entrepreneurship

There are many myths about entrepreneurs which are mentioned below.

1. Entrepreneurs do not have their exclusive life

It is assumed that entrepreneurs do not have their personal/exclusive life. They are dedicated to their business and give their valuable time to it but they simultaneously live their family life and give quality time to their family as well as to himself/which is quite necessary.

2. Real entrepreneurs do not quit

It is easy to say that real entrepreneurs do not quit. It is not easy to face all kinds of situations boldly. Taking into consideration the situation, sometimes, entrepreneurs can also quit and leave the unavoidable circumstances. But an entrepreneur’s qualities can get you out of such a situation.

3. Entrepreneurs only think about money

Sometimes it is assumed that entrepreneurs only think of earning money and profit and they are greedy but it is not so. An entrepreneur is a person who has to bear the risk as well as losses of his/ her business. So profit is also part of his/ her life. So thinking this is not at all true.

4. Entrepreneurs are born and not made

It is a common saying that entrepreneurs are born and not made which is a false statement. A person can be born with some skills but in the art of being an entrepreneur, he learns by himself. Entrepreneurs are made with hard work, and hard work is the key to their success. You can take examples of many such entrepreneurs who have become successful with their efforts and not by born talents.

5. You have to be restless if you want to become an entrepreneur

This is a false statement. Yes, you have to devote your precious time, and work hard to achieve your goals but are not forced to lead a restless life. 

6. Business people don’t have a boss

When you start your business you are your boss. but this doesn’t make you independent. Just like everybody else in the world, entrepreneurs also have to build connections to flourish their businesses. Even he/she himself/ herself is answerable to customers, dealers, accounts department, etc 

7. Entrepreneurs take very big risks

An entrepreneur is good at calculating risks which makes them a bit confident to take risks. But risk-taking is not an easy job and nobody could easily decide about the risk but an entrepreneur has to go ahead with some decision.

If you want to be an entrepreneur you must have a unique idea: this is the most frequent assumption that people have. It is thought that you must have a unique idea if you want to be an entrepreneur which is wrong you can also be an entrepreneur by working on an existing business with an innovative approach.

8. You must be young to be an entrepreneur

No doubt youngsters are very keen to take risks and grab opportunities. Even though they are very digitally skilled but adults have experience from which they can start their businesses and become an entrepreneur at any stage of their life.

Entrepreneurs are Rich, this is one of the most common myths about being an entrepreneur. Entrepreneurs are not born rich, their constant hard work and spirit to reach the top makes them rich.

Conclusion

The purpose of this article is to guide the youth who wants to become an entrepreneur. We have discussed some important points that you must consider before you start your business. We have discussed things that an entrepreneur must assume before starting a business, the need for a business environment, and some more important points. If you want to become a successful entrepreneur then you should study biographies of successful entrepreneurs on the web who are not born but made themselves successful with their efforts and hard work. This will be very useful and motivating for you. 

Entrepreneurs are not, born they are made to be an entrepreneur. A good entrepreneur focuses on people’s requirements and then establishes a business to fulfil them. Entrepreneurs also create job opportunities. You must be very responsible if you want to be an entrepreneur. The main responsibility of an entrepreneur is to create and manage a business. Even if you become a successful entrepreneur never stop learning because learning will help to flourish your business and don’t forget, always inspire people around you.

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WHAT MUST AN ENTREPRENEUR ASSUME WHEN STARTING A BUSINESS

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Page Contents

  • Who is an Entrepreneur?
  • What is Entrepreneurship?
  • 8 Steps in The Entrepreneurship Journey
    • 1. Discover Yourself
    • 2. Explore The Opportunities
    • 3. Come Up With Ideas
    • 4. Make Robust Plans
    • 5. Raise Capital
    • 6. Launch The Start-Up
    • 7. Fuel The Growth
    • 8. Build an Enterprise
  • How to Start a Business?
  • What are the Benefits of Starting a Business?
    • 1. You can live your life as you want
    • 2. You have a lot of say in the business decisions
    • 3. You can choose the employees you want to work with
    • 4. You can make bold bets
    • 5. You can follow your passion
  • What is a Business Environment?
    • 1. Unity of external forces
    • 2. Indivisible Part of the Business
    • 3. General and specific forces
  • So, What Must An Entrepreneur Assume When Starting A Business?
    • 1. It Will Take Considerable Amount of Hard Work
    • 2. Will Power Will Get You Through Tough Times
    • 3. Be Ready For Scaling Success Quickly
    • 4. Build Good Mechanisms and Trust The Process
    • 5. Failure – Big or Small – Is Inevitable. Learn From Them
    • 6. It Takes Time
    • 7. Believe in Yourself – Even If You Might Be The Only One
    • 8. Patience is a Virtue
    • 9. Take Calculated Risks, But Have a High Risk Tolerance
    • 10. Profit and Loss Are Temporary
  • How to Become a Successful Entrepreneur?
    • 1. Never give up
    • 2. Inspire the people around you
    • 3. Stay Hungry
    • 4. Stay Foolish
  • 8 Myths About Entrepreneurs and Entrepreneurship
    • 1. Entrepreneurs do not have their exclusive life
    • 2. Real entrepreneurs do not quit
    • 3. Entrepreneurs only think about money
    • 4. Entrepreneurs are born and not made
    • 5. You have to be restless if you want to become an entrepreneur
    • 6. Business people don’t have a boss
    • 7. Entrepreneurs take very big risks
    • 8. You must be young to be an entrepreneur
  • Conclusion
  • Fresh from the Blog
    • PayItOff – Loan Calculator
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