Entrepreneurship business-I

                     

                        

TOP  TEN  RICHEST BUSINESSMEN:

     1.       Bill Gates
2.       Mark Zuckerberg.
3.       Jeff Bezos. (Amazon)
4.       Warren Buffett.
5.       CHARLES CULPEPER
6.       Bernard Arnault.
7.       Carlos Slim Helu.
8.       Amancio Ortega.
9.       Larry Ellison.
10.     RICHARD BRANSON

Having your own business empowers you a sense of freedom to work for your individual business setup and accept its own challenges.   You are free to devote an number of hours, investment, infrastructure etc., for its achievement.

An entrepreneur is an individual who creates a new business or who independently taken over responsibility of sharing profit or loss, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business.

Entrepreneur who proves to be successful in taking on the risks of a start-up are rewarded with profits, fame, goodwill and continued growth opportunities.  Entrepreneur who proves to be successful in accepting the challenges and knows that challenges are inevitable, but it is 10% how you take it and 90% how you make it.  After all, every Entrepreneur knows that if you are 10% serious of running your business at correct path, then 10%, it will make you to achieve it.

A business entrepreneur is any individual who starts and operates a business while knowing the profit and risks factors associated with any such venture of incurring losses.

Entrepreneur who proves to be successful in taking on the risks of a start-up are rewarded with profits, fame, goodwill and continued growth opportunities.  Entrepreneur who proves to be successful in accepting the challenges and knows that challenges are inevitable, but it is 10% how you take it and 90% how you make it.  After all, every Entrepreneur knows that if you are 10% serious of running your business at correct path, then 10%, it will make you to achieve it.

Entrepreneurs commonly face many obstacles while running business as follows :

1.  Financial condition and cash flow management.

2.  Hiring policy of skilled and unskilled workers.

3.  High risk factors, bearing losses and enjoying profit.

4.  Marketing Strategy.

5.  Strategy for criticism and self-doubt.

6.  Finding customers

7.   Building a successful team.

1. Financial condition and cash flow management :

Entrepreneurs are knowing the fact that financial conditions are to be built up strong from the beginning of the set up for their business venture and he is alone to invest the capital and manage cash flow while running the business.  Entrepreneur knows the responsibility of  monitoring financial condition of his running business and risk factors involved in the decisions taken for business set up.  Entrepreneur knows that he is alone to be responsible for losses incurred and he is alone to enjoy the profits earned in running the business.  

It is one of the common factor in Entrepreneur business -- running out of money. You need to know where every single amount is coming from and where every single amount is going to.   If you don’t stay on top of your cash flow, you are going to put your business in a very dangerous disadvantage.

For a growing business, it's crucial- cash constraints can be the biggest obstacles limiting growth and over-trading can be dangerous.  Here, Overtrading refers to excessive buying and selling of stocks without any control and crossing the limit set for expenses and revenue receipts.  Making the best use of your finances should be a key element in business planning and assessing new opportunities. With limited resources, you may need to pass up promising opportunities carefully.   

Every element of working capital should be carefully controlled to maximise your free cash flow. If there is obstacles in cash flow, then it is necessary to study overtrading ratio analysis.   Effective credit management and tight control of overdue debts are essential. You may also want to consider raising financing against trade debts and trade debtor account receivable.

You may want to work with suppliers to reduce delivery cycles, or switch to some systems that can handle in-time delivery.  In some cases, a penalty may attract for delay in delivery of goods and damage our goodwill.

New businesses often run in so many crisis initially.  Entrepreneur knows that each day will bring new challenges while running business and risk, which will need immediate attention in urgently resolving the issue and that it will require action plan of disaster management.  Entrepreneur knows that once business starts up, it will go up, but this type of approach simply doesn't work.  As your business grows, you also need to be alert to new problems and priorities.

2.  Hiring policy of skilled and unskilled workers.

Entrepreneurs need to study 3 key factors, to hire for:

1. Hire real doers.
2. Look for passion, as a skill.
3. Pay attention to suitability.

1.   Hire real doers : When you are hiring the workers, avoid the temptation of hiring a lot of operational or management staff.  It’s important that you have a hands-on, handling the day to day operations and keeping everyone on track.  Quality is more important than quantity in sense.  When you can quite often handle multiple department functions across a small and efficient staff of several people, so you should have skilled manager of different calibre.  Whether you are hiring someone out of college campus or an experienced professional, you still need to take time to review company policies and clearly communicate to them the important processes and protocols. For this, you need to design and develop some company policies, as well as the protocols.

2.   Look for passion, as a skill :  As an entrepreneur, when you hire for your start up business, it is necessary you to bring in people who are passionate about your business and keen interest in the field, so they could contribute for your business growth. 

Passion is driving force that lead you to succeed because you become madly dedicated to making your business work no matter how many challenges and hard the process may be. A lot of entrepreneurs do not have a passion for their businesses. They just like the idea of success. Without having some sort of passion driving you, you will not survive as an entrepreneur because the grind of building a business will take a toll on you physically and mentally.

Look for candidates who are enthusiastic and passionate about skills they have. Their successes should shine through during the interview. People who love the work they do often stay at companies longer than people who work for the sake of the pay and allowances. Enthusiasm and passionate is a great trait to possess for a new employee; Passionate and outgoing employees are often useful to a business because they are likely proficient when it comes to operations management, Human resource planning or management.

1.   Pay attention to suitability:  hire people who will take ownership

within the company and, as a result, will work harder than regular employees. If they truly enjoy working for your startup, they will tell their friends how great it is to work for you and eventually, these friends will want to work for you as well.

