Become Team
Updated February 17, 2022
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7 Steps to Becoming an Entrepreneur
Step 1
Find 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 2
Determine 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 3
Plan 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 4
Find 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 5
Network
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.
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 7
Market
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.
FAQ on Becoming a Entrepreneur
How do I pick my field?
The main criteria is that it has to be something that adds value. If you don't add value with your business, there's no reason for anyone to pay attention to it.
Do I need to get a business license?
Business licenses might be required for your field of work. Different states and counties have different requirements for licensure. Also, some industries will require other types of licenses as well. A restaurant may require a license for food handling and selling alcohol on top of the normal business license.
Can anyone be an entrepreneur?
Yes, anyone can be an entrepreneur, but not everybody is going to have the same level of success. Entrepreneurship takes a lot of experience, determination and sometimes education. There are no prerequisites to becoming an entrepreneur, though, and there are successful entrepreneurs from every demographic.
Do I need experience in the area I want to start a business?
No, but it certainly helps. If you're opening a marketing agency, then you should have plenty of experience with marketing. Customers won't want to spend their money if they don't think you can provide a high quality product, and experience and a solid track record is a good way to prove you're fit for the job.
What's the best way to become an entrepreneur?
There is no best way to become an entrepreneur. Every entrepreneur has a different experience, and even the best business ideas have the possibility of failing. However, you can mitigate your chances of failure. Education, experience and proper planning can all give your business a better chance of succeeding.
How do I know if my business is successful?
If you've followed your business plan and you're seeing growth, then your business is doing well. Remember that many businesses take time to start making money.
Entrepreneur Salary & Job Growth
With tons of tech millionaires and billionaires, many people have wild expectations when it comes to entrepreneur salaries. But the reality is that entrepreneurs' annual salary varies wildly – perhaps more than any other field. There's also the very real possibility of a business failing, and that can mean a low salary or no salary at all.
All that being said, plenty of entrepreneurs find success and make well above the national median salary of around $60,000 a year. Successful businesses can also grow, and that means more money each year. This can take a year or two, so there is the possibility of losing money over the first few years before a business becomes successful.
| State | Annual Salary |
|---|---|
| Alabama | $57,360 |
| Alaska | $57,360 |
| Arizona | $40,436 |
| Arkansas | $57,360 |
| California | $64,117 |
| Colorado | $72,022 |
| Connecticut | $57,360 |
| Delaware | $57,360 |
| Florida | $62,204 |
| Georgia | $70,750 |
| Hawaii | $57,360 |
| Idaho | $57,360 |
| Illinois | $52,616 |
| Indiana | $40,978 |
| Iowa | $57,360 |
| Kansas | $57,360 |
| Kentucky | $57,360 |
| Louisiana | $57,360 |
| Maine | $57,360 |
| Maryland | $57,360 |
| Massachusetts | $42,000 |
| Michigan | $61,106 |
| Minnesota | $71,031 |
| Mississippi | $57,360 |
| Missouri | $48,867 |
| Montana | $57,360 |
| Nebraska | $57,360 |
| Nevada | $57,360 |
| New Hampshire | $57,360 |
| New Jersey | $69,858 |
| New Mexico | $57,360 |
| New York | $56,643 |
| North Carolina | $51,372 |
| North Dakota | $57,360 |
| Ohio | $44,727 |
| Oklahoma | $57,360 |
| Oregon | $52,920 |
| Pennsylvania | $47,533 |
| Rhode Island | $57,360 |
| South Carolina | $57,360 |
| South Dakota | $57,360 |
| Tennessee | $40,327 |
| Texas | $55,920 |
| Utah | $65,918 |
| Vermont | $57,360 |
| Virginia | $58,391 |
| Washington | $56,813 |
| West Virginia | $57,360 |
| Wisconsin | $57,360 |
| Wyoming | $57,360 |
With population increasing across the country, there will always be a demand for newer and better businesses. Not all fields are the same, though – a restaurant in a dense urban area could see success while the same restaurant in a less populated area could fail. Also, more and more people become entrepreneurs each year. The field that you end up picking to be an entrepreneur in is going to play a large role in both the money you make and the security you have in your position.
Some schools offer bachelor's degrees in entrepreneurship, or a general business degree with an emphasis on entrepreneurship. This degree is not required to become an entrepreneur, though. If you have a business you'd like to start, consider what type of degree might help (bachelor's, associate, master's, etc.) and what field you should study in.
Here's a good way to find a degree program that's right for your entrepreneurial journey:
Entrepreneur Associations & Groups
With networking being such a critical part of entrepreneurship, anyone looking to become an entrepreneur will want to join groups to meet the right people. Not only do these groups offer opportunities for networking, but they often include seminars, conferences and skill building opportunities. Here are some entrepreneur organizations to check out:
Founded in 1987, the Entrepreneurs' Organization (EO) is a global network of over 12,000 entrepreneurs. The EO offers networking and mentorship opportunities, making it ideal for future entrepreneurs.
Vistage is a business advisory group meant specifically for entrepreneurs and business leaders. Coaching and peer advisory boards are two of the highlights of this organization.
A global community and startup of its own, Startup Grind connects entrepreneurs and teaches them new ways to approach business. They have conferences and seminars around the world.
The Association of Private Enterprise Education
The Association of Private Enterprise Education (APEE) consists mainly of educators that want to instruct entrepreneurs and business leaders on how to succeed in private enterprise.
Aspiring entrepreneurs should consider joining the Young Entrepreneur Council (YEC). As the name insinuates, this is a group where young entrepreneurs can meet each other, ideal for networking and finding potential business partners.
