Quiz 5: Becoming the Owner of a Small Business

Business

While entering in a business, the foremost point of consideration is whether the concerned person actually wants to own and run a business. A business requires a lot of physical and mental investment, once launched there is no way to shut it down immediately. If it is done, there will be a tremendous loss to the owner. Proper R D should be done regarding the nature and the size of the business before executing the business model. The entrepreneurs can choose whether they want to establish their own business, they wish to buy an existing business, or they want to invest in a franchise business. Choosing the type of business is again a complicated task. The following points can be helpful while choosing the type of business: • Product search and identifying a proper business idea is the first step. It can be found using current market trends, reading books, and analyzing the customer demands. • If the similar product already exists in the market, the person can opt for the franchise of the same. • If the product is entirely new, a new business should be launched. • Social and business conversations with people of personal network can be helpful. Besides above mentioned general points, the entrepreneur should have a clear vision and understanding about the types of business. Starting one's own business is great but time-consuming idea. Buying an existing business is like purchasing a settled entity with established markets and a loyal customer base. Buying a franchise provides partial satisfaction of ownership and partial satisfaction of already planned business model. It can be concluded that the entrepreneur should decide whether he has enough time to settle a new business. He/she should also observe whether he has enough capital sources to buy an existing business or franchise. Along with this, he/she should examine potential of him/her and try to align the same with the type of business to be started. If these things are clear, people won't take time to decide what they wish to start.

Identifying right opportunities at right time is the key to success. Proper planning of the business opportunity is required to take the business to the execution level. Entrepreneurial process comprises of multiple tasks and decisions. Each step needs proper R D before it takes the form of implementation. The following points will be helpful in identifying the business to be owned by the entrepreneurs: • Identifying a business to be owned should be done on the basis of one's own potentials and areas of interests. • Budgeting and planning are also important parts to be considered. • Exploring current opportunities and anticipating futuristic growth of the same should be kept as priority. • Unique selling propositions which can be associated with the business idea should also be planned. To make a business successful, the entrepreneurs should have both fundamental skills and critical skills. Fundamental skills include patience, dedication, willingness, and confidence. Critical skills include decision-making, risk-taking, observatory and analytical approach. All these skills collaboratively provide productive outcomes. These skills help the entrepreneur to achieve both short-term and long-term goals. A business requires proper nurture and care which need time and patience, the ones who are capable to balance all the essentials make the business successful.

While identifying a business idea, it is must to crosscheck the same with the present market demands. The entrepreneurs should plan in advance how the business will take the form of execution. The business development planning strategies along with the target market are to be identified before executing a business model. Each step should be planned keeping the practical needs of implementing the same. Identifying the right target market is equally important as identifying the right business opportunity. If the market is not identified, the investment on strategies will go in vain. The market for a product can be determined using following points: • Social and business conversations using personal network is a great way to start looking for the market. • Relative comparing the competitors in the same market also provides exact idea about the market to be targeted. • It is to be observed that people of what demographics will be interested in buying the products. Identifying and targeting specific demographic saves additional costs spent on reaching out to those people who don't need those products. • Psychographics which includes personality, values, opinions, attitudes, and interests of the people should be identified using analytical tools. This process is very beneficial in targeting the right market. The personal share of the market can only be established if unique selling propositions and differentiated strategies are applied efficiently. The customers get attracted towards those entrepreneurial stores which offer them quality products and services in compatible costs. However, when quality of the products are connected with environment and society friendly approaches, the customers become ready to spend a little more money. Personal share of the market also depends upon whether the entrepreneurs wish to maintain their profitable stores in the niche market or they want to expand the same.