BUSINESS PLAN
ARIZONA STATE UNIVERSITY
ENT 441 - ENTREPRENEURIAL MANAGEMENT
WEEK 2
2.1. Business Plan
The definition of a business plan is a summary in written form of what is expected to be
achieved by doing business and how to manage resources to be successful in achieving goals.
The main purpose of preparing a business plan is:
a.
To obtain funds
b.
As a guideline for management in accordance with its function to achieve its goals,
especially for "early corporate development" companies.
Small companies, especially those that do not require external capital (investors or bank
loans, but also funders) do not develop a business plan. Example: the development of
business entities in the United States between company ages is related to business plans in the
United States.
Company Age (Th)
Comparison with Business Plan Preparation%
0-1
35
1 -3
60
3-5
85
>5
95
Source: Crofield Survey (2000)
Content of Business Plan
The number of pages of a business plan depends on the type of business that will be run. If
you are setting up a business plan for a factory, it will have hundreds of pages. If you are
going to set up a Hokben, Pizza, Texas, KFC restaurant business, it will be more concise. In
general, the average is 40-50 pages for one business plan.
The contents of the Business Plan consist (more or less) of:
1.
Executive Sumary. A concise overview of the company, what products/services the
financial competition market offers.
2.
Place. The place where the business is located, if there is a factory / work shop, where are
the outlets and how many.
3.
Table or contents. For a show about this business plan
4.
The company. Vision and mission, goals and objectives, development direction,
organization and number of employees, facilities, history, who plays a role in the business,
division of tasks, overall organization, management, communication, variability, profit
from the business.
5.
Product and services. Goods and services to be sold. Markets to be filled quality standards
production quantities operating time.
6.
Production and operations. Required raw materials source of raw materials employee
work type shift working hours and sub contractor duties.
7.
Marketing. Market segments served, of products and services to be filled who. customers
market size market conditions marketing strategy, marketing mix.
8.
Sales. Orders, deliveries, payments, returns, repairs, warranty, accountability.
9.
Competition. Who are the competitors, the product, the market segment, the marketing
system, the advantages of the products/services offered where/what.
10.
Risks. What are the company's main hurdles or obstacles, including in terms of finance,
and competitiveness or marketing issues.
11.
Finance. Start-up costs, production costs, marketing costs, sales costs, required financial
budget, sources of funding, plan for use of funds, cash flow, profit and loss projections,
profit size.
The important benefits of a business plan include:
a.
A business plan is a passport to finance. Few institutions provide loans or investments to
businesses without a business plan.
b.
Systematic planning allows mistakes to be made only on paper, rather than "in the
marketplace".
c.
The existence of a business plan will make the management team and others involved in
the business more confident in achieving strategic goals.
d.
Preparing a business plan will provide a more in-depth look at the planning process, which
is critical to the long-term health of the company.
The technical reasons why a business plan is important include:
a.
Identify the factors of production that we have or how to obtain them to make the business
successful.
b.
Can identify who our customers are, the size of the market, pricing strategies, and
competition, targets and desired benefits.
c.
Become a guideline in determining the Break Event Point, Cash Flow from Return On
Investment (ROI) and the profit we want.
d.
It encourages us to be more realistic and not overoptimistic.
e.
Facing us with: Methods and benefits of Planning, Budgeting, Forecasting,
and Reporting Process is very important.
f.
Gives the first glimpse that we are Competent business managers
by Leaders or investors or potential partners.
g.
Know the number of workers required, skills required, salaries to be paid.
h.
Helps to determine the size and location of the plant and facilities required.
i.
Can help identify the factors critical to business success.
2.2. Setting Business Objectives
In living life, humans have goals to achieve. Thus the direction and how the purpose of life
will be achieved will be the guide of every human being in navigating this life. Therefore,
goal setting, especially in the business world, is one of the most important things, because it is
the most important thing, because this will be the basis for acting and trying to achieve the set
goals.
An entrepreneur must have a purpose in life. There are five main requirements that an
entrepreneur must have, namely;
1.
The objectives set must have a clear and specific definition.
2.
Objectives must have benefits.
3.
Objective should be with moderate risk calculation
4.
Objectives must be measurable
5.
Objectives must be time-related
Entrepreneurs should also be aware of the company's strategic principles, which involve
fundamental matters.
2.2.1.
Importance of Goal Setting
a.
