All entrepreneurs go through three very general stages in the process of creating their ventures:
1. A concept formation stage where ideas are generated;
2. A resource gathering stage where necessary resources are brought together to launch the new business;
3. A stage where the organisation is actually created.
Step 1 - CONCEPT FORMATION.
Before any business opens its doors, it must make crucial decisions about the way the business will be run. This first step in the entrepreneurial process is where the entrepreneur determines what kind of potential market exists for the business and explores some of the following…….
Is there actually an opportunity for a successful venture?
Will the venture make a profit, capture the market.
Can sales be estimated?
What is the size of the potential market for the product or service?
Step 2 - RESOURCE GATHERING.
In the resource gathering stage the entrepreneur begins to assemble the tools that he or she will need to make the business idea a successful one. In general, a person has to gather three types of primary resources:
1. capital (financial, intellectual, technical))
2. human/managerial (employees)
3. and time (to establish and protect the business from competition)
Step 3 - ORGANISATION CREATION
This is the actual establishment and opening of the business. The entrepreneur has a number of roles as the business develops.
1. to educate new employees.
2. to promote their new business.
3. have contact with financial backers, prospective clients, employees, suppliers, and others.
The roles that an entrepreneur must fill demand flexibility and creativity. In order to successfully manage a new venture, an entrepreneur must be comfortable in all the roles.