Without these three elements of the process, you can’t expect to succeed you as an entrepreneur and your small business as a company.
In the simplest possible form, the entrepreneurship is the process that can be described as you at the starting point that creates company in order to deliver values to your customers.
This process is presented in the following chart.
But, at this process miss something very important. If this is the one and only process of becoming successful entrepreneurs, then everyone will become an entrepreneur and every startup will become successful company. But, the reality has shown us that this is not true. The missing element from this process is your own competence and resources that you will put to work on the creation of the company.
So, the first factor that creates a difference between different startup ventures is entrepreneurial competence. But, in the reality we have many examples where startup entrepreneurs doesn’t have all required competence and resources to start and build really successful business. Simply, they compensate their missing competence including partners that will help them on their entrepreneurial journey. Now, we have our simple process in the following form.
Let’s see how this process will looks with the concrete action steps you will need to take in order to become really successful entrepreneur.
- As a first thing you will need to have strong desire and passion to start your own business and become successful entrepreneur. I have seen many would-be entrepreneurs without strong desire and passion to become entrepreneur. They simply want to create a job for them. I call these types of entrepreneurs not entrepreneur, but craftsman.
- Do you have competence for entrepreneurial journey? At the next step in the process, you will need to answer this question related to your competence. What is entrepreneurial competence? The competence is a collection of knowledge, skills and experience you have to start and run successful business. You will need knowledge related to marketing, finances, operations, and so on. But, also you will need skills as managerial skills and entrepreneurial skills. Additionally, experience is something that will help you to find the best possible ways to solve large and complex problems that you will have on your journey. If you think that you already have all competence required to create and run a successful business, you can continue with analysis of your competence in order to locate possible business opportunities. If not, than you will need to go for another decision and it is…
- Can you develop your entrepreneurial competence? When you know what you have as a competence and what you are still missing you need to decide about the next side where you will continue with the movement through your entrepreneurial journey. If you can develop everything you need in form of competence you can start working on that development. If not, then it is better to start working on possible partnership in form of co-founders and the team of people who will bring the missing competence.
- Work on development of your knowledge, skills and experience. As an entrepreneur you will always need to work on development of your entrepreneurial competence in the form of knowledge, skills and experience. Experience will come as the time will go on at your journey. But, something that you can change starting today is your knowledge and skills. Simply start learning everything related to your market, industry, and entrepreneurship principles. But, learning is not enough, if you want to develop skills and experience you will need to implement what you have learned. So, experiment with new things, try different things, and make conclusions about your action steps in order to improve the future action steps. That’s the only thing that will help you to become really successful entrepreneur.
- Find co-founders and start developing your team. If you find yourself lacking some competence and resources important to bring your company in the life on the most suitable way, and you don’t have time to start developing these competence or find resources, than it is better to find co-founders and team members that will bring all necessary competence and resources. Maybe you have someone from your family or friends that can help you to bring required resources and competence. Why not use them as your partners. Your success will also bring success for them.
- Analyze your competence for possible opportunities and brainstorm business ideas. The best business ideas are ideas that are business opportunity in the same time. What does it mean? A business idea can be opportunity only if you have capabilities to implement it, and solve real customer’s problems so they are willing to spend money. Because you have already brought enough competence and resources, this part of the process will be really simpler for you. The result will need to be clear decision about the products and services, the customer’s value and the way you will use to bring customers to the company.
- Are customers like what you are doing? As the last thing in this process to become successful entrepreneur you will need to go outside your building and validate with real customers everything that you have developed thus far. The first important question is are you solving the right problems for them? If so, are they willing to pay you and how much they are willing to pay you for your solution. If they like what you are doing, and they are willing to pay you what you ask to pay you, then you can go further and start your company. But, if they don’t like what you are doing it is time for improvements of your ideas, hypothesis and actions.