Start Business Lesson 1 Notes PDF

Diploma in How to Start a Business Entrepreneur Essentials Summary Notes Module 1 Lesson 1: The Entrepreneur Essentials 2 Contents 3 Lesson introduction 4 Entrepreneurial vision 7 Entrepreneurial spirit 10 Entrepreneurial journey 13 Lesson conclusion 13 Additional resources 13...

Diploma in How to Start a Business Entrepreneur Essentials Summary Notes Module 1 Lesson 1: The Entrepreneur Essentials 2 Contents 3 Lesson introduction 4 Entrepreneurial vision 7 Entrepreneurial spirit 10 Entrepreneurial journey 13 Lesson conclusion 13 Additional resources 13 Lesson references 3 Lesson introduction The journey of entrepreneurship is both exciting and daunting at the same time. It requires you to dream big, step out of your comfort zone, and push your limitations. However, when executed successfully, it enables you to become the architect of your own life and career. It’s filled to the brim with thrilling opportunities to both learn and grow - all towards becoming your best self and living a life you desire. The key, however, is knowing where to start. Identify your entrepreneurial goals This lesson will focus on the essential knowledge required to kick-start and create a strong foundation for your Discover your entrepreneurial spirit entrepreneurial journey as an aspiring entrepreneur. Explore the entrepreneurial journey As a passionate educator and entrepreneur, I strongly believe that each individual has a specific purpose - both in their personal and professional lives. Even though you might not have discovered your ultimate purpose yet, I’m sure you’ve envisioned a quality life and a thriving career for yourself. The fact that you’ve joined Shaw Academy and started this course, shows me that you’re determined to upskill yourself and that you’re working towards a specific goal. I thus want to assure you, irrespective of whether you’ve found your purpose in life, that you are exactly where you need to be right now. So, trust in your decisions and believe in yourself. 4 Entrepreneurial vision What is an entrepreneur? Although the definition of an entrepreneur is multifaceted and often debated, the concept universally boils down to the following: A motivated and goal-driven individual with an innovative mindset who desires to launch and manage one or more business ventures. This individual aims to launch a business by primarily (1) nurturing their skillset, (2) sourcing startup capital, (3) accepting various risk factors, and (4) generating various returns. These actions, among others, are tackled with vigour to achieve certain predetermined personal and professional goals. Why do people start businesses? There are two primary categories within which the reasoning behind starting a business can be categorised: Intrinsic Extrinsic Intrinsic reasons relate to the personal and Extrinsic reasons refer to the overall impact that professional goals an entrepreneur has created for the entrepreneur could potentially have on the themselves - typically to satisfy their own needs overall wellbeing of the external environment - and desires, as well as those of their immediate typically to satisfy the needs and desires of their dependents. immediate societies. Intrinsic 5 Freedom of purpose Entrepreneurs are motivated and goal-driven. Everything they do, they do with a specific purpose in mind. The same applies to the reasoning behind starting a specific business. Starting their desired business enables them to fulfil the purpose they believe they’re destined to achieve. By removing themselves as an employee from the often-restrictive 9 to 5 working environment, they’re able to both embark on endeavours with meaning and contribute to fulfilling their purpose, as well as live a meaningful and fulfilled life. Freedom of passion Starting the business of their dreams, entrepreneurs can both follow their passion and reach their personal, as well as professional goals. They’re thus able to break out of the conventional 9 to 5 working environment that typically limits their responsibilities. By starting their own business and becoming their own boss, they thus give themselves the freedom to follow a specific path and engage in daily entrepreneurial activities that provide them with a sense of gratification. Freedom of finance Apart from gaining a sustainable income and profit for the business itself, entrepreneurs usually aim to generate a passive income for themselves and their immediate dependents. This passive income places the entrepreneur in a position of financial freedom and enables them to foster the lifestyle of their dreams, as well as provide for those depending on them. This creates a sense of financial security, which contributes to the entrepreneur’s overall wellbeing. Freedom of time Once the business is generating a sustainable income and profit through strong revenue streams, and financial freedom has been achieved, the entrepreneur can create freedom of time. This enables them to remove themselves from the business from an operational standpoint and only intervene when necessary. Entrusting their employees to oversee the daily operations of the business, the entrepreneur can focus on providing strategic input and leadership when/as required, whilst engaging in other passion projects or business ventures. Freedom of lifestyle By achieving financial and time-based freedom, provides the entrepreneur with the opportunity to create the desired work-life balance and quality of life, as well as spend their