Malesela George Shai Student No: 145915

PROJECT COVER SHEET

PROJECT 3 : BUSINESS MANAGEMENT 2B

Shai
Surname
Malesela George
First Name/s
145915
Student Number
Business Management
Subject
Project 3
Assignment Number
G Sanders
Tutor’s Name

Examination Venue
27/09/2019
Date Submitted
X
Submission (√) First Submission Resubmission
Unit 147 Manor Park
26 Pongola Avenue
Postal Address
Randpark Ridge

Randburg 2169
George.Shai@transnet.net
E-Mail
Work: 011 584 9318
Home: N/A
Contact Numbers
Cell: 073 628 3954

BCom Supply Chain Management

Course/Intake

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Signature: M.G Shai Date: 27/09/2019

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Malesela George Shai Student No: 145915

The Importance of Entrepreneurship in the

Economy

Prepared By:

Malesela George Shai

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Malesela George Shai Student No: 145915

Table of Contents

Abstract ............................................................................................................................................4

Project Questions..........................................................................................................................4

Introduction ......................................................................................................................................5

Purpose .........................................................................................................................................5

Outcome .......................................................................................................................................5

Background ..................................................................................................................................6

Methodology ................................................................................................................................6

Findings............................................................................................................................................7

Importance of Entrepreneurship ...................................................................................................7

Qualities and Characteristics of Entrepreneur ............................................................................10

Factors of Production .................................................................................................................14

Generating Small Business Ideas ...............................................................................................16

Elements of a SMME Business Plan and Funds acquiring ........................................................19

Conclusion and Recommendations ................................................................................................23

Bibliography ..................................................................................................................................26

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Section I

Abstract
Project Questions
Using relevant management theory, engage with the management and staff of the business and
find out the following information:
I. What does the owner believe to be the importance of entrepreneurship?
II. What are the important qualities and characteristics of a successful entrepreneur?
III. How do they make use of a various factors of production to produce their goods and
services?
IV. How did they generate their business ideas?
V. How did they plan for their business? Has their business plan helped them acquire
additional funding?

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Introduction
Purpose:
The goals of entrepreneurs are varied and individualized but can include the achievement of
independence, financial success, or social change. Entrepreneurship is important and relevant to
any economy, because it involves the formation of companies, which supply people with goods
and services they need and results in creation of jobs.
Timmons, Smollen and Dingee (1990:5-6) gives us a comprehensive definition of an
entrepreneurship as follows: Entrepreneurship is creating and building something of value from
practically nothing. That is, entrepreneurship is the process of creating or seizing an opportunity
and pursuing it regardless of the resources currently controlled.

On the 16th September 2019 I met with one of the Directors of BLPK Business Solutions, Ms.
Palesa Mawasha. The main purpose of our meeting was to establish her view of the importance
of their business within the economy and their understanding of entrepreneurship. She mentioned
that BLPK consists of four members which are all directors and all four are Legal Practitioners.
She highlighted that small firms have greater flexibility than larger firms and capacity to respond
promptly to industry or community developments. A small firm/business has the ability to
modify its products or services in response to unique customer needs.
Outcome:
 One will be able to explain the concept of entrepreneurship.
 Learn the importance of entrepreneurs to an economy and expound on the importance of
entrepreneurs to an economy.
 Will be able to describe the qualities as well as the characteristics of an entrepreneur.
 Will be able to state the factors of production.
 Identify business ideas and generate business ideas that can be used in the formation of a
real business
 Explain the purpose of a business plan and describe the elements of a business plan

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Background
BLPK Business Solutions was established by four (4) young black female Legal Practitioners
who works in the legal department of different organizations. It was founded March 2019 to
provide legal services for cooperate and private clients to render service in civil law. Their main
aim for them coming up with the business was to be giving service that is affordable and
accessible for Cooperate and Private Clients. The average entrepreneur or manager of a small
business knows his customer base far better than one in a large company. And one of their main
objectives in establishing this business was to provide legal training as well as making money
and that participants in small business/firms, such as the entrepreneur, partners, advisers, and
employees, have a passionate, almost compulsive, desire to succeed. This entrepreneurial spirit
makes them work harder and better. Other strength comes from the involvement of highly skilled
personnel in all aspects of a small business.

