In general perception, entrepreneur is the one who invests capital and enjoys profit. Reality is dissimilar. An entrepreneur is the one who starts work from scrap and works hard until the final product is prepared and even after that.
The ultimate desire of every entrepreneur is to achieve the highest returns at the end of the day. He inducts all his resources, skills and efforts in the enterprise to boom. It is not complex to become an entrepreneur, tricky though. Those who function perfectly catch the limelight.
In this continuity, we are going to discuss the essential Do’s of an entrepreneur. If you are intended to start a new enterprise, this piece of writing is going to be a significant aid.
4 Essential Functions of an Entrepreneur
You must know the real jobs of an entrepreneur and what functions he actually performs. We have concluded these functions into four categories. Here are the 4 essential functions of an entrepreneur
1. Entrepreneurial Functions
In this fragment, we are going to elaborate on the main entrepreneurial requirements of a well-functioning entrepreneur.
Play against threats
An entrepreneur is the bearer of all the risks and threats of various natures that came in the business process. This is one of the primary functions of an entrepreneur. During a business process, there is always a risk of practical nature such as the risk of inventory management, loss by theft, loss by fire, and many others.
Financial threats are also there in the form of heavy investment, creditors, debtors, loan from financial institutions. To prevent the risk of losses the entrepreneur selects those products which are more profitable according to his market research.
A perceptive, functional entrepreneur foresees the probabilities and seeks for a suitable “Risk Management” model. Proper insurance on corporate level is a must.
Innovation
This is the essence of all entrepreneurial performances. From the manufacturing of products or services to the marketing and finally sales, the entrepreneur, at every step, ought to think smartly by studying the competitor’s strategy. And then, act innovatively.
Here you can check the major types of Entrepreneurship
2. Managerial Functions
The attainment of all the entrepreneurial goals depends on how intelligently you perform the managerial functions. The most critical and wisely performed function of an entrepreneur is MANAGEMENT.
Management is a vast field. It deals with five main segments that have a visible effect on all business outcomes. In the words of F.W.Taylor
Management is the art of knowing what you want to do and then seeing that they do it in the best and cheapest way
Management plays a significant role in the evolution process of an enterprise. A well-managed business even with limited resources provides progression. The excellent facilities and ample resources might be misspent and end up in annihilation, in case managed crudely. The managerial functions cover the following aspects.
Planning
Planning refers to a process in which the entrepreneur develops a strategy to perform other managerial tasks. Planning has the foremost importance in management.
Planning is a forecasted decision making related to the questions of what to produce, how to produce, when to produce and where to hit the market?
Organizing
Organizing is the allocation of human resources appropriately to achieve the desired results. Organizing as a managerial function of an entrepreneur implements and executes planning. It gives the answers of when, where, how, who, what and why.
Well organized structure of the enterprise adds support to the plans. It reduces the wastage of time and resources.
Staffing
It is another calculative function performed by the entrepreneur. No planning and well constructed organizational environment can work if the jobs are not allocated matching the skills and qualification of the employees.
Staffing deals with human resource management in an enterprise. Staffing function of an entrepreneur revolves around not only recruiting the best people but, before that defining the required work force. Selection of manpower, their remuneration, training and development programs are the main concerns in this category.
Leading
A leader is one who knows the way, goes the way and shows the way
Leading is the function of motivating the employees in order to dig up the aimed product. A good leader is one who inspires others. Success intended entrepreneur possesses certain qualities of a good leader.
Controlling
It is the last managerial function of an entrepreneur. When planning is done, implementations are started, organization is structured, and employees are assigned the relevant jobs, now comes time to make sure that all the executions are going on track.
Controlling is the efficiency check of actual production comparing to the projected one. And do all the rectifications required if results are unsatisfactory.
Also, check out the best ways to stay productive as an Entrepreneur
3. Promotional Functions
This segment mainly includes
Identification of business
A succeeding enterprise is the major attraction of an entrepreneur. He explores all the possible business opportunities to decide and identify the most suitable sect to his knowledge and experience.
Preparation of projection
While performing the promotional function of an entrepreneur, preparation of the projected target is of immense importance for intended growth. Planned projection involves all information about
- Site of manufacturing plant
- Location of office building
- Manpower
- Working capital
- Breakeven point, etc
Supply of finances
Entrepreneur also draws the financial structure of business. He provides all the required finances for the hassle-free flow of business activities. The functional part is to create the sources to acquire or generate these funds.
4. Commercial Functions
Manufacturing the product then marketing it and preparing the books of recorded transactions are the commercial functions of an entrepreneur.
Manufacturing
After the enterprise in initiated, the manufacturing process takes off. The conduct of the entrepreneur in this section are related mainly to implement the planning of the decided product by utilizing available resources effectively. This function also requires the adoption of researches related to raw material acquisition, stock maintenance and quality assurance etc.
Merchandising
This function comprises of making the decisions regarding the marketing of product. Marketing is all about the 4 “Ps”. This function of entrepreneur takes in account the following decisions.
- Product
Knowing the main features of your product, and what distinct your product from competitor’s price.
- Price
Profit margin is a big concern while pricing the product but competitor’s prices are also kept in view while fixing a commodity’s price.
- Place
Defining, the target markets for your products.
- Promote
Promoting, the products, through an excellent advertising campaign.
Accounting
Accounting in common words is a system of recording, summarizing and analyzing all the monetary actions of a business.
The actual purpose of accounting is to evaluate the profitability and financial strength of the enterprise.
So finally, we have discussed all 4 Essential Functions of an Entrepreneur. Want to say something? Leave your comments below.
