Often we use the terms owner and entrepreneur interchangeably. But are they the same? To be honest the answer is NO. Both terms are just the opposite. So let us see the differences between the two.
Concept Of Owner and Entrepreneur
Let us start with the concept of Owner.
Ownership means possession of something. It can comprise of the following:
- Real Estate
- Intellectual Property etc
An owner can also possess a shop or any other business. But he/she cannot be termed as an entrepreneur.
Coming to the entrepreneur he/she is the creator of a completely new business. She/he bears the risks mostly and enjoys the rewards and benefits at the most. The way one sets up a business is known as the entrepreneur.
Most commonly an entrepreneur is regarded as the creator of new thoughts and ideas for business, procedures, goods, and services as well. Say for example if I can implement something new to the existing products or services rather than following others then I am the entrepreneur.
Importance Of Entrepreneurship
Entrepreneurs play a significant role to develop the economy utilizing the initiatives and skills needed to predict the needs and implement those into the market.
Successful entrepreneurs are good at taking startup risks and are rewarded with fame, profits, and other growth opportunities.
They are the one who paves way for others to follow their path and grow in business.
Types Of Entrepreneurship
Surprisingly most of the entrepreneurs in the United States have started with small businesses. It can be anything like:
- A Company
- A Restaurant
- A Retail Outlet
Usually, here entrepreneurs invest personal capital in startups and earn profits only when they succeed in the business.
These businesses are often seen as lesser in number than small business startups irrespective of media attention. Usually, these businesses start with an idea which is then nurtured gradually with the help of external investors till it widens. Say for example from a garage or a home office to big corporate headquarters.
At times entrepreneurs work in collaboration with big and established organizations. Just think you are associated with a big auto manufacturer and your research says motorcycles are high in demand and you have some great ideas on your mind……so what do you do?
Check if the company has all the resources and you present forth your ideas to the BOSS and ask for funds. Now using the funds, resources, and well-thought ideas you start a large entrepreneurship form.
This is somewhat different from the other three as the main motto of this entrepreneurship is not generating revenues but bringing in social transformations positively.
It seeks creative solutions against community-based issues. They are ready to take risks and put forward an effort to bring in positive changes to society.
The social change may be for racial justice, philanthropic activity, and environmental conservation for people living in under-deserved communities.
So these are the four types of entrepreneurship. Now I know you want to become an entrepreneur and this guide will help you to become one.
Tips To Become An Entrepreneur
Look For The Right Business
As we have already discussed entrepreneurship is a wide term and you can do the startup from anywhere even from your home if you have extra space. So the location is not a problem but you should start wisely.
You should know which business you should begin with or what will help you to earn profits in the long-run. Say for example if you have worked in a restaurant for several years then you know what it takes to run a food-based business….your present experience will show the path of success.
The main motto of starting up with a known venture is you will love the business for sure.
Research On The Area
Have you gone through the 7Ps of Marketing?
If not then you must go through it. 7Ps of marketing also known as Marketing Mix is a great way towards the startup. Here is a small demonstration of the same:
- P – Product (Which Type)
- P – Price (Fixed or Discounts)
- P – Place (Location where you are planning the business)
- P – Promotion (Advertisement)
- P – Physical Environment (Internal and External Looks)
- P – Process (Customer Service)
- P – People (Internal and External)
As you can see the 3rd P here speaks of the location. Yes, you can begin from your home as well but what if your home is situated in the outskirts of the city. Whichever location you choose keep in mind that there is a good number of footfalls and the product or service you are launching is quite new in the place.
Get Educated On The Subject
NO, I am not saying that you will have to study Entrepreneurship solely to be the same. But yes if you feel that some education is required for gaining better knowledge and idea on the subject then feel free to get it. The more you enhance your skills the more you can excel in the path of your new business.
Find Your Niche Audience
Every business may not appeal to all. When it comes to choosing a product or service you should think about the Demography which stands for:
- Culture etc
I will take the example of the restaurant again. Say if you are thinking to open a fast-food restaurant then obviously your niche audience will be children and youngsters who are more attracted to this kind of food.
Increase Your Network
Even for entrepreneurs, it is a must to have a wide range of channels. This is all about meeting other people who may have the requisite skills and knowledge to prove fruitful for your business. They can also help to increase the customer base for your business.