Methodology
The method used to conduct this research was a one-on-one/face to face interview with one of
the co-owners of the BLPK Business Solutions. In this interview we went through all aspect of
an entrepreneur and deal with every question which I had written down to its full length.

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Section II

Findings, Conclusion ad Recommendations

Findings.

I. What the owner believes to be the importance of entrepreneurship?

Entrepreneurs occupy a central position in an economy. It is the entrepreneurs who serve as
the spark plug in the economy’s engine, activating and stimulating different economic
activities. Most nations worldwide can trace their economic success to efforts at encouraging
and rewarding the entrepreneurial spirit. A society is prosperous only to the degree to which
it rewards and encourages entrepreneurial activity because it is the entrepreneurs and their
activities that are the critical determinant of the level of success, prosperity, growth and
opportunity in any economy. The most dynamic societies in the world are those ones that
have the most entrepreneurs, plus the economic and legal structure to encourage and motivate
entrepreneurs to greater activities (Tracy, 2005).

Seth (2019) state that entrepreneurs are frequently thought of as national assets to be
cultivated, motivated, and remunerated to the greatest possible extent. Great entrepreneurs
have the ability to change the way we live and work. If successful, their innovations may
improve standards of living, and in addition to creating wealth with entrepreneurial ventures,
they also create jobs and contribute to a growing economy.

According to Palesa from BLPK Business Solutions she believes that entrepreneurship is
important for the following reasons:
a) Entrepreneurs Spur Economic Growth:
 New products and services created by entrepreneurs can produce a cascading
effect, where it stimulates related businesses or sectors that need to support
the new venture, furthering economic development.
 According to traditional models, entrepreneurs create new businesses in
response to unmet needs and demands in the market. That is, there is an

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opportunity to provide a product or service that is not currently in existence,

or otherwise available. Economists refer to these business-starters as
“opportunity” entrepreneurs in order to distinguish these individuals from
those who start businesses for lack of better work opportunities. So-called
“opportunity” entrepreneurs, who launch new enterprises in response to
market needs, are key players when it comes to fostering economic growth in
a region. They enable access to goods and services that populations require in
order to be productive. This is not to ignore “necessity” entrepreneurs that
launch enterprises because they have no other options. Both can and do
contribute to economic growth.
b) Providing employment opportunities:
 New businesses need to hire employees. They create jobs and these economic
opportunities uplift and support communities through increasing the quality of
life and overall standard of living.
 However BLPK Business Solutions is still new and it hasn’t ventured into
hiring more people as it just started. As the company start to grow and get
more client then more people will be needed in other fields so that it can give
opportunities to unemployed youth out there.
c) New technologies promote efficiency:
 The ability to turn ideas into new products and services that people need is the
fount of prosperity for any developed country. Economic growth, generally
speaking, is driven by new technologies and their creative applications.
Periods of rapid innovation historically have been accompanied by periods of
strong economic growth. The impetus of innovation is the greatest natural
resource of all: the human mind. Creating innovative products and solutions
requires an educated population and an environment where collaborative work
can take place. In addition to being good for business, education increases
workforce creativity and quality of life.
 This is one of the reasons why BLPK Business Solutions was founded as it
aims at providing training to address such innovation and impart more
knowledge to cooperate and private clients.

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d) Standard of Living:
 Increase in the standard of living of people in a community is yet another key
goal of economic development. Entrepreneurs again play a key role in
increasing the standard of living in a community. They do this not just by
creating jobs, but also by developing and adopting innovations that lead to
improvements in the quality of life of their employees, customers, and other
stakeholders in the community.
e) Community Development:
 Economic development doesn’t always translate into community
development. Community development requires infrastructure for education
and training, healthcare, and other public services. For example, you need
highly educated and skilled workers in a community to attract new businesses.
If there are educational institutions, technical training schools and internship
opportunities, that will help build the pool of educated and skilled workers.

