Connect with us

Business

6 Effective Attributes of a Successful Entrepreneur

Entrepreneurship is a a complex business process that allows you to learn, earn, and sometimes lose some money while creating your identity in the business world.

As an entrepreneur, you are daily confronted with challenges that may open your mind to different tricks, twists and turns of your business and how best too handle them. 

In this article, I will be sharing the six effective attributes that you must adopt if you hope to be successful in your business as an entrepreneur.

Published

on

Attributes of a Successful Entrepreneur
Entrepreneurship is a a complex business process that allows you to learn, earn, and sometimes lose some money while creating your identity in the business world the following Attributes of a Successful Entrepreneur would keep you going.
As an entrepreneur, you are daily confronted with challenges that may open your mind to different tricks, twists and turns of your business and how best too handle them.
In this article, I will be sharing the six effective Attributes of a Successful Entrepreneur that you must adopt if you hope to be successful in your business as an entrepreneur.
  • 1. Passion.
Every successful entrepreneur is a passionate business investor. It takes a great passion to withstand the many woes that entrepreneurs face in business. Passion is the propelling force that keeps the engine of every successful business.
If you wish to go far in any aspect of entrepreneurial endeavour, you must carry a truckload of passion.

 

  • 2. Persistence.

If the road of entrepreneurship was rosy ,smooth , and comfortable, many people would have opted to become entrepreneurs instead of looking for paid jobs. The reality is that you will encounter tons of thorns trying to choke your vision or crush your business. You will experience rejection, lack of funding, losses, and unpalatable business policies, but if you are persistent and focused, you will see your idea turn into thousands of dollars in earnings.

  • 3. Hunger for Innovation.
In the world of Entrepreneurship, things change every second, competition will push you out of business, pricing may push your customers away from you, and you may find yourself losing so much as a result of your production cost/business model.
It is only the innovative that succeeds in business.
You must research, learn, study, analyze, evaluate, and improve on your business model for you to remain relevant in a fast pace business environment.
  • 4. Integrity/Identity
As the chief entrepreneur, you are the number one marketer of your brand, and since humans connect with your personality; your personality and identity matters so much in your business.
You must learn how to manage your identity with your products/services so that you don’t lose your customers because of your personality traits.
  • 5. Negotiation Skill 
The ultimate goal of every entrepreneur is to make money. You must be able to evaluate your customer base, connect with their need, and bid the price that they can easily afford, if you genuinely wish to remain in business.
A smart marketing strategy in combination with the quality of your service will most likely boost your sales and business.
  • 6. Networking/Building a Business Relationship. 
If you hope to go far in your entrepreneurial development or you hope to build a business that will stand the test of time, you must as a matter of necessity build a healthy business network with other entrepreneurs who will form your support system and at the same time serve as a guide to help you prosper in your business.
You cannot push your business without building healthy relationships with consumers and strategic partnership with other entrepreneurs who are in your field of endeavor.
As an entrepreneur, you need these attributes to push beyond your limits and achieve the goal of your business.
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Business start up from scratch for beginners (+ how to start guide)

Published

on

A business start up refers to a company or brand that is in its early stage of operations.

Investopedia defines it as ‘companies or ventures that are primarily focused around a single product or service that the founders want to bring to the market’.


This blog post answers the questions any young aspiring entrepreneur might have including: the list of things required to start a business, how to start a business at home, steps to start a small business.


If you have no clue as regards starting a business, then this blog post was specially written for you.

Grab a note, and a pen, let’s dive in.


What does business start up mean?


When the word start up pops up, what comes to mind?


Oh well, before we go into proper definition; let’s look at some really important details of a start up:

• Often funded by founders, sometimes families, and friends or by using venture capitalists.

• It is always the initial stages of building a company

• The first few years of are very important for start ups, this is the time where these entrepreneurs concentrate on raising capital and developing a business model.

• Many start ups fail within the first year. Oh yeah, they do. That’s why you need to get started on the right foot, and this blog post has got you covered, so keep reading.


So, what are the right definitions of a start up?


A start up is a very amateur, or young company founded by one, two or more entrepreneurs to develop and bring a unique product or service to the market.


Wikipedia defines it as a ‘company or project begun by an entrepreneur to seek, develop, and validate a scalable economic model’


Now that we’ve laid the foundations of start ups and starting a business, it’s time to look into the list of things required to start any business.

See also: 5 Things You Must Do Before Starting a Business.