time on other exciting activities — perhaps even start another business, get involved within their immediate community or simply travel the world. Extrinsic 6 Mass solutions Entrepreneurs primarily start businesses that provide innovative solutions to satisfy a well-researched market need/desire. They might have recognised this need/desire within their own environment and perhaps find gratification in satisfying similar needs/desires of others. These solutions, otherwise known as products and services, refer to either (1) enhanced versions of existing offerings that better satisfy an already identified need or (2) completely new offerings that cater to an untouched need. Either way, entrepreneurship is, and entrepreneurs are known to maintain a desire for bridging the gap between the needs/desires of societies and the availability of the required/desired resources. Quality offerings The entrepreneurial landscape is a competitive battleground and experiences increased rivalry as new businesses with enhanced innovative solutions come to the party. Although the competitive nature provides various challenges for entrepreneurs, it both enables and forces them to (1) value and prioritise innovation to remain competitive and (2) provide products/services of exceptional quality to enable consumer retention. Entrepreneurs thus seek to provide enhanced quality products/services to consumers to maintain a competitive edge. As a result and in turn, these consumers are thus always able to access quality products and services that could satisfy and perhaps exceed their expectations. Job creation Primarily due to this enhanced competition and availability of consumer needs/desires to satisfy, entrepreneurs can grow and scale their businesses. As a result of and in support of this growth, entrepreneurs can create new jobs, as well as both recruit and upskill new employees. Although some modern businesses can operate with minimal staff, most entrepreneurs seek to employ multiple employees should they aim for business growth and business scaling - given that access to skilled employees serves at the core of business success. Entrepreneurs also understand that, should they aim for business growth and business scaling, that they won’t be able to achieve this goal without support. Economic growth Entrepreneurs thus also contribute to overall economic growth, especially given the (1) increased rival intensity, (2) push towards innovation, (3) enhanced products/services and (4) contributions to job creation. They thus not only raise the activity within the economy but boost its productivity and trajectory. Entrepreneurship also (1) creates a pathway for national and global trade between countries, (2) attracts various partnerships and investments into the country, and (3) opens new markets by addressing unsatisfied needs - further boosting the activity and productivity of the economy. Although this might not be a direct goal of some entrepreneurs, they certainly contribute to it either way. Supporting Causes In addition to the aforementioned goals and impacts, entrepreneurs could also aim to contribute to social and environmental movements. Given the push towards providing innovative solutions, entrepreneurs also seek ways to innovate their overall businesses toward the benefit of both their business and society. This innovative mindset enables the entrepreneur to seek ways to (1) transform activities into lean operations and (2) ensure overall ethical, as well as sustainable business practices. They thus aim to establish a business that not only provides solutions to consumers but conduct business in a way that contributes to the overall wellbeing of society and the environment. Given that lean, ethical, and sustainable practices have become a determining factor in establishing and maintaining a competitive edge, especially among modern consumers, more businesses are following suit. Challenge Why do you want to start a business? #ShawEntrepreneurs 7 Entrepreneurial spirit What is the entrepreneurial spirit? The entrepreneurial spirit is a culmination of purpose and passion, driven by proactive efforts to both reach and exceed intrinsic and extrinsic goals. These efforts include tangible and intangible elements, including but not limited to (1) a need to serve a higher purpose, (2) your overall attitude and mindset, (3) your approach to daily activities, (4) the reasoning behind your endeavours, (5) the need to diversify your skill set, and ultimately (6) your characteristics as a well-rounded individual. If you embody the entrepreneurial spirit you seek to proactively impact change through (1) complex problem solving and (2) serving others through meaningful actions, as well as (3) constantly seeking to improve the world around them through these solutions and actions. One of the biggest drivers of this entrepreneurial spirit is the characteristics both embodied and nurtured by the entrepreneur throughout their entrepreneurial journey. One of the biggest entrepreneurial myths is that anyone can be an entrepreneur. Unfortunately, this is not entirely true. Being an entrepreneur, as well as starting and running a successful business, is challenging. Of course, this entrepreneurial journey can be supported by various resources. However, this journey is built on one specific foundation - the entrepreneur and their intrinsic characteristics. Some of these characteristics are embodied by most individuals, but it takes a very specific type of individual