Explanation of the Three Entrepreneurial Levels - Succeed as an Entrepreneur: Starting Your Own Business. Also refer occasional business, one time, one-person business, continuing, large-scale, venture capitalists, Ron Kurtus, School for Champions. Copyright © Restrictions
Three Entrepreneurial Levels
by Ron Kurtus (9 April 2009)
There are three levels of being an entrepreneur. The most basic is when you occasionally sell an item or provide a service. The next level is when you go into business for yourself. The highest level is when you start a full-scale business venture. The need for funding, financing or the ability to obtain products to sell is an issue in each level of business.
Questions you may have include:
- What sort of occasional business is there?
- How can you go in business for yourself?
- What is a full-scale business venture?
This lesson will answer those questions. There is a mini-quiz near the end of the lesson.
Occasional business
If you start an occasional or even one-time business, you can be considered a basic-level entrepreneur.
Selling product
Typically, this type of business involves selling some product that you already own.
Judy and Dave got an idea of a way to make extra money by holding a garage sale to get rid of things they no longer needed. They set things up,put up signs in the neighborhood and sold most of their old items.
This looked like a one-time venture for them.
Providing service
In some cases, you may occasionally provide a service.
After the big snowstorm, 15-year-old Peter got the idea of offering to shovel the neighbors' walks. He took his father's shovel and went door-to-door, asking people if they wanted their walks shoveled for $5. He made $35 that day in his entrepreneurial effort.
This was an occasional venture.
You are an entrepreneur
Any time you become involved in a way to independently make money—as opposed to getting a job—you are acting as an entrepreneur.
In business for yourself
Being in business for yourself means that you are going beyond a one-shot activity. You are selling goods or providing a service on a regular basis. You can have such a business by yourself or in a partnership with someone else.
Going from job to becoming an entrepreneur
You may go into business for yourself by spinning off an existing job.
Phil had a been working at the Marquette Co. for several years as a technical writer. He wanted to go in business for himself and had saved up enough money to tide him over until he was making a steady income.
He quit his job and started contracting as a free-lance writer to various companies in the area. Although he had added responsibilities in having to market his business and keep financial records, he found his entrepreneurial efforts satisfying.
If such a business took off, you might consider getting more funding and establishing a full-scale venture.
Expanding an occasional business
There is also the situation where you had started an occasional business and there is enough demand for what you have to sell that you can expand the activity into being in business for yourself.
After having a successful garage sale, Judy and Dave started a small business buying items from other garage sales and selling them on eBay. They did this on a regular basis to supplement her family's income.
They went from a one-time venture to starting up an ongoing part-time business.
Seeing demand
You need to know there is a demand for what you have to offer before going into business for yourself. Initial expenses can usually be paid for from your own money.
Full-scale business venture
A full-scale business venture usually requires that you obtain outside funding to ramp up your business.
Expanding your own business
You may be in business for yourself and realize that it has so much potential that you had better get funding and create a true business with room for growth.
Michael Dell was building and selling computers to fellow students when he realized his one-man business had great potential. He invested his own money and received a loan from his grandparents to start up a full-scale business, which later became Dell Computers.
Planning out a new business
If you get a great idea for a business to start from scratch, you usually must write out a business plan and seek money from venture capitalists to fulfil your dream or idea. Numerous entrepreneurs start their businesses this way.
Summary
The three levels of entrepreneurial business activities include running a one-time or occasional business, going into business for yourself and starting a full-scale business venture.
Work your way up to the top
Resources
The following are resources on this subject.
Websites
Books
Top-rated books on Starting a Business
Top-rated books on Entrepreneurship
Mini-quiz to check your understanding
If you got all three correct, you are on your way to becoming a Champion Entrepreneur. If you had problems, you had better look over the material again.
What do you think?
Do you have any questions, comments, or opinions on this subject? If so, send an email with your feedback. We will try to get back to you as soon as possible.
Share link
Feel free to establish a link from your website to pages in this site.
Or use our form to send this link to yourself or a friend.
Students and researchers
The Web address of this page is:
www.school-for-champions.com/entrepreneurship/basic_levels.htm.
Please include it as a reference in your report, document, or thesis.
Where are you now?
Three Entrepreneurial Levels