List of things to start a business


The good news is that all of the things that need to get done in order to develop an idea to a business have been done a million times before.


A lot of other businesses have crossed that path, so even if you want to get started from scratch you don’t need to reinvent the process, or waste brainpower on figuring out what to do.


The only thing you need is the right information.


I assume that you already have a business idea in your head you’re wishing to turn into a business.

You don’t expect to build something out of space, right?


Without further ado, let’s look at some of those things required to start a business:


1. Refine your idea


Refining your idea has to do with doing a quick research into the market you’re going into.


You’ll have to learn everything successful brand leaders have done, figure out if the market is too saturated, figure out what you can do differently, figure our your target market, and most important, know the ‘why’ of this business.


To get started right, you have to bring something different to the table, which is why you’ll need to get a solid business idea and a business plan.

2. Write a business plan


You’ll need to answer questions as regards the business you’re going into.

You need to ask yourself few important questions like:


Why am I starting this business? Who are my target audience? How much will it cost to get started?


These questions need to be answered in a well written business plan.

It’s always wise to pay the professionals to get this done for you.


Other elements a solid business plan should have include:


• Executive summary


• Market evaluation


• Market strategies


• Operational plan


Our business idea generator gives you access to instant business plans, business model canvas and up to 3 years financial analyses to help you get started for any business.


Click here to get started with our business idea generator


See also: Download 500+ business plans for any business.

3. Consider your risk appetite


Many businesses come with risks.


That is why it’s always a good idea to consider an exit strategy as you compile your business plan.

It helps you figure out how it will overcome any potential difficulties and what you need to sustain it.

4. Consider the costs


Starting any business requires capital, so you need to determine how you’re going to cover the costs.

Are you going to be working with a team? You’ll have to consider the cost of paying these people.


Many start ups fail because they run out of money before turning a profit.


Also, learn to watch your expenses so you don’t overspend when starting a business.


Other important list of things include:

5. Determine your legal business structure

You’ll need to get your business registered and recognized with a legal structure e.g Corporate Commission Affairs (CAC)

6. Build a team

Proceed to building a team and invest time and resources in training the people you intend to work for you.

7. Brand yourself and advertise

Good branding is always important for any business to thrive.

If possible, hire a brand strategist.

8. Grow your business.

Review the strategies intially put in place, continually see to the growth of your business.


Due to the pandemic, a lot of entrepreneurs have moved to working from home.

Starting a home based business can create flexibility in how your money is spent and how your time is spent.


To create a home based business that will yield profit, you’ll need to invest time and resources into finding out the right business for you and creating a plan.


Let’s take a look at some of the important steps:


How to start a business from scratch at home


1. Evaluate your skills and talents


A great way to start a home based business is to brainstorm your existing skills and how you can leverage on them.

You might also need to acquire other skills that will aid the work you choose to do from home like gaining tech skills.

2. Come up with a business idea


You’ll need an idea to start a business.

If you don’t have an idea yet; our Business Idea Generator is the best tool to use to develop an idea that suits your personality.


These ideas will come from the skills and talents you already possess. You’ll need to focus on evaluating your previous experiences.

3. Identify your target market and audience


Your target market is a particular group or segment of the population that are most likely to buy from use or use your services.


A good way to identify these people is to develop and create customer personas.


A customer persona is a fictional representation of your ideal customer based on psychographics or demographics research.


Other important steps include:

4. Research your competitors

5. Define your unique value proposition

6. Build a budget

7. Build your office

8. Get registered with a legal structure

9. Advertise your business

Market your home business leveraging on tools like social media, creating a Google my business listing, creating a website, and creating a word of mouth program.


Steps to start a small business


Starting a small business is not always as easy as it looks.

We have listed eleven important steps you can take to start your business – covering everything you need to know to run a successful business start up from scratch.


1. Conduct a market research

2. Get the necessary skills required to run your business start up from scratch

3. Write your business plan

4. Fund your business

5. Choose a business name

6. Register with a legal structure

7. Open a business bank account

8. Set up your business

9. Set up your space

10. Get a mentor


11. Spread the word about your business


Now that you know the foundations of starting a business start up from scratch and a list of things you’ll need to get business started, go into the world and prosper.

Continue Reading

Business

Family Business Succession Planning: Creation, Template, Model, and Sustainability

Published

on

Family Business Succession Planning

Introduction

Many family-owned businesses don’t make it past the second generation, and only a few get to the third. The primary reason is the lack of family business succession planning. 