Filling basic needs
With the existence of goals, humans can fulfill their basic needs, where humans themselves
are "goal seeking creatures").
The purpose of the importance of health and "Survival" so that humans have a "Sense of
direction and purpose" in their lives.
b.
Creates a foundation for personal development and rewards
By setting goals, confidence building will result. If we set goals and achieve them
successfully, we will have personal pride and can enjoy what we have achieved. This can be
illustrated in the success cycle.
c.
To have a clearer picture of what we want to achieve, more focused, more measurable and
more realistic, motivated and certain challenges.
d.
Make life more interesting and exciting.
By setting goals, we will perform the action of "there's always something I can do". This will
lead to a feed free, energized life. People who cannot believe they can do something will
always fail, with what is called the failure cycle.
e.
The foundation for the creation of a positive attitude a positive attitude
If goals are set, then we will be committed and optimistic in setting steps that will ensure a
better future. By taking action to achieve the goal, it will increase hope for a better future
followed by the satisfaction that our idea has become a reality, all of which makes joy in the
present.
Reasons why people don't set goals in life. In everyday life many people do not set goals
in life. There are at least (six) reasons for this, among others:
1.
It's not easy to make big decisions
In making the right decisions about the future, many people have a tendency to:
a.
It's easy to forget about the future and let the future take care of itself.
b.
forgetting the future by making ourselves available to others or not being content.
c.
decisions about our future are opportunities to control the future.
2.
Too risky
Many people overestimate the risks and rewards of their future lives. Therefore, many people
have the attitude of
a.
What if the goal is not achieved (there are risks)
b.
What we want in life involves risk:
c.
We cannot improve the quality of life in this world without risk.
3.
The desire to live for happiness
Everyone wants a happy life. In achieving this happiness there are people who have
assumptions:
a.
If we want to achieve happiness as an ultimate goal, we won't find it.
b.
Happiness is a byproduct of effective living and not a goal to be attained at any given time.
4.
Will limit freedom and spontaneity
In order to achieve one's goals in life, one must have the freedom to be creative according to
one's will and abilities. However, some people are of the view that.
a.
To achieve goals that require self-discipline, enforcing discipline does not mean limiting
personal freedom.
b.
We have to take the necessary steps to achieve the goal (what we want). In this way, it is not
freedom.
5.
Other people always ruin our plans
We don't live in isolation, but we always interact, both with our fellow humans and with the
surrounding nature. However, not all of these interactions support the plans we make.
Therefore, with regard to making this plan, there are those who think that:
a.
Other people control our lives in giving us the flexibility to move forward and claim that
success is because of "me", but if we fail, it is because of other people's mistakes.
b.
If our lives are controlled by others, it is because we want them to be. Thus ultimately each
person is responsible for his or her feelings, victories, satisfactions and unsuccessful
endeavors.
6.
Not knowing how to start
Many people think planning and formulating a goal is great. But to start how the plan/goal can
be achieved often do not know how to start. In order to overcome this, thus:
a.
Guidance and exercises are needed to set selling goals.
b.
If we have been able to set goals, we will get satisfaction.
2.2.2.
Goal Formulation (formutazing coals)
In formulating objectives, there are several provisions that need attention, namely:
1.
There must be a belief that the goal is indeed our own, every goal that has been set must be
believed that it is a goal that will be useful at least for ourselves. Hence the need for attitude:
🔾Don't let people set your inputs and goals.
🔾 True success in life is living on our own terms.
🔾It doesn't mean not accepting other people's advice or ideas.
🔾 What's important is that the final decision on what to aim for is up to us.
2.
Write down the Objectives to be achieved
Many people have big plans for their lives. But many of them are only limited to wishful
thinking. For this reason, in order to make it easier to realize the plans / goals that have been
set, then:
🔾 Objectives will be clearer if we write them down in the form of goals to be achieved.
🔾 Writing down your goals will increase your commitment to carry them out.
3.
Make the goal challenging but achievable
In the saying, hang your goals as high as the sky. Thus we are required to be able to always
move forward, making today better than yesterday, and tomorrow better than today. To be
able to move forward, there must be challenges that we must overcome. Thus, in making
goals, we should determine goals that are challenging enough so that we can achieve the goals
we want.
4.
The goal should be specific and as measurable as possible
The goals we set should be specific (clear and certain), for example: "I want a good job".