With regard to the information obtained from this small developing business I can say that
there is a very important role for entrepreneurs to spark economic development by starting
new businesses, creating jobs, and contributing to improvement in various key goals such as
GDP, exports, standard of living, skills development and community development.

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II. What are the important qualities and characteristics of a successful entrepreneur?
Entrepreneurs have some common features that set them apart from people who are intent
on starting their own enterprises. This is not to say that all entrepreneurs have the same
characteristics. Each entrepreneur has the unique combination of factors at his/her
disposal for achieving success. The following are factors or interpersonal qualities of
entrepreneurs:
a. Skills - refers to the ability to do an activity or job well, especially because you
have practiced it. For example, you can learn to become an electrician, dentist,
carpenter or a beautician.
 Palesa mentioned that her skill is analyzing people as well as their
problems correctly. From such an analysis she is able to find solutions
to the problems that they approach her with.

b. Expertise – refers to the knowledge that you acquire by either studying or through
experience. You can be an expert in computer programming, air conditioning
system or manpower recruitment.
 Palesa is a legal practitioner. She has a legal qualification and practical
experience which is how she gained her expertise.

c. Aptitude – is an ability we are born with. Each person is born with aptitudes and
talent. Some are artistic; some have a talent for communicating and others a flair
for figures.
 She said that she was born with empathy and bravery which gives her
the ability to represent people and more over communication is one of
her strongest abilities which is one of the reasons why she chose law as
a career path.

Successful entrepreneurship have particular skills, expertise and aptitudes that can be
applied profitably in any enterprise. It is always advisable to start or run an enterprise in

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something you feel comfortable with and know a lot (expertise) and in which you are
skilled.

In his book, Daniel DiPiazza (2017) says successful business people have many traits in
common with one another. They are confident and optimistic. They are disciplined self-
starters. They are open to any new ideas which cross their path.
Now looking at the different characteristics of a successful entrepreneur, below are the
theories behind the characteristics and the findings as per the interview with Palesa:
a. Persistence
Entrepreneurs have a lot of confidence both in themselves and their enterprise.
They press on despite setbacks, difficult situations and problems that may arise.
They are not easily discouraged when they make mistakes or fail. They exercise
patience until the task at hand has been completed and the goal has been reached.
 Not being persistent may lead to the company not making money and the
likelihood that the business might not succeed.

b. Commitment to the enterprise

Entrepreneurs dedicate their time, skills and resources to establish and build the
enterprise. They prove their commitment through the following actions:
 Using their own money in the enterprise – BLPK is a self-funded entity
where the capital comes from all four directors.
 Borrowing and securing the loan against their house – they didn’t need to
take a loan to either start the company or funding its projects as they use
their own money.
 Putting in long hours to ensure the success of the enterprise – they
normally sacrifice their private time to run the activities of their
company as well as meeting after work to discuss issues and searching
for clients.
 Accepting a lower standard of living; usually at the beginning – the
business is currently a part time hence they still work for other
organizations.

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 Earning little or no income from the enterprise until it stabilises – She

mentioned that they haven’t split any profit at all since their profit is
used mostly to run some of the activities of the company.

c. Involvement in the enterprise

Entrepreneurs are actively involved in all aspects of the enterprise and are aware
of what is happening in the enterprise. They communicate with staff, suppliers
and clients to ensure the success of the business.
 As they are mostly at work, they also find time during breaks to
communicate among each other telephonically to establish if one will
need help on the responsibility allocated to each.

d. Willing to take risks

Entrepreneurs take risks, it must be noted that this is calculated risk. The risk must
not be excessive, for then the chances of success will be out of the entrepreneur’s
hands. On the hand, the level of risks should not be too small as lower risk is not
usually challenging and profitable. Entrepreneurs do not take gambles.
 As an entrepreneur one must be willing to take a risk in order for the
purpose of the business to be fulfilled. Making the decision to even start
a business is the first risk that any entrepreneur takes, as one cannot
guarantee the success of their business model.

