The Foundation of Entrepreneurship

All startups are established with one main goal, to succeed beyond market and societal expectations. In most instances however, most of the new businesses collapse and the survivors do not attain the envisioned prospects. The causes of failure are attributed to the entrepreneur but there are factors particularly in the macro-environment that are beyond control. Notably, the startups are critical since they galvanize the economy by creating new ideas and projects, and redirecting resources to the enterprises. The competition puts pressure on the established firms which respond through product and price differentiation to retain their market share. The cycle continues with the most aggressive and resilient entrepreneurs taking lead in the respective industry. Success depends on the ability of the entrepreneur to identify and focus on the business aspects that can be restructured and improved in response to changes in the internal and external environment. As such, a creative and subsequent innovative mindset is essential in the promotion of growth and development for the 21st entrepreneur. The rest of this essay provides an elaborate discussion about foundations of enterprenuership and value creation for successful ventures with the case study of a startup in the relocation industry.

Motoyama and Knowlton (2017) identified a number of aspects that constitute the foundation of a successful entrepreneurship. The factors to consider include mission, vision, collaborators, technology and traction.

Powerful Mission and Vision Statements

Startups are created to address an existing market gap. However, not all entrepreneurs consider a mission statement to accompany the idea. According to Dimitrova and Petrova (2016), a mission statement communicates the reason for startup to various stakeholders such that they are able to connect with the brand at individual capacity. For example, Toyota’s mission is to ‘’attract and retain customers with high-valued products and services and the most satisfying ownership experience’’. The statement clearly stipulates the reason for building the brand and as such, it is possible for the stakeholders to compare provisions with the expectations for future strategic improvements.

As the demand for relation services continue to rise, there is a need for a provider who is able to match the needs of the buyers by offering strategic solutions. Such a startup requires a mission statement that identify with the market expectations and available offerings. The management and employees identify with the mission and as such, it is possible to establish periodical goals that are in line with what the firm wants to achieve.

The relocation industry is trust-based since the providers deal with the most private components of the buyer. The mission should therefore clearly state the desire to maintain confidentiality and respect to attract consumers.

In addition to the mission statement, startups require a vision statement that explains the reason for launching the idea and the expected long-term benefits. The vision of the relocation provider should be to ‘harness the power of digital technology to connect with people and offer relocation solutions’. Digital technology has enhanced connections between people such that it is possible to communicate and offer solutions to people in different location without having the need for physical interaction. As more people seek opportunities in other parts of the country, the firms fill the relocation gap moving the goods to the new location and arranging them as per the clients specifications. People have become busier as living standards rise. As such, a moving firm is strategic in addressing the time convenience issue. The growth, profit, and wealth maximization prospects should be established so that the entrepreneur is positioned to address gaps as they occur and determine whether the operational model is sustainable in the long run.

Team

Value creation is promoted by maximizing on employee diversity to come up with differentiated solutions. According to Coulson (2016), initiators of a startup make or break it. A startup is composed of a group of people on a mission to launch a new idea and highly motivated to establish its vision. The team should share in the mission and remain united through a mutual understanding that is inspired by the vision statement. The manager-in-charge should establish a culture that ensures employees tolerate their individual differences, remain motivated to be productive despite the constant changes in the environment, and willing to share knowledge for the realization of more creative ideas and subsequent innovations (Sener and Hazioglu, 2017).

For a relocating firm, the team should exhibit a culture of tolerance, confidentiality and research. The personal nature of the solutions implies that clients will demand different approaches to meet their needs. The employees should be patient and tolerant so that they are able to understand the individual needs of clients and provide services in a collaborative and productive manner. Value is created when the entrepreneur is able to match the needs of the various stakeholders without creating conflicting situations that create room for conflicts (Corsino et al., 2018). Satisfaction of the client should be the common goal of the team (Hamburg and Vladut,2018).

Technology

In the study on the role of teamwork in establishing the vision of a startup, Munoz et al. (2015) identified technology as being instrumental in validating the new idea. Entering a new industry that is already dominated by established and globally visible firms requires the entrepreneur to utilize technological tools that capture the expectations of the market for successful outcomes (Golden et al. 2017). Competitive advantage for a startup in the moving industry is aided by using multiple digital tools to connect with online users and communicate the solution in a captivating manner. According to Scott (2015), the modern consumer has a high purchasing power due to the availability of information through social media and other online tools that empowers them about the available substitutes and as such, giving them the power to choose.

Although technology makes the market landscape more competitive, when the right information and concepts are used to communicate with the buyers, it is possible for a startup to build its portfolio and successfully establish the brand (Pappas, 2016). The new firm should use social media to market the new brand and connect with consumers to identify market gaps and expectations from the service providers. In addition, the use of trackers assists the firm to collaborate with the clients and communicate progress for improvement and increase the trust of the buyer.

Conclusion

Start ups are essential in uplifting the social and economic needs of the nation. Entrepreneurs should be empowered on the need for differentiated value creation techniques so that they are positioned to compete with the established brands. A focus on the mission and vision statements of the startup, creation of a collaborative and innovative team, and leveraging technology with the business model are some of the aspects that can assist new startups meet buyer’s expectations for successful outcomes.

References

Corsino, M., Giuri, P., & Torrisi, S. (2018). Technology spin-offs: teamwork, autonomy, and the exploitation of business opportunities. The Journal of Technology Transfer, 1-35.

Coulson-Thomas, C. (2016). Corporate leadership and start-up entrepreneurship. Effective Executive, 19(1), 7-18.

Dimitrova, S., & Petrova, E. (2016). Mission and Vision of the Organization and Their Relations with Corporate Social Responsibility. Plovdiv/BULGARIA, 57.

Golden, S., Daron, J., Schumacher, J., & Thomas, E. (2017). Illuminating Entreprenuership.

Hamburg, I., & Vladut, G. (2018). Workplace-Oriented Research and Mentoring of Entreprenuers: Cooperation University-Industry. Archives of Business Research, 6(6).

Muñoz-Bullon, F., Sanchez-Bueno, M. J., & Vos-Saz, A. (2015). Startup team contributions and new firm creation: the role of founding team experience. Entrepreneurship & Regional Development, 27(1-2), 80-105.

Motoyama, Y., & Knowlton, K. (2017). Examining the connections within the startup ecosystem: A case study of st. louis. Entrepreneurship Research Journal, 7(1).

Scott, D. M. (2015). The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons.

Sener, S., & Hacıoglu, V. (2017). INNOVATIVE ENTREPRENUERSHIP UNDER UNCERTAINTY. Journal of Business Economics and Finance, 6(2), 168-176.