What kind of work to do in what kind of environment and when to work must be clearly and
firmly defined. Not all goals can be measured, but ratings and descriptions can be made.
5.
The goal must be harmonious
In making and setting goals, it is necessary to harmonize and match them with our
circumstances and environment. For example, we want to play golf and tennis, but don't have
time for it. This means that the goal is not compatible with our situation.
🔾 Objectives that can be revised
In setting goals, goals do not always have to be in accordance with the plans we make, it is
still necessary to adjust if something happens that we need to change (revise) according to the
situation (circumstances) and the environment that occurs when we set these goals. Thus, the
goal setting itself can be situational which can be changed or refined at any time.
🔾 Every goal should have a target time
In setting goals, we must determine the time that we can do which consists of several
classifications, namely:
a.
Long Run Goals
b.
Intermediate Goals
c.
Short Term (short-term goals)
d.
Daily Goals (daily goals =technical)
Setting goals based on time targets can increase our motivation and commitment to achieve
those goals.
2.3. Making Decisions
Entrepreneurs must be able to make decisions. Many entrepreneurs like to take realistic risks
because they want to succeed, that is, to make great satisfaction in carrying out difficult, but
realistic tasks by applying the skills they have. Thus every entrepreneur likes difficult but
achievable challenges.
1. Risk-taking behavior
In taking risks, there are several things to consider that are related to entrepreneurial activities,
including:
a.
Risk-taking is related to belief in oneself.
b.
Risk-taking is associated with accepting personal responsibility for the consequences of
decisions made.
c.
Minimize risks when starting a business, such as:
🔾 Gain experience in management and business planning.
🔾 Plan ahead.
🔾 Ensure that we have support from our environment.
🔾 Be prepared for fatigue and obstacles and stay resilient
🔾 Using facts to prove opinions and ideas that were based on instinct before the endeavor was
undertaken.
🔾 Adapt it to your strengths.
🔾 Feel no shame in quitting.
2. Types of risk.
There are basically three kinds of risks that may occur in every decision we make, namely: (a)
Financial risk, (b) Career risk, and (c) Personal risk.
a.
Financial risk
To start a business, capital is required to conduct business activities. Capital can come from
savings, selling assets or borrowing from third parties. If the business fails, the risk is that the
capital will be lost.
b.
Career risk
There are several alternatives for doing things, including whether the city will work as an
employee or go into business (on its own). If we leave our job, we face the risk of losing our
income and salary and our career as an employee. However, if we leave our business and
work as an employee, we will lose the opportunity to earn income from our business.
Therefore, whatever decision we make, there is a risk to the career of our activities.
c.
Personal risk
In doing business activities, there will be risks to our person, such as:
🔾 Failure in marriage
🔾 Postponed vacation
Family activities that cannot be implemented
3. Risk-taking typology
In risk-taking, one is more or less influenced by other people, past experiences, the
present situation and expectations of the future. In the business world, there are also different
types of risk-taking.
At the lower levels of the organization, workers are needed who are skilled in carrying
out routine matters, for which I have little risk. Most workers generally belong to this group,
as their behavior will be predictable and will bring stability to the organization.
At the middle management level, there are more possibilities to take risks. Middle
managers should have more freedom to innovate and make small changes in procedures and
functions. These people can be considered risk takers, but their impact on the overall
organization should be minimal. Different entrepreneurs at the top levels of the organizational
structure have the ability to formulate and implement creative ideas. To succeed in business,
entrepreneurs must be risk-takers in order to turn their ideas into reality.
Some entrepreneurs can be called "practitioners", as their organizations grow under the
control and direction of the entrepreneurial woman herself. Practical entrepreneurs are results-
oriented and confident enough in their ideas to accept the risks involved in making them
happen. However, they are practical enough to realize their limitations and will limit their
activities to what is possible.
Highly creative and innovative entrepreneurs are usually moderate risk takers. They are
willing to embrace change, try alternatives and develop innovations for goods and services in
the areas of new business. These highly innovative entrepreneurs are usually leaders in the
business. They have ideas and are able to find combinations of people and other resources to
realize their ideas.
4. Delegate authority and responsibility
As an entrepreneur, you are a leader in the sense that you direct the activities of others
in pursuit of the company's goals. As an individual, your capabilities are limited. You need
others to achieve the higher-level goals of your organization.