e. Sound relationships
Entrepreneurs make an effort to cultivate good relationships with people. This is
part of networking. They develop good working relations with their staff, clients,
suppliers and other entrepreneurs. Success is difficult to achieve in isolation.
Networking is critical to the success of the business venture.
 I agree with the abovementioned statements, as relationships are the
foundation of a successful business. If an entrepreneur is unable to
sustain relationships then their business is as good as dead. Just as the
famous adage of a “man not being an island”, a business cannot operate

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in isolation. In law the principle of Ubuntu is held in high regard which

correlates directly with sound relationships.

f. Creativity
Creativity refers to the entrepreneurs’ imagination, his ability to think originally
or differently. Examples include the recently designed sports shoe washing and
drying machine. This machine can wash sports shoes and dry them in ten minutes’
time. This is a good example of creativity.
 In our line of business, being primarily dispute resolution, creativity is a
key ability to hone. We have to find solutions and think outside of the
proverbial box on a daily basis. Without the ability to be creative we
would then be unable to mitigate risk and simultaneously achieve our
client’s desired outcome. The ability to be creative is what sets us apart
and what attracts clientele.

g. Positive attitude
Entrepreneurs remain positive despite setbacks and failure. Yes, sometimes they
get discouraged because situations are not favourable, but overall they accept their
situation and remain positive.

Whilst anyone can become an entrepreneur, because of the difficulties that are
usually encountered, not everyone should become an entrepreneur. Whilst the
rewards do come eventually, there may be periods of stress and difficulty.
 If an entrepreneur is pessimistic, that person loses their drive and
passion for the business. A positive attitude gives an entrepreneur the
zeal to persist and ultimately achieve their dreams and business
objectives. Possessing a positive attitude also spills over to the public’s
perspective about your business and encourages your clients to use your
services in future.

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III. How do they make use of a various factors of production to produce their goods and
services?
Goods and services are produced using the factors of production. At a minimum, the
factors of production are capital and labor. Land is often considered a separate factor of
production, but is also considered to be a form of capital (Dean Hanink, 2017).
Resources are required to produce goods and services. Resources are scarce relative to
the needs and wants of people and businesses operating in an economy. It is important
that these resources are used efficiently in order to maximize the output that can be
produced from them. Production factors can be looked at as resources when starting an
enterprise.

Certain factors are needed to start an enterprise. These are called the factors of
production:
i. Land
Land refers to the natural resources available for production. Some countries
are endowed with natural resources and exploit this by specializing in the
extraction and production of these resources – for example – Saudi Arabia has
oil in abundance. Other examples of natural resources include water, minerals,
wood, leather and iron ore.
 Currently we do not have a permanent premise that we operate from. We
have our meetings and consultations with clients at restaurants, but foresee
that in future we will need to have an office space to operate from.

ii. Labour
The desire to start an enterprise is the first step in establishing a business.
People are needed to assist in the startup of a business. Labour is the human
input into the production process. These employees or labourers are paid a
wage or salary. Not all labour is of the same quality. Some workers are more
productive than others because of the education, training and experience they
have received. The technical knowledge and skills of people who work in an
enterprise, is called human capital.

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 As directors and owners of the business we have not employed any labour.
We deal with our clients and service providers’ ourselves and divide the
responsibility of execution based on our strengths. We have outsourced
anything that we don’t have direct expertise on such as I.T and accounting
services. As the business grows and based on financial viability, the need to
hire employees may arise.

iii. Capital
The word capital has several meanings. It means the finance raised to operate
a business (financial capital). Capital also refers to machinery, plant and
equipment, new technology, factories and buildings – all goods designed to
increase the potential of the economy. This is called physical capital. Human
capital refers to the technical knowledge and ingenuity of people who work in
an enterprise.
 When we started the business we did not need to obtain financing from
outside sources. As directors we are using our own intellect and expertise to
run the business. Then we each donated equipment such as stationary,
laptops and cellphones to aid to the administrative element of running the
business.

