How does someone become an entrepreneur? The best answer to this question begins by discovering your why.
Discover Your Why
Why do you want to become an entrepreneur? Your “why” is the reason you want to start a business. One of these reasons below could be your “why” as an entrepreneur.
- You want to make a difference in your community.
- You dream of turning your passion into your life’s work.
- You have an idea for a new offering or service you know will change people’s lives.
- You enjoy learning by doing.
- You’re ready for a challenge.
- You’re passionate about finding your purpose.
As soon as you know your why, you’ll be ready to start setting short- and long-term goals for your startup.
What Do You Need To Start a Business?
Starting a small business is no easy undertaking. Let’s look at some of the most common challenges facing entrepreneurs and solutions for overcoming these issues.
What qualifies you to start a business?
You may have several years of experience in the field. If you don’t have enough experience, consider upskilling. Enroll in relevant online courses, watch webinars, and listen to podcasts to learn from other entrepreneurs.
Partner Or Solo?
Will you start the business on your own? Would you like to go into business with a partner?
Remember being in a partnership requires both partners to work equally together. Having a written partnership agreement can be a big help in smoothly running the company.
Can You Wear Many Hats?
Becoming an entrepreneur, particularly in the early days in your startup’s lifecycle, means you will be doing the work of several people.
However, it can be difficult to manage this much work especially if it is outside of your skill set. If hiring full-time isn’t a feasible option, consider outsourcing work to contractors or freelancers who have the skills to complete it.
How Will You Acquire Customers?
Your business idea should be viable and for an offering or service customers want (and will pay for!).
Start conducting market research to determine your target audience and establish buyer personas to better understand your demographics. You may also collect customer feedback through focus groups and surveys.
How Will The Business Receive Funding?
How will you fund the business?
If you are planning to quit your job to start a business, you’ll need a significant financial cushion to become an entrepreneur and attend to your finances and expenses. Funding options may include financing from investors, taking out a business loan, applying for grants, using crowdfunding platforms, or attracting the interest of an angel investor or venture capitalist.
What Does Work Life Balance Look Like?
While it is true becoming an entrepreneur means putting plenty of energy, time, and commitment into the business and its idea, the result should not be one where you burn out.
Consider starting your small business as a side hustle before making the plunge to take it full-time. Use this time to grow the business and observe how you can maintain work-life balance.
Do You Have a Scaling Strategy?
As sales rise and your business enjoys a steady influx of cash flow, you’ll need to put together a scaling strategy. This will ensure your business keeps growing its revenue through its business model and may allow you to expand into new markets over time.
Helpful Tools For Entrepreneurs
Becoming an entrepreneur requires having an entrepreneurial toolkit. Here are some of the most critical components to include in your toolkit for success.
Think of a business plan as a road map to becoming an entrepreneur. Use it to set goals for your business to reach and set timelines to get to these goals.
A business plan allows you to detail who you are and what the business does. Use it to analyze your competition through an industry analysis and your customers through a market analysis. A business plan allows you to share the financial projections of your company and outline a funding request from potential investors.
Remember you can revise a business plan. Take note as you reach certain goals and plan for how to reach future goals.
Incorporate Or Form An LLC
Incorporating as a corporation or forming an LLC for your business is one of the best tools an entrepreneur has in their business toolkit.
Incorporating as a legal entity formation, like a limited liability company (LLC) or corporation, provides your business with limited liability protection. This creates a separation between your personal and professional assets. In the event of unforeseen circumstance, your personal belongings will not be impacted or used as collateral. Additionally, incorporating a business can provide tax benefits and allow you to establish credibility faster with consumers.
Entrepreneurship is not meant to be done alone. You need a network of the best and brightest in your corner. Some of these people may include mentors, close family members and friends, and other entrepreneurs you admire — and who admire you in return. Remember to build your network as much as you continue to network and grow the business.
Becoming an entrepreneur is hard work, but it is also rewarding. You are creating an offering or service which will change lives for the better. Despite the challenges, entrepreneurship gives you a path to where you can find your purpose. Believe in yourself, surround yourself with great people, and work hard. You can achieve your dreams and be successful.
Start a business with MyCorporation. Contact MyCorporation at mycorporation.com or give us a call at 877-692-6772.