Introduction
Entrepreneurship refers to the act of using knowledge to introduce new ideas, concepts, and innovations in order to transform them into economic goods. The most common form of entrepreneurship is starting a new business. Entrepreneurs possess several traits that motivate them to start businesses. They include courage, passion, motivation, creativity, intuition, authority, and a strong will (Attorney, 2012).
These traits separate them from other people and enable them establish and lead businesses and organizations to success. Many businesses fail due to inadequate funding, poor execution of plans, and lack of adequate knowledge to make right decisions (Zimmerer et al, 2002). Entrepreneurs consider several factors when selling their businesses. These factors include legal obligations, projected revenue, managerial and leadership qualities of buyers, and knowledge and skills of buyers.
Entrepreneurial characteristics that Bill possesses
Bill possesses several characteristics that make him an entrepreneur. He has adequate skills and knowledge, he is self-motivated, has a positive attitude to learning, and has leadership skills. Entrepreneurs usually possess knowledge on a certain field of study from which they generate ideas (Hisrich & Peters, 2002). Bill has necessary skills and knowledge form working with machines. His skills span a period of twelve years.
He is also self-motivated. Bill has a positive attitude to learning, which means that he is self-motivated and does not depend on anyone to get things done. He also has leadership skills. Experience gained from dealing with technical issues earned him the respect of employees, which implies that he is a good leader. In addition, it implies that he possesses knowledge on ways to motivate employees in order to improve performance.
Entrepreneurs are motivating and inspiring. In adition, they are good leaders, authoritative, and creative (Hisrich & Peters, 2002). In addition, he knew customers, which means that he was interested in the operations of the business. Apart from taking care of technical issues, he focused on other areas of the business. Entrepreneurs possess knowledge on several fields and rarely specialize (Kuratko, 2008). Bill possessed knowledge on operation of machines, customer satisfaction, and employee management.
Characteristics that could lead to Bill’s failure
Many businesses fail due to lack of adequate knowledge on how to manage them. Bill has adequate knowledge and skills on how to operate machines. However, he does not possess knowledge on how to run a business. This could lead to failure. On the other hand, his drive for perfection may lead to failure because in case of failure, he may become depressed and frustrated.
Not every plan or decision in business succeeds. For example, harsh economic times may lead to business failure. Too much perfectionism may lead to failure because. In case the business fails, Bill may suffer low self-esteem because he might think that he is not good enough.
Steps to avoid pitfalls that are common with businesses
Bill should do several things to avoid pitfalls common with business. He should focus on one thing at a time, avoid being over ambitious, set aside enough money and time, and be patient (Zimmerer et al, 2002). Many businesses fail because of lack of money to execute plans and strategies, focusing attention on too many things at one time, and poor execution of plans (Kuratko, 2008).
In addition, many businesses fail because entrepreneurs lack patience to build and grow the business systematically. Many entrepreneurs underestimate businesses’ expenses, and thus run out of operating money before achieving goals and objectives. Proper planning is necessary.
Selling the business to Bill
If I were Hugo, I would sell the business to Bill. Some important factors to consider before selling a business include ability of the buyer, financial status of the buyer and ability to pay, projected income, and managerial and leadership traits of buyer (Attorney, 2012). Bill has adequate knowledge and skills that are sufficient for effective running of the business.
Even though he does not possess business knowledge, I think he can run the business. Entrepreneurs are creative and innovative. Therefore, he would find a way to manage the business operations of the business. In addition, Bill has good leadership skills that are necessary for successful running of a business. Leadership is a critical aspect of a businesses’ success.
Many businesses succeed because entrepreneurs posses adequate knowledge and skills on specific areas (Kuratko, 2008). Bill has been working at the shop for twelve years. Therefore, he possesses adequate knowledge to enable him run the business successfully. One of the characteristic of successful entrepreneurs is responsibility. They are responsible and focus on the most important things (Kuratko, 2008).
Bill has been using most of his salary to take care of his family. This implies that he is responsible. If given the business, Bill would ensure that the business succeeds despite hurdles and obstacles. Entrepreneurs find creative ways to solve problems they encounter in their business operations. Therefore, Bill would find ways to handle the shop’s business operations. In addition, with the probability of Bill doubling his annual earnings, paying would not be a problem.
References
Attorney, S. (2012). The Complete Guide to Selling a Business. New York: Nolo.
Hisrich, R., & Peters, M. (2002). Entrepreneurship. New York: McGraw-Hill Higher Education.
Kuratko, D. (2008). Entrepreneurship: Theory, Process, and Practice. New York: Cengage Learning.
Zimmerer, T., Scarborough, N., & Wilson, D. (2008). Essentials of Entrepreneurship and Small Business Management. New York: Prentice Hall.