What Is The Ultimate Goal Of An Entrepreneur? – Every individual that establishes a business has an objective of making profit but what if we tell you that it is not really the goal you should have in mind as an entrepreneur.
Entrepreneurship goes beyond just establishing a business and making profit as this is a misconception a lot of people have about entrepreneurship and that is why many people fail in starting and setting up a successful business entreprise.
You shouldn’t misunderstand what we are trying to say as we are not saying you shouldn’t think of making profit but this shouldn’t be the ultimate goal of your business. If profit is not your ultimate goal, what should then be your ultimate goal?
We will be answering that question in this article and also telling you about the ultimate goal of an entrepreneur because this will help you in establishing a successful business and creating a legacy that will last for a long time.
It is worthy to note that entrepreneurship is different from self-employment as entrepreneurship goes deeper and this is part of the things we will be making you understand in this article.
Everything You Need To Know About Entrepreneurship
A lot of people have different views about entrepreneurship and some of these views are misconceptions that have made a lot of them fail in their quest to setup a successful business. Some people have also lost interest as they see it as a lonely profession with a lot of ups and down.
Many people dream of being an entrepreneur but they don’t really succeed in making it big because they usually think small and mistake it for being self-employed. There is a difference between entrepreneurship and self-employment and the earlier we start taking note of this difference the closer we become in achieving our entrepreneurship dream and goal.
Entrepreneur is more of value creation and not just about the profit. Let’s put it this way, business is all about money but entrepreneurship is about creation of value and with this statement, we would say that not all business owners are entrepreneurs.
Do you agree with the statement? Well, let’s explain better for you to understand what we are trying to say.
Business owners might have a big picture of what they want in their business but the end goal is to make profit and so the strategies and methods they use are to ensure that they get profit at the end of the day. Let’s look at the sole proprietor for instance, they create a business to make profit as they are the sole owner of the business and everything lies on them.
An entrepreneur is not just about the profit as they think about creating value for their customers. An entrepreneur is someone that identifies problems, generate ideas to turn these problems into business opportunities in order to help solve those problems and take the risk to establish a business venture. They try to meet the needs of their customers in the best possible way.
So in a nutshell, we are saying that entrepreneurship is more about creating value to ensure the longevity of the business venture and not just limited making profit alone.
So if you want to succeed well in any business you intend doing, try to be an entrepreneur and not just a business owner although there is nothing wrong with making profit the sole reason for your business but you should reconsider this because if you are more of creating value, you will certainly make profit as you will reach out to a large customer base and also build customer loyalty that will help your business in a long run.
Let’s take the banks as an example. Many people believe that the banks are in for profit and so any decision they make is squarely profit-oriented, well you are not far from the truth as this is the reality of the bank but the thing is that if they don’t create value for their customers, they won’t make profit and that is why they are always ready to serve their customers and ensure they get the best service.
Should profit be the ultimate goal of an entrepreneur that wants to launch a new startup business?
For an entrepreneur launching a new startup business, it is important that you make the right decision about the main goal of your business as this will help you prepare for what comes with the business and also to weather through the challenges of the business.
The ultimate goal of an entrepreneur that wants to launch a new startup business should be to prove a business and shouldn’t be majorly in profit making. If your business is the solution to the problems of the consumers and meets their needs, you are proving a business and so you wouldn’t have to worry about making profit as it will surely come. So it still boils down to saying that the ultimate goal of a startup entrepreneur is value creation.
How to succeed in launching a new startup business as an entrepreneur
Understanding the ultimate goal of being an entrepreneur will help in launching a new start up business successfully and like you must have seen from all we have said so far in this article, the ultimate goal of an entrepreneur is not profit but creation of value. So how are you going to go the creation of value? What are the steps to help you achieve this goal?
This is what we are going to be discussing in this part of the article and if you can use the tips we will be highlighting in this article, you will certainly achieve any goal you set as an entrepreneur.
Without further ado, let’s proceed with what we have…
- Conduct a market research about your business
One great mistake you would make in starting your business is not conducting a market research or investigating the market. For whatever business you want to start up, it is very important you conduct a market research as to know the demand for your product or service and also the people that demand for your product or service.
The market research will help you know the current trend about your product and also how to produce so as to meet the needs of your potential customers better. A market research will help you understand the problem in the market and the unmet need around you and figure out the best way to meet that need and make money from solving the identified problem.
