We will examine both the formal and the informal aspects of an entrepreneurial exercise. The formal aspect deals with the creation of laws and the economic approaches to the standard financial and commercial profile of the contractor. The informal aspect is more subjective and refers to the degree to which the qualifications required for being a successful entrepreneur and my own personality and future ambitions coincide.
The following discussion will be structured in three parts: the first focusing on the formal dimension of entrepreneurship, the second highlighting the qualities needed to succeed in the venture, and the third allowing me to judge if my personality is compatible with that of a potential entrepreneur.
[...] We must first create a business plan that provides a realistic picture of the project. It should outline the idea formally and establish its feasibility by presenting the initial financial forecasts. The business plan should include four essential components: An overview of the project: This should include the project summary, CVs of individual employees, and the original project objectives and motivations. An economic overview: this would consist of the product presentation, market research, retention strategy and sales forecast. Financials: The investment picture, financing plans, projection for the first three years, projected income statement, cash-flow, and break even constitute the financials. [...]
[...] A good idea is not necessarily a revolutionary technological innovation. It may also involve a trivial looking market segment. The second step is to study the market: It involves testing the idea evolved in the context of its future market. Such a market study should help address a number of questions. For example, The characteristics of the product: Its benefits, degree of specialization, level of quality and so on, The target customer: An analysis of potential clients, and their classification into sub-groups, with respect to what are their habits, their level of income, and their geographically concentration. [...]
[...] There are two main types of status: A sole proprietorship: This is suitable for entrepreneurs whose business involves little risk and who have limited investments. The law views the company and the entrepreneur as a single entity. A company: This is a conglomeration of entrepreneurs who join forces to protect their assets. Each individual has the status of an employee and receives a salary from the Company. This allows the creation of a new theoretical entity called an independent contractor. [...]
[...] Business creation is an attractive activity with a clear predominance of companies in the service sector, as they require a relatively small initial outlay. This can partly be explained by an increase in the average survival rate, which has gone up from to between 1994 and 1998. Entrepreneurs on average are mostly tertiary educated and from a station employee. Creating a company can create an alternative to the lack of activity Qualities, skills and responsibilities of the typical entrepreneur The high diversity of backgrounds and experiences of entrepreneurs makes it difficult to develop a standard profile. [...]
[...] There are also a multitude of human qualities that an entrepreneur would do well to have on his side. Commonsense, practical intelligence and instinct are the pillars of success. An individual who is too intellectual and has abstract intelligence sometimes does not take enough risks. Common sense is therefore needed for creating a successful enterprise. A good entrepreneur should have the ability to adapt to any event. He must know hoe to innovate and have the courage to do so in the face of uncertainty and at the risk of destabilizing his enterprise temporarily. [...]
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