BUSINESS AND ECONOMY : MANAGING ENTREPRENEURIAL LIFECYCLE AND CREATING INNOVATIVE BUSINESS MODEL

BY ROBIN GHOSH

( FORMER CHIEF ECONOMIST, BENGAL CHAMBER OF COMMERCE AND INDUSTRY)

KOLKATA, 20 OCTOBER 2023:

Understanding an entrepreneurial journey is very crucial to build a successful business.

We can divide this journey into two parts.

The first part comprise of :

1. Creating Innovative Business Model
2. Various Stages of Entrepreneurial Life Cycle.

The second part consists of:

1. Effective methods and techniques to ideate, select and execute solutions.
2. Acquiring critical skills to become a successful entrepreneur.

While for easy understanding – we have to divide the processes into two sections. But we must understand – the process works in unison and in an integrative manner.

Let us now concentrate on how we can create a scalable and repeatable business model.
Steve Blank in his book ‘Startup Is Not A Smaller Version Of A Large Company’ developed the Concept of Customer Development process.

What is the Customer Development Process?

1. Customer Discovery
2.Customers Validation
3 .Customer Creation
4. Customer Building

This is an iterative process – where the entrepreneur tests his product idea and – in the process – makes incremental changes or major changes.

The success lies in how quickly the entrepreneurs adapt itself to these changes and how he is able to minimise the cycle time of iteration.
The next stage is execution.The most important part.

It is here most entrepreneurs fail. Therefore, a good and effective execution strategy is crucial.

Execution depends on efficiency in three basic areas:

1. People
2. Strategy
3. Operations

Co- terminus with this is building an inspired team with complimentary skill to execute and manage the business.
The next important stage is resource acquisition.

Here, the following points are important:

1. Entrepreneurs should try to work within her or his means.
2. Effectively manage cash
3. The first support comes in the form of seed funding – this comes from the promoter.
4. The seed money helps the entrepreneurs to build a skilled team, draft a business plan and run the business venture and launch and run the business venture.
5 .Once the business venture comes out of the hangar and takes off – venture capitalists swarm the entrepreneur’s office to invest .
And take the project to move upward.

The next critical question is – how do we generate innovative business models?

The answer is:

1. Understand Business Models
2. Understand Disruptive Technologies
3. Understand Disruptive Innovation

Generally speaking, there are three methods which are being followed to develop business models.

And they are:

1. Business Model Canvas
2.Value Creation and Value Capture
3 .Disruptive Innovation .

Be that as it may it must be understood – that the critical factor in devising a business model is technology.

When we talk of technology, – what we are talking about is disruptive technology.

And that means:

1. Mobile Internet
2. Automation of Knowledge Work
3. Internet of Things
4. Cloud computing

Before, we conclude, we shall, therefore, embed in our mind:

Entrepreneurship is a state of mind – a mind which introspects a problem from many vintage points – and – creates a solution s which makes a difference in people’s life.

So dear friends, dear entrepreneurs build up your entrepreneurial skills.

To do that :

1. Be adaptable. Be flexible.
2. Find and Manage the best people.
3. Manage Cash effectively.
4. Focus on Customers.
5. Concentrate on Selling.
6. Create and Manage Alliances.
7.Create and Innovate all the time.
8. Be calm and humble.
9. Be optimistic.