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VI. How did they generate their business ideas?

Ardichvilia, Cardozob and Rayc (2003) and Gibb (2011) described the process of idea
generation in the entrepreneurship activity as an embedded practice within the unique
personality traits of an entrepreneur. There are various methods by which small business
ideas can be identified. Ideas can be generated from the entrepreneurs’ skills, expertise
and aptitudes, from everyday activities, from common needs, from existing problems and
other possible sources.

Thus ideas can be generated from:

a) The entrepreneurs’ skills, expertise and aptitudes
Whilst formal training does not necessarily guarantee success in a small business
enterprise, you can however obtain certain knowledge from those studies which
can lead to the generation of small business ideas. For example, a person with an
engineering background can design a sports shoe washing machine.
Skills can be gained from working experience. A person with a marketing
experience for example might want to start a marketing agency. This person will
be comfortable forming a company in a field in which he/she has experience and
knowledge.
 The directors of BLPK are all legal practitioners which means that we are
all legally trained. Our work experience also lends greatly to the purpose of
our business, as our field of work is law and the business is purposed to
operate in the same realm. So when we came up with the objective of the
business and the gap that we wanted to fulfil in terms of giving a service, we
brainstormed from that point of departure.

b) From other sources

Business ideas can also be generated from consulting other reference sources.
These include the Telkom yellow pages, business publications like the financial
mail, looking at overseas products, visiting trade shows, examining
advertisements and other sources that are not listed here but are capable of
generating business ideas.

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 Our other sources of creativity were issues that our potential clients
approached us for legal opinions on, post graduate studies which required
research to complete as well as from changing legislation and case law.

c) From common needs

All of us need something. Because we are different, our needs are also different.
Examining what different people and organisations need with a view of satisfying
these needs can trigger small business ideas. For example, you can think of
products which mothers with babies can need.
 Well people would approach us with their legal problems and questions
frequently, this sparked the idea of charging for our legal opinions and
services. From there we were able to identify the needs of society and our
potential clients.

d) From existing problems

Another dimension is to think of solving existing problems. You can think of
things that irritates you or other people. The strategy is to come up with ways of
removing these irritations or solving these problems. You can find out from
family or friends what things irritate them and come up with a solution.
 We had managed to identify existing problems that our employers were not
willing and unable to resolve which we believed were easily resolvable.

e) From everyday activities

It is possible to identify small business ideas by focusing on the activities that we
perform daily. For example, we can think of the products that are advertised on
television, in magazines and newspapers and see how these could be improved.
Talking to other people, at work or at home is a useful method of generating
business ideas. Going shopping and observing what customers buy, how they
behave in the shops observe the most popular groceries that they buy can generate
business ideas.

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 Our everyday activities within our employment aided us in identifying

business ideas. Our personal ambitions and intended career paths also
helped us identify ideas and a means by which to fulfil them.

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VII. How did they plan for their business? Has their business plan helped them acquire
additional funding?
There are no fixed rules on making a business plan. However, it requires sound
knowledge of such aspects as taxation, financial management, the product to be sold or
service to be offered, marketing, etc. It is advisable to bring in experts on any of these
aspects which you may not be familiar with. This may help in making the business plan
look more professional and convincing.

To be attractive, the business plan should be well written, attractive in appearance,

concise yet comprehensive, logical, simple and easy to read and based on facts and
evidence as far as possible. It must be informative and interesting to the reader. The
better the business plan, the better its ability to articulate the issues effectively and the
better the chance of securing financial support. It must factor in the effect of the external
environment and the risk reward tradeoffs.