Every successful business is formed to proffer solution to problems as it is a way to remain relevant in the market. So in starting a business, try to identify an unmet need in the market and see how best you can deploy your resources into meeting this need and solving the problems of consumers.
- Start up with the right reason
Be honest with yourself; why do you want to start up your own business?
Who will benefit from your enterprise?
What is the goal of your business?
Your business will certainly fail if it is not set up for the right reasons and the right goals. For every business to thrive there must be a passion backing up the entrepreneur’s motive. Your primary reason shouldn’t be to get rich quick or make a lot of money as this has led a lot of entrepreneurs into establishing a business that failed along the way. If you are nurturing this thought, you are on the wrong plane and you are calling for frustration and failure.
Build your business on passion, determination, patience and positive attitude. You have to love what you do as this will help motivate you even when you encounter setbacks in running your business. You have to focus on the problem you want to solve and the need you want to meet.
You need to have a business goal that will give you a direction and path to follow as to why you want to start up a business like we have hinted you about creating value. You have to be honest with yourself in setting out your goals and reason for startup. The right reasons will lead you to success while the wrong reason will lead you to failure.
- Set out a clear and realistic business plan
Every business needs a business plan. This is like a road map showing where you are now and where you want to be. In starting your business, you must have a clear, strategic, measurable and realistic business plan. Your business plan shows vital information about how you want to go about your business.
Your business plan is the foundation of planning your business. Though it is not a guarantee that your business will succeed but it is a direction to what you want to achieve.
Every successful entrepreneur and business owner set out a realistic business plan and your business plan should show the following information:
- Description of the business, its product or service
- Analysis of how you want to enter the market or industry
- Financial requirement and cost of operation
- Marketing plan and sales strategy
- Description of management and organization
- Competition and competitors
- Possible problems to be encountered and solutions
As an entrepreneur with the aim of running your business on a large scale and succeeding in a long run, it will require a lot of capital and many financial institutions and investors request for a business plan especially when you request for loan. Let your business plan clearly state your business goals and vision too.
- Know your customers
One mistake many new entrepreneurs and start-ups make is that they want to get everyone to be their customer and they risk losing every other customer. It is very important you know your customers and don’t see everyone as your customer.
Do not try to please everyone but still try to deliver quality products and contents to your customers. Know your customers and do what you can to satisfy them; they will certainly do some networking for you if your product or service is good.
Whether you are introducing a new product into the market or you are modifying an already existing product, you should make it different from that of competitors as this will give you an advantage when you are trying to convince them (customers) to leave other products and services for yours.
Knowing your customers will help you figure out the best marketing strategy to use in attracting new customers to your business. Always be up to date about your customers’ changing needs and taste.
- Have enough capital to start up and run the business
One financial problem many new businesses face is lack of capital or inadequate capital to start up and run the business and also, capital is a major factor that determines the size of a business and also it determines the efficiency and productivity of the business to an extent but not all businesses that had enough capital to start up succeeded but majority of the new businesses fail because of insufficient capital even existing businesses too.
Are you financially stable to start up and run the business?
Where do you source for start-up funds?
You will have to figure out how you can source for funds to startup your business either getting loan from the bank, looking for angel investors or venture capitalist to finance your business.
You can also get a partner that can finance the business and provide other inputs.
- Set up your business in the right location
The location of your business is vital for the success of your business. Every business needs a good location depending on the type of business.
Your business should be located close to your target customers and they have to be able to access it at ease. Nobody wants stress especially when it’s their money. The customers are the reason you are starting the business, so your business should be easy for them to assess.
Your business should also be located close to the source of raw materials that is if you are processing or manufacturing like shoe-making, fashion designing and even restaurants or fast food. This will help reduce the cost of transportation of getting the raw materials for production.
Some businesses also have reacted positively to being located close to other businesses in the industry. There are some benefits your business gains from being located close to competitors or other businesses. It is called external economies of scale. It becomes easier to conduct a market research and there could also be joint partnership that could help your business in terms of finance.
- Cash flow management
Starting up a business can be difficult especially when you cannot manage your cash wisely. You have to understand how money comes in and goes out of your business. There should be a plan on how to spend money for any reason in particular. In starting up your business, you should be able to account for every penny that comes in and goes out of your purse.
