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Interpreting the Fundamentals of a Successful Entrepreneur

Justin Babich

English III Honors


Mrs. Kopp
February 26, 2014

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Justin Babich
Mrs. Kopp
English III Honors
26 February 2015
Interpreting the Fundamentals of a Successful Entrepreneur
Individuals willing to take risks enact all material and societal advancements present in
current human society. Without risk-takers, mankind could not establish the new technology and
contemporary forms of government. The chance of losing something of value in order to pursue
growth through the career of ones choice fuels the economy and encourages more innovation.
Entrepreneurs exercise innovation by taking different skillsets and utilizing them to establish
new industries or to compete with existing ones. The widely respected and commonly pursued
career demands field and marketing knowledge as well as experience from aspiring
entrepreneurs. By thoroughly dissecting the significance of the essential components of business
owners, the history of the expansive field in the United States, the methods of influential
American tycoons, and the entrepreneurial method, one can form an exceptional understanding
of what make a successful entrepreneur.
Entrepreneurship, the organization and management of an enterprise, presents a
considerable risk to newcomers and requires personal initiative to undertake. Matthew
Burkinshaw, the President of Performance Growth Advisors, stated in an electronic interview
that entrepreneurs must develop a product or skill that other people want to pay for. Innovators
know they must appeal to specific demands and strive to create unique products that fulfill their
consumers' necessities and interests. The service must stand out in comparison to other
competition under the same consumer market or should establish an entirely new and desirable

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market (Burkinshaw). Adaptive entrepreneurs respond to societal change and use it to their
advantage. An entrepreneur must incorporate essential marketing and communication skills to
achieve success in their chosen industry. Unlike most occupations, an entrepreneur accepts full
responsibility for the success or failure of their enterprise and must learn from their mistakes.
The most prosperous entrepreneurs pick an industry they feel passionate about and surround
themselves with intelligent individuals who possess knowledge that can help them to achieve
success.
An entrepreneur must market their product, sell it, and make a profit to run a business.
Many amateur entrepreneurs experience a lack of sales when first starting a business
(Burkinshaw). Burkinshaw reports that 75% of businesses fail within five years of operation due
to a lack of sales. This typical but unfortunate result usually transpires when an entrepreneur
spends too much time perfecting their product and not enough time focusing on how to market it.
I always advise business owners that until someone hires you or buys your product, whether
you are a lawyer, a dentist or a car dealer, your job title is VP of Marketing and Sales
(Burkinshaw). In order to sustain a company through the American economy, an entrepreneur
must put time aside to interpret and optimize their sales. In this process, an entrepreneur studies
and develops specific market strategies to attract a consumer.
Without comprehending what motivates the consumer market to purchase certain
merchandise, a company cannot optimize their product to appeal to those potential customers. An
entrepreneur must identify their ideal consumer, how to attract them to their product, and how to
sell their product to those buyers. The video game manufacturer Nintendo clearly exemplified
this concept when they released the Nintendo Entertainment System (NES). Nintendo recognized
that it could target a very large group of consumers with their merchandise, mainly younger

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people and children. Nintendo focused on selling their NES consoles cheap and generating
profits through their games. To ensure the success of this marketing tactic, Nintendo put their
greatest efforts into developing each game title released for the NES. Because of these brilliant
business choices, consumers recognized the superiority of the new brands games and Nintendo
thrived financially (Ricart 15). The company revolutionized and popularized a new form of
entertainment by analyzing the entertainment industry and manipulating those diagnostics for a
profit. Without attracting a certain consumer and generating a profit, even the most amazing and
innovative product will fall through the cracks in todays economy.
A business only yields net revenue and return on an investment. A mature business
eventually yields a salary, but most entrepreneurs take a salary only to the extent they need to in
order to satisfy the IRS income reporting requirements (Burkinshaw). Despite the clear
objectives of a business owner, the salary of a business owner remains extremely flexible, due to
an evolving consumer market with changing demands. Most businesses normally generate
income from return on investment and owner distributions (Burkinshaw). While the time can
certainly vary, most new business owners who cannot produce a significant income or return on
their investment for 1-2 years after startup seek professional counseling (Burkinshaw).
However, a business typically yields an income quickly, especially if their chosen industry does
not require a heavy up-front investment of time or money to begin.
Most entrepreneurs start with an idea and technical knowledge regarding their field of
choice. Jobs with variable routines that expose the financial and retail side of a business to
aspiring entrepreneurs provide these individuals with excellent marketing experience. For
example, managing a restaurant allows an individual to learn essential business principles and
important leadership skills that could apply to many different industries in the future

