Factor that Affect Entrepreneur Success

1. Factors Affect the
Entrepreneur's Success
I used large-scale surveys to generate
numerical data needed in this study
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2. Entrepreneurship can be a scary proposition
because of all of the unknown factors that affect a
new business’s chances for success. While many
people have theorized on what it takes to be a
successful entrepreneur, most explanations include
the ability to create a viable product, knowledge of
general business skills and ability to raise adequate
capital. Assessing your situation will help you
determine if you’ve got what it takes to start your
own business or what you need to help you succeed.
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3. Viable Business Idea
Many people have ideas for products and services, but even if there’s a
demand for an idea, an entrepreneur must be able to make it and sell
it profitably. In some instances, consumers might want what you have
to sell, but a competitor already offers something similar enough for
less than what you could charge for your product or service. In other
instances, the customer base that wants your product might not be
large enough to pay for its creation, the running of a company and a
profit. A written business plan, detailed marketplace analysis, product
testing and consumer research will help you determine the likelihood
you have a viable -- rather than just “great” -- business idea.
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4. General Business Skills
You might be the best chef in your area, but a catering
business doesn’t succeed based on its food. To be a
successful catering entrepreneur, you’ll have to create a
marketing plan that includes developing a brand for your
business, finding your target customer, choosing the best
advertising and promotion methods in your budget,
raising capital, creating budgets, managing employees
and the host of other tasks associated with any other
business. If you don’t have basic business skills or aren’t
interested in learning them, you can still succeed as an
entrepreneur if you’re willing to take on a partner or hire
experienced businesspeople as employees.
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5. Adequate Capital
It’s frustrating for many would-be business owners who have a viable idea, written business plan
and business skills, but don’t have enough start-up cash to get off the ground. Even profitable
companies can go out of business if they can’t manage cash flow. For example, if you book a large
order that’s going to turn you a nice profit, you must have the upfront cash or credit to order
supplies, pay your employees and take care of your bills until you ship your product and receive
payment from the customer. Entrepreneurs often need significant investments to get their
businesses off the ground and investors often want a large piece of the pie before they risk their
money. Your business plan should include detailed financial projections that include your start-up
budget, initial capital needs, first-year operating budget and different sales scenarios to help you
project your financial needs.
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6. Personality Requirements
Entrepreneurs must be risk-takers, willing to lose some or all of
their investment. If you’re not willing to take a significant
gamble, you might be too cautious to succeed as an
entrepreneur. Gambling doesn’t mean taking rash risks -- with a
well-researched business plan and help from groups such as
SCORE -- formerly the Service Corp of Retired Executives -- you
can increase your chances of success. Entrepreneurs must also
be prepared to work long hours under considerable pressure. If
you have family commitments that won’t allow you to dedicate
a significant part of your life to your business, consider a scaled-
back or part-time business venture. Selling is a key part of being
an entrepreneur. New business owners must also be confident
and outgoing, willing to pitch their ideas, ask for money and
persuade others.
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