Entrepreneurship: Ain’t For Everybody

What is Entrepreneurship?

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Entrepreneurship has everything to do with creativity. People have been overemphasizing creativity. Setting creativity aside for another day. There is not a better understanding of what entrepreneurship is then “Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled.”

Resources are what make entrepreneurship difficult. It is the lack of resources which sets the risk-takingย of entrepreneurshipย in motion. It is the ambition, the vision, and the ability to acquireย and manage resources along the journey of building a business which earns one the title: entrepreneur.

The entrepreneurย which is able to understand the acquisition of resources is a process. Are able to better strategize. These entrepreneurs are definitelyย clear on the vision. They have greater resistance to fear. Entrepreneurship with these attributes makes for better planning. Therefore, this elite group starts.

What prevents many would-be entrepreneurs from starting? Is it the lack of creativity? Could be they don’t have the mental courage to see a vision without immediate resources?

How can this be remedied?

If you are building a start-up business, there is plenty of information about what is going to occur in the life cycle of that business. Other entrepreneurs and business consultants can provide income and expense data for the 1st to 2ns year.

You need to write down and organize this information. You must be able to see the cash flows. The best way to do this is to break things down into 90-day cycles. This way you can figure out what will be the needed resources you must obtain. This is will give you a sense of time. Now practice seeing what is going to happen over the next 90 days. This will give you a handle on resources plus the time element. Time is crucial for start-ups.

Excerpt extracted from Entrepreneurial Finance A Casebook by Paul A. Gompers & William A. Sahlman