to fully embrace the dynamic journey of entrepreneurship. What are the required characteristics? Purposeful & passionate Successful entrepreneurs (1) understand their overall purpose, (2) have a vision as to how they’ll reach that purpose, (3) use this vision to guide their actions and decisions, and (4) do so with absolute passion. Everything they embark upon (1) thus holds meaning, (2) is supported by specific reasoning, (3) is filled with value, and (4) contributes to the achievement of their overall goals. Goal-driven & motivated They are certainly motivated, but only due to the short-term and long-term personal and professional goals they’ve established. They ensure they clarify their purpose and vision, then categorise the decisions and actions that could assist them in fulfilling that purpose and achieving that vision, into SMART goals. Maintaining this level of clarity and keeping the overall vision of their endeavours in mind, they remain motivated. Creative & analytical Successful entrepreneurs are both creative and analytical, meaning they have a good combination of (1) concept creation and execution skills, as well as (2) the ability to apply logical and systematic approaches to their endeavours. Being creative, these entrepreneurs can explore various options for solving a complex problem. Being analytical, they leverage the data and information available to find solutions. Positive & practical In addition to their creative and analytical abilities, successful entrepreneurs also embody the quality of positivity and forward-thinking approaches. When faced with various challenges along the entrepreneurial journey, these entrepreneurs (1) maintain a silver-lining attitude, (2) proactively seek ways to avoid/overcome challenges, and (3) keep their overall purpose and vision in mind during challenging times. Resilient & resourceful Given the various challenges entrepreneurs face throughout their entrepreneurial journey, they require a certain sense of resilience and resourcefulness. Resilience, supported by their positive and forward-thinking qualities, enables the entrepreneur to both to identify, embrace, and rectify failures brought on by challenges experienced. They also ensure that they have the necessary resources, whether human or material, to support them throughout these challenges. 8 Inquisitive & immersive As a result of these challenges and subsequent failures, successful entrepreneurs make it their business to learn continuously. No individual entrepreneur hosts every quality or skill required to successfully manage a business. However, they proactively expand their knowledge and develop their skill sets to either avoid/combat these challenges effectively. Also, when faced with unforeseen circumstances, they fully immerse themselves within the problem faced to ensure they never face it again. Leader & follower Given their nature to constantly learn and grow, both themselves and their businesses, successful entrepreneurs are, in general, able to lead effectively. Given that they’re primarily driven by a specific purpose and vision, it provides their employees with clear direction and action plans - especially when faced with adversity. Also, having this inquisitive and immersive nature, they value feedback and insights gathered from their employees. Successful entrepreneurs are thus often also able to step out of their leadership position and become part of the team. Inspiring & uplifting Given their leadership abilities, successful entrepreneurs are both inspiring and uplifting. Given that they embark on every endeavour with a purpose and aim to achieve a specific vision, they’re not only able to provide clear direction to their employees, but also inspire buy-in from these employees. Thus, when faced with adversity, the entrepreneur can (1) remind them of the vision, (2) embrace changes and failures, (3) improve their efforts, and (4) encourage them to persevere. Proactive & Organised Successful entrepreneurs are both proactive and organised in two primary parts: (1) their personal life and (2) within their business. Even though time, as an intangible and abstract concept, can’t be controlled, they control what they do with that time. They thus ensure that no time is wasted and that both their personal and professional endeavours are balanced. Apart from structuring their time effectively, these entrepreneurs thrive on creating structure in other formats. This could include (1) being guided by their vision and goals, and (2) implementing systems, processes, and controls to assist with maintaining stability, as well as positively absorb any unforeseen impacts. Health & well-being Successful entrepreneurs are also very self-aware and focused on their overall well- being. They understand the (1) dimensions of their wellness, (2) the gaps in these dimensions, (3) what they need to do to close these gaps and (4) the overall contributions of their well-being to the success of their entrepreneurial journey. Successful entrepreneurs thus engage in various self-management activities to ensure that not only their personal and professional goals are reached, but that their overall wellbeing is taken care of in pursuit of those goals. Self-management, although a multi-faceted concept, essentially boils down to one thing - success habits. What are the required success habits? Enough sleep: This is probably both the most underestimated and most valuable success habit for entrepreneurs. Sleeping patterns impact most, if not all, facets of your life - from physical and mental health to thinking and decision-making abilities. Experts in the field recommend between 7 and 9 hours of sleep per night. Although some entrepreneurs would argue this is nearly impossible to keep up, you must force yourself and make a habit of adhering to an effective sleeping routine. 