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Key realities of entrepreneurship

Are you an entrepreneur struggling to launch or grow your business? We can help. In this article, I focus on the realities of entrepreneurship, the natural business sequence since the dawn of time and we'll also take a look at the four-step process that Steve Jobs used to launch Apple!
Key realities of entrepreneurship
Many entrepreneurs and small business owners are struggling in these tough financial times to stay afloat. We’re dealing with many issues like load shedding and the Covid-19 coronavirus outbreak, just to name a few.

If I’m talking to you – take courage, you’re not alone!

However, in the words of Albert Einstein: “The definition of insanity is doing the same thing over and over again and expecting a different result.” These wise words are very true when it comes to business. As an entrepreneur or business owner, you must be flexible and adapt to these issues in order to make it to the other side.

One of the most important aspects of a successful business is a solid foundation. The stronger and deeper your foundation, the more likely you are to survive in the midst of turmoil.

Below I discuss three important realities of entrepreneurship, with a summary of how Steve Jobs birthed Apple in the late ‘70s.

Click here to see how we can assist your business.

1. The natural business sequence

To understand the natural business sequence, we must go back all the way to the dawn of time when God created the heavens, the earth and mankind. In Genesis, we learn the first attribute of God – He is a Creator.

God also created mankind, both male and female in His image, according to His likeness. In other words, every human being is created in the image and likeness of God. And if God is a creator and He created you in His image, according to His likeness, then you are a creator. This is great news; you are created in the image of God. You possess the creative gene!

After mankind was created, God gives them a mandate: “Be fruitful, multiply, replenish and subdue the earth, using the vast resources of the earth in service of God and man.” This mandate is generally misunderstood, many people interpret the meaning of this as producing children, which is not accurate. The original meaning of these four words in the old Hebrew language is as follows:
  • Fruitful means to produce
  • Multiply means to re-produce
  • Replenish means to distribute
  • Subdue means to bring under control

God gave humanity four business principles to operate on planet earth. Every person must dig into his creative gene and produce a product or service of value, using the resources of the earth in the service of other people. After you can successfully produce a product or service that other people need, you need to create a system to re-produce what you’ve produced. The next phase is to distribute the product or service that you have re-produced and get it to people. Lastly, if you can execute these steps successfully over a sustainable period of time, you will bring the market under control and dominate the Industry.

2. Your entrepreneurial ability

Now that you know you have the creative gene inside of you, you need to discover your unique entrepreneurship ability. There are three key areas you need to explore in order to discover your entrepreneurial ability and identify the right business idea:

Concept one: Talent/skill

Firstly, you need to identify your unique talent or skill. What can you do better than other people? If you don’t build a business based on your talents or skills, you’ll struggle to create a competitive advantage over your competition.

Concept two: Passion

Next, is to identify what you are truly passionate about. Passion speaks more of the industry that you want to operate in. If you aren’t passionate about what you do, your business will not last long as you might become bored or tired of the business.

Concept three: Economic engine

To move in the right direction, you need to combine your talents and passion and figure out how to make money from your strengths (in other words create a viable business model). No matter how noble or innovative your business idea, if it doesn’t have the ability to generate money, it is a waste of time or just a hobby to be pursued in your free time.

The right business idea for you will come from exploring these three concepts honestly and practically.

3. Entrepreneurship rules

Entrepreneurship is a concept that is grossly misunderstood in society. There are key entrepreneurship rules that you need to respect and act on in order to become a successful Entrepreneur.

Five key realities of entrepreneurship:

Rule one: Entrepreneurship is birthed with an idea or a dream.

An entrepreneur is born the moment they discover an idea or a dream which they believe in! This idea or dream is worth working for and the impact it will have on other people becomes an entrepreneur’s purpose.

Rule two: Brain capacity.

If you have a normal functioning brain, you have the ability to become an entrepreneur. This doesn’t mean you need to become the next Steve Jobs. Success simply defined is discovering your purpose, growing to reach your maximum potential and sowing positive seeds to empower people around you. This definition makes success very achievable for every person on earth.

Rule three: Think differently.

Entrepreneurs think differently. I want to encourage you to be unique in your industry. When you start or grow your business, never compare yourself to the competition and try to better or cheaper. Rather look at the competition and ask yourself: “How can I be different?”

Rule four: Ideas.

Entrepreneurs pursue ideas worth working for that will have a positive impact on humanity. How will your business move society or the industry forward?

Rule five: Organisation that works.

The biggest reality of all is that an entrepreneur builds an organisation that works. An entrepreneur doesn’t hustle forever, he doesn’t remain self-employed running around like a chicken without a head. He builds an organisation that works without him/her being present all the time. To test if you have an organisation that works, ask yourself these two questions:
  • Can I be away from the office for three to six months without getting a call from the staff?
  • Do I have enough cash flow to cover three to six months expenses and salaries without making a sale?

Entrepreneurship case study: Steve Jobs

Steve Jobs, in my opinion, is probably the best entrepreneur to ever walk the earth. He was a genius, ahead of his time and he changed society forever. He followed the above mentioned ‘natural business sequence’ to the letter in the start-up phase of Apple.

#1: Produce the first Apple computer
Steve Jobs and Steve Wozniak produced one computer of value. After the computer was tested, they took it to a hobbyist convention and closed a deal with a guy from a Byte Shop to re-produce 50 of these computers.

#2: Re-production of Apple 1 computers.
After Steve Wozniak created the blueprint for the Apple 1, Steve Jobs assembled a workspace (his father’s garage) and recruited the neighbourhood kids to help them build 50, Apple 1 computers and an additional 50 which they planned on selling to the consumers directly.

#3: Distribution of 100 Apple computers.
Steve Jobs had two distribution channels for the Apple 1. The first distribution channel was the guy from the Byte Shop. The second distribution channel was selling the remaining 50 Apple 1 computers directly to the consumer.

#4: Control and domination.
Since the birth of Apple in the late ‘70s/early ‘80s, the company has consistently followed this pattern for +/- 40 years and in the process has become the first business in history to be valued at $1tn.

More about Entrepreneurship School

Entrepreneurship School™ is a service Seta-accredited educational institute (Seta Registration Number: 13719). We’ve been running entrepreneurship and business courses and consulted thousands of startups and companies on starting/growing a business in South Africa since 2013.

We have created a five-step programme to assist entrepreneurs in starting/growing a business.

See the five steps below:

Step one: Discovering your entrepreneurial ability.
Step two: Identifying the right idea.
Step three: Creating a viable business model.
Step four: Writing an in-depth business plan.
Step five: Key building blocks (marketing, sales and operational systems).

Click here to view more information regarding entrepreneurship realities, starting/growing a business and creating a solid foundation to build from.

Click here to see how we can assist you to start or grow your business.

19 Mar 2020 08:32