5 Stages of the Entrepreneurial Process

No startup becomes successful overnight. Every entrepreneur, whether new or established, must go through a series of steps that involve producing an idea, evaluating it, turning the idea into a plan, finding resources, launching the business, and growing it. This is known as the “Entrepreneurial Process.”

Seeing products and services on Facebook and Instagram makes us believe that the entrepreneurial process must be thrilling and that we can all succeed. What we see as a finished product, however, is only the tip of the iceberg. The entrepreneurial process is lengthy and demands great attention to detail at each phase.

1. Discover ideas

One of the first steps in the process is coming up with the business idea. This step is called idea generation. When you consider the possibilities and opportunities around you, you may come up with a concept that has never been seen before, or it may be an improvement on an existing concept. To be able to develop and offer value to your clients, your idea must consider all of the possibilities and opportunities available.

The first step in beginning a business is “self-discovery.” This will assist you in determining your hobbies and the problem you will be solving. If you have to work at all hours of the day and night, be sure your dream project is something you care about. That one thought you had will one day be the ultimate solution to your customer’s problems. Conduct thorough market research and identify your customer’s needs and wants.

Ways to identify opportunities

1. Solve a problem by figuring out what people’s “pain points” are. Provide them with a solution that allows them to shift from pain to pleasure. Survey your circle of friends or join groups in the field of your choice.
2. Find gaps in the market by combining niches. For example, the ice cream and health care markets could be combined to create a product that appeals to health-conscious ice cream lovers.

2. Develop a business plan

Through the help of creative thinking, you evaluate those ideas and put them into perspective. Do forecasting as well as evaluate some pros and cons. Your strategy should include all of the milestones and objectives, as well as who your target audience will be. You must undertake all necessary market research to identify your target audience. Determine whether or not your product or service is in high demand. Predict all of the obstacles you’ll encounter along the route.

A business plan is a comprehensive proposal that defines a business’s idea. The executive summary, company overview, product and market, competitors, capital requirement, risk/opportunity, and conclusion are all included. Without a map, an entrepreneur will get lost.

Choose your business location and determine whether your product or service requires a patent, trademark, or copyright. Have a clear financial plan in place. This should be defined over the next three years at the very least.

3. Finding resources

You must now determine your capital, human, and financial resources. Hire the best personnel for your company based on your requirements. It is best to start at the top. If you take the position of CEO, then you need a chief operating officer (COO), a product manager, a chief marketing officer (CMO), a chief technology officer (CTO), a sales manager, chief financial officer (CFO), and a customer service representative.

Tip: When hiring, look for employees with a diverse set of skills. When your business expands, you can hire more people for specific roles.

Identify potential investors, apply for loans, borrow money from friends and family, or use credit cards to get funds for your startup.

4. Implementation of business

At this point, you’re in charge of running your firm on a day-to-day basis to meet your customer’s needs and requirements. All of the chosen personnel are assigned responsibilities based on their roles. It’s all about action at this point.

Building a prototype would be a good idea if you have a physical product. Ask for feedback from people around you so that you know your product is ready to be launched in the market. In the case of digital product/service, build a website and see if you get adapters to test your product/service.

5. Growth/Harvesting

One of the most rewarding stages is the growth and harvesting stage. At this stage, you’re looking at the prospects for growth and development. Here, you compare current growth to predicted growth and make crucial decisions based on the results.

You can ask yourself questions like:

• What other products/services can I bring in?
• Should I expand my company to new locations?
• What are my short and long-term objectives?
• Should I invest more in research and development?

Your business’s initial growth might be slow, however, hang in there as your initial goal is survival. 

Harvesting happen when you enjoy the financial rewards of your hard work. This could be by taking dividends, selling the business or taking the business public.

Conclusion

All the above mentioned information shows that entrepreneurship is much more than just launching a business. All the steps need to be visited every time you launch a startup. Taking the entrepreneurial route will teach you a range of abilities as you progress through these levels. Remember that launching a successful startup is a marathon, not a sprint!

Also read:

Harvesting in Entrepreneurship: Understanding This Step in the Process

Recognizing Opportunity as an Entrepreneur

Entrepreneurial Idea Generation: Understanding This Key Step in the Process

Pirbhat Haddad

Staff Writer: Pirbhat is a digital content creator and a writer. She began her small venture at the age of 16. Although she had to quit it, she ended up learning a lot about the entrepreneurial lifestyle. Her educational background in Business administration has provided her with an adequate amount of knowledge on a vast variety of subjects. She now likes to talk about developing productive habits, succeeding with people by studying people skills as well as applying marketing strategies.