Do you know what Joseph Schumpeter of Harvard said about entrepreneurship?
According to Schumpeter, the main task of the entrepreneur is to reform or revolutionize the pattern of production by exploiting an invention, or an untried technological possibility for producing a new commodity or an old one in a new way, by opening up a new source of supply or materials or a new outlet for products, by reorganizing an industry, and so on.
What is your idea?
New product developed by you?
New product developed by others?
New technology developed by you?
Implementing new technology developed by others?
You found a new source of supply of raw materials?
Somebody else found a new source of supply of raw materials. You want commercialize it?
You are creating a new market?
You have developed a new type of sales distribution outlet?
You have a new type of organizing the business that gives more efficiency?
You found an under serviced market area and want to service it?
You need to come out with an answer to one of the questions above or similar questions to justify your entrepreneurial ambition. Ambition alone is not sufficient. The opportunity has to be there. You have to develop capabilities in various areas of business and search and identify the opportunity ideal for you to venture.
If entrepreneurship is a hobby, one can start something based on interest and ambition. The expenditure on the venture can be treated like consumption expenditure. You have to money to spare and spend and hence you spend it.
When entrepreneurship is professional activity, through which you want to earn your bread and butter, you have to be on firmer ground. Don’t leave your present professional activity till you find a venture that gives good odds of success.
Don’t believe when somebody says I took the risk and benefited. Don’t believe, if you take the risk, only return will come. Then it is not risk at all. If you take the risk return may come or loss may come. Hence first of all take a risk with proper odds of success. Then have plan for coping with failure.
If you come to the conclusion based on your answers to entrepreneurial opportunity questions, you have to develop a business plan to gather resources from your own property and wealth, wealth of parents, relatives or friends, and professional investors like angels and VCs.
What need to be the contents of a business plan?
Description of the product/service to be produced and marketed
Market research information that supports launch or growth of the product/service
Production model
Model for generating awareness in the market
Sales model
Competitor analysis and scope for success of the business in the industry
Management capabilities of the team
Growth plan
Financial projections
Financing model
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