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5/10/2010

Become an entrepreneur and be your own boss

Source:http://economictimes.indiatimes.com/quickiearticleshow/5912811.cms
[This is for my future reference only, not for commercial use]





Choosing to start your own business enterprise can be the result of a number of reasons, one of which is the opportunity to reap the personal and financial rewards of an idea for yourself.

Entrepreneurship is for those who wish to be independent, to achieve something personally and also for staving off unemployment. Most often, entrepreneurship is motivated by the drive to meet personal, emotional, or financial needs. Home-based businesses allow people to balance work with family commitments.

Entrepreneurs can come from virtually any walk of life and go down a variety of paths. The one common bond they share is that they have an idea that will fill a niche in a market.

An entrepreneur is someone who organises, manages and assumes risks of a business or enterprise. Anyone who runs a small, medium or large business is an entrepreneur. Today it isn’t tangibles of land, labour or capital that count; increasingly, ideas and knowledge translate into cash in this changing world.


A formal job comes with a regular salary, defined by the terms of employment, supervision, structured job profile, paid vacations, sick leave, scheduled work hours, co-worker interaction, use of company supplies and structured work environment.

With entrepreneurship, your remuneration is defined by the job, there is unlimited earning potential, you get to define your job, you are your own supervisor, you pay for sick days and vacation, schedule your own time, deal with isolation, you organise and pay to supply yourself and you design/define your own work environment.


To assess whether self employment is a viable option, the most important thing to do is to examine your own character/personality.

Innovation or the idea isn’t enough. You must be able to cope with the initial insecurity, the long hours, being your own office assistant, working in a make-shift office and frustration or disappointment.

You must not underestimate the cost of setting up a business, office technology and equipment such as fax machine, copier, and computer, will drain your finances, patience and technical knowhow. Promotion costs are high, and there is a time-lag between the work being carried out and the payments received.

The rags-to-riches story of entrepreneurship also has the rags-to-rags dark side. Do not try to run before you can walk. Consider gaining experience in the field from another employer before setting out on your own.


Good physical, mental and emotional health to handle the long hours and pressures of business; tolerance of uncertainty; skill to seek and use feedback; genuine enjoyment of challenge of authority, understanding and accepting personal responsibility; strong but realistic belief in yourself; versatility; flexibility; desire for independence; sense of purpose; achievement-oriented; technical and industrial knowledge; access to financial resources; respect for money and learning how to deal with it wisely; selling ability; ability to communicate effectively with investors/bankers employees and customers alike; courage; commitment; sociability, consideration, cheerfulness, co-operation and tact are important attributes for successful entrepreneurship.

Family background could be a source of networking, financial support, understanding, encouragement and constructive feedback.

Lack of a higher education is no impediment for successful entrepreneurship since education is better suited to teaching us how to become employees rather than entrepreneurs. However, among numerous exceptions are accountants, doctors, dentists, lawyers, engineers, architects, etc, who are highly educated and practice as self-employed professionals.

The Route to Entrepreneurship could mean:

Starting a new business

Buying an existing business

Franchising

Operating a home-based business

Always get competent legal and financial advice before committing yourself


Developing a business plan is the first step in deciding whether to start a new venture.

A business plan is a written summary of what you hope to accomplish by being in business, and how you intend to organise your resources to meet your goals.

Market information is available with SISIs and District Industries Centres (DICs) of respective states/areas. It is an essential guide for operating your business successfully and measuring progress along the way.

Formulating your business plan gives you knowledge of the way you intend to attain your goals and this has a powerful effect on business success. Planning and good management skills are vital to business success.

Financial assistance

Financial assistance is available from nationalised banks, Small Industries Development Bank of India (SIDBI), regional rural banks, National Small Industries Corporation, state financial corporations, etc, depending upon the project requirement and promoters background.

Success mantra

Be sure to prove that there is a market for your new idea before embarking on the venture. Starting a new venture from scratch takes time, market research, seed capital and a sound business plan.

Study the strengths of your potential competitors, improve upon their weaknesses and avoid trying to compete against their strengths. Look for trends beginning to unfold and take advantage of the opportunity by arriving quickly in the marketplace.

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