An entrepreneur is an individual who identifies a niche in the business world and brings together the necessary tools to grab the opportunity available. Entrepreneurs take the initiative to implement the idea as well as run business operations. Landström (2020) defines entrepreneurship as a series of activities. They include identifying a business opportunity of a particular demand and persistently harnessing and searching for environmental resources (Brown et al., 2021). They implement the activity to create a new product or innovate the existing product to suit the demand.
This report aims to analyze the entrepreneurial process by interviewing a potential entrepreneur. I decided to interview the owner of Juice It Up, Brad Hanson. Juice It Up is a cafe that deals in selling freshly blended juices, fruit pudding, cookies and many other refreshment consumables. It is located in Olympia City, Washington, USA (Gill et al., 2018). After completing his bachelor’s degree in food science, Brad decided to open up a café which was a great motivation. This was one of the reasons why he chose to pursue the degree so that he could become an expert.
This report analysis is divided into six components: the entrepreneurial mindset and ethical dilemmas, innovation, opportunities, the pathway, capital resources and a better suggestion of how the business could be set up to improve its performance. The journey of Brad will be used as a reference to study his success and failures. It will highlight his mistakes and how he could have corrected them for the negative odds turned in his favor success.
Entrepreneurial Mindset and Ethical Dilemmas
The entrepreneurial mindset is characterized by a persistent curiosity of all aspects, the skills to make connections between seemingly unrelated things, and an ever-present goal to create value. This process is done through mapping and the direct assessment of the results. The psychological and cognitive perceiving ability of an entrepreneur to spot an opportunity amid challenges is paramount (Saputra, et al., 2019). Two years after graduation, Brad applied for numerous jobs, attended multiple interviews in big baking companies unsuccessfully and had a long hustle period as an intern in a 5-star hotel. Motivated Brad opened an entrepreneurial eye and identified an opportunity that gazed at the Food Science market for a long.
The main driver of an entrepreneur is the desire to solve a problem being experienced in the environment in which people interact. One day, when Brad was waiting for their session in a job interview at new Britam biscuits to start, he thought of coming up with his brand. This was after Brad and his fellow interviewees wished for a café where they could relax and refresh as they waited. Brad identified a business opportunity, bought the idea, and decided to implement it. Clearly, he demonstrated an entrepreneurial mindset by creating a valuable idea out of the challenge. He can be described as optimistic, a problem solver as well a visionary as he knows how to exploit an opportunity.
During the interview with Brad, I could identify an ethical dilemma. An ethical dilemma is a situation in which one has to choose between two courses of action, either of which entails transgressing a moral principle (Saputra, et al., 2019). Brad was torn between continuing with the interview and going home ready to implement the newly acquired idea with the little savings he had.
Entrepreneurs excel in propelling their creative skills and understanding how to bring about a valuable opportunity. This is possible through the implementation of an entrepreneurial idea. They consider it essential and are not swayed by strong influences (Reynolds, 2021). During the interview, Brad mentioned that he got his idea from personal experience and suggestions from other interviewees. During the interview at Britam, they needed to quench their thirst and refresh their energy before the session commenced. Brad established an innovative solution by making juice from fruits. The juice is healthy, provides instant energy as well as refreshes with good taste and scent.
An opportunity is an occasion or situation which creates an ample setting for the implementation of an action. Opportunities have the capabilities to allow one to put forth value and utilize knowledge to their advantage (Schmutzler et al., 2018). Brad who was eagerly searching for a vacancy in his carrier path, discovered an opportunity in the juice-making industry after facing a challenge. An opportunity aims at providing a suitable solution to an identified problem.
Finding a pathway as an entrepreneur begins with the discovery of an external opportunity. In the interview with the Juice It Up owner, Brad Hauson, he stated that he did not wait for the interview results as the opportunity to establish his business was bubbling in his mind. He started thinking of pulling all resources together to utilize the market niche as soon as he could. His great passion, bachelor’s degree in food science and experience working as an intern in a hotel rendered him ready for the job. He had the confidence and full of potential to grab the business niche.
Financial capital sources
Some of the financial sources for entrepreneurs include debt financing, equity financing, and venture capital. In the interview with Brad, he stated that he had some savings which he invested in the business. However, the business had started as an outside catering service provider and then diverted to juice processing. The business created a job opportunity for him and his younger brother. They conducted all the business operations using a family van. Being the sole financier, his business gave him the independence to control the profit which he plowed back into the business (Saputra, et al., 2019). The business grew to a big café that can hold over forty customers comfortably in Olympia City.
Change in business setup
Having a golden opportunity such as Brand’s, I would take my time to develop a better strategy. Firstly, Brand could have identified a financial institution that could be granted him a loan. The money could have assisted him in starting a big business. This could have provided him with a chance to pursue a more risky investment. This is because he would have enough finances to run the business operation in case it incurred losses (Saputra, al., 2019). Most financial institutions offer free guidance on financial management best practices after lending money (Kuratko et al., 2020). This is essential as the success of a business depends on financial management.
Since he had the qualifications and experience needed to run a restaurant, managing a café was a simple task. Instead of initiating his operations in a van, he could have rented a building in the area. He could have made it more luxurious, providing an opportunity to charge more for the products and services. This is because prices are determined by the quality of the services and products offered (Permatasari et al., 2021). Higher charges would result in more profit, thus faster growth. He could have used the van to transport stock to the firm and make deliveries of the orders made.
Finally, Brad should focus on creating a mobile application or a website where he can advertise his business. A great pool of customer traffic on online platforms has resulted in many businesses virtualizing their business operations (Reynolds, 2021). He can utilize digital and online platforms like Facebook, Twitter, Reddit, and other social media platforms (Costa, et al., 2018). He should also consider digitizing the ordering procedure by having a mobile application. This would enable customers to place their orders for products during events, institutions or households at an additional delivery cost.
The entrepreneurial process may be perceived as streamlined; one thing leads to another. This happens systematically, as explained by Brad Hauson, the owner of Juice It Up. To start a business, one needs some qualifications and competency to attract the desired business opportunity. An entrepreneur’s cognitive perception plays a great role in opportunity identification and utilization.
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