By way of introduction, it is worthy to note that the thoughts being expressed here are largely mine, and they are borne out of my less than three years journey in the world of entrepreneurship.
According to Wikipedia, "Entrepreneurship can be described as the capacity and willingness to develop, organize and manage a business venture along with any of its risk in order to make a profit". Needless to say that this is an apt definition as it captures the spirit, soul and body of entrepreneurship. Another angle of entrepreneurship that is worthy of mention here, is what we were taught in secondary school (in Economics precisely) as factors of production, namely Land, Capital, Labour and Entreprenuer. Production only takes place when an individual brings the above first three mentioned factors together, and that individual is known as the ENTREPRENUER. Suffice it to say that anyone who undertakes to start up a business of any form with the intention to make profit, is an ENTREPRENUER.
What then are the viable keys to success in entreprenuership?
- STARTING SMALL. Naturally, nothing gets big without firstly being small, the same principle applies to entreprenuership. Every big business we see today started small. Most times, people fail in business because they want to build from the top instead of the other way round. The good thing about starting small is that it offers you the oppotunity to learn the intricacies of your business; it gives you the room to identify the secret of your business. At this level, you will be able to try different strategies thus giving you the opportunity to identify your selling point. In conclussion, starting small in business can be likened to apprenticeship. The focus at this point is not to maximize profit, but to learn. By this key, we learn that it is improper to borrow money to start a business venture you have no practical knowledge about.
- RISK TAKING. From my personal experience, risk taking is the oil that lubricates the wheel of growth in business. Every business man who intends to grow must cultivate the habit of taking calculated risk at all times. Settling at comfort zones or what may be referred to as premature arrival syndrome, is an antidote to growth in business. It is good to start your business in a little corner, but it becomes bad when you settle there without any effort geared towards expansion. However, you must bear in mind that two things are involved in risk taking, it is either you achieve the desired result or you don't. If the latter happens to be the case, learn from it and try again, by all means don't quit trying.
- DELAYED GRATIFICATION. I used to be a victim of this key until recently. While I was still doing a salary job, I had this notion that our earnings are basically meant for spending to satisfy our insatiable desire for the goodies of life. So I spent a whole lot buying shoes, wears, electronics, etc. Unfortunately, this parasitic mindset still reigned supreme in me at the time I ventured into business. A large portion of my profit went into the purchase of these unprofitable items. But thank God today, I've been delivered from that syndrome and I must say that my business is better for it.
Delayed gratification simply means to give up the pleasure of any form in the short run, in order to achieve more and enjoy more at the long run. It is important to note that every business must have a life of its own in order for it to survive, grow and sustain its growth. It is sacrosant for every budding entreprenuer to reinvest in whole profits recorded in business. You must discipline yourself not to tamper with your business fund. If possible, place yourself on a minute salary. Also, in a similar vein, you must avoid giving out your goods or services on credit to avoid tying down your capital. People may see this as wickedness or stinginess, but don't bother about that, it is called financial prudence. Cash flow is the backbone of every business, therefore endeavour to nurture your business to the point where it can run itself without you bringing fund from outside to surpport it.
The end.
Thank you for finding time to read this article, without you reading, it makes no sense writing.