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Step 1 Deciding to become an entrepreneur Step 2 Developing successful business ideas Step 3 Moving from an idea to an entrepreneurial firm Step 4 Managing and growing the entrepreneurial firm ..................................................................................... Step 1 Deciding to become an entrepreneur People become entrepreneurs to be their own bosses, to pursue their own ideas, and to realize financial rewards. Usually, a triggering event prompts an individual to become an entrepreneur. For example, an individual may lose her job and decide that the time is right to start her own business. Or a person might receive an inheritance and for the first time in his life have the money to start his own company. Lifestyle issues may also trigger entrepreneurial careers. For example, a woman may wait until her youngest child is in school before she decides to launch her own entrepreneurial venture. Step 2 Developing successful business ideas Many new businesses fail not because the entrepreneur didn't work hard but because there was no real opportunity to begin with. Developing a successful business idea includes opportunity recognition, feasibility analysis, writing a business plan, industry analysis, and the development of an effective business model. A business plan is a written document that describes all the aspects of a business venture in a concise manner. It is usually necessary to have a written business plan to raise money and attract high-quality business partners. Some entrepreneurs are impatient and don't want to spend the time it takes to write a business plan. This approach is usually a mistake. Writing a business plan forces an entrepreneur to think carefully through all the aspects of a business venture. It also helps a new venture establish a set of milestones that can be used to guide the early phases of the business rollout. A firm's business model is its plan for how it competes, uses its resources, structures its relationships, interfaces with customers, and creates value to sustain itself on the basis of the profits it generates. Step 3 Moving from an idea to an entrepreneurial firm The first step in turning an idea into reality is to prepare a proper ethical and legal foundation for a firm, including selecting an appropriate form of business ownership. Step 4 Managing and growing the entrepreneurial firm Given today's competitive environment, all firms must be managed and grown properly to ensure their ongoing success. This is the final stage of the entrepreneurial process.