Strategies & Ideas: Entrepreneur Mindset
Synopsis
Among the various types of ideas of getting an entrepreneur breakthrough are the ideas of small business as well as innovative ideas. The ideas of young entrepreneurs may also be discussed in this section. The idea of entrepreneurs may be towards gearing up the starting of a business venture or may be for the expansion of the already existing business. It may also be that they may purchase the shares of a large business and become a franchisee.
Plan It Well
The idea of initiating a new business is most common among entrepreneurs. Either one or a group of people may get the idea and concept of a brand new business, or may come to a decision of entering an already popular business. For example, an entrepreneur may either introduce a new product or technology to the market, or may opt to enter with products and technologies already existing in the market, but with a different approach that is unique and creating a new brand name with the products that are familiar and that are differentiated from the rest of such products in the market. So whether or not the business ideas are new or old, the scope of adding a twist to the already existing business or introducing a completely new idea gives the entrepreneurs a limitless scope for improvisation and success.
To initiate a new kind of business requires new innovations and technological inventions. It can be anything from a new concoction to a new technology that the market hasn’t witnessed before or a series of new creations. The function of the society can be changed by the unique entrepreneur ideas and introduction of new and unique technologies in to the market. Some of the major evidences that we can see today are the inventions like vaccines, computers, mobile phones, refrigerators, etc.
It is very usual that young and enthusiastic entrepreneurs with fresh ideas grab more and more attention since they are originated from the sources that are unexpected. It is these ideas that have the tendency to create a business and ideas can come from any source, not just highly qualified entrepreneurs but also from young children or young adults, since ‘Necessity is the mother of all inventions’ and so the young generations are more in need of solutions to their little big issues pertaining to their education or hobby etc. It is mostly seen that children and people in their adolescence are highly imaginative and can think of amazing business ideas. So it is very likely that such gifted youths move ahead to become successful entrepreneurs given that they adapt the characteristics and skills required for this field. The entrepreneurs are usually surrounded by media for their new ideas and also because it has come from a person who is so young.
The ideas of entrepreneurship may also include investment in the brand that is already familiar, for example a franchise of fast food chains or convenience store. Although these are not new or fresh ideas in which an entrepreneur is investing in, but some unique or different idea might be introduced by them in order to make their venture more attractive, user-friendly and different from the others in the market. The entrepreneur may usually purchase a franchise for its strong brand name; hence the entrepreneur has to learn how the franchisor practices the business in order to operate it and to make it grow.
Entrepreneurs are also required to have a deep knowledge about the market and the industry competition in order to make sure whether or not a given idea or new venture would be a success in the market or not. There are five major forces that drive competition in industry.
• The rivalry between the existing firms in market
• The entry of a new and potential competitor in the market
• The development of the substitute products
• The power of bargaining of the suppliers
• And the power of bargaining of the costumers.
However, in modern times the strategies are placed on dynamism, hard completion and fast reaction to new technologies. Although the managers from the past few decades had to face the brutality of competition of the free market, in recent times information, technology, and globalization are responsible for the growth and significant changes in the revenue. The shifting of patterns of communication and the developments are forcing the companies to deal with issues on an operating level. So eventually, as the boundaries of the competition becomes weak, the rivalries of the constant competitive forces get intensified as well as short, the company then seeks to dynamically develop with some fast changing strategies. In the light of such a competitive atmosphere, the leadership and mindset of an entrepreneur are the foundation on which the new opportunity for the company can be framed. The entrepreneurial strategies also include the growth of a company through market-busting tactics which are basically the moves that are identified and the opportunities are tracked down for the constant strategic growth. Two of the most recent changes that had occurred in the field of entrepreneurship are, that information technology and Internet are playing a major role in creation of new opportunities in the market and that the manager’s job, as in the person who attempts to adapt the entrepreneurial mindset has grew tough. After the year 2000, the companies have more pressure of growth on them than the predecessors. And although there is a lot of pressure, there are still ample opportunities and unique dynamics in today’s environment for business.
The strategies for entrepreneurial breakthrough are also involved in the creation of the market-buster strategies, which are basically that:
• To scrutinize the total experience of the customers and to transform it ultimately. In this strategy it is important to study the customer and the experience of the customer. It is required that the customer’s consumption chain is analyzed, which is basically the series of activities that customers get engaged in, in order to meet their needs. There is a significant variation in this which depends upon the different type of product. For example, for buying a hamburger the diners or the restaurants can install take- away parcels for driving the car to the window of the diner. Similarly, in case of selling automobiles, the sellers or manufacturers can sell them online which would give the customers relief from having to come all the way to the showroom or store to buy it. The products and services can also be transformed by trying to identify the chances to either add or remove certain features, or simply by targeting more specific customers and their needs and requirements. This is also to be seen that the number of competitors in the business also has an effect on the decisive nature of the customer, and it is to be constantly inspected whether the products of the competitor is more in demand than yours.
• The second strategy focuses on the investors. The approach by which it is achieved is by redefining the metrics that drive the products by drastically modifying the significant variables which are reflected as standards of competition in an industry. The main goal of this strategy is to create advantages in the market, as well as to have a constructive effect on the stock of the firm. It is required by the entrepreneurs to analyze the ‘Key metrics’. The key metrics means the amount of products or units of business that can be sold by the entrepreneur, and the total profit gained from that sale. This analysis allows the entrepreneur to redefine the main source and drive of profit.
• The third strategy is to study and scrutinize the industry and adopting a strategy to exploit the changes and shifts. There are a series of patterns of industry changes: The swings in the industry due to the cycle of scarcity and surplus; the shift in the barrier of industry that changes the power relations in the industry; the evolution of the industry naturally; and the shifts in the cost pattern that cause the chain reordering value. These shifts in the industry need to be recognized by the company in the competitive environment in order to adjust the strategy according to the shifting industries.
• The final entrepreneurial strategy is focused mainly on the emerging opportunities and adopting the ways to enter the new market. This strategy involves the innovations and invention changes that are affordable technologically, such as elevators etc; the shift in the norms of the society which alters the behavior such as public smoking banned etc; the change in nature or environment like global warming etc; regulatory changes as well as institutional changes and finally the changes in demography.
The implementation of these strategies requires a meticulous analysis and a series of planning creatively done. The strategic moves for development of the entrepreneurial mindset in order for high growth are to be thoroughly followed, but it is just the beginning of the long journey that is to be taken by the aspiring entrepreneurs and managers. The success of an entrepreneur depends on the sound development of analytical techniques, constant usage of decent tools, and demonstration of a degree of discipline that we will discuss further.
The formulation of these strategies involves challenging work and thus the entrepreneurs must follow mentally through the implementation of their ideas, and take the obstacles head on while anticipating them before hand. The process of planning requires ensuring the alignment of the desired goals and placing the work appropriately and apart from the strategies and planning. It is also required to have a creative spark in the aspirant entrepreneurs.
So in short, the corporations as well as the individuals must adopt ways of thinking regarding the business that would capture benefits from the uncertainty. This is what an entrepreneurial mindset is all about. The entrepreneurs with such a mindset go for an opportunity through planning driven by discovery, which basically involves framing, deliverables specification, testing of assumptions, reality specification of competitive market etc. Whether an individual or an organization, the entrepreneur leaders must create a culture by developing of practices that are climate setting, where new initiatives are championed and the entrepreneurial process is orchestrated.
