Entrepreneurs seek to create a business that will generate profits for themselves. They search for opportunities where they may be able to offer consumers a product or service that is either priced lower or of better quality than what is offered by existing firms. In this way, they may be able to satisfy customers and generate revenue. They also hope to produce the product at a relatively low cost so that their revenue exceeds their cost, resulting in profits.
People do not need to be geniuses to establish their own business ideas. They simply need to recognize the market’s need for a particular product or service that they could provide.
We needs to make several decisions that will influence the success of his business. Specifically, we must:
- Determine whether his personality fits the entrepreneurial profile.
- Determine how to capitalize on market conditions.
- Develop a competitive advantage.
- Develop a business plan.
- Determine how to manage the risk of his business.