Generally, a business plan will contain the following key elements:

(a) Description of the enterprise
o Name of the enterprise
o Address and telephone number of the business
o Details of bankers, attorneys and auditors
o Type of enterprise, primary activities
o Logo and emblem
o Mission statement
o Goals and objectives
The business opportunity must be clearly explained. Include the primary
activities of the business and its history if the business is already operational.
o Type of ownership e.g. private company
o Organizational structure
o staffing

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(b) Indicate the present need for staff (whether full-time or part-time) and the
staffing requirements for the next three years. Clearly specify skills required
and the staff costs.
(c) Strategies – specific targets and the means to reach them
 The marketing plan
o A description of your specific target market. Who are your
customers?
o The percentage of the market you intend capturing e.g. 10% in the
first year.
o Sales forecasts for the first year of business
o A description of key customers e.g. banking institutions
o A description of your key competitors, their marketing strategies
and potential effects on your business
o A description of your marketing mix – promotion, pricing, place
and products.
 The financial plan
o Start-up cost
o Calculation of your breakeven point.
o A cash-flow statement that captures the cash position on a monthly
basis.
o Detailed income statement for the first year showing projected
income and expenditure on a monthly basis.
o External financing required and any securities that you have.
(d) The entrepreneurial team
The business plan must have comprehensive Curriculum Vitae (CVs) for the
entrepreneurial team. The skills and the experiences of the management team
together represent a major risk factor. It is important to describe the skills to
the entrepreneurial or management team, paying special attention to each
member’s knowledge of the product or service.

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(e) Manufacturing plan

If your business is in manufacturing, you need to include a manufacturing
plan as follows:
o Description of manufacturing facilities
o Capital investment in the manufacturing process and how much will be
needed in the next 3 years.
o The source of raw materials and their prices. How much will they cost
and where will they be stored?
o A list of your supplier and the level of dependence on each.

 We did not have a business plan because we have not had a need to apply
for external funding nor have we pursued large business projects such as
tenders at this point. What we do have however is a business proposal for
future business pitches and tenders.

Once a business is established, banks become a regular source of financing. It is

important to know the criteria lenders and investors use when evaluating the
creditworthiness of entrepreneurs seeking financing.
Lenders and investors refer these criteria as the five Cs of credit: capital, capacity,
collateral, character and conditions.
 Capital
A small business must have a stable capital base before any lender will be
willing to grant it a loan. The most common reasons that banks give for
rejecting small business loan application are undercapitalization or too much
debt. Lenders and investors see capital as a risk-sharing strategy with
entrepreneurs.

 Capacity
A synonym for capacity is cash flow. Lenders and investors must be
convinced of the firm’s ability to meet its regular financial obligations and to

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repay loans, and that takes cash. Lenders expect small businesses to pass the
test of liquidity, especially for short-term loans.

 Collateral
Collateral includes any assets an entrepreneur pledges to a lender as security
for repayment of a loan. If the company defaults on the loan, the lender has
the right to sell the collateral and use the proceeds to satisfy the loan.

 Character
Lenders and investors must be satisfied with an entrepreneurs’ character. The
evaluation of character frequently is based on intangible factors such as
honesty, integrity, competence, polish, determination, intelligence and ability.
Although the qualities judges are abstract, this evaluation plays a critical role
in the decision to put money into a business or not.

 Conditions
The conditions surrounding a funding request also affect an entrepreneur
chance of receiving financing. Lenders and investors consider factors relating
to a business operation such as potential growth in the market, competition,
location, strengths, weaknesses, opportunities and threats.
o However BLPK Business Solutions has no business plan and as
Palesa (Director) has stated, they do not need funding for their
business at the current state.

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Conclusion
Entrepreneurship involves creating and building something of value e.g. a business enterprise or
company. Entrepreneurship benefits individuals, groups, organisations and society.
Entrepreneurship is about building long-term value and durable cash flow streams and it is not
about making a quick buck.
Entrepreneurs are people with the ability to create an enterprise where none existed before. They
are important to any economy, producing a combination of ideas, skills, money, equipment and
market that form a successful enterprise. Entrepreneurs have certain skills, expertise and
aptitude. They also have certain personal qualities that are useful for succeeding in business.
These qualities are persistence, commitment, involvement, willingness to take risk, sound human
relationship, creativity and a positive attitude to life. Successful entrepreneurs realize that
effective management is necessary for the success of an enterprise.

