Risks of Entrepreneurship
The "spark" for many entrepreneurs is seeing an opportunity that doesn’t yet exist. Ted Turner, for example, launched CNN because he perceived that people wanted more television news than they were being offered. It took a lot of patience on Turner’s part to realize the vision, but he had read the market in a way that few "experts" did at the time.
In realizing the promise of CNN, Turner demonstrated another facet of the entrepreneurial spirit, persistence. There are a lot of bright ideas that never reach fruition; taking a "raw" idea and converting it into a successful business model is very hard work.
And that work never stops. No matter how innovative your idea, the competition is always just behind you. With anything less than constant creative effort on your part, they may not stay behind you.
When small businesses fail, the reason is generally one, or a combination, of the following: * inadequate financing often due to overly optimistic sales projections;* management shortcomings,
-- such as inadequate financial controls, lax customer credit, inexperience, and neglect, and;
* misreading the market,
-- indicated by failure to reach the "critical mass" required in sales volume and profitability,
-- usually due to competitive disadvantages or market weakness.
In a recent Wall Street Journal article titled "Why My Business Failed," Ken Elias cautions that "even if the concept is right, it won't fly if the strategy is wrong." Still, on being asked whether he would start another business today, he answers: "Absolutely. The experience is fabulous, exciting and the possibility of success is always there."
John B. Vinturella, Ph.D. has more than 40 years' experience as an educator, manager, entrepreneur, and strategist. He founded and ran a highly successful business for 20 years. He is the author of “8 Steps to Starting a Business,” available at Amazon and directly from John at a significant discount. Contact John at: firstname.lastname@example.org