Top 5 Basics of Successful Entrepreneurship (Must Know)

The standard values and the basics of entrepreneurship have also brought changes in the changing industrial environment and a new economy is emerging. One has to accept this reality.

Basics of Successful Entrepreneurship
Basics of Successful Entrepreneurship

Globalization, Industrialisation, and liberalization have given good impetus to entrepreneurship, but at the same time, these have posed several challenges for it. It is true that the undue government controls and restrictions have been substantially reduced due to new economic and industrial policies.

Licensing, permits, and officialdom which had created lots of obstacles, have also been reduced. Simplification of rules has also reduced the need for frequent visits to government offices.

However, the floodgates of competitions have been opened and now the industries are facing the challenges not only from domestic competitors but also from the foreign products and their qualities.

Related: 15 Major Barriers to Creativity in Entrepreneurship.

Due to competition, the not only the quality front is to be conquered, but rather the relative prices of the products are also required to be minimized through reduction in the production cost.

Basics of Successful Entrepreneurship

New successful entrepreneurship has five basics, which requires special attention. These are:

1. Best Quality of Production

The first prerequisite of success for any enterprise is the best quality of its products although there is nothing new in it.

Quality of product has always been an important basis for the success of the entrepreneurs.

Quality of products has always remained the hallmark of success.

But the protective trade policy, which was initiated 40 years back, tried to save the industries from competition in the name of socialism and protection of domestic industries.

This led to the failure of industries in maintaining the quality to the expected level.

The gap between demand and supply in the market became so substantial or it was so made, that the need of making efforts to develop the quality of products was neither realized nor opportunity was available for it.

Related: Responsibility of Entrepreneur towards Suppliers, Creditors, and Depositor.

The companies, whose products were once established in the market, got to the situation of monopoly.

The result was that a car manufacturing company, what to talk of changing the modal of the car, did not even make efforts for making technical development in it.

Licensing system created such conditions or had been so created that no competitors could enter into the market.

business basics for entrepreneurs
business basics for entrepreneurs

In such conditions, the attention of the industries was concentrated on checking the entry of any other businessmen in the competition, rather than concentrating it on improving or developing the quality of the product.

Now liberalisation has changing such situations. The competitive environment has developed not only within the country but also at the global level.

This competition has emerged, in two forms:

  1. Within the country, entrepreneurs have started production in all the areas, and they are also getting cheap labour, raw material and technical experts within the country itself. This has made them strong to compete with monopolist tendencies.
  2. New foreign techniques and foreign capital have found an easy route to the economy with the help of establishment of, international enterprises. Maintenance of quality is the only way left for combating domestic and foreign competition.

Thus, research and development programmes are essential components of the industry. Entrepreneurs are still not feeling concern about it.

Related: 12 Main Functions of an Entrepreneur (With Examples).

2. Marketing Strategy

When the supply in the market is less than demand, many efforts are not required for the sale of the products.

The customers themselves knock the doors of the sellers and purchase the product, irrespective of its quality. But, now the conditions are changing.

We observe that along with the TV advertisement, advertisement in the new papers has also increased its frequency. The marketing planning is also predetermined along with production planning.

The advertising companies are doing good business of millions and their number and skill are also growing fast.

Related: 20 Types of Entrepreneurs (Informative Explained).

Now the marketing and distribution of the products are not dependent on the basis of demand, but it begins with the efforts of generating demand. The marketing surveys are carried out, even before starting production.

As a result, various business and specialized institutions and agencies are fast emerging at the national and international scene.

Following functions are performed under a marketing strategy:

1. If similar a product to the new product is already in existence in the market, information should about their positive and negative aspects, so that new product may successfully compete with existing products in the market.

2. Generally, for commodities of daily consumption, advertisements on television and in magazines and newspapers are regarded to be sufficient.

3. Special scheme is prepared for marketing of durable consumer goods, like the sale of new commodities in replacement of used commodities or hire purchase system, with the nominal down payment, etc.

4. The wide network of distributions and agents is required to be developed for ensuring access to new commodities to the far-flung areas. Besides, consumers are also offered higher incentives to dissuade them from other similar products existing in the market, so that they may concentrate on the sale of new products.

5. Exchange schemes to replace any old refrigerator, Dunlop mattresses, scooters, by any particular brand of new refrigerators, mattresses, and scooters, etc. is the outcome of well-conceived marketing strategy.

The advantage of such a strategy is to remove the competitive brand from the market and increase the sale of the new brand.

Such schemes are not only for durable goods, like television, sewing machines, washing machines, air conditioners, and coolers, etc. but also for items like sarees.

Related: 21 Importance and Role of Entrepreneur.

These days, we see that various models of Motor Cycles and Cars have entered into the market.

Hence, their manufactures or agents have made such arrangements with the financial companies and banks that loan on easy installments and low-interest rates are made available to the customers for the purchase of new motorcycle or cars of a particular brand.

Such type of marketing strategy for the sale of consumer goods could not be imagined even, a decade ago.

But now giving maximum incentives and benefits to the customers, it has become an essential part of marketing strategies in a modern competitive age.

3. Good Bahaviour Towards Customers and workers

Good behaviour is the third important component of the success of new entrepreneurship.

Bahaviour should be good not only with customers and sellers but also with employees, workers, and executives of the company.

reasons why businesses succeed
reasons why businesses succeed

When the seller dominated the market, the customer had no alternative and the producer’s sellers did not care much about the liking or disliking or convenience or inconvenience of the customer.

But, now the situation has altogether changed.

The customer is supreme and survival of the enterprise, so the satisfaction of the customers is the central point of the whole marketing strategy.

Related: Sources of capital for entrepreneurial venture – Explained.

4. Management

Management is the fourth, but not the least important basics of successful entrepreneurship, on which special attention is paid for the success of entrepreneurship.

Management includes many aspects which need attention.

  1. Operation of the enterprise and decision making should be in accordance with the type of entrepreneurship.
  2. Study of factors contributing to the development of entrepreneurship.
  3. What are the essential qualities of an entrepreneur?
  4. Sections of the society, for whom the entrepreneur has to fulfill the social responsibilities.
  5. Sources from where the entrepreneur may get incentives and facilities.
  6. How to manage to license etc. for the enterprise.
  7. Location of the district industries center and information about the incentives and facilities. Information may is obtained by the entrepreneurs from these centers.
  8. The procedures for the establishment and development of the enterprises.
  9. How to formulate a new project.
  10. Various aspects of project evaluation.
  11. Knowledge about basic infrastructural facilities and their sources from where these may be obtained.
  12. How to formulate project report and the components to be included, therein.

5. Business Ability, Education, and Training

Today’s age is the age of competitions and specializations.

So, the experience of the entrepreneur only is not sufficient, he should be educated, trained and professionally knowledgeable too.

Only then, he will be able to provide a valuable contribution to the success of the enterprise. For complete success in the business, both theoretical and practical education and training are essential.

Thus, now you know all five Basics of successful entrepreneurship.

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