When it comes to factors of production, the primary sector involves the exploitation of natural
resources in their unprocessed form whereas the secondary sector involves the processing of
natural resources into their final product. Although the objectives of entrepreneurs vary, the
profit motive deserves special attention because profit sustains the business. The business
environment is made up of all the factors that can affect the business enterprise in any way.

Business ideas are generated from form different sources such as everyday activities, yellow
pages, existing problems and so forth. In order for one to have or start-up a business, ideas need
to be generated because if you don’t have any ideas you can’t just start a business not knowing
what you will be focusing on.

Business plan serves two important purposes – to guide the direction of the business and to
persuade investors and lenders to support the business. The business plan must be well written so
that it can be taken seriously.
Business success boils down to a few things at the end of the day. Work hard, remain on your
path, take calculated risks and continually question your current methods. Know your value and
your worth to avoid straying from your vision.

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Recommendation
There’s something special about growing a business that is personally meaningful. You
confidently provide a valuable service, you’re never bored and your ideas challenge the status
quo. Since you genuinely care about your clients, you’re determined to give them exceptional
service. Plus your work contributes, either directly or indirectly, to the overall economy.

I will then recommend the following five (5) recommendations for BLPK Business Solutions:

1. Talk to your clients.

Most entrepreneurs did tons of hard work and played by the book, but don’t make it in
the long run because they didn’t recognize the importance of talking to their clients. The
business exists because of them.
Reaching out to your potential, and current, clients is a game-changer. Talk to them.
Discover where your potential ideal clients hang out. Pay attention to their language.
What concerns do they talk about and how do they express those concerns?

2. Leverage your expertise.

BLPK Business Solutions needs to improve their expertise. This is one of the best ways
to increase income. Unfortunately, so many entrepreneurs forget about this business
growth option.

Yes, entrepreneurs who are passionate about their work run the risk of giving away too
much for free. This is a red flag that you’re under-pricing your services, undervaluing
your time and struggling with low business confidence. You’re basically telling yourself
and your clients that your service is not worth being paid for.

3. Define your brand

A well branded business strategically helps to rise above others in a crowded niche.

Change is constant. Maybe you’re doing well now. Do you possess a solid plan to ensure
you’ll remain busy in a year from now? A solid brand keeps you, and your business, top
of mind. Your brand aligns with your core values. This influences your messaging and
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virtual presence. Review your site so every page consistently reflects your brand. Tell
your story and be authentic. Your brand extends to your social media presence.
Professional pictures are a powerful way to represent you and your business. The details
you share about yourself and your business also establish your brand

4. Give people what they want

Certain professions must follow the trends. But that doesn’t apply to all professions.
Instead of following trends, consider what best serves your ideal client. It’s okay to be
contrary to what’s currently popular.
To offer services your clients want (and thus making sure they come back to you and tell
others about you), talk with your clients about their current needs. Create a buyer
persona, which Loren Fogelman (n.d) calls an avatar. You’ll want to dedicate some time
and resources. Market research, tracking behavior and surveys are common resources.
They’re designed to identify the needs and wants of your ideal client. Once you gather
that information, now what? You’ll want to analyze the results, fine tune the description
of your ideal client, and then go build your next product or create your next campaign
based on that information.

5. You don’t need to reinvent the wheel

Growth minded entrepreneurs possess a strong vision about their business success.

Raising the bar and challenging current standard involves risk. That’s because you can
rarely guarantee how your new approach will be received, or how long it will stay on top.
So one popular strategy has you offer something that’s already accepted. Then improve it
so it’s better. That might mean simplifying a product, finding an easier solution for an
already common problem or combining two seemingly impossible ideas to create
something of high value. Consider what already exists and how you can improve that
service or experience.

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DiPiazza, D. (2017). Rich20Something: Ditch Your Average Job, Start an Epic Business and
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