  

3. High risk factors, bearing losses and enjoying profit.

The most important function of entrepreneurs to forecast all risk factors. The entrepreneurs bear the risks of failure in exchange for the profits of the company.  So, the business plans of the entrepreneur should be able to adapt to the changes.  The changes in the modern technology is inevitable. It may either fetches you a profit or incurs loss.  The consumer taste may undergo change any time, there can be new entrants in the market as a competitors. 

There may be change in the Government policy with regards to taxes may increase, etc. in turn, the entrepreneur may face some financial losses.   There are technological risks as well. There may be a technological advancements. So there is a risk that the product may become obsolete. There are other risks factors such as theft, fire accidents, and other natural calamities etc., which may lead to incur losses.  Profit is their reward for bearing the risks. Unlike some of the other management functions, risk bearing cannot be delegated to the manager. The owner/entrepreneurs have to bear all the risk.

Entrepreneur’s profit  depends on his risk taking behaviour. That is, how much risk the entrepreneur will bear during the production determines the amount of profit enjoyed by him.  The entrepreneur may forecast the exact demand for his product in the market or change in consumers’ taste and preferences that affects the market demand. If the entrepreneur’s production exceeds the market demand, it may incur loss for failure in marketing strategy.   This implies that there is a demand side risk associated with production. If there is no compensation or reward for risk, there will be  no incentive for taking risk. The nature of risk and the risk bearing capacity vary across industries. The higher the risk under taken, the more will be the profit earned.  

The profit is the reward for bearing uncertainty. In the theory of production, the assumption of certainty is somewhat unrealistic as with the progress of

economy, entrepreneur has to face uncertainty in the sphere of production. When production takes place simply for self-consumption, there is no uncertainty. However, if  production takes place for commercial purpose, that is price and output depend on the interaction between buyers and sellers, then uncertainty arises in the decisions of entrepreneurs. This uncertainty generates profit. Probability of occurrence can be statistically estimated. These situations are known as  insurable risks. The loss from insurable risks can be avoided by paying some fixed  premium. 

  

  4. Marketing Strategy  : Marketing strategies in each entrepreneur business are the result of a meticulous market analysis. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined. A market analysis enables the entrepreneur to establish pricing, distribution, and promotional strategies that will enable the company to become profitable within a competitive environment. A market analysis also enables entrepreneur to study  position of new business in the market and stand strong for competition.

Every entrepreneur has to begin market analysis by defining the market in terms of size, price structure, growth prospects, trends, and sales potential in the existing market.

It is important to understand for every entrepreneur that the total feasible market is the portion of the market that can be captured provided every condition within the environment is perfect and there is very little competition. In most industries this is simply not the case. There are other factors that will affect the share of the feasible market a business can reasonably obtain. These factors are usually tied to the structure of the industry, the impact of competition, strategies for market penetration and continued growth, and the amount of capital the business is willing to spend in order to increase its market share.

Price your product is important for every entrepreneur because it will have a direct or indirect effect on the success of your business plan.  The basic rules of pricing product are :

1. All prices must cover all costs expenditures.

2. Your prices must reflect all the elements of cost, demand, changes in the market, and response strategy to your competition.

3. Prices must be set to preserve order in the marketplace.

4. Prices must not be at par with your competitor, or be established to assure sales. Do not price against a competitive operation alone.

5. Product utility, longevity, maintenance, and end use must be judged continually, and target prices adjusted accordingly.

Marketing strategies differs from business to business and some of them are listed as given below:

ü Web page Advertising

ü Write a column

ü Google My Business (GMB)

ü Use Google Adwords

ü Invest In content marketing

ü Advertise in niche print media

ü Join a local business group

ü Partner with other businesses

ü Grow your organic social reach

ü Run a coupon deal

ü Launch a direct mail campaign

ü Build an email marketing funnel

ü Host a webinar

ü Offer a free consultation

ü Incentivize employees to refer new clients

Web page Advertising:

Web Advertising is also known as Online advertising, Internet advertising, digital advertising.  When you think of online advertising, the chances are pretty good that you’re thinking of paid search advertising. Paid search – also known as pay-per-click advertising, or PPC – is one of the most common and effective types of online advertising.  At a glance, it attract the attention of browsing scope of search or it attract attention due to its contents and colors.  Traditional advertising mediums, such as newspapers, radio and television, offer limited dissemination.  It does not reach to the multiple dimension.  Web page advertising offers a low-cost alternative to traditional advertising mediums, while newspapers, radio and television etc., are cost effective.

There are many different types of online advertising ,as follows:

1. Display Advertising

2. Search Engine Marketing & Optimization

3. Social Media

4. Native Advertising

5. Pay Per Click (PPC)

1. Display advertising is a method of attracting the customers to a website, social media platform or other digital mediums for a specific action. Display advertising are often made up of text-based, image that encourage the user to click-through to a landing page and take action of purchase.  Display advertising can also be used for retargeting campaigns and invite the user with different pretext. This is where ads are served to users who have already visited a specific website. The aim is to retarget them and encourage them to return to the website and induce to take the action.

Display advertising mostly through the following sources :

Banner Ads: 

Rich Media:

Interstitial Ads:

Poor Media:

Video Ads:

2.  Search Engine Marketing & Optimization :

A robust search engine optimization (SEO) marketing strategy will help you rank at the top of results for keywords related to your business and keywords are the tool of the strategy inviting the customers to the business.

If you want to show up in search results for keywords related to your company, you need to target those keywords in your site Search content, page titles, Meta descriptions etc.,    If someone searches a short-tail keyword like “Car Garage,” they could be searching for a number of things — a list of the best Car Garage near them, Car Garage services, or Car spare parts.

3. Social Media : 

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