Questions About Starting a Business

All people really want to start their own business, just because want to earn money that will be used for their lives. But, there are some questions involving entrepreneurship and starting a business. Here are some questions and answers about entrepreneurship and starting a business.

1. What are The Traits of a Successful Entrepreneur?

Becoming a successful entrepreneur is not easy. There are some characteristics to become a successful entrepreneur. In this part, I’m going to talk 5 characteristics to become a successful entrepreneur. Here are some of them:

- Self-directed

This characteristic learns how to be self-disciplined and thoroughly comfortable being your own boss. The reason is because if the company is a success or a failure, the one who will take responsible to the success of the company is yourself.

- Self-nurturing

This characteristic learns that you must believe in your idea even though others didn’t do what you do, and be able to replenish your own enthusiasm.

- Action-oriented

This characteristic learns that you have to create a burning desire towards making a realization, actualization, and build your dream into reality, after creating your idea.

- Highly Energetic

This characteristic learns that you must be emotionally, mentally, and physically able to work long and hard, because many entrepreneurs works seven days a week and don’t take any vacations.

- Tolerant of Uncertainty

This last characteristic learns that entrepreneurs must be able to take some risk, because entrepreneurship is not for the squeamish or those bent on security. So, don’t be afraid if the business fails.

2. What is The Difference Between an Entrepreneurial Team and a Micropreneur?

An entrepreneurial team is a group of highly skilled people from different areas of business who wants to join to form a managerial team with their own skills to develop, make, and market a new product. While Micropreneur is a type of entrepreneur where it is willing to accept the risk of starting and managing the type of business that remains small, and let them do the kind of work they want to do, and offers them a balanced lifestyle.

3. What are Intrapreneur and What is The Difference Between Entrepreneur & Intrapreneur?

Intrapreneur is a type of entrepreneur where it hires creative people who will work as entrepreneurs within corporations. The difference between entrepreneur and intrapreneur is that entrepreneurship involves people, either creative or not who wants to start and running a business, while intrapreneur involves creative people creating new products to the company and sell it.

4. What is a Business Plan? What a Business Plan Consists Of?

Business Plan is a detailed written statement that describes the nature of the business, the target of the market, the advantages of the business that will have in relation to the competition, and the resources and qualifications of the owner(s). To write a business plan, entrepreneurs have to write 10 sections of the business plan. In this part, I’m going to describe these 10 sections. They are:

- Cover Letter

This section should summarize the most attractive points of your project in as few words as possible, and have to address the letter to the potential investor by name.

- Executive Summary

This section should write a two or three-page management summary of the proposed venture and a short description of the business.

- Company Background

This section should describe company operations, potential legal considerations, areas of risk and opportunity, summarizing the firm’s financial condition, and include past and current balance sheets, income and cash flow statements, and other relevant financial records.

- Management Team

This section should write an organization chart, job descriptions of listed positions, and detailed résumés of the current and proposed executives of the management.

- Financial Plan

This section should provide a five-year projection for income, expenses, and funding sources.

- Capital Required

This section should write the amount of capital needed to commence or continue operations, and describe how these funds are to be used.

- Marketing Plan

This section involves discussing the strengths and weaknesses of the product or service. But be careful, the most important things investors want to know are what makes the product more desirable than what’s already available and whether the product can be patented.

- Location Analysis

This section is considered important because, the location of the business is one of the most important factors. So, provide a comprehensive demographic analysis of the consumers in the area of the proposed business.

- Manufacturing Plan

This section should describe the machinery required, production capacity, inventory and inventory-control methods, quality control, etc.

- Appendix

This last section should provide a bibliography of all the reference materials that has been consulted.

5. Where can we get our First Capital as we Just Starting Up?

To get the first capital for start-up, mostly we get it from the personal savings, relatives, former employers, banks & finance companies, government agencies, and angel investors. Another sources to get the first capital is a Venture Capitalists. Venture Capitalists is a company that will invest the money to small businesses in exchange of the cash to start your own business.

6. Why is it Important to Know our Customers First Before We Develop a New Business?

The reason it is important is because the market has consumers that don’t like their wants and needs that has resources and a willing to buy. Because of this one, we can know that the consumers don’t like this certain part of the product/services. After that, just fill the customers needs by offering a top-quality product/service at a cheap price

Resources:

Nickels, William G. , McHugh, James , McHugh, Susan; 2018; Understanding Business; New York: McGraw Hill Education