As the leader of an organization made up of people, you must be willing to give
authority and responsibility to your staff for certain activities.
Delegating authority and responsibility to others entails sharing certain risks. There
may be negative and positive consequences, and you must bear the consequences. If you are a
growth-oriented entrepreneur, you must have staff who are action-oriented and able to accept
certain authority and freedom to carry out their duties and responsibilities. As an entrepreneur
and need the help of others. But you may not have the time to monitor their activities closely.
The extent of your trust in your staff will be indicated by your answers to the questions listed
on the assessment sheet in Table 1. The answers to these questions will give certain clues as
to your willingness to take risks in delegating authority and responsibility to others. You will
have time for more important activities such as long-term planning or developing new
products.
5. Evaluate risk
Quantitative data (numbers) will help you evaluate each risk and set your goals and
also allow you to outline progress systematically, Finally through quantitative data, you will
be able to measure the results achieved in relation to your original ideas.
Evaluate your own needs before deciding to take the risk. Some questions for you before
making a risky decision are as follows:
🔾 Is the risk worth the reward?
🔾 How can risk be mitigated?
🔾 What information is required before a risk is taken?
🔾 Which people and resources can help reduce risks and achieve goals?
🔾 Why is this risk important?
🔾 What are your conditions for taking this risk?
🔾 What did you achieve by taking this risk?
🔾 How do you know quantitatively that you have achieved your goal?
🔾 What are the biggest obstacles to achieving that goal?
6. Rerwards (award)
Every decision taken by an entrepreneur will have the rewards and risks we have talked about
in the past. Rewards are the success gained from making successful decisions. The rewards
that entrepreneurs want to achieve are:
1.
Entrepreneurs who managed to earn "legendary" rewards
2.
Comparing successful entrepreneurs with those who work as professionals, they get a
"high return".
3.
"Balancing risks and rewards" should be sought.
7. Rewards earned
Any activities by successful entrepreneurs will earn Rewards including the following:
a.
Wealth that means
b.
Satisfaction, where there is a "Sense of Achievement" in the eyes of the community.
c.
Have Power because you are in a "Boss" position.
d.
Mastering your own way of life.
2.4. Entrepreneurship Innovation and Creation
1 Basic principles
Innovation is at the core of Entrepreneurship, as a tool to capitalize on changes as
opportunities for businesses. Innovation can be learned as a science, and it can be practiced.
An entrepreneur must consciously and deliberately look for sources of successful innovation
(Derucker, 1985).
Innovation is a specific tool of entrepreneurship, an action that gives resources new
power and ability to create prosperity. It is said to be a resource, because innovation can
provide economic benefits. In the past it did not occur that the water (minerals) in the
mountains could be used for hygienic drinking water (Aqua), the pinicilin fungus was even
considered a disease, not as a resource, but since Alexander Fleming, a British doctor,
discovered that the fungus could be used to kill bacteria that people had been looking for for
years to cure a disease.
In the socio-economic field, the resource that plays the biggest role in economic
activities to advance as it is today is the problem of purchasing power. As the inventor of the
reaper (harvesting) machine, Crus Mc Cormic in the early 19th century, saw that even though
a reaper had been invented that could help farmers harvest their crops, it turned out that
people did not have the purchasing power, so that the results of his findings were not sold,
even though farmers really wanted it. This became his thought by planning a way of
purchasing in installments. It turned out that this method allowed farmers to pay for the
reapers with their future earnings, even with their savings. Thus now, all of a sudden, the
farmer has the "purchasing power" to buy the reaper.
Similarly, in the field of science, the innovation of writing textbooks (reference), is a
form of innovation that has now become a standard in writing ethics, since it was introduced
by Johann Ammos Comenius, a Czechoslovakian national who designed the first use of
reading books in Latin in the mid-17th century.
Innovation, as exemplified above, need not be technical, nor does it have to be tangible.
Purchasing goods in installments has changed the economy from a supply-driven economy to
a demand-driven economy.
Social innovation, Japan is a good example in this area. Japan is known as a country of
imitators, not innovators. The Japanese are good at imitating technology invented by other
nations/countries, such as electronics, engineering, and others. However, in applying these
technologies, Japan does not leave the identity or values inherent in society. Whereas many
countries are swept away by the movement caused by the impact of these innovations, as is
now feared by many countries. Thus, it is "more difficult" to innovate socially than
technologically.
