ODT, January 7, 2011
Entrepreneurship isn’t for everyone, but if the idea of becoming an entrepreneur excites you for some reason, then that’s a great start, says Lisa McCarthy – General Manager Entrepreneurship and Marketing at Upstart Business Incubator.
Entrepreneurship is frequently misunderstood. Being a business owner, inventor or coming up with a few business ideas doesn’t mean you’re an entrepreneur. Ideas are a dime a dozen, and you can be an entrepreneur with someone else’s idea or technology. An entrepreneur is someone who innovates and carries risk while building a business. They deliver something that their market will pay more for than it costs to produce and sell.
There are a number of ways to discover if being an entrepreneur is right for you. Some of the signs that you’re well suited include that you see an opportunity in every problem, you’re future oriented and can visualise what you want to create and how to get there, you can adapt and learn from your experiences, you’re committed to achievement and doing the right things well, you’re focused, decisive, and resilient. Chances are you’ll use out of the box thinking when it comes to gathering the resources you need, and you march to the beat of your own drum, while also being open to feedback from worthwhile sources. You may well see some entrepreneurial traits in your children – nurture them, as the environment doesn’t tend to treat entrepreneurial thinkers kindly.
Opportunities for business are everywhere, and there are a number of ways to identify them. It’s important that you’re excited and passionate about what you do or else when things get hard, it’s too easy to give up. Think about what lifestyle you want, the type of customers and team you want to work with, the difference you want to make, and the level of financial reward that’s important to you.
You need to offer what people want to buy, not what you want to sell. Listen to the market place for problems that you can solve (or find a solution to). It’s much easier to sell to customers in search of a solution, as compared to having a solution in search of customers. Compose a list of areas where people’s needs are not being met well enough, or at all. Once you have your list, try to identify the business opportunity in each, determine what capabilities and resources you need, rate the opportunities in terms of personal preferences, financial worthiness and perceived risk, and select the one that seems right for you. The Entrepreneur Development Programme at Upstart works with potential entrepreneurs, at no charge, to help them identify or find the right business opportunity and solution for them, while developing their entrepreneurial potential and mindset.
When it comes to determining the resources you’ll need, don’t just think about funding. It pays to jot down what you believe your talents, strengths and skills are, who you know, and what connections or networks you could utilise and add value to. If your business opportunity meets an identifiable need, and you can communicate the value of what you’re offering, it’s reasonably easy to find the money. If you don’t have the money, options to fund your business include funding from family and friends, angel investors, banks, or using your resourcefulness to bootstrap. Bootstrap Angels is currently being developed in Otago via the incubator, where people who want access to the resources they need to build their business can be matched with people and businesses who have the time, skills and assets to contribute. Your need is someone else’s opportunity for work experience, revenue share, sweat equity, access to new clients, or even just fun. Otago also has it’s own Upstart Angel network with national affiliation and access to matching funds via the New Zealand Venture Investment Fund.
If you’re not sure how to go about starting and building your business there’s help at hand. Local examples include Upstart Business Incubator where there are no up-front fees if you have a high growth opportunity with international sales potential, or your local Economic Development Unit, New Zealand Trade and Enterprise or Chamber of Commerce. If you’re a student you have access to the Audacious business coach and business awards and the Distiller. If you need a prototype built, there’s the Evolver Programme at the Otago Polytechnic, and many engineering and IT firms will consider building a prototype for a fee or share of the business. There are Polytechnic and University courses, books, and mentors. There are also professional services firms and business coaches.
If New Zealand is to be competitive and maintain or improve a high standard of living we need to start producing and embracing more entrepreneurs whose dreams extend beyond the car and house, and the number-8 wire approach to business building. We need entrepreneurs with big dreams who want their playground to be the international marketplace, and we as a community and economy must actively find, develop and support the people willing and able to make this difference. If this is you, or your child, or a friend or family member… then step on up. The world is waiting, and the opportunities abound.
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