Discuss About The Entrepreneurship Process Model Of Volition.
Before looking deep into the major parts of this paper, it is important to first understand what entrepreneurship means. Entrepreneurship has been defined by many scholars, but the more sophisticated definition is, the process of transforming the world through the act of solving its major problems (Martins, 2018). This is achieved by means of bringing a societal change through creation of an innovative product or giving the world a revived life-changing solution. John Paul Dejoria is one of the most successful entrepreneurs of all time with an approximated net worth of 3.1 billion US dollars. He has several businesses comprising of patron spirits co. Which makes tequila and Paul Mitchell Systems which deals with hair care products. He achieved his wealth from a startup capital of $700. His personality and personal approach to his business will be tackled and the challenges he faced while starting his business will be dealt with in depth.
The major discussion of this paper will be the attributes of a successful entrepreneur, using John Paul Dejoria, the paper will look deep into his personality, personal approach to his venture and process of his business venture right from the introduction to the last stage which is commercialization. Also, the paper will look at the challenges John Paul Dejoria faced while doing his business and then the conclusion will be the last of this paper.
One of the most important attributes of a great entrepreneur is passion and motivation. An entrepreneur should have the passion and motivation to do his business in order to achieve his main objective. Passion and motivation are seen in an entrepreneur when he does something repeatedly without getting irritated and bored with it, feeling uncomfortable or uneasy when he or she has not finished it when desiring to continue improving his business and lastly when he enjoys doing it for all his living time. Secondly, a successful entrepreneur should be a risk lover or a risk taker. Entrepreneurs take risks (Adams, 2017). A good entrepreneur does not avoid risks, but instead, he or she dives directly into the risks without minding the outcome. The most important different between an entrepreneur and other people is that entrepreneurs are always ready to risk their resources, i.e., money and time to what they have no idea on. Even though he or she risks his or her resources, he or she always keep some to deal with uncertainties that may occur in the course of doing their business. When an entrepreneur is evaluating risk, a good entrepreneur will always ask himself or herself whether the risk is worth his or her career and resources and also he or she will ask himself or herself what he or she will do in case the business fails to pay off.
Another attribute of a good entrepreneur is hard work, self-esteem and also disciplined dedication. A good entrepreneur should always believe in himself or herself and forever be confident that his or her project will pay off. In most cases, their strict focus and confidence in their business idea may be misunderstood and regarded as being stubborn but it is through the willingness to work tirelessly and ignoring people’s perception that make them achieve their success level (Berry, 2014). Subsequently, a good entrepreneur should always be adaptable and very flexible. Passion and dedication is very important if the venture has to succeed, but without flexibility and adaptability will lead to total failure of the venture. A great entrepreneur always accommodates other people’s suggestions for the purpose of optimizing those suggestions that may improve his offering and satisfy customers’ needs and the market in totality.
Having knowledge about the product and the market is another attribute of a successful entrepreneur. A good Entrepreneur has full knowledge of the product has from all dimensions. In addition to product knowledge, he or she has full knowledge of the market. Failure to possess this knowledge, it will be hard to know changes in market needs which will give room to competitors to move in and take over the market. In addition to competitors’ moves, external forces such as inflation, changes in technology, government policy, and interest rates can cause the failure of a potential product. So it is very important for a good entrepreneur to have all this information in his or her finger tips to facilitate the success of the venture. In addition to product and market knowledge, strong money management is paramount to the success of any business venture (Bortz, 2016). Therefore it is important for a good entrepreneur to possess the attribute of strong money management. This is because it takes time before an entrepreneurial venture to start paying off. Before it starts generating profits, capital should be efficiently managed and wisely utilized as it is a limited recourse (Seth, 2018). A successful entrepreneur always plans effectively financial obligation of the business in the present time and the future and ensure that precautionary fund is set aside to cater in the event risk occurs or additional funds required in the business. Cash flow should be handled carefully because it is the most crucial aspect for the success of any business venture.
Effective planning skills should be another attribute a successful entrepreneur should possess. This entails starting a business from scratch and managing resources which are always limited that always require effective planning. For planning to be effective, a business plan should be in place and be on toes to deal with unforeseen contingencies (Malinowski, 2018). In addition to effective planning skills which are paramount to any business venture, right connections become key too. A good entrepreneur should associate with more experienced mentors to help him develop his business through the advice that they will give him or her. In case they lack the necessary skills, they will always look for someone with the skills to help you develop your business. A good entrepreneur should always have the attribute of exit preparedness incase the business fails. Not all ventures succeed at the first time; many successful entrepreneurs tried many businesses before becoming successful. So a good entrepreneur should always be prepared to exit or quit in case the business venture fails to pay off and try another venture. Last but not least, a good entrepreneur should always be humble. A good entrepreneur should always be ready to admit the mistakes he or she commits and learn from them so that the same mistakes don’t happen in the future. This is crucial for any entrepreneur.
