LESSON 2: HOW TO BECOME A SUCCESSFUL ENTREPRENEUR Getting a viable business idea to setup a new business is a rewarding initiative especially in an economy where formal employment is hard to find. But there are some basic questions you must answer. 1. Do you have the appropriate skills to translate the challenges of your business idea into opportunities for profitability and success? 2. What problems or risks are likely to be expected for early awareness preparation of strategies? 3. Have you ever run a business before? If yes, how did you deal with past challenges? Did you just quit and shut down? What indications do those challenges present about your capacity and preparedness to meet new and difficult business obstacles? You need to know that every business has its own challenges, especially a new business. Finding true answers to the above questions will help you know whether you are ready for a new business or not. Here are some critical questions you must answer before starting a new business. 1. Do you have the right personality to start up a new business? The technical nature of business management such as academic qualifications, skills and experience are important but not sufficient alone to determine success in business. For an entrepreneur to run a business successfully, you require ability to: a. Find the right personnel or build an effective personnel b. Find customers for your business c. Establish confidence in your customers so as to retain them d. Be able to negotiate for sales improvement e. Be able to think clearly and make the right decisions even when under pressure f. Be able to manage time profitably; that is, efficiently and effectively g. Apply a strong sense of logic and perceptiveness h. Organize and take responsibility i. Communicate effectively, inspire teamwork, be flexible and quick to seize opportunities j. Take risks 2. Does your age determine business success? Experience in planning, defining objectives, managing resources, formulating business strategies and decision making is very important. Experience comes from years of commitment to a cause. For young entrepreneurs, it is important to take up internship in business areas that relate to the type of business you want to pursue. Internship means working for no salary but working for experience. Many young people think that internship is a waste of time because young people are always in a hurry to find money, thereby despising experience. If you are to run a business successfully, you must be able to offer yourself for internship or look for experienced people or institutions that can offer their expertise to enable you build up your business. Zambian institute of business entrepreneurs - ZIOBE offers internship to students on vacation and also to non-skilled youths who can understand the purpose of internship; that internship is not about you getting a salary in exchange for hours on duty, but it is about gaining business exposure and industrial experience. 3. Which types of skills are required in business management? You need both technical skills and relevant knowledge that applied to business management such as marketing, business costing, personnel management, business communication and leadership skills, to mention but a few. SIZE UP YOUR ENTREPRENEURSHIP SKILL Sizing up your entrepreneurship skills is an opportunity to help you assess yourself in order to meet business challenges. Your aptitude or ability to launch a new business and bring success to it needs to be examined. There are specific business behaviors which determine your success in business. These include; a. A strong drive to succeed b. Open-mindedness that it is possible to make mistakes in business c. Willing to learn from mistakes and build strength from your weaknesses d. Motivation to stand on your own e. Persistent drive and willingness to see business challenges as opportunities for learning to perform better f. Ability to communicate and work with others g. Willing to take risks 1. Do you have what it takes to be an entrepreneur? Take a piece of paper and sit yourself down to take an in-depth study of yourself without external opinion. Write down your academic, professional and personal experiences and skills, stating what part you would like to play in your business. Would you like to be the one selling, marketing in the field, handling finances, producing/manufacturing etc.? Remember that you cannot do everything on your own. You need departmental support. The business you do should be able to suit your interests and probably spring from your experience or desire to do a specific business. Now analyse your personal abilities and attributes. a. Are you friendly and self-motivated? b. Do you have the willingness to work hard? c. Are you clumsy or well organised? Honest answers to these questions will help you learn about your strength as well as weak points so that you can do something before commencing with your business plans. This will give you a good start. Remember: honest about yourself and your dealings is key in growing and sustaining your business. Never cheat in Business. 2. How do you define your objectives? Defining your objectives is an integral part of choosing the right business that suits your objectives. Objectives are your aims or purposes in doing business, in other words: things that you want to achieve. a. You need optimism and positive thinking when setting objectives b. You need to be specific. Instead of saying I need working capital; you must be able to exactly tell how much you require to start-up a business. c. You need to be realistic when setting objectives. Set objectives that represent your present capacity to meet them d. Learn to set both short-term as well as log-term objectives 3. What will be your financial need? Whether you want to purchase an existing business, start your own or buy a franchise, starting up a business depends on first knowing your requirement for funds. You need to gather information on the cost implications of staring up a business and you must also be in a position to estimate minimum profit value of your business. The word franchise means: acquiring permission or license to use someone’s trade name or business name which is popular and well known. 4. Besides developing a good business idea, what else do you need? Success in your new business requires dedication and consistent application of proper business principles. Some of the principles include; a. Proper use of money b. Relating well with investors, customers and employees c. Applying proper promotional strategies [Lack of these skills will burn you out of business in no time at all]. CONDITIONS FOR REALIZING A BUSINESS START-UP 1. You need to examine your abilities and resource capacity Starting a business involves risks and understanding the nature of risks early will help develop strategies to minimize chances of them occurring 2. Be ready for business pressure Every business, especially in its formative stage has got pressure. Pressure often comes from working long hours, financing business on debt, striving to meet targets, maintaining quality and delivery efficiency, handling clients and retaining them, working on product/services diversification etc. 3. Have a clear understanding of why you want to start the business Some people start a business to overcome poverty and other challenges in life. You must be very clear about your motives in order to avoid unrealistic expectations. What is your motivation to start up a business? Starting up a business essentially signifies an opportunity to provide a product or service more effectively or efficiently than others, more so as to define the relevance of your business undertaking. If you don’t define the reason why you want to start up a business, your business may not be so important to you. In the event that you start a business without first defining why you are setting it up, chances are that you will give up easily to pursue other ventures. A business is like a love relationship. You must give into your business much as you should receive. You must be able to care for your business and communicate effectively with your business. If you propose love to someone you are not ready to commit to, chances are that you will easily fall out of love. If you keep taking more from your business than you give into it, just like in a love relationship, your relationship will collapse. In the early days of a new business, just like when you propose love to a girl, you must be ready to do the walking; i.e., sacrifice your time and financial resources in order to make a name and an impressive mark on the market. Just as you spend sleepless nights thinking about someone you love, you also need to spend sleepless nights planning on how to win your lover and maintain your relationship. Some reasons why people turn to business include; a. Quest for self-employment and independence b. Increased job satisfaction and achievement earned from operating your own business successfully. c. Passion for wealth d. Setting up a cause to help your family, community or nation etc. ASSESSMENT: 1. Do you have a passion for entrepreneurship? 2. If yes, Look around in your area/community and identify a business need; something that many people need but is often scarce or hard to find. or think of ideas that could improve an existing business in your area/community/market-place. Now write down a plan on how you would implement these ideas if you were running your own business. Send answers to: lubukeni@gmail
Posted on: Thu, 04 Jul 2013 05:35:30 +0000
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