2. Innovation and creativity
Innovation is how a division or a person can make money from their creativity
(Higgins, 1994). Organizations, including their managers and employees, seek to create ideas
and concepts that origation as innovations, such as new products or services, efficient
processes that continue to improve, highly competitive marketing campings, or superior
management. This process of getting something new is known as origation. Something that
originates is something new, which did not exist before.
Creativity is the process of coming up with something new that has value. There are
many ideas of new concepts, but they have no value. This cannot be considered as creativity.
A creation is something that has origin and value.
Innovation is the process of creating something new that has significant value to an
individual, group, organization, industry or society An innovation, therefore, is a creation that
has significant value.
3. The four "P's" of creativity and innovation
There are four levels of creativity and innovation, known as the 4 P's, namely: (I)
Product, (2) Possibilities (3) Processes (techniques) and (4) Personal and Group. The
population will not exist without possibilities processes and personal groups.
A company, group or organization will experience changes towards the discovery of
innovation, if there is no possibility (organizational culture) is correct. Thus, innovation can
develop and is strongly influenced by corporate culture.
Creativi ty
Product Possibilities
Process, Personal &
group
+
Organizational
Culture
Possibilities
=
Innovation
Product, Process,
Marketing and
Management
There are four (4) types of innovation, namely (1) Product innovation, (2) Process
innovation, (3) marketing innovation and (4) Management innovation.
4. Source of innovation
There are four kinds of sources of innovation, four sources are found in companies, both
businesses and public service organizations, or in the industry or sector alone. The source can
be seen primarily by a person in symptoms, fully reliable indications of changes that have
occurred or can be made to occur with little effort.
There are four internal sources of innovation, namely (1) unexpected events, (2)
incongruity between the reality as it is and the reality that is assumed or the reality that should
occur, (3) innovation based on process needs, and (4) changes in industrial structure or market
structure that are not realized.
From outside the organization, there are three sources of innovation, namely: (1)
Demographics (population changes), (2) Changes in perception, mood and understanding, and
(3) New knowledge, both scientific and non-scientific.
5. Knowledge creation (the knowladgeCreating)
As explained earlier, innovation and creation is something that can be learned and
practiced. Nonaka and Takeuchi (1995), through their book entitled "The Knowledge
Creating Company", suggest that there are two sources of knowledge, namely tacit
knoiwfadge rearing company, suggesting that there are two sources of knowledge, namely
tacit knoiwladge and explicit knoiwladge.
Tacit Knoiwladge is knowledge that comes from the experience, institutions, ideas and
personal habits of a person / institution obtained from the work that has been done, applies
only to a limited circle, at this time, "here and now". While explicit knoiw/adge is the result of
a synthesis of a person's thoughts that are poured in the form of books, pictures or others, so
that other people can learn, imitate and practice it. This knowledge is based on rationality
(mind), the results of studies, can apply anytime and anywhere (there and then), and is
generally theoretical (digital knoiw/adge).
2.5. Becoming a Successful Entrepreneur
Responsiveness:
Entrepreneurship is the behavior of individuals who have the spirit, ability to respond
positively to opportunities for profit for themselves and / or better service to customers /
society; by always trying to find and serve more and better subscriptions, and create and
provide more useful products, through risk-taking, creative, innovative, and management
skills. Entrepreneurship demands an unyielding spirit, daring to take risks to win business
competition.
The natural filter for an entrepreneur is his or her characteristics. Without distinctive
characteristics, it will only make entrepreneurship a trial and error event. Many want to run it,
but because they don't have the character, they end up having to stop in the middle of the
road. Without strong character, entrepreneurship will not work. Moreover, if fear, whether
fear of loss, fear of failure, and other fears, always looms.
In addition, an entrepreneur must also think optimistically about the opportunities and
efforts undertaken. Thus, enthusiasm and willpower and perseverance will create an advanced
and growing business.
If the business we run wants to continue to grow, it requires careful planning. In
entrepreneurship, planning is the key word. Without planning, entrepreneurship will run flat,
not giving optimal results.
An entrepreneur must be smart in finding and overcoming capital problems. In terms of
origin (source), there are two types of capital, namely own capital and borrowed capital. Own
capital is obtained from the company owner by issuing shares. The disadvantage of using
equity capital is that the amount is very limited and difficult to obtain. Capital sources can be
explored from anywhere. In fact, you can make use of relationships, if you know them well
and are willing to give loans.
