Entrepreneurship Resources
Introduction
The idea of resources usually leads us to think of only money. In this section, we
will examine how to access the available
resources and how to put it to work.
We will seek to answer the following questions:
1 How do we start a small business?
2 What do we need to start a business?
3 How do we access resources?
4 Is partnering to access resources a good idea?
Successful entrepreneurial processes require entrepreneurs and teams to
mobilize a wide array of resources quickly and
efficiently. All innovative and entrepreneurial ventures combine specific resources
such as capital, talent, and know-how
(e.g., Accountants, lawyers), equipment, and production facilities. Breaking down
a venture’s required resources into
components can clarify what is needed and when it is needed. Although resource
requirements change during the early
growth stages of a venture, at each stage the entrepreneur should be clear about
the priority resources that enable or
inhibit moving to the next stage of growth. What kinds of resources are needed?
The following list provides guidance:
Capital. What financial resources, in what form (e.g., equity, debt, family loans,
angel capital, venture capital), are needed at the first stage? This requires an
understanding of cash flow needs, break-even time frames, and other details.
Back-of-the-envelope estimates must be converted to proforma income
statements to understand financial needs.
Know-how. Record keeping and accounting and legal process and advice are essential
resources that must be considered at the start of every venture. New ventures require legal
incorporation, financial record keeping, and rudimentary systems.
Resources to provide for these expenses must be built into the budget.
Facilities, equipment, and transport. Does the venture need office space, production facilities,
special equipment, or
transportation? At the early stage of analysis, ownership of these resources does not need to be
determined. The resource requirement, however, must be identified. Arrangements for leasing
or owning, vendor negotiations, truck or rail transport, or temporary rental solutions are all
decision options depending on the product or service provided. However,To start and launch the
venture, the resources must be articulated and preliminary costs attached to them.
Financial Resources
Finances are crucial, and the amount of money needed to start and run a business will depend
on the type of product or service, the size of the business and many other factors.
Every start-up firm and young growing business need capital/money to invest in growing the
business. Some companies access capital from the company founders or the friends and family
of the founders.
Growing companies that are
profitable may be able to turn to banks and traditional lending companies. Another increasingly
visible and popular
The source of capital is venture capital. Venture capital (VC) refers to the investment made in an
early- or growth-stage company. A venture capitalist (also known as VC) refers to the investor.
In this 28 minute, Voluntary Life Podcast explains how to finance a start-up. Listen and take
note of the various options for financing your business.
Sources of financing available to firms include foreign stock exchanges, foreign bond markets,
foreign banks, venture capital firms, and funding from the parent company. Firms can also
obtain funding via intra-firm loans or trade credits. A trade credit lets the customer (in this case,
the subsidiary buying the goods or services) defer payment for the goods or service for a
specified period, typically thirty or ninety days. By borrowing capital from a parent company,
both the subsidiary and the parent eliminate paying transaction costs to an outside entity such
as a bank, which would charge fees to make the transaction.
Product/Service Concept
What are you selling? New ventures offer solutions to people’s problems. This concept requires
you to not only examine the item or service description, but understand what your initial
customers see themselves buying. A customer has a need to be met. He or she is hungry and
needs food. Food solves the problem. Another customer faces the problem of
transferring money electronically and needs an efficient solution, a service that satisfies the
need. Automatic teller machines are developed, and services are offered. In any of these
situations, in any entrepreneurial innovation circumstance in fact, as the entrepreneur you must
ask the following questions:
• What is the solution for which you want someone to pay?
• Is it a service or product, or some combination?
• To whom are you selling it? Is the buyer the actual user? Who makes the purchase decision?
• What is the customer’s problem and how does your service or product address it?
Understanding what you are selling is not as obvious as it might sound.
When you sell an electric vehicle, you are not just selling transportation. The buyer is buying a
package of attributes that might include cutting-edge technology, lower operating costs, and
perhaps the satisfaction of being part of a solution to health, environmental, and energy security
problems.
Physical resources
The physical resources examine the resources concerned with the operation's ability to deliver
its goods and [Link] include manufacturing, marketing, production and technology
facilities for optimal operation. The appropriate physical resources are essential. This includes
proper workstations, telecommunication systems, and marketing materials.
The entrepreneur should properly evaluate the needs and wants before they begin operations.
Human Resources
People in companies provide skills, knowledge, intuition, and reasoning (known as human
capital). Additionally, the culture inside an organization consists of relationships, values, and
routines and companies that have a strong set of managerial values have a strategic advantage
over those that don't- through employees increased identity with the corporation, increased
stability, and consistency as well as a guide for appropriate behaviour.
The human resource is the skilled set of the business. To determine if the business has the
desired skill set to ensure
success the entrepreneur should;
a) Ascertain the number of staff required and qualification need to operate the business properly
b) Resolve the training needed to function in various posts within the business
c) Ensure that the working environment is conducive for the employees to function optimally
d) It is crucial that professionals be recruited with the relevant expertise to ensure that the
objectives of the business
are efficiently and competently done.
Internal environment
An organization evaluates which factors are its strengths and weaknesses; it is assessing its
internal environment. Once companies determine their strengths, they can use those strengths
to capitalize on opportunities and develop their
competitive advantage. When organizations assess their internal environments, they must look
at factors such as performance and costs as well as brand awareness and location. Managers
need to examine both the past and current strategies of their firms and determine what
strategies succeeded and which ones failed. This helps a company plan its
future actions and improves the odds they will be successful.