The purpose of this paper is to discuss how to start a business. Within this paper can be found details on how to get the idea and get started, how to discern if there is a market while considering who the competition will be, how to write a business plan, as well as how to fund a business. The details within this paper will focus on the entrepreneurial strengths and knowledge gained from the class Entrepreneurship in the 21st Century.
Ideas and Getting Started
In order to develop a successful entrepreneurial idea, one must first find their true niche. What inspires and drives this person, and are they willing to work within that inspiration for many years to come? Because of the nature of entrepreneurial business, the passion for the job at hand is what will make or break the business. Many times, people in the innovative fields will work 50+ hours a week on a regular basis. If there is not passion involved, the business is sure to fail.
Secondly, one must consider their personal entrepreneurial strengths. Ego, control, passion, challenges, family tradition, wealth, instinct, vision, energy, risk, independence, and initiative are a few to consider. If you are lacking in certain areas, like instinct or vision, you might consider partnering with someone who has strength in those capacities. A balance of all traits must be maintained, and having a partner to be effective where you are not, may be a good solution to trying to accomplish progress where you are not advanced.
Once the entrepreneurial spirit has taken you over and you have viable idea, it’s time to start getting your hands dirty.
Market and Competition
One of the most crucial decisions to make when getting a business started is where the location will be. This is important because the business owner must discern if there is a practical market for the service or product they intend to provide where the business resides, as well as determine what other businesses in the area will be the competition to those services or products.
When researching markets, business owners must be sure to look at the history of the area, to ensure there were not similar companies nearby in the past that went under due to lack of demand. Caterina Fake, cofounder of Flicker and Hunch, says, "Pick a good market. The idea for approaching that market may change, but find a meaty problem to solve. You can try to attack it a bunch of different ways. Don't be too narrow." (Evans). For instance, opening a surf shop in the middle of Missouri may not be the wisest of geographical places to successfully make a living off of surfboards and rash-guards, but you might be able to alter your idea to provide lake activity related water toys at a location near Lake of the Ozarks.
Once a legitimate location has been determined, the future owner must establish where the surrounding competitors reside. Opening a newer, lesser-known coffee shop like Scooter’s in the same strip mall as a Starbucks, most likely would sink...