Steps to Becoming an
Entrepreneur
So, what can you do to become an
entrepreneur? What are the steps to becoming an entrepreneur? Because of the
many types of entrepreneurs, there are many different paths you can take. For
example, the owner of a delivery company wouldn’t take the exact same path as
an interior decorator. But there are some similar steps all of
them should take.
In general, these are the steps you will take to become an entrepreneur:
In general, these are the steps you will take to become an entrepreneur:
Step 1:
Find Your Industry or Niche
Step 2: Research Your Market
Step 3: Educate Yourself
Step 4: Build Your Business Slowly
Step 2: Research Your Market
Step 3: Educate Yourself
Step 4: Build Your Business Slowly
Step 1: Find Your
Industry or Niche
The most obvious first step it to find your
specific niche. Many people want to become entrepreneurs, but they don’t know
what industry to get involved with.
More often than not, your niche will be something you have worked in for years. If you have been a carpenter for a local construction company, home remodeling and restoration may be your area. If you have worked at a restaurant for many years, you probably have a good understanding of how to run a food service business. Your current experience is a great place to starting looking for your niche.
It will also help if you love your niche. To have years of success, you have to love what you do. Eventually, money won’t be a big enough motivator to keep you working sixty to seventy hours a week to sustain the business. You’ll need more than money to keep you motivated, you’ll need a purpose.
More often than not, your niche will be something you have worked in for years. If you have been a carpenter for a local construction company, home remodeling and restoration may be your area. If you have worked at a restaurant for many years, you probably have a good understanding of how to run a food service business. Your current experience is a great place to starting looking for your niche.
It will also help if you love your niche. To have years of success, you have to love what you do. Eventually, money won’t be a big enough motivator to keep you working sixty to seventy hours a week to sustain the business. You’ll need more than money to keep you motivated, you’ll need a purpose.
Step 2: Research Your Market
You should also research the available
market, analyzing the area for demand and need.
Maybe, you want to open a fine Italian dining restaurant in your hometown. Are the other restaurants succeeding? Is there another fine dining in your area? Can the local customers afford to eat at a high-end restaurant, or would they prefer a more-moderate place to eat? Do they even like Italian food?
Finding the answers to these questions, and more, will be essential to your long-term success.
Maybe, you want to open a fine Italian dining restaurant in your hometown. Are the other restaurants succeeding? Is there another fine dining in your area? Can the local customers afford to eat at a high-end restaurant, or would they prefer a more-moderate place to eat? Do they even like Italian food?
Finding the answers to these questions, and more, will be essential to your long-term success.
Step 3: Educate Yourself
There is a common myth in popular
culture that successful, self-made entrepreneurs never graduate from college.
The numbers, however, don’t back this up. According to a team of researchers
from Duke, Akron, and Southern California, over 95% of entrepreneurs in
high-growth industries have
at least a bachelor’s degree.
Once
you have the reason, start asking yourself even more questions to help you
figure out the type of business you should start, and if you have what it
takes.
- What
skills do you have?
- Where
does your passion lie?
- Where
is your area of expertise?
- How
much can you afford to spend, knowing that most businesses fail?
- How
much capital do you need?
- What
sort of lifestyle do you want to live?
- Are
you even ready to be an entrepreneur?
Be
brutally honest with your answers. This will create a foundation for everything
you do moving forward, so it's better to know the truth now than later.
Think of a
business idea.
Do
you already have a killer business idea? If
so, congratulations! You can proceed to the next section. If not, there
are a ton of ways to start brainstorming for a good idea. An article on Entrepreneur, “8 Ways to Come Up
With a Business Idea,” helps
people break down potential business ideas. Here are a few pointers from the
article:
- Ask
yourself what's next. What technology or advancement is
coming soon, and how will that change the business landscape as we know
it? Can you get ahead of the curve?
- Fix
something that bugs you. People would rather have less of a
bad thing than more of a good thing. If your business can fix a problem
for your customers, they'll thank you for it.
- Apply
your skills to an entirely new field. Many businesses
and industries do things one way because that's the way they've always
been done. In those cases, a fresh set of eyes from a new perspective can
make all the difference.
- Use
the better, cheaper, faster approach. Do
you have a business idea that isn’t completely new? If so, think about the
current offerings and focus on how you can create something better,
cheaper or faster.
Also,
go out and meet people and ask them questions, seek advice from other
entrepreneurs, research ideas online or use whatever method makes the most
sense to you.
And,
if you've exhausted all your options and you're still stuck, here are 55 great business
options you
can start.
3. Do market
research.
Is
anyone else already doing what you want to start doing? If not, is there a good
reason why?
Start
researching your potential rivals or partners within the market by using this guide. It
breaks down the objectives you need to complete with your research and the
methods you can use to do just that. For example, you can conduct interviews by
telephone or face to face. You can also offer surveys or questionnaires that
ask questions like “What factors do you consider when purchasing this product
or service?” and “What areas would you suggest for improvement?”
Just
as importantly, it explains three of the most common mistakes people make when
starting their market research, which are:
- Using
only secondary research.
- Using
only online resources.
Surveying
only the people you know
Step 1Find the right business for
you.
Entrepreneurship
is a broad term, and you can be an entrepreneur in just about any area.
However, you will have to pick a field to work in and business to start. Find a
business that won’t only be successful, but is something that you are
passionate about. Entrepreneurship is hard work, so you want to focus your
attention on something you care about.
Step 2Determine if you should get an
education
You don’t need to
have any type of formal education to be an entrepreneur, but that doesn’t mean
you should ignore education entirely. If you want to start a tech company,
experience in business, computer programming and marketing could all be
valuable. Also, some industries will likely require some type of education,
such as your own accounting or law firm.
Step 3Plan your business
Before you begin
your business, you need to have a business plan. A business plan lays out any
objectives you have as well as your strategy for achieving those objectives.
This plan is important for getting investors on board, as well as measuring how
successful your business is.
Step 4Find your target group/audience
Not every business
appeals to everyone. The age, gender, income, race and culture of your target group
will play a large role in determining where you open up shop – or if you even
need to have a physical address for business. Research which group fits your
business model best, and then gear everything to attract that demographic.
Step 5Network
While networking
is important in all fields, it may be most important for entrepreneurs.
Networking is how you meet other people that might have skills you can use in
your business. You can also find potential investors through networking to help
get your business model off the ground. Your network can also support your
business once you open, helping send new customers your way.
Step 6Sell your idea
Consumers want
products, but they don’t always know which product to pick. Your job as an
entrepreneur is to convince people that whatever you’re selling is the best
option available. You’ll have to find out what makes your product unique and
then sell it based off the value it adds.
Step 7Market
You should be focused on marketing before, during
and after you start your business. You may have the best restaurant in the
city, but nobody will visit if they don't know it exists. Marketing is tricky,
but if you should be able to focus your marketing efforts on your target
audience. For example, millennials may be more likely to see an ad on social
media than on a billboard downtown.
