Introduction
My advice to this friend would be based on several dimensions. I would have to prepare this friend for entrepreneurship process. This would equip the individual with the requisite information so that the individual may engage in the process adequately prepared. A crucial task that this entrepreneur must conduct is a market survey. He must determine whether the business opportunity is profitable, based on market competition and demand.Main body
The first dimension of my advice would be based on the qualities that the individual has to possess as an entrepreneur. The first quality that he must possess is that he must be a risk taker. This friend must have an appetite for risk in order to benefit from the potential benefits of the business that he is passionate about (Martins and Mackay 37). The other quality that my friend must have is that he must be goal oriented. He must have clear and specific objectives that are to be achieved by his business. This will improve the chances of success for his enterprise.
The third quality that my friend must have is that he must be hardworking and committed to his enterprise. The passion that he has must be combined with hard work in order to achieve success in the enterprise (Cassie 114). The individual must apply a lot of effort in order to attain the goals set by his enterprise. The reason for this advice on qualities is that it will provide my friend with a chance of evaluating himself. He will engage in self reflection and find out whether he can meet those qualities comfortably. If he meets the qualities, then he will kick start the entrepreneurial process with confidence, expecting to achieve his objectives. If he does not meet these qualities, he will have to wait and cultivate them in order to have a solid foundation at some time in the future.
The other dimension of my advice would be based on his entrepreneurial roles. The first role is that he must be a motivator. My friend must motivate all his employees so that they may remain focused towards the vision of his enterprise (Cooper and Donaldson 51-53). The other role that he must play is that of capital provision. He will be faced with this responsibility of looking for capital to fund his business from several sources. One of these options is sourcing from friends and relatives. He may also source the capital by obtaining a bank loan. The basis for capital source is based on availability, adequacy and cost (Stokes, Wilson and Wilson). This individual must ensure that the capital source will meet his requirements adequately and that it will be provided at an affordable cost.
The other role that the entrepreneur must play is that he must be a leader. This friend must lead his employees by giving them direction and ensuring they adhere to the policies of the enterprise (Cassie 115). This leadership role will involve goal setting and checking whether progress is made towards these goals. The reason I would give this advice is that it would enlighten the individual on his duties. With his duties in mind, the entrepreneur will tackle them in a straightforward and effective way (Cassie 115).
The other dimension that I would advice my friend regards the benefits of entrepreneurship. The first benefit for this friend is that he stands to gain from any profits that his enterprise makes. If his business succeeds, this entrepreneur will enjoy the proceeds by making drawings from the business (Martins and Mackay 37). He may do this by picking cash or inventory. The other benefit is that he will gain self satisfaction. He will utilize his time in an activity that he has a passion for; hence he will have a high level of self satisfaction on a daily basis. The third benefit of the entrepreneurial process to my friend is that he will harness his talents and skills, and sharpen them to top levels. This business will provide my friend with a chance of utilizing his skills on a daily basis and hence his performance in the long run will improve. His business expertise and capabilities will improve, as a result.
Despite the benefits for this entrepreneur, there are several risks that he faces. The first risk is a capital loss. As an entrepreneur, my friend faces the risk of capital loss owing to catastrophic events or social upheavals (Stokes, Wilson and Wilson). If an earthquake or a flood occurs, my friend may lose his assets to the event. On the other hand, events based on social unrest may lead to looting in the business. Some examples of these events are strikes and demonstrations. The second risk is the economic risk. If the economy performs poorly, returns from his enterprise will reduce. A poor economic performance may be brought about by factors such as low production in the economy (Stokes, Wilson and Wilson).Conclusion
Works Cited
Cassie, L. "How to Succeed as an Entrepreneur." Journal of Finance (2012): 114-115.
Cooper, Andy and William Donaldson. "Success of the Entrepreneur, Success of the Business." Entrepreneurship and Business (2011): 51-53.
Martins, C. and E. Mackay. "Entrepreneurial Success: Qualities of Top Entrepreneurs." The New York Times (2011): 37.
Stokes, David, et al. Entrepreneurship. Connecticut: Cengage Learning, 2010.