If you own a family business, you may be wondering how to prepare the next generation to take over. However, in this article, we’ll share insights about family business succession planning. Additionally, you’ll learn how to create a plan that’ll be sustainable in your absence. 

Succession in most family-owned businesses operates around the assumption that the next generation can successfully run the company as the predecessor did. However, this idea fails to account for the fact that each new generation has different leadership skills, abilities, and interests. 

Also, there’s the factor of the business context that shifts or evolves, which businesses fail to consider. Here is where family business succession planning becomes relevant. 

What is Family Business Succession Planning?

Family business succession planning is a process where a family-owned business devises strategies to hand over the reins to a next-generation family member. A succession plan is why multi-generational family businesses have a firm staying power. From one generation to another, they keep upholding the organization’s vision and founding principles. 

Therefore, heads of family businesses need to start planning for their successor as soon as possible. The reason is that it may take years to groom a strong and capable leader. Also, the more time business owners spend executing a succession plan, the smoother the transitioning process will be.

Read Also: Corporate Level Strategy – Definition and Types

The Creation of a Family Business Succession Plan

Michael Evans of the Newport Board Group recommends five significant steps that family-owned businesses should follow, to create a viable succession plan. These steps also comprise several mini-steps, and they include:

Establish Goals and Objectives

Leaders of family businesses should first identify clearly the visions, goals, and objectives of the organization. This step also addresses the importance of continued family involvement in leadership and the option of bringing in external professional management. 

Additionally, the management team should consider retirement goals and the cash flow needs of exiting family members. Likewise, they should take into account the personal and business goals for the incoming generation.

Establish a Decision-making Process

This step identifies and establishes, in a written document, the process for involving family members in the firm’s decision making. It also lays out procedures for resolving disputes.

Establish the Succession Plan

In creating the succession plan, management should identify successors- both managers of the company and owners of the business. They should also define each family member’s role, either active or non-active, and any additional support the successors may require.

Create a Business and Owner Estate Plan

This phase addresses any tax implications to the owner or business upon transfer of ownership, death, or divorce. It also reviews the owner’s estate planning strategies to minimize taxes and avoid delays in stock transfer. Furthermore, it should create a buy or sell agreement that is fair, reflective of the business’ value, and tax strategic.

Create a Transition Plan

The business owner should consider the options of an outright purchase versus a gift/inheritance, or the possibility of combining both options. This step also considers external financing or self-financing from the retiring owners in case of a sale. Finally, the business owners should establish a timeline for implementing the succession plan.

Family Business Succession Planning Template

Family business succession planning may seem difficult to carry out. Therefore, most family-led organizations employ the help of professionals like lawyers and accountants when crafting a plan. 

However, if you’d like an easy way to go through the process yourself, you can use a planning template. There are several of these templates online, either for free or a small fee. A template makes the planning process a breeze, and also gives the succession plan a professional look. 

Family Business Succession Planning Model

A succession planning model helps illustrate the family’s interaction on management and ownership of the family business. A simplified model, called the Three Circle Model, consists of the ownership circle, the management circle, and the family circle. 

Three circle model of family business succesion planning

These circles represent the interaction/impact that each component has on the family and the management of the business. It also illustrates the relationship between each element and the other. Furthermore, it shows how they meet in the middle, indicating a mix of family, ownership, and management at some point in the business.

From the circle, it’s easy to see how the three components’ interaction can create challenges and provide unique opportunities. Therefore, the family business’s ability to transfer ownership to the next generation depends on the management of the family component.

Read Also: Concept of Management in Business

Sustainability in Family Business Succession Planning

If you run a family business, you’ll want to give your company the best chance at a transition. Most importantly, you’ll want to ensure that the business thrives for several generations after your exit. To ensure the sustainability of a succession plan, consider these tips.

Plan Early

Sustaining a succession plan begins with the timing of crafting the plan. As a rule of thumb, you should prepare a succession plan at least ten years ahead. The earlier you plan, the better your chance to mentor the successor and the smoother the transition process.

Involve Family Members

The best way to avoid discord among family members is to involve them in the planning process. It also helps you identify which family member wants to be involved in the business or intends to pursue other careers. 

Be Realistic About Picking a Successor

While it may be your desire to leave the business to your first-born, he/she may not have the necessary managerial skills. So, it’s best to do an honest assessment of which family member is capable before picking a successor. 

Train Your Successor

A succession plan can’t be sustainable without training the next generation to take over the business. Consider dedicating some years to work with your successor while teaching him/her the required business skills.