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(Burkinshaw). They must learn to apply this knowledge and design a business plan that turns
their unique idea and hard work into a profit (Burkinshaw). Depending on the type of business,
an enterprise may call for a small initial capital and just basic skills, while others may require a
significant investment and intelligence in the field to grow. For example, a home-based
institution with modest financing could grow organically (Burkinshaw). However, a factory
would demand a substantial investment in workers, equipment, and product research to succeed
(Burkinshaw). Many entrepreneurs invest time and money to earn a degree and gain work
experience to attain a proficient understanding of the field before starting their own business.
The financial and business capabilities of a particular individual usually can predetermine how
they pursue a career entrepreneurship.
Innovative American individuals have helped to shape contemporary entrepreneurial
methods in the United States. Over the past 200 years, thousands of American entrepreneurs
have shaped the American economy with startup shops, restaurants, and services (Hildebrand
14). The industrial age sparked with activity as these new entrepreneurs instigated the creation
of new brand names. Those brands that implemented innovative business methods and practical
advertising techniques experienced the most success. The automobile industry saw rapid
development when Ford introduced the ingenious idea of an assembly line, making production
more efficient. American Entrepreneurs expressed remarkably inventive ideas throughout United
States history and stimulated the growth of the early national economy.
Oftentimes, those entrepreneurs who succeeded in establishing their franchise name
attract the bulk of public attention and can more easily undermine their lesser-known
competition. A key fundamental component of those well-known brand names usually lie in the
unmatched innovation put forth by those corporations. No one expected arcades to pop up all

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over America when Pong, Ataris first hit title, launched. The video game industry clearly
expressed innovation in the entertainment market in its early development. The industry did not
arise out of necessity; instead, the story of the industry tells a story of incredible entrepreneurial
insight and creativity. Inc.s senior journalist Max Chafkin wrote an article detailing the
entrepreneurial career of Nolan Bushnell, the founder of Atari. Soon after the successful release
of Pong, Bushnell accepted $28 million for Atari in 1976 from Warner Communications.
Bushnell stated in an interview that he wanted to play it safe with Atari, since he worried what
investors would think of the company at the time (Chafkin 111). Nevertheless, Bushnells
remarkable intuition and contributions to the entertainment field earned him the title father of
video games (Chafkin 112). Corporations such as Macintosh and Amazon as well as countless
other popular franchises accomplished similar innovations and sustain a position at the top of
their industry. The methods these companies follow to preserve their economic dominance and
further expand lies in their approach to modernization.
Merchandise that features enticing product improvements stimulates the interest and
demand of a particular item while also encouraging more innovation in that field. The
acceleration of new 21st century technologies encouraged further innovation of the interactive
entertainment industry. Journalist James Park details the story of two young college students
with backgrounds in IT management that fulfilled the gamers desire for a realistic PC
experience. The young entrepreneurs found a bulk distributor of medical 3-D glasses, and
optimized the unique technology for PC gaming. Positive reviews of the product led to higher
sales and company growth. Soon after the launch of the business, the 3-D technology market
gathered momentum as many companies developed products incorporating those contemporary
3-D electronics (Park 119). Soon enough, 3-D technology became a common component of