John Paul Dejoria has a natural leadership gift and the ability to aggregate great wealth. His management talent, especially in financial matters, made him what he is right now. He understands the material world better and has full knowledge of what makes any business work. There are many fields that best suits John Paul Dejoria (Forbes, 2018). Among them include business, finance, management of large corporations and many others. Another personality of John Paul Dejoria that made him accumulate all his wealth is the ability to inspire others. This makes those around him need him all the time for his encouragement. He is very adaptable and flexible which makes him have a humble time to fit into many vocational fields. He has good skills for solving personality conflicts. His personality greatly contributed to his business success.
After he got fired thrice, he started a consultancy firm in the year 1978 which he did for a couple of years though it did not pay off well. Then he discovered that he wanted to have his market segment and owner of a business that dealt with a physical product (Shlomo, 2016). In collaboration with the late Paul Mitchell, who was a superstar hairdresser by that time, they started Paul Mitchell system, a company that deals with hair care products with a startup capital of $700. After two years of operation, they would be able to generate an extra $2000 after paying all operational costs which they distributed to themselves as dividends (Lebowitz, 2016). At the moment, the company generates over one billion US dollars turnover a year which later turned out to be one of the most profitable businesses dealing with hair care products in the world.
John Paul Dejoria has invested in many businesses but the one that made him what he is at the moment is the John Paul Mitchell systems that specialize in hair care products and Patron spirits Company that produces tequila. In addition to his two businesses, he has invested in life science and telecommunication. John Paul Dejoria products include hair care products, tequila just to mention a few. John Paul Dejoria has segmented his markets effectively (Dutta, 2018). The hair care products serve both men and women from all age sets; tequila product serves adults that consume alcohol. According to geographical segmentation, the products in most parts of the world. This was all along his most important desire to own his own in the market.
The very first stage of entrepreneurship is the identification of the right business opportunity. Without a viable business idea, a business cannot be started. John Paul Dejoria identified hair care product as a viable business opportunity and then committed himself along with the late Paul Mitchell to pursue it even though at that time inflation in the United States was 12%. After identification and evaluation, what follows is development of a business plan (Hikkerova et al, .2016). This does not necessarily mean writing a whole booklet just in the name of a business plan. For startup, one can write few points which he or she intends to achieve. John Paul Dejoria along with Paul Mitchell, had a business plan and estimated the cost of starting the business to be one million US dollars but due to inadequate capital, they started the business with $700
The third step is raising startup capital. Capital can be raised from individual’s savings, family friend, bank loan, and others. John Paul Dejoria and his partner, from their pockets, they managed to raise $700 which they used to start John Paul Mitchell systems (Kuratko, 2016). The forth step of the process is getting paying customers. Identification of a market segment for your product is important. They should be paying customers (Johnson, 2016). The last step is the success or failure of the business. Starting a business does not mean you will succeed, in case your business fails, it’s important to go back and find out where you messed and rectify.
One of the challenges John Paul Dejoria faced was financing. Inadequate capital made him start his business with Paul Mitchell with a starting capital of $700. The second challenge was time management. This is the biggest challenge all entrepreneurs face. If time was enough one accomplish a lot. Another challenge faced by John Paul Dejoria was the delegation of duties. Every time he delegated duties, something went wrong (Day, 2017). Also choosing what to sell was another challenge John Paul Dejoria faced. He had to collaborate with Paul Mitchell to start selling hair care products (Jaskiewicz et al, .2016). Last but not least, a strapped budget was another challenge that this entrepreneur faced.
Conclusion
Entrepreneurship is a process which entails five major steps which include identification of a viable business opportunity, development of a business plan, raising startup capital, finding paying customers and lastly failure or success of the business. For a good entrepreneur to succeed, he or she should possess certain attributes that distinguish him from the rest. Examples of this attributes include hard-working, positive self-esteem, and preparedness to exit in case the business fails among others. John Paul Dejoria is one of the key entrepreneurs of all time who have succeeded from a startup capital of $700 to approximately 3.3 billion US dollars. In his starting stages, he faced some challenges among them are inadequate capital, time management and others
Reference
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