There are several aspects of entrepreneurship such as legal aspects, developmental aspects and global aspects. In addition to these aspects there are six phases of entrepreneurship which every entrepreneur must go through in order to become successful. Let us now review these most basic and essential entrepreneurship aspects and phases.
Intellectual properties must be secured and protected, find out what these are and have them patented and copyrighted as soon as possible. Legal aspect includes copyright protection for your assets by registering them with the copyright office. Have everyone in your team sign non-disclosure agreements to protect trade secrets and make sure there are no lapses in security for the assets.
Developmental aspect covers the six phases of entrepreneurship which are further discussed below. This helps to understand the life span and the process by which individuals develop entrepreneurial abilities and the various phases to be undertaken by individuals who are keen enough to answer their calling.
Entrepreneurs who have decided to expand their business and establish partnerships and operations around the world need to be aware of the global aspects of entrepreneurship. Entering foreign markets may require permits and licenses although this is not necessarily applicable for all, especially those operating via the World Wide Web.
Phases of Entrepreneurship
The phases that comprise entrepreneurship are divided into six: discovery, assessment, planning, launching, expansion, and exit.
• Phase One: Discovery
This phase is when you discover your own entrepreneurial potentials. When you have become exceptionally passionate about something you have created in your mind (vision), this could be the start of your entrepreneurial endeavors. As soon as you have established this, you should then identify a business opportunity.
• Phase Two: Assessment
After being able to come up with a sound business idea, your next step is to conduct a formal or informal feasibility study to assess it properly. Whether it is a product or a service, test it. Identify your target market as well as your would-be competitors.
• Phase Three: Planning
Create an excellent business plan. This should be based on your goals and objectives, and must be flexible and dynamic to keep up with the changing times. Include targets such as your customers, investors, competitors, and employees.
Planning must be well-balanced, and should include contingency measures and backup plans. A basic workable business plan has: company description, objectives, description of what you are selling, market study, strategies and implementations, key members, and a financial plan.
• Phase Four: Launching
Develop your product or service, find your people and train them well. Once you have your product / service and your team, start marketing your product. Tap advertising media such as the internet and newspapers to let your target market know about what you have to offer them.
• Phase Five: Expansion
As soon as you have established your business, more and more customers will come. Once this happens, it is the right time to expand and grow your business. Hire more people but ensure that they are as competent (if not, better) than your current team.
Ensure that product and service quality is maintained, if not, improved. Innovate and be creative; develop other products and services that your target might need so that they will continuously be delighted and surprised by what you can offer them. Research and learn more and do not neglect your people because they are your greatest assets.
• Phase Six: Exit
Know when it is time for you to end a particular business venture. Several factors trigger this such as: costs, customer needs, revenues, and human resource. It is imperative that you know when to stop because if you cannot see the warning signs, your business could suffer repercussions such as heavy financial losses.
Two Types of Entrepreneurs
Entrepreneurs can be classified into:
1. Large Scale Entrepreneurs
Large scale entrepreneurs aim to become millionaires or even billionaires in 5 years. They have a very courageous approach to starting a business; they come up with a brilliant idea and a bold business plan. They seek help from venture capitalists and then once they grow their business, they make it public or sell it to much larger companies. They are big time entrepreneurs with ventures that are high risk.
2. Small Scale Entrepreneurs
Small scale entrepreneurs too have brilliant ideas and take bold step of starting an endeavor. However, unlike the large scale entrepreneur, he is content with a small business, establishes steady revenue, and becomes wealthy after some time. They are small time entrepreneurs working their way to the top, with ventures that are considered low or medium risk.