Although capital is important, it is not everything. Many entrepreneurs with 'dengkul'
capital can also be successful. Ir. Ciputra is one of them He is a businessman who, since the
beginning of his career, claimed to be capitalizing on 'dengkul'.
When the business is running, it is appropriate for entrepreneurs to implement open
management. The goal is to provide learning to all parties, including employees. In the end,
entrepreneurs are also required to be proactive, not stop or static, but continue to move along
with the dynamics of the times.
Leadership:
In business institutions, leadership is very important. It is the leader who makes
directions and policies about the business, to be implemented by the subordinates. Most
business institutions that become large and continue to grow are supported by a reliable and
professional leadership style. The advantage of successful entrepreneurs over failed
entrepreneurs lies in the dynamics and electivity of leadership. Entrepreneurial leadership is a
key element in every company.
Leadership requires a certain set of traits, characteristics or temperaments that ensure
success in every situation. Leaders will succeed if they have these traits, characteristics and
temperaments.
Leadership traits must be developed by ourselves because they vary from person to
person. The realization that we alone determine the level of our leadership ability to make
improvements. There is no best way to become a leader. Entrepreneurs are individuals who
have developed their own leadership skills.
Specific behaviors distinguish leaders from non-leaders. Leader behavior concerns two
main areas:
1.
Task-oriented that sets goals, plans, and achieves goals.
2.
People-oriented, which motivates and fosters human relationships.
The function of the leader is to direct, foster, organize, and show the people being led so
that they are happy, in line, fostered, and according to the will and purpose of the leader. The
failure of the leader in carrying out his duties shows the leader's own failure. Vice versa, the
success of a leader shows the success of the leader himself.
Only creative and innovative leaders can survive in business competition, especially in
the midst of multidimensional crisis and great competition. Creative and innovative leaders
are characterized by high self-confidence, far from fear, and are always ready to anticipate all
challenges in business, even in unexpected circumstances. In addition, when unable to solve a
problem with a particular strategy, he can cleverly solve the problem with new thinking and
creation. This shows that creativity and innovation are vital in business.
Managing an organization is like leading a war. Do we decide to advance, defend, retreat,
or surrender? It becomes an important foundation for the existence of the leader and his troops
in achieving a common goal.
Innovation:
Innovation in entrepreneurship opens up opportunities for product and market share
verification. A competitive and dynamic business environment requires entrepreneurs to
always be adaptive and look for the latest breakthroughs. The character of complacency will
lead the business to decline. So innovation is the answer to successful entrepreneurship.
Innovation as creativity is translated into something that can be implemented and
provides added value to the resources we have. So, to always be able to innovate, we need
creative intelligence.
Innovation is key to the economic development of any company, region (province)
within a country, and the country itself. As technology changes, old products decrease in sales
and old industries decrease in number. Innovation is the structure of future economic
development.
For entrepreneurs, innovation is about capitalizing on change rather than creating it.
Seeking innovation is done by capitalizing on changes in their inventions that cause change.
Innovative ideas can be sourced from external and internal creativity.
Facing increasingly complex competition and a globalized economy, creativity is not
only important to create a competitive advantage, but also essential for the sustainability of
the company. This means that in dealing with global challenges, creative and innovative
human resources are needed as well as entrepreneurial spirit. It is the entrepreneur who can
create added value and excellence. The added value is generated through creativity and
innovation.
Creativity is a process. Creativity is an attitude. So, the creative instinct must be honed in
everyday life, for example in spotting business opportunities, and in dealing with the
competitive climate. Even the smallest things, for entrepreneurs, deserve to be treated
creatively. Creativity for entrepreneurs is a fixed price. Entrepreneurs will succeed if they
develop creative thinking processes and implement new or old things in new ways
(innovation).
Self Potential:
One of the potentials that every entrepreneur should have is an attitude of adversity.
According to the founder of adversity, Paul Stoltz, resilience is a factor in the success of great
people.
The life that humans live can be divided into three categories, namely: quitters (silent and
not dynamic), campers (always trying but easily giving up when challenged), and climbers
(brave and enduring the challenges of life). Success, according to Stoltz, is like the highest
mountain peak that can be climbed by a person people. Successful people are those who are
willing and able to climb to the top of the mountain. They are the ones who belong to the
category of climber or climbers.