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many simulators and recently in portable gaming devices, like the Nintendo 3DS. This business
startup presents a clear example of entrepreneurial success in the computer industry when two
creative individuals tackle market change in the development of their product.
Studying the general business methods of prominent CEOs allows a sufficient
comprehension of the successful entrepreneurial approach. Some exceptional CEOs include Bill
Gates, Jeff Bezos, and Steve Jobs. Bill Gates, the former head of Microsoft, incorporates small
groups of very intelligent people to solve large problems (Byrne 74). Jeff Bezos, the owner of
Amazon, advocates for proactive techniques and to always work one step ahead of the
competition. Steve Jobs, previously the CEO of Apple before his death, implemented an
innovative strategy that rejected the use of research when developing a new product. Each of
these individuals clearly demonstrates that their entrepreneurial principles yield exemplary
business models.
Bill Gates, the founder of Microsoft and the Bill & Melinda Gates Foundation, remains
one of the worlds most influential geek, philanthropist, and entrepreneur. Microsoft currently
exhibits a market value of $273.5 billion and over 90,000 employees. Gates recommends that
corporations organize small groups of intelligent people in their workplace, then assigning these
units to work on significant issues (Byrne 74). Gates suggests that selecting elite individuals to
execute tasks in teams usually yields extraordinary results. Gates states that hiring his
trustworthy friend Steve Ballmer as his vice president when working for Microsoft remains one
of his smartest business decisions. Ballmer provides a different set of skills to check Gates, but
still shares the same vision and commitment to the company (Byrne 75). Through initiating the
computer revolution, tackling world issues, and exhibiting incredible entrepreneurial insight, the

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brilliant Bill Gates acts as an excellent role model for a variety of fields, especially for a business
owner.
The reputable Amazon retailer began as a way to sell books cheap through the online
marketplace. Jeff Bezos, the former senior vice president of the popular hedge fund D.E. Shaw,
quit his high-paying job in 1992 to pursue his dreams and create Amazon (Byrne 68). Launched
in 1994, the company grew at an incredible rate and repelled many of the profit management
requests of Wall Street investors. Bezos explains that he intends to establish an important, long
lasting company that focuses on excellent customer service and innovation. Bezos claims a
proactive approach, putting the companys novelties and upkeep before instantaneous profits. In
order to effectively attain this strategy, Bezos treats himself to quarterly vacations to escape the
distractions of the busy world, allowing him to invent new products (Byrne 78). By taking these
new ideas to his intelligent staff and discussing the likelihood of each, Amazon consistently
outputs profitable products (Byrne 79). The success of Bezos methods show; the corporation
currently dominates the online market retail with a value of $84 billion and employs 56,200
people (Byrne 77). Amazon, a company based around selling media, generates high profits
through consistent expansion through a fresh ideas and excellent interpretation of the current
market.
Apple, a company that continues to embody innovation, accepts arguably the most radical
marketing techniques. Apple innovators pursue new products through intuition, rather than
engaging in customer research (Byrne 72). Former CEO of Apple Steve Jobs, who died last year
at the age of 56, relied almost entirely on innovation to expand his remarkably technical
enterprise (Byrne 73). One of the most quintessential entrepreneurs of his time, Jobs stimulated
the economical expansion of Apple and issued many inspirational speeches regarding his

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unconventional business methods throughout his lifetime. Jobs indicated countless times that
Apple never relied on market research or focus groups when developing their recurrently
revolutionary merchandise. However, the companys methods often backlash at them, as the
recently introduced Apple Watch fails to attract a consumer market and does not generate
feasible profits. Despite these frequent declines, Apple boasts sales exceeding $100 billion and a
market value equating to $546 billion (Byrne 72). Apple may face high failure to success rates
due to adopting an unorthodox consumer target strategy, but regardlessly maintains substantial
profits and provides a distinct and accessible product line for their customers.
Although some businesses exemplify success and remarkable entrepreneurial practice,
many more face market difficulties and financial strains, ultimately leading to their failure. One
notable example of entrepreneurial failure in the United States century analyzes the spread of the
Canadian Labatt brewery in the early nineteenth century. John Labatt, one of Canadas most
successful beer brewers at the time (Bellamy 31) wanted to expand his brewery into the United
States. Since Labatt faced serious price cuts that threatened to run him out of business in his
hometown, he turned to the international market for potential customers (Bellamy 35). Labatt
took a particular interest in Chicago, realizing that the city contained a sizable population and
more than triple the amount of beer consumption per capita. Labatt planned to later expand his
industry throughout the United States through the national railway network (Bellamy 36).
Although Labatt did not experience instant success with his business in the new territory, he
remained confident in his potential to expand his brewery and capture the American market.
The entrepreneurial method provides substantial insight of the commercial mentality,
similarly to how the famous scientific method characterizes the mindset of a material analyst.
Theorists Sarasvathy and Venkataraman claim that others should conceive mindset of the

