Questions Every Entrepreneur Must Answer -summary Essay Example

policies that will move the company forward. For it to be effective, strategy statements should be concise and easily comprehensible. Strategy that is overly broad and allows for any action is essentially a lack of strategy. Can the strategy yield enough profits and growth?

When entrepreneurs are unable to generate satisfactory returns, it is important for them to reflect on the source of their competitive advantage. Furthermore, underwhelming growth should raise doubts about market size. Businesses that rely solely on an entrepreneur's work ethic often face stiff competition from equally determined rivals. For entrepreneurs who find themselves trapped in unprofitable ventures, drastic measures must be taken. This may involve either finding a new industry or creating innovative economies of scale or scope within their current fields. The question that arises is whether this strategy is sustainable.

The sustainability issue is crucial for entrepreneurs who have been capitalizing on a new technology. Entrepreneurs in this scenario must be able to predict the point when the market becomes saturated, competition intensifies, and the next technological advancement is on the horizon. For instance, with Vydec, a word processor that operated independently, the partners realized that stand alone word processors were becoming obsolete and decided to sell their company. Entrepreneurs who initiate ventures by creating their own trend should enhance their initial advantage by cultivating various strengths. Usually, new ventures are unable to afford innovation in every aspect.

Competitors will face challenges in replicating systems that integrate multiple diverse and complementary capabilities. Assessing whether my growth goals are too conservative or overly aggressive is crucial; finding the right pace is crucial, as both moving too fast or too slow

can result in failure. Executing the strategy demands self-reflection: Can I achieve it? While great ideas don't guarantee success, entrepreneurs must analyze their resources, organizational capabilities, and personal roles to evaluate their capacity to implement strategies. Do I possess the necessary resources? Often, the lack of talented individuals proves to be the primary hurdle.

After the initial period of the venture, entrepreneurs should be ambitious in searching for new talents. It is important to decide whether to make termination decisions myself, considering my personal attachment to the business, or bring in an outsider. Some resources that were initially external may need to become internal for the new venture to survive. The strength of the organization is crucial in determining its ability to execute its strategy, which relies on its organizational structure, culture, and norms. The growth rate of the venture can indicate whether the entrepreneur has invested an appropriate amount in the company's structure and system.

When a new venture is experiencing rapid growth, entrepreneurs must delegate significant responsibility to new employees while closely monitoring their finances. The organization's culture determines its ability to handle crises and disruptive periods of growth. Entrepreneurs need to manage the company as if it is on the brink of failure. Only a few successful entrepreneurs solely serve as visionaries in their organization. Leaders strive for continuous improvement and strive for greater impact in their work.