9 Regular exercise: It can pose a challenge to include exercise into an already oversaturated schedule, especially if you’re pursuing various opportunities and career paths at once. However, including just a few minutes of stretching and other forms of exercise into your routine, could make an incredible difference. Aside from the undeniable stress and health-related benefits, it has been proven that exercise makes you more alert and able to exist on the cutting edge of intelligence. Balanced diet: To achieve an optimal level of productivity, entrepreneurs hydrate and follow both a healthy and balanced eating routine. Staying hydrated and giving your body the nutrients it requires will not only boost your brain but give your body the energy it needs to sustain. Many entrepreneurs live a very fast-paced life and will easily indulge in the convenience of fast food. By all means - treat yourself! But do so in moderation and give your body everything it needs to function properly. Social activities: Being an entrepreneur takes a tremendous amount of effort and sacrifice, no doubt. But successful entrepreneurs need and take time for themselves to recharge. They carve out time in their daily schedules to host self-reflecting meetings and, perhaps, socialise with family and friends. Being an entrepreneur is all about balance, and when you maintain a good balance between “work” and “play”, you’ll avoid burnout. They understand that to truly be present to others, they must nurture the connection they have with themselves. Education matters: Successful entrepreneurs not only educate and motivate other individuals, but themselves as well. Most entrepreneurs would tell you that they’ve experienced the imposter syndrome from time to time. Successful entrepreneurs combat this common syndrome by continuously accessing daily affirmations, motivational quotes, and speeches. Successful entrepreneurs also get into the habit of continuously educating themselves - they have an endless list of audiobooks, seminars, and other inspirational content to keep them on track. Success routine: Creating a success routine might not be attractive to some entrepreneurs, but it certainly works. A success routine considers every aspect of an entrepreneur’s life - their personal life and their business. They make time to, among other things, run their business, motivate their employees, fix their failures, gain inspiration, and take time off to relax and socialize. Every entrepreneur’s success routine looks different, but eventually you’ll find one that suits your needs and lifestyle. © Shaw Academy | Professional Diploma in How to Start a Business 10 Challenge What are your success habits? #ShawEntrepreneurs Entrepreneurial journey What is the entrepreneurial journey? The entrepreneurial journey refers to the fundamental phases an entrepreneur needs to progress through to successfully establish and manage their business. Each entrepreneurial journey is unique in some ways. However, there are overarching stages that each entrepreneur needs to progress through to ultimately ensure they successfully plan, launch, grow and scale their business. The 7-stage business lifecycle: The business lifecycle suggests that a single business progresses through various stages throughout its lifetime. This progression primarily signals the gradual growth of the business and is characterised by specific activities. This progression can be categorised into 7 primary stages: (1) Seed Stage, (2) Startup Stage, (3) Growth Stage, (4) Established Stage, (5) Expansion Stage, (6) Decline Stage and (7) Exit stage (Zahorsky, 2019). Seed stage During this stage, you would primarily engage in various ideation processes, including (1) determining the overall direction of the business and (2) conceptualising the ideal product/service. This stage is primarily characterised by market research and analysis - serving as the foundation on which your entire business and strategy are built. Ultimately, this stage aims to answer the who, what, how, when, and where questions mentioned earlier. Startup stage During this stage, you would engage in various production processes, including (1) developing your product/service offering, (2) building your business platforms and (3) launching your product/service into a well-researched market. This stage is primarily characterised by business launch strategies, including acquiring initial customers and embedding various processes to ensure the offering reaches the intended consumer - in other words, sales, and marketing. Growth stage During this stage, you would identify various growth indicators, including an increase in (1) revenue streams and (2) customer base, as well as a need for (3) additional resources to support and maintain the growth trajectory of your business. This stage is primarily categorised by the movement towards the break-even point - meaning the business can cover its initial startup costs and start generating a profit. Establish stage This stage is characterised by an overall sense of stability, including a stable (1) market position, (2) customer base and (3) revenue streams. The business has typically moved beyond its break- even point, meaning that a substantial/cumulative profit is generated and injected into the business to support further growth and overall enhancements throughout. Expand stage This stage is characterised by the identification of various expansion opportunities, including the expansion of the (1) business investment, (2) market segments, (3) offering assortment, and (4) human resources. This stage is primarily characterised by additional investment and resource acquisition, as well as the procurement of innovative technologies to support the overall improvement and expansion of the business - specifically platform functionality. 