What Does it Take to Profit as an Entrepreneur?
Once upon a time there was student assigned to write a term paper for his economics class, while attending college. When this student completed his assignment, the professor was not impressed by the student’s work and felt his concepts were essentially outlandish pipe dreams. Unfortunately, for the professor, this student proved him wrong by creating an overnight delivery system based upon the term paper written. Fred Smith was the student’s name and Federal Express (now referred to as FedEx) was born.
Stories such as these are sometimes what spark the motivation of an individual to become an entrepreneur, turning broad ideas into reality. Typically it seems people consider entrepreneurs only to be associated as business professionals or having such backgrounds, finding reasons or excuses never to implement their ideas. These initial thoughts and developments can be inspired on various scales, from merely a minor detail to a significant change through the use of new technology. The individual having the idea may have a creative background, yet lack the financial understanding and processes to accomplish their goals. This is where the person developing the concept needs to consult with a CPA to determine their financial plan and strategy, along with implementation.
When the potential small business owner is considering certain factors, the CPA should be looked upon as an advisor that educates and provides awareness of potential circumstances, rather than delivering judgement or being a nay-sayer.
The small business owner originating their notions, are very driven and passionate about what they want to achieve. At times this could mean they are an expert at what they do already or an activity they have invested a tremendous amount of time for their enjoyment. Whatever the reason might be, no one person should be told they won’t succeed. Many times these are the ones whose success is measured not only as a profession, but personally as well.
”Genius is 1% inspiration, and 99% perspiration.”
– Thomas Edison
As an economist in the late 1920s, Joseph Alois Schumpeter identified entrepreneurs main motivation wasn’t by making a profit on a venture. Instead Schumpeter discovered that entrepreneurs generally tend to have the following characteristics:
- Greatly value self-reliance
- Strive for distinction through excellence
- Are highly optimistic
- Favors challenges construed by having a moderate amount of risk
Consequently, this week has also been proclaimed by Indiana to be considered Entrepreneurship Week. The purpose is to recognize those individuals who have promoted entrepreneurship and small business around the state, while encouraging others. As Peter Drucker stated, “the best way to predict the future is to create it.”
What advice would you give individuals considering the idea of starting a small business or venture?