In order to be successful, an entrepreneur must follow a four stage planning process. This process has four very distinct phases that we are going to discuss here. Before we do so, you should know that although these phases are to be approached in the order they are listed, no one stage is totally complete before moving to the next. The phases are progressive but each phase is also dependent on the other phases.
1. Identify the opportunity.
Most business opportunities don’t just fall into your lap. Opportunities are often discovered because of the entrepreneur’s awareness, positivity and proactive actions. Here is an example:
I didn’t just end up in the Internet Domain Investment field. I regularly visit the same Starbucks and began to notice a young man coming in that always drove nice cars. One day it would be a Maserati, the next a Bentley.
And the interesting part was he always looked like he had just rolled out of bed. So finally one day I decided to ask him what he did. He then told me he bought and flipped domain names, and on a good year would make 1.5 million, and on a bad year would make $500,000. I was shocked, as I thought that industry had died off in the 90’s. So I asked if he would teach me, and upon him kindly saying “no”, I began to do my own research and a few years later I have built a multi-million dollar company in the Internet Investment field. - Aaron Pitman
An entrepreneur is always looking for needs that have yet to be met and ways to improve products that may already be on the market, but are lacking in what they provide. Successful entrepreneurs look to consumers for ideas. Becoming aware of what the consumer wants and needs can inspire you and boost your creativity. Once you have identified an opportunity, evaluate it. Question its’ perceived value, real value, risks, growth potential and project duration. After evaluating the opportunity, you should focus on discovering the market size and competition. Finally, before making the decision to pursue the opportunity you have identified you need to analyze the amount of time you are willing to put into the project and how passionate you are about the project. Then you need to decide if you believe in this project enough, and if so that you are willing to make the necessary sacrifices for developing the business. You should also consider using an opportunity assessment and ask yourself for the following questions:
What need does this fill in the market?
What social conditions underlie this need in the market?
What patents are available to meet this need?
What kind of competition will I be up against?
Where is the money to be made in this venture?
2. Develop your business plan.
Once you have discovered your passion and uncovered an opportunity you are positive about pursuing you need to develop your business plan. This is a time-consuming process. A good business plan is essential to developing your idea and managing your business. An entrepreneur, especially a new one, rarely has any experience in developing solid business plans. The solution to this problem is enlisting the help of a coach and or/mentor that will help guide you in the right direction. This is such an important part of success that the final chapter in this book has been dedicated to the subject of obtaining a mentor.
3. Determine the resources you need for
developing your idea.
The process of this phase begins by assessing the resources you already have available. Once this assessment has been made you will need to make a list of necessary resources and separate them from resources that are just helpful. In this phase it is vital that you do not underestimate the variety and amount of resources you will need. Risks should be assessed in this phase as well. Another important part of this phase is developing an understanding of the resource supplier’s needs so that deals can be made to acquire resources at the lowest possible cost. This will also aid you in maintaining as much control over your business as possible.
4. Execute the plan and manage your
business.
Once you’ve acquired your resources it’s time to use them in your business plan. According to a research paper published on entrepreneurship, “This involves implementing a management style and structure, as well as determining the key variables for success. A control system must be established, so that any problem areas can be quickly identified and resolved.” (Entrepreneurship. 6 ed. New York: McGraw-Hill Irwin) Learning to manage a business takes a great deal of hard work. However, when you come to the table equipped with positivity, you are generally 10 steps ahead of everyone else and on the cusp of great success.
