The Entrepreneurial Process
The process of creating something different, with value, by devoting necessary time and effort by assuming the accompanying financial, psychological and social risks, and receiving the resulting rewards of monetary and personal satisfaction (Bowen an d Hisrich , 1986).
The process has four distinct phases :
Identification and evaluation of the opportunity
This is the step where the question of whether there is an opportunity worth investing in is asked. Investment is principally capital, whether from individuals in the company or from outside investors, and the time and energy of a set of people. But you should also consider other assets such as intellectual property, personal relationships, etc.
The assessment of the opportunity requires answering the following questions :
- What market need does it fill?
- What personal observations have you experienced or recorded with regard to that market need?
- What social condition underlies this market need?
- What market research data can be marshaled to describe this market need?
- What patents might be available to fulfill this need?
- What competition exists in this market? How would you describe the behavior of this competition?
- What does the international market look like?
- What does the international competition look like?
- Where is the money to be made in this activity?
Development of the business plan
Once you have decided that on opportunity, you need a plan for how to capitalize on that opportunity. A plan begins as a fairly simple set of ideas, and then becomes more complex as the business takes shape. In the planning phase you will need to create two things : strategy and operating plan. A good business plan is essential al to developing the opportunity and determining the resources required, obtaining those resources, and successfully managing the resulting venture.
Determination of the require resources,
The resources needed for addressing the opportunity must also be determined. This process starts with an appraisal of the entrepreneur’s present resources. Any resources that are critical need to be differentiated from those that are just helpful. Care must be taken not to underestimate the amount of variety of resources needed.
Management of the resulting enterprise
The operational problems of the growing enterprise must also be examined. This involves implementing a management style and structure, as well as determining the key variables for success.
After launch, the company works toward creating its product or service, generating revenue and moving toward sustainable performance.