The Entrepreneurial Process
Many successful entrepreneurs tend to follow a process to develop their businesses. This process contains four stages toward achieving their dreams. The processes are identifying an opportunity, developing a business plan, assessing the need for resources, and finally developing a management program designed to achieve success. The entrepreneur must develop an understanding of this process as an important step. Developing an understanding of the entrepreneurial process can determine if a business venture is to be successful.
Some phases of the entrepreneurial process may appear more important than the others but in reality each phase must be completed in succession in order for the process, and the business venture to be successful.
The first of the entrepreneurial process is to identify opportunity. This is sometimes referred to as the business model innovation (Barringer, 2008). It is during this phase that the entrepreneur must identify that in need for its product or service exists. Identifying a business venture begins by answering questions concerning the market environment and the possibility that existing market exists.
This identification process attempts to analyze a possible target market that may exist for the use of this product or service. The acceptance by the target market must be analyzed for the potential use of any new product and the need for the product or service must be identified and analyzed also. It is also during this phase that the existence of a similar product or service can be discovered in the competition from the business environment can be compared for possible development of a product niche within the existing market.
Identifying a business opportunity develops the entrepreneurial process through the development of an idea. As the identification of the opportunity advances to the next phase, evaluation and feasibility analysis begins. Once the identification process has been completed the time comes for the evaluation and feasibility analysis to be initiated so that a proper business plan can be developed. It is during this phase the entrepreneur is to evaluate the feasibility of the assembled and assess the assets that are available or need to be assembled.
This assessment must be done honestly and directly, and done so to ensure the successful launching of a new business opportunity. It is also during this period or phase that a financial assessment should be completed. It is during this part of the process the needed capital to cover startup costs, and costs associated to sustain this new business venture for several years as determined. There should be sufficient money to cover all aspects of the business venture from salaries, manufacturing and distribution costs, and all other tangible aspects needed for a successful business venture.
Once an analysis is completed of the organization a business plan needs to be written so all members of the entrepreneurial team can share a common direction. The business plan should include strategic resources, interpersonal attributes of the assembled entrepreneurial team, and the necessary capital to launch this new business venture. The business plan can include directions in dealing with established partnerships or company stakeholders to provide structure to the business relationships needed to acquire success.
Once all aspects of the business plan have been created and ratified through analysis the third phase of the entrepreneurial process can begin. The third phase of the entrepreneurial process is to identify the resources needed. These resources can range from the tangible to the intangible. During this phase key personnel and strategic resources are identified and acquired to enhance the continued success of a newly launched business. Care must be taken not to underestimate the amount or variety of resources needed (Hisrich, 2005).
Identifying and acquiring the right people for the right job at the right time can be difficult and time-consuming. It is during this phase of the entrepreneurial process of acquiring the essential resources to successfully launch and maintain a business venture can be analyzed and developed to ensure business success. It is also during this phase the needed monetary funds are obtained and allocated by the proper division to ensure that the scarce resources of a newly found business can be directed appropriately to once again obtain business success.
Once all of the three aforementioned phases are completed the launching of the newly formed business is at hand. With the launching of a newly developed entrepreneurial business there must be personnel in place to ensure the develop business plan is followed. Managing scarce resources and personnel during the day to day operations of the business must be done in such a manner that will sustain a successful startup of the business.
This type of managing should include extending the elationship of the business to customers and stakeholders alike. Managing finances, advertising, distribution, and other multiple areas of the business takes the right individual. It takes the right individual to implement on a daily basis established business plan developed through prior phases and analysis. The phases of the entrepreneurial process unique to the development of the entrepreneurial business venture. Placing a higher value to one phase over another can be an extremely difficult endeavor.
Place a higher value to one phase of the entrepreneurial process over another may lead to the belief that certain phases of the process can be ignored or performed poorly. Each phase of the entrepreneurial process should hold no higher ranking than the other. All processes must be completed entirely to ensure that the entrepreneurial venture is launched in a manner that leads to success. This being said, if one phase must be considered more important than the others, then that phase would be the identifying of the idea or opportunity that began the process of entrepreneurship.
From an individual standpoint the most important phase the entrepreneurial process is that of identifying the idea or opportunity for developing a new business. It is through the entrepreneur’s idea or belief that an opportunity for a new business exists that the energy and enthusiasm to propel and sustain the entrepreneurial process is derived. Entrepreneurs are noted for their consistent tenacity directed toward achieving a goal and constantly moving forward even in the face of adversity.
This must come from the passion held for the idea that drives the entrepreneur to get up early, work harder, and sacrifice more than other individuals. The most important one of the four phases in the entrepreneurial process for the Corporation would be in the development of a successful business plan. A successful business plan is developed through the collaboration of members of the entrepreneur team. It is through this collaboration that every aspect of the entrepreneurial process is examine and analyze to ensure probable success the launching of the new business.
The stakeholders and investors need to be reasonably assured in the success of the newly formed business and this can only be done through providing an accurately detailed business plan. The entrepreneurial process has greatly influenced the delivery of health care products and services throughout the country. Many entrepreneurs have identified an ideal or opportunity and launched businesses such as ambulance services and in-home physical therapy for recently discharged orthopedic patients.
These entrepreneurs have provided services that are essential to the delivery of needed health care services both for the safety and convenience of the customer. These entrepreneurs have changed the way health care services are delivered by taking something that was once hospital-based and applying the same expertise in the convenience of the customer’s home. Entrepreneurs are finding ways to bring innovative, customer oriented health care to market (Howard, 2008). Entrepreneurs will continue to influence the delivery of health care whenever an idea or opportunity presents itself.