Entrepreneurship

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An entrepreneur is one who comes up with new ideas or turns their innovative ideas into goods or services. Starting an innovative business is a common act of entrepreneurship but an entrepreneur need not start a business always. Those who make their ideas turn to actions are also entrepreneurs. For eg. Scientists like Thomas Alva Edison who changed the world with the inventions like electric world comes under this category.
Characteristics of an entrepreneur:
The two common characteristics found in entrepreneurs are innovation & risk taking ability .It is not enough to come up with innovative ideas. One should have the courage to stand with them and the conviction to turn to right when the whole world is moving towards left.

Entrepreneurship or job?
It is a million dollar question difficult to be answered in the current economic scenario. Both the job seekers and the job creators are needed in the society. However, it is more difficult to keep a job than to grab a job. Students are turning into entrepreneurs. Entrepreneurship is being taught as a subject at some of the premier institutes of the world. Various incubation centres and angel investors also provide the necessary funds and guidance to turn students’ ideas into ventures.

Starting your own business:
Starting your own business is an art as well as a science. It requires the creative thinking to design and implement marketing strategies and scientific study of market and competitors. It also needs the hard work and passion to sustain the business even when it is unprofitable in the short run. An entrepreneur should always have a long term vision, but the reason why most of the startups fail is the lack of a proper marketing method and lack of funds for its marketing. Following cost effective tips for startups should be used to overcome failure:

1) Identify your Industry, Niche and Micro Niche: Which industry you are going to operate in? Is it worth entering? (Do porter’s 5 Force analysis).What is the focus: Niche and Micro niche. For e.g. For a company entering event management industry for promotional activities like seminars quizzes etc to promote awareness among youth, niche may be education and micro niche may be career awareness.

2) Understand the business laws: It is important to know the policies and business regulations of the government of the country where the business is intended to operate. Negligence of business laws may put u into a legal suite and affect your profits.

3) Have a marketing & financial plan backed by contingency plan: Uncertain Market conditions may make the things go out of control and there should be a backup plan or contingency plan to cope up with the same to seek an alternative course of action.

4) Put yourself into your customer shoes: Ask yourself if you had been in their position what would make you buy your product (What is in it for me?) and develop the product or service accordingly. Developing from the customers’ perspective is often termed as customer driven development.

5) Identify the market and competitors: Identify what the market is and where it exists? What are the key marketing strategies being used by your competitors and the price tag and level of quality they are providing? Do the SWOT (Strength, Weakness, Opportunities and Threats) analysis on the basis of these questions and formulate strategies. Further, use the technique of competitive intelligence by keeping a strong vigil over your competitors’ strategies to formulate counter strategies.

6) Never undervalue your product or service: Lowering the cost does not always increase the demand of a product or service .It depends on factors like the household incomes of the customers, their buying interests, quality of the product and the competitor’s pricing of substitute product. Under pricing may reduce the credibility and overpricing at the start is unacceptable. So, optimum pricing should be adopted.

7) Decide whether to give a Grand Opening or a Secret Opening :If you want to publicize your business at the launch and aim to make it big someday then go for a grand opening else go for a secret opening focusing more on your strengths of business rather than the number of years of its operation. Avoid giving false statistics as it may put you up into a legal action.

8) Use of social Media: Different sources like facebook, google+, orkut, linkedin, blogger, myspace, flipkart, ebay etc could be used. Also, use a personal website for the web presence of your business at an affordable cost .Online marketing, sales and customer support opens a new branch of marketing called “e-Marketing”.We have moved towards a virtual world and even a comment by a certified buyer over some social networking site like flipkart could make or break your sales figures.

9) Improve customer service: If you suffer from a poor customer service even an increase of customers through proper marketing strategies will not be retained and they would like to switch to your competitor for better services. Look if you could provide free home delivery, cash on delivery, bulk purchase discount etc.

10) Make strategic partnerships: Identify the key businesses and vendors relevant to your business and make strategic partnerships like if you are starting a small event management business then you could provide brand visibility for the media which could help you manage the costs of advertising and increase in popularity of the event.

11) Adopt a proper marketing strategy: There are three types of marketing strategies: Directional advertising, Creative Advertising and CTA (Call to Action) Advertising. Directional Advertising is directing your customers to buy your product or service. Creative Advertising is advertising through banners, sponsors, stickers etc. Call to Action Advertising is intended to urge the customer to directly buy your offered products and services .It is best suited to seasonal products.

12) Have a proper opening and closing strategy:
Opening Strategy: For correspondence with your customers adopt a opening strategy by adopting a mail of introduction to your product and services in such a way that it gives you an edge over your competitor like for the introduction of a new software you could introduce as:”Our product is based on the latest XYZ technology which increases its efficiency by 35% but also make a nominal increase in cost of 5% due to high labor and input costs incurred.”(This would give a justification to the stand of your product’s pricing and quality).
Closing Strategy: Send a confirmation mail after delivery of a product or service and ask your customer for a genuine feedback on a survey form using online and offline modes. Ensure him to include some of the customer’s suggestion in the future sales.

13) Avoid Overexpansion: Expand your business as per your increase in sales and your ability to control its growing operations. Don’t just expand to extend.

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11 Comments

  1. Madhu Rajoria says:

    God job keep it up!!!!!

  2. syed says:

    precis but informative

  3. sangeeta says:

    Keep up the good work.

  4. megha singh says:

    Good one……….

  5. Hemlata Singh says:

    Good Job:)

  6. azar says:

    Good one!

  7. saranya says:

    Good one!!! 

  8. Nitish says:

    Good one..

  9. vineeth says:

    short and to the point..

  10. Vishnu says:

    Awesome… Good work…

  11. Shyam says:

    nice..

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