The Bottom Line

Irrespective of how successful a family-owned business becomes, leadership roles must change someday. This event may be voluntary, as in the case of retirement or involuntary, such as death or incapacitation. However, a succession plan ensures that the business will continuously operate with no disruptions and minimize tax implications for all parties. 

Business leaders should start building their exit strategy right into their business plan. Firstly, long-term succession planning helps businesses determine how well the successor can execute management tasks and gives them time to learn. Lastly, it helps to facilitate an orderly transitioning of management and ownership.

Continue Reading

Business

Psychographic Segmentation: Best Practices for any business (+ practical examples)

Published

on

Psychographic segmentation

Psychographic segmentation is an important aspect of marketing. It gives you deeper insights into your consumers and the choices they make.

This article will provide you with all you need to know on this topic.

So, let’s dive in.

Psychographic segmentation

Basically, we have several types of market segmentation, and psychographic segmentation is one of them.

Psychographic segmentation is the type of market segmentation that separates consumers into sub-groups based on their psychological characteristics. These sub-groups include beliefs, priorities, interests, etc. As a result of this, we are able to explain and predict consumer behavior.

Furthermore, this market study helps you understand your consumers well, and find out the reasons they buy.

However, many people think that you can get a better understanding of your consumers just by studying their demographics. But, I daresay that its important you do proper research and add common psychographic characteristics for additional clarification.

A very good example would be a company that sells fishing gear. It runs a quick psychographic check on its prospects and notices this prospective buyer is an introvert. This will give the company a better understanding of the consumer. With that information, it will choose to display ads that reflect people fishing alone that exhibits solitude and peace.

Clearly, this would relate better with this prospect.

On the flipside, Behavioral and Psychographic segmentation may seem alike, but they are not.

So, let’s explore the difference between the both of them.

Read Also: Market Segmentation: All you need to know with Examples

Behavioral and Psychographic segmentation

Psychographic segmentation is simply dividing a market into related consumers based on their lifestyles, values, interests, and personality characteristics.

It is the time invested into understanding how the person lives, thinks and feels.

Furthermore, Psychographic segmentation tries to uncover what is important to a consumer and what drives them to act in certain ways.

On the other hand, behavioral segmentation does not refer to the behavior of a person. It rather refers to the measurable actions of a consumer in the marketplace.

Also, it reflects how the consumers interact and engage with products of a company.

The variables used in behavioral segmentation include: Attitude towards brands, brand loyalty, etc.

Psychographic segmentation advantages

There are so many benefits attached to using psychographic data. They include:

  1. Psychographic Segmentation reveals greater insights at reasons behind buyers’ decisions. uncovers unseen motivations and attitudes behind buyers’ decisions.
  2. It helps marketers adjust their product features and messaging to better fit their target audience.
  3. It creates a better understanding of the consumer.

Conversely, Over the years, some brands have used psychographic data to their advantage. Let’s take a look at some of these brands:

Psychographic segmentation examples:

McDonald’s

McDonald’s is one of the fastest rising restaurants in the US.
It is one of the biggest examples of brands practicing psychographic marketing.
McDonald’s has adapted itself according to the convenience, social class, and lifestyle of its consumers.
An outstanding example was the case of a country that had a huge vegetarian population. They came up with new product lines to blend in. These included items like Mc Veggie Burger and so on.

Starbucks

This brand is a major coffee retailer that focuses on a variety of brands of blended coffee and ice beverages.

The brand has adopted several marketing strategies to gain and retain customer loyalty. One of the key marketing strategies used is psychographic segmentation.

Furthermore, this company targets customers based on lifestyle choices and attitudes.

But this article wouldn’t be complete if we don’t mention some tools used to get psychographic data.

Market Segmentation: All you need to know about

Psychographic segmentation tools:

Google Analytics

This is a free and detailed online guide. Google analytics gives you access to some broad psychographics of your website visitors.
You can use the insights gotten from here to find out the interests of your audience.

Social media

Every social media platform that offers advertising services will provide psychographic details.

Platforms like Twitter, Facebook will give you insights of the interests and lifestyle of your audience. .

Website data

Another option is to run experiments on your website. You can run various experiments to test what your visitors respond to regarding copy, product characteristics, et al.

Surveys

Surveys are also a good way to get psychographic data, but sometimes might not be so effective.

Interviews

Having one-on-one conversations with a consumer is another way to get deeper insights into how these people think and act.

Continue Reading

Trending

%d bloggers like this: