Chapter 2

Starting a Business

Many people have the notion that entrepreneurship is a process of chance—uncontrollable circumstances and being at the right place at the right time. In his book Entrepreneurial Intensity, Michael Morris states that entrepreneurship is determined by environmental conditions operating at a number of levels. Here Morris is referring to opportunities that encourage entrepreneurship. But that is not what this chapter will focus on; rather, it will show that entrepreneurship is a process, and every process is required to be managed in an effort to achieve desired results. For this reason, it is very important to truly understand the process of entrepreneurship and the ability of managing various stages of entrepreneurial adventure. Management is simply the ability to control structured systems in an effort to obtaining desired results. But then, how do you control an unknown adventure or process? Although entrepreneurs are seen as risk-takers venturing into the unknown, it is critical to build flexibility and adaptation in a business plans.

In developing a concept, it is crucial that entrepreneurs determine the necessary resources, as well as how to and where to acquire those resources. Once the entrepreneur is clear with all these, then he or she can start, manage, and grow the venture. This does not mean that one has to wait until those resources are in place before implementation. The inclusion of a timeline in one’s business plan is a strategic management tool that helps determine what the key resources are for the entrepreneur. The type of entrepreneurial adventure and the solution concepts of presented opportunities determine required key resources.

Now that you have developed a concept, starting your own company can be very overwhelming: choosing a name, determining the legal structure, developing a detailed business plan, developing marketing and sales plans, and actually acquiring customers and getting paid. While in the entrepreneurial adventure, the entrepreneur should know that planning is a process, not just a checklist. Nothing is written in stone. It is a gradual and sometimes aggressive evolution of the entrepreneur’s concept that takes time and planning.............

< Back to Chapter 1 | Next: Chapter 3 >