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practice more consequentially, rather than just as a straightforward academic discipline. They
also assert that the entrepreneurial method holds a significance comparable to, if not more
important than the scientific method. (Duening & Metzger 79). Using a pragmatic approach, one
can derive an entrepreneurial theory based off of the development of profession-specific moral
virtues. Virtuous ideas of the entrepreneurial method include recognizing the value of a product
or service to a consumer and rebounding from personal and financial failures.
A businessman must understand the most fundamental goal of their practice; the value of
their creation. A successful entrepreneur evaluates the desires of their consumers and target these
motives when marketing their product in order to generate returns. Under conditions of
uncertainty, aspiring entrepreneurs create and establish markets while eschewing a definitive
business plan. Since value creation remains a very flexible concept, the startup business process
should implement intuition and experimentation to develop a possibly scalable industry. An
expert businessman cannot afford to wait for a scholarly analysis of value creation; instead, they
must act and focus on profits. The demise of a potentially successful startup usually results from
an individual committing more self-focus on other, non-essential components of their field
(Duening & Metzger 92). Without focusing on the marketable factors of their merchandise, an
individual cannot operate a successful business through developing and selling their product for
profit.
An entrepreneur, regardless of financial prosperity, encounters failure more than once and
must know how to deal with it. Many teachers and celebrities in the current society do not assert
the importance of failure to the learning process for youth to grasp. As a result of their influence,
recent generations have grown up to believe that rewards will eventually take effect, regardless
of their personal efforts and contributions to society. However, the expert businessman cannot

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fall into thinking this way; they must accept a competitive nature that motivates them to embrace
vital efforts. The lean startup model actually encourages entrepreneurs to take risks on minimally
viable products, further validating famous literary works that highlight the importance of failure
(Duening & Metzger 93). These individuals must understand that the completely necessary and
acceptable action of failure teaches one how to learn from their mistakes and succeed.
While many popular media influences suggest the contrary, an entrepreneur functions
through accepting risks and the possibility of failure. These risk-takers innovate new industries
and technologies necessary to sustain an economy and progress the human race. Entrepreneurs
serve as a fine example of innovation, arguably more so than any other occupation. This highlyreputable career demands an expansive understanding of marketing and requires firsthand
experience and intuition to undertake. A comprehensive study of the fundamental factors of a
business, the American history of these aspects, the habits of influential American businessmen,
and the entrepreneurial method yields a complete and successful interpretation of the successful
entrepreneur.
Works Cited
Bellamy, Matthew. "John Labatt Blows in and out of the Windy City: A Case Study in
Entrepreneurship and Business Failure, 1889-1896." Canadian Historical Review 95.1
(2014): 31-36. Academic Search Complete. Web. 5 January 2015.
<John Labatt Blows in and out of the Windy City: A Case Study in Entrepreneurship and
Business Failure>.
Burkinshaw, Matthew. Electronic interview. 28 January 2015.
Byrne, John A. "The 12 Greatest Entrepreneurs of Our Time & What

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You Can Learn from Them." Fortune 165.5 (2012): 72-79. Business Source Complete.
Web. 5 January 2015.
<The 12 Greatest Entrepreneurs of Our Time & What You Can Learn from Them>.
Chafkin, Max. "The Gamer." Inc 31.3 (2009): 110-112. MasterFILE Complete. Web. 5 January
2015. <The Gamer>.
Duening, Thomas N., and Matthew L. Metzger. "The Entrepreneurial Method: As the
Foundation of Entrepreneurial Expertise." American Journal Of Entrepreneurship 7.1
(2014): 79-93. Entrepreneurial Studies Source. Web. 5 January 2015.
<The Entrepreneurial Method: As the Foundation of Entrepreneurial Enterprise>.
Hildebrand, Kenn. "History Lesson." Entrepreneur 42.11 (2014): 14. Small Business
Reference Center. Web. 5 January 2015.
<Entrepreneurial Method: As the Foundation of Entrepreneurial Enterprise>.
Park, James. "Game Face." Entrepreneur 35.4 (2007): 119. Small Business Reference
Center. Web. 31 December 2014. <Game Face>.
Ricart, Joan E. "Get On Top Of Your Game." IESE Insight 4 (2010): 15. Business Source
Complete. Web. 31 December 2014. <Get on Top of Your Game>.

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