Preparing to start a business typically occurs over a period of time, unless you are thrust into emergency mode by losing a job, or arriving as an immigrant in a country without a financial source of livelihood. Also, entrepreneurship is rarely a first occupation since people normally gain business experience and skills by working for others. Individuals usually pass through various stages of development in making a decision to open their own business. The venture development stages outlined below are presented in a logical sequence; however, the steps frequently overlap and do not always occur in the order presented.
1) Discomfort: There is discomfort in one’s life due to a variety of causes such having a lousy job or no job at all, wanting to make a change in one’s occupation, desiring to live in a distant location, seeking more personal and political freedom, and/or migrating to another country.
2) Ideation: One begins dreaming and developing ideas for a better future for oneself and one’s family. Dreaming increases one’s level of energy and helps to create a clear concept of a more desired future. Such dreaming includes the visualization, creation, and recognition of a number of ideas regarding creating a better lifestyle. Observing others successful entrepreneurs as role models often stimulates a dream of having one’s own business.
3) Commitment: At some point, the individual makes a personal decision to change. The decision is the first step of a commitment to pursue a more suitable career alternative. Frequently one’s commitment to formalized by sharing future intentions with associates and family members. The development do a commitment generates lots of human energy and stimulates the mind.
4) Development: Previous and present work experiences become more important as one prepares for their business. Closer association is made with a business-experienced family member, with business associates, and with other entrepreneurial role models. One reads magazines and books on starting a business and attends local entrepreneurship seminars. An initial business plan is often constructed at this point.
5) Start-Up: The business is started in a formal sense. The legal form of organisation is determined and a business license is secured. A business location is determined and necessary requirements for producing and marketing the service or product are made.
6) Sustaining: Anyone can start a business, but the real challenge for an entrepreneur is to ensure its growth and profitability over the long run. The entrepreneur must must properly execute three essential operational business functions – production, marketing and finance – in order to sustain a successful business in the long run.
Typically, a very small percentage of people actually decide to become entrepreneurs. The most often quoted figure is about five percent of the population in developed countries. Yet, a majority of individuals everywhere desire to have their own business with the idea of creating individual wealth. Most people never get beyond the discomfort and ideation stages. But the real purpose of listing the above six stages of starting a business is for you to determine which stage you are at in starting your business. One of the major purpose of this magazine is to assist individuals in moving towards five, that of starting their global enterprise.