There are a lot of business models available which have made people to go from the very bottom to the top. Many countries like Turkey and Canada have been targeting business owners to migrate where you could easily apply for the immigration to Canada and become a permanent resident in the country. But starting up and maintaining a business isn’t that easy and there are a lot of phases which are critical and they need to be taken care of if you want to grow your business. There are different combinations of leadership which help the company to sustain its growth over the period of time.
The entrepreneurship has taken quite a boom in the last few years where there are different leaders who have come up with great ideas and not just that but they have also known to be great executives too. The executive and the leaders don’t usually have the same abilities and the approaches are fairly different too for the same business ideas. The traditional executives are ones who would need the casual reasoning and then there would the alternatives for meeting those goals which are available by different resources. The method usually which is used by these executives have been to study the market and the segment, target it by choosing the segment with the most value and then developing a positioning for it.
Unlike the executive, the leadership or the entrepreneurs has been very different because effectual reasoning is used rather than setting the specific goals, it usually starts by looking at the resources which are available to the leaders and then the goals are developed overtime. It isn’t the case that the goals would be set without looking at the resources which are available to meet those targets. When the startup is new, the entrepreneurs are looking at the values and the skills like who they are and they could do, education and the experience which involves knowing what they know, the contacts which includes the friends and the colleagues who could have the resources or become the possible business partners depending on the criteria. After the ideas have been generated through this only procedure, there are different scenarios developed, certain test and the results are then examined which provides a guideline that what would work or what couldn’t.
There are different tests which also include the one where the target audience or the customers are asked to assess the products/services which would be providing valuable feedback for the future and it is extremely crucial for the product development. This is the point when the leaders start to discover the customers because they start to understand that what they want or what not, it is the stage where the customer also gets involved in the product development procedure. After all the customer is the one who could make or break a brand, this is the most important thing for the entrepreneur. When the entrepreneur starts to understand the customer, it enables them to get clarity over the strategy which needs to be implemented. There are a lot of business stories which could be found and you could see that this approach has been implemented to make the business grow.
The difference between both the approaches are the efficiency and the scenarios through which the market has been evaluated. One couldn’t agree that the approach is correct or incorrect but there is effectual reasoning seen in the entrepreneur model which is the most preferred by the leaders and that helps in reducing the risk and also provided future failures along with the reaction of the customers. Casual reasoning is more effective if the business is already established and then there is more predictability and then there is also access to the information.
The real issue start to unravel when the startup transforms into an established company. This is the point where the company needs to combine both the effectual approach with casual approach. It is the transition which can become difficult and challenging and then there are also shift in mindsets involved. However, it should always be kept in mind that the business would always reach a point where the approach has to be shifted from the effectual reasoning to the casual, and that is a very important step for the company to grow. A lot of entrepreneurs become very skeptical with this risk and they feel like that it could all go wrong. It isn’t the case just for the business but it takes a lot of effort for the entrepreneur to change their way of thinking from one approach to another one. Most of the entrepreneurs fail to understand that how much important is this change and it would be adding to growing the business and sustaining the growth of the business too.