The Entrepreneurial Process

The Entrepreneurial Process

Many successful entrepreneurs tend to follow The Entrepreneurial Process

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.