Entrepreneurship is meant to start your own business or to start the process of establishing a new business venture.
This concept of entrepreneurship is nowadays very famous as the young generation is to start and they are very focused to study the creation of a new venture.
Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit . While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of start-up businesses have to close due to "lack of funding, bad business decisions, an economic crisis, lack of market demand—or a combination of all of these.
The first step to establishing any business is to identify the business idea on which we will start working. Most of the time the failure and success of the business depend upon its idea. The business idea should be clear and real which will be acting as a base of starting a new business venture.
We need to plan the business to convert the business idea into reality. A business plan involves all the planning regarding the business like what and how the transactions will take place and how the employees will be hired and how the business will grow in the coming years and all the information by which the framework of business can be established. This includes framing the vision and mission statement of the business and the short term and long term objectives of the business.
This step includes the planning of finance like from where the funds will be arranged and exactly what amount will be required for the continuation of the business, what will be the working capital requirement of the business and from where the fixed and current assets will be acquired by the business venture.
The structure of business will be defined in this step like whether the owner of the business wants to do business under a sole proprietorship, or in partnership with other partners or wants to establish a company. The structure of business will decide the capital requirements and the limit of liabilities of business like in sole proprietorship the liability of entrepreneur is unlimited or in the company, the directors of the company have limited liability.
This step is very important as to do a lawful business we must get it registered. The registration process requires establishing a name for the business, the purpose of the business, objective statements, and type of the business. The name of the business helps in almost every aspect as it will be reflected in all the transactions, deals and the workings of the business so it must be short, simple and readable and should be related to the business.
For running a business venture smoothly and without the government restrictions, it is necessary to get all the licenses required for the business and to take permission from the government to start a business. All these licenses and permissions act as a certificate for the business and increase the credibility of the business.
Most of the businesses run successfully on the basis of systems used in that business. One of the most important systems of the business is its accounting system. The accounting system is necessary to create and manage the budget set your rates and prices, conduct business with others, and file your taxes. You can set up your accounting system yourself, or hire an accountant to take away some of the guesswork.
Choosing a place from where all the business operations can be done effectively and efficiently is a tough task as well as a necessary one. A place from where the allocation of products can be done easily to the market as well the raw materials can be procured easily should be the place of business to run the business effectively. The business location or place can be procured by the owner of it can also be taken on lease or rent by the owner to save the cost of investing huge money on purchasing the fixed asset.
In this step, the recruitment function is done by the human resource people of the business. To create a team of hard-working people this process should be taken out carefully so that an efficient team can be recruited to take out the transactions of the company effectively.
This step is the most important one as if people will not b aware of the business then how the company will grow and expand. for expanding any business it is most important to generate the awareness of the business in the public and for creating awareness in the market various promotional tools like advertising and sale is considered by the business professionals so that eventually when the customer will start recognizing the brand name and the business and its respective products there will be no more need to spend huge amount of money on the advertisement of the products and services offered by the business venture. This helps to reach out to the customers and analyze their needs and requirements and to give better services and products to the customer and increasing customer satisfaction and customer loyalty which will eventually be beneficial for the growth of business and its retention in the market.
All these steps are necessary to start a new business venture and run it effectively and efficiently.
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