As a new business, you will want to buy different equipment and materials for your business depending on the size but before doing this, you should analyze the cost-benefits of the equipment you want to purchase so as not to purchase what you won’t use for a long time.
To manage your cash wisely, you should have a budget and also record for every cash given and cash received. It is not only about having a budget; it is about sticking to the budget; so you have to discipline yourself to work with the budget. In your budget, your expenses shouldn’t exceed your income so as not to be running your business on debts as this is bad for every business.
- Manage your time properly
Every entrepreneur needs to be able to manage time properly as this will certainly help your business grow. Time is limited and also valuable. Do not procrastinate as this will affect your efficiency in running your business.
Try to know your school activities as this will help you plan for your business and schedule your activities properly. For every schedule you set out, make sure you stick to it.
In order to manage your time wisely, prioritize your activities and perform them according to their order of importance. Everyone has a way they arrange their activities according to how they can meet up and carry them out. If you feel that doing the less important task first will give you enough time to focus on the more important ones, then you can carry it out that way provided you will meet up and complete all the tasks.
- Make use of the internet
Online marketing is really becoming popular in the world today especially during the pandemic period where people had to stay in their homes to conduct business. Online marketing is the process of using any digital means on the internet to create awareness about your business to prospective customers and also get them to purchase your product or service.
The online marketing has a lot of benefits for your business, it will definitely help you save time and cost too. With the internet, you get to sell your product or service; no matter what you are selling, there is always a customer for the product online provided it is meeting a need and you are creating value. You have the opportunity to reach out to many people across the world.
You have to create an online presence for your business as it helps to boost sales and conversion and you get to reach a larger customer base in a short time. You can use some online marketing strategies like;
- Social media marketing where you use Facebook, Twitter, Instagram, etc. to market your product or service.
- Video marketing with platforms like YouTube, Facebook etc.
- Create a well-designed and user friendly website for your business
- You can also run ads on PPC (Pay Per Click) or SEM (Search Engine Marketing).
Tap into the advantages that online marketing offers to modern businesses and see your business succeed.
- Focus on your customers need
Most successful enterprises enjoy customers’ loyalty because they focus on the needs of their customers. The customer is always right and so your product or service should be channeled towards satisfying their needs as this is the best way to create value.
This marketing concept will help you gain a foothold in the market and also retain your customers. Always take your customers into consideration; research about changes in their needs. Focusing on your customers’ needs will give you an advantage over your competitors.
- Do not see failure as the end of the road
It is true that nobody wants to fail and also there are many articles on “why new businesses fail?” but the honest truth is that failure is part of the success story and learning process. You are bound to encounter setbacks but it is how you handle these setbacks or challenges that make your business survive.
Challenges are bound to occur from different aspect and stage of your business and so you will have to be prepared for everything and anything, be determined and never give up.
No successful entrepreneur made it without encountering challenges or setbacks at some point in their journey to success. They learnt from failures and came back stronger and better.
In your business plan, you are to highlight some possible problems and also solutions to those problems as this will help you get a little bit prepared for challenges and also have a contingency plan so as to support your initial plan because no plan is perfect until you have succeeded.
- Work with the right team
If you think owning a successful business is a lone walk, then you will have to rethink. Entrepreneurship is not a journey for one man as you will need people to work with you to achieve success.
Your workforce is vital in the success of your business. You should do well to get the right team and hire the right people for the job.
Never think that you can grow a successful business alone; 85% of most successful businesses have a strong workforce; it doesn’t matter how smart you are; they say that two good heads are better than one so having the right team is very important to help pivot the success of the business.
- Have a proper management: do not be a control freak
Most businesses fail because of poor management which could be lack of trust, getting the wrong team or even being a control freak. The business idea might be yours and also the business too but you should learn to allow others air their opinion and participate in active roles. This will make them become innovative and show their creativity.
You cannot do everything on your own and so you will need to delegate responsibilities as this will help make success come sooner than expected.
From everything we have said so far in this article, you will see that the ultimate goal of an entrepreneur is not profit although profit is one of the goals of an entrepreneur but it shouldn’t be the sole reason behind you establishing your business and it might lead you to start acting unscrupulous without putting consumers into consideration.
If you must know, the consumers are the reason for your business and so they should be the cynosure of your business because when you create value and win the hearts of the consumers, profit will surely follow.
So if you are planning on establishing a business today, you should try to create value and meet a need as this will help your business to thrive like other successful businesses.