11 Decline stage This stage is characterised by a dramatic decrease in your (1) customer base, (2) revenue streams, and (3) competitive strength. Typically, a business would reach this stage if the entrepreneur doesn’t (1) adhere to the changing demands of consumers, (2) leverage the benefits of innovative technologies or (3) constantly conduct market research to improve overall. Usually, the business can be salvageable if the correct enhancements throughout the business are prioritised. Exit stage When reaching this stage, you would decide to either (1) sell the business to another owner or (2) close the business completely. this stage is reached, you’ll typically be faced with the time-tested reality: The possibility that your initial foundation for the business wasn’t designed to support overall business growth. In other words, you didn’t (1) conduct thorough market research or (2) create an agile and scalable (a) business plan, (b) business model and (3) market offering that was able to leverage and adapt to various changes within and around the business. The 4-phase entrepreneurial journey: Create a vision & direction for your overall business Create a vision for your product & service offering Conduct thorough market research & analysis Design your go-to-market product & service strategy Create your agile business plan & business model Consider your legalities & a business structure Design your brand identity & overall brand message Discover partners via networking activities Create a financial strategy & source funding Design & produce your MVP product & service Create a costing strategy & identify pricing options Create your supply chain strategy & identify value Implement a scalable resource strategy Design your sales & lead generation action plan Create an integrated marketing strategy Design & implement a sound launch strategy Manage your business with various systems & tools Optimise supply chains & increase the value offered Audit your resource strategy & determine additions Evaluate your financial strategy & streamline costs Enhance your customer acquisition & retention plan Optimise your sales & lead generation action plan Optimise your integrated marketing strategy Optimise processes, systems & controls throughout Create & implement a business scaling strategy Conduct a business audit & identify weaknesses Invest in & implement innovative technologies Digitise & automate processes, systems & controls Conduct customer insight analysis & improve plans Create customer retention & loyalty framework Consider market & product/service expansions Create & implement a resource scaling strategy 12 The concept of business visioning The concept of product/service Once you’ve completed your essentially boils down to the visioning is considered an visioning process, although it might creative and analytical process you ideation process, rather than the adapt as you get answers to crucial undertake to both identify and actual design process of your questions, you've created a very design the desired future state of offering. This process includes strong foundation for your research your online business, then identifying WHAT you’re going to activities. You now have to subsequently determine the sell, as well as determine what the determine whether your vision and strategies required to successfully desired future state of your overall everything you’ve discovered is (1) reach that future state. offering would look like feasible, (2) viable and (3) desirable. 13 Lesson conclusion The fact that you’ve decided to start this course, tells me that you believe you have a higher purpose and something to offer the world. It tells me that you have envisioned a specific life and career for yourself and that you’re ready to take that leap into the world of entrepreneurship. Today, I’m here to tell you that you are in control of your destiny and you deserve to become absolutely everything you’ve ever dreamed of. Remember, you hold the power to become the architect of your own life and career. So, don’t let anything hold you back from following your dreams, becoming your best self, and living the life you love! You are here to start your dream business, so don’t give up. The first day of the rest of your life starts now - persevere and prevail! Additional resources 50 Reasons to Start your Own Business Founder’s Zodiac Quiz: 5 Personality Traits 7 Reasons to Start Your Own Business 35-step Guide for Aspiring Entrepreneurs Right & Wrong Reasons to Start a Business 22 Habit-tracking Mobile Applications Top 10 Reasons to Run Your Own Business 35+ Goal & Habit-tracking Mobile Apps Lesson references Zahorsky, D., 2019. The 7 Stages of Starting and Running a Business. [ONLINE] The Balance Small Business. Available at: https://www.thebalancesmb.com/find-your-business-life-cycle-2951237