The process of turning a creative idea into a viable and profitable economic enterprise. It is a highly personal endeavor, often involving aspirations and goals that are unique to the entrepreneur. It is also a permanent challenge, one that requires an ability to juggle cash flow and make decisions that impact the quality of life of the entrepreneur and those who work for him or her.
Those who are serious about becoming entrepreneurs must begin with a solid business plan and a commitment to research. They must identify a market that will be willing to pay for their product or service, and determine whether it is cost-effective for them to produce their business concept. They should also learn how to market and promote their product or services.
A common piece of advice given to potential entrepreneurs is to “monetize what you love.” While this may be sound business advise, it overlooks two important factors: the venture must be something that people want to buy and it must be viable for you to do. For example, how profitable is it to turn your passion for collecting models into a model-selling business?
After a new business venture has been developed and tested, it may move to Stage III (survival). Some businesses remain at this stage for a long time, earning marginal returns on their invested time and capital. Others fail completely and drop out of sight. Most start-ups, however, eventually reach this stage, which is characterized by more formal communications and budgets and a shift in focus from general business management to specific activities like marketing and production.