Resilience is an indicator of adversity quotient, which lies in the willingness to accept
everything gracefully. This is because in life everyone is always dealing or at least in contact
with misfortune. Unluckiness, or difficulty, whether small or large. This condition, in reality,
is unavoidable for anyone. In fact, there is not a single human being on earth who is
completely free from misfortune or hardship.
Everyone has different levels of adversity. These levels can be called adversity
intelligence. Adversity quotient (AQ) incorporates two important components of any practical
concept, namely scientific theory and its application in the real world.
AQ underpins all facets of success. People with higher AQ enjoy a range of benefits
including greater performance, productivity, creativity, health, perseverance, endurance, and
vitality than those with low AQ.
The concept of entrepreneurship is closely related to AQ. In the concept of
entrepreneurship, an entrepreneur must have a positive mental attitude, have motivation, high
achievement and not give up easily in running his business.
Building Trust:
It is common knowledge that the key to successful entrepreneurship lies in the ability
to build trust in others, but of course success armed with trust does not come suddenly. It
takes time to instill the principle of trust.
In entrepreneurship, trust is social capital. Such trust capital has a great influence on the
development of entrepreneurship, such as increasing public trust (consumers), as well as
making it easier to cooperate with third parties.
As a concept, trust is a psychological state consisting of a willingness to accept an
unpleasant situation based on positive expectations of the other party's wishes or behavior.
Trust also means the willingness of one party to accept the unpleasant actions of another party
based on an expectation that the party will perform certain actions that are very important to
the giver, regardless of the ability to monitor or control the other party.
In the Human Resources (HR) perspective, trust is interpreted somewhat differently, as
Stone says that trust is a measure of how much employees are willing to share information,
cooperate with each other, and not take advantage of each other.
Trust is a long-term capital that we often call a network or relationship. An entrepreneur
cannot live alone in running his business, but there is a connection with outside parties as
suppliers, customers, and intermediaries.
Family, colleagues can be used as a source of capital to start a business. Family or
colleagues tend to be willing to invest because they have trust and good relationships.
Never Give Up:
Successful entrepreneurs are those who are able to mobilize their inner strengths and
potentials. The character of successful entrepreneurs is very distinctive, namely never giving
up, not afraid of failure, taking risks, and being confident. They have successfully transformed
themselves, from a worker in a comfort zone with a monthly income to someone who actually
provides work.
To become a successful entrepreneur, several steps of mindset and paradigm
transformation are needed in order to run a business. There are four stages of the
entrepreneurial transformation process, namely:
1.
Mindset and paradigm transformation.
2.
Transform the old way of thinking to change from a habit of always using logic to a
creative mindset in finding inspiration, ideas and business opportunities.
3.
Entrepreneurial transformation from thinking as an entrepreneur (owner) to a
professional business manager (intrapreneur).
4.
Entrepreneurial transformation from an owner's mindset to an investor's mindset.
To achieve this transformation, entrepreneurs must mobilize sources of strength,
which come from character, motivation, leadership, creativity and innovation, adversity, and
trust.
Courage and fear are not two different things; they differ only in the way they are
perceived and prepared. Fear always walks backwards, while courage is forward-looking.
That is why when we see weaknesses and stories of old history, old successes, hardships, and
sad events, we will never reach the dream line. We need courage to break down the barriers
that create fear in entrepreneurship.
Although success in business is not as easy as turning your palm, it can be achieved.
The key is to mobilize your potential and strength in entrepreneurship. Success in business
does not happen by chance, but in accordance with a solid plan and implementation. Success
must also be balanced with hard work, not laziness.
Business Ethics:
Business ethics is a very important aspect of doing business, because in addition to
determining the long-term existence of a business, it also relates to the interests of all
stakeholders related to business, such as: suppliers, investors, banks, labor groups, consumers,
government, and partner business groups. As a guideline in carrying out ethics in business,
there are several principles that can be used as a guide in business management practices,
including: the principle of autonomy, the principle of honesty, justice, mutual benefit and
moral integrity.
One form of application of entrepreneurial ethics for companies is to carry out social
responsibility to the community (corporate social responsibility). Although until now there is
still disagreement about the need for socially responsible organizations, even many of them
oppose the interpretation of social responsibility, but developments show that more and more
companies are practicing the implementation of corporate social responsibility because it
turns out to have a beneficial impact on long-term business continuity.