The International Council for Small Business
(Video) How To Become A Full Time Entrepreneur | Step By StepA non-profit organization, the International Council for Small Business (ICSB) educates entrepreneurs on how to grow and manage a successful, profitable small business.
Resources for Entrepreneurs
Entrepreneurs require a lot of different resources to make a business work. From planning a business to running day-to-day operations, any entrepreneur will quickly realize that they need a lot of tools. Here are some of the tools many entrepreneurs find help with their business.
Score is a free counseling service that's made specifically for entrepreneurs. You'll be connected with an entrepreneur who will help educate you and guide you through the process.
International Franchise Association
Not all entrepreneurs start an original business. The international Franchise Association (IFA) helps you find a franchise you can buy.
A government site, the Small Business Administration (SBA) offers guides, programs and other information for anyone looking to start a small business.
US Patent and Trademark Office
If you've come up with an original product or idea, you'll need to get it trademarked to protect it. The US Patent and Trademark Office is the place to go.
G Suite is the combination of all of Google's tools, including G Drive, G Mail, Adwords and Analytics. If you're running a business that depends on web traffic, this is a must have.
Another suite of tools, Microsoft Office is most well known for Word and Excel. This suite will help you keep track of data and information.
Evernote is a web and phone app that allows you to keep information and notes online. You can type a note on your computer then pull it up on your phone, keeping all your info handy.
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FAQs
What are 10 major steps to become an entrepreneur? ›
- Find a business idea.
- Get to know your target audience.
- Test your idea.
- Use a business plan template.
- Create a website.
- Hire great partner(s)
- Build your network.
- Plan your finances.
- Don't take 'no' for an answer.
- Learn from the best.
- Stay hungry and ambitious.
- Never stand still; evolve with the times.
- Nurture long-term business relationships.
- Inspire those around you.
- Trust your gut instinct, not just your spreadsheet.
- Find your purpose. ...
- Identify a problem you can solve. ...
- Make your first prototype. ...
- Sell the problem, not the product. ...
- Develop your brand story. ...
- Build a culture of scrappiness. ...
- Stay connected to your “why.” Starting a successful business is—well, a treacherous business.
- See Your Inexperience as an Advantage. ...
- Identify a Good Idea. ...
- Focus on Your Strengths.
- Market Research.
- Write a Business Plan. ...
- Test the Market. ...
- Use Free Resources. ...
- Get Funding.
- Build (and trust) a great team. People are social by nature. ...
- Anticipate and plan for growth. ...
- Set expectations. ...
- Invest appropriately. ...
- Don't believe the hype.
- Get Educated. ...
- Know Your Market. ...
- Have A Financing Plan. ...
- Communicate Well. ...
- Focus On Sales. ...
- Stay Flexible. ...
- Manage Stress.
- Test your concept. ...
- Build a business plan. ...
- Work on your sales pitch. ...
- Find funding. ...
- Decide on a business structure. ...
- Get the right licenses and permits. ...
- Open a business bank account. ...
- Organize your accounting.
Responsibility, mindset and passion are the three secrets to entrepreneurial success. Embrace them and you will find the success you're looking for.
What makes you to become an entrepreneur? ›But research indicates that most successful entrepreneurs share certain personal attributes, including creativity, dedication, determination, flexibility, leadership, passion, self-confidence, and "smarts". Creativity is the spark that drives the development of new products, services, or ways to do business.
What are the 13 tips for successful business? ›- Create brand personality. ...
- Develop a strategic business plan, organizational structure, and operational support systems. ...
- Avoid common mistakes. ...
- Become connected to the community. ...
- Put your employees first. ...
- Don't just acquire customers, retain them. ...
- Get organized.
What are the 5 C's of entrepreneurship? ›
Breakthrough tech entrepreneur Chinedu Echerou is urging budding businesses to observe what he calls the 'Five Cs of Entrepreneurship' - credibility, clarity, conviction, capital and concentration in execution.
What are the 5 steps to be an entrepreneur? ›It is useful to break the entrepreneurial process into five phases: idea generation, opportunity evaluation, planning, company formation/launch and growth.
What are the 5 tasks of an entrepreneur? ›- Initiating and leading business activities. ...
- Allocating employees' duties. ...
- Forecasting business changes. ...
- Creating jobs. ...
- Identifying business opportunities. ...
- Creating and sharing wealth. ...
- Improving the standard of living. ...
- Taking up and reducing business risk.
- Find out more about your field of interest.
- Find a partner with complementary skills.
- Build a strong network.
- Find the best place to start.
- Yard work. People with 9-to-5 jobs don't always want to spend their weekends doing yard work. ...
- Software training. ...
- Homemade soap making. ...
- Errand service. ...
- Social media management. ...
- Freelance services. ...
- Selling on eBay. ...
- Pet sitting.
- personal management.
- time management and.
- analytical problem solving skills.
Through this example, we are brought to learn about what they call the Six C's of motivation: choice, challenge, control, collaboration, constructing meaning, and consequences.
What are the 4 C's of entrepreneurship? ›In our conversation with Greg, these four C's really resonated with me: Curiosity, Commitment, Creativity, and Confidence.
What are the 10 secrets of successful entrepreneurs? ›- Grow to survive. ...
- Check your ego. ...
- Remember your first fans. ...
- Share your knowledge. ...
- Hire someone to watch your money. ...
- Know when to persevere.
Key Takeaways
A great entrepreneur must be able to effectively communicate, sell, focus, learn, and strategize. An ability to continuously learn is not just a key entrepreneurial skill, but also a very valuable life skill.
What makes entrepreneurs successful? ›
Passion, resourcefulness, willingness to improvise and listen to others and strong determination to succeed is what makes an entrepreneur successful. And this is what you have to keep in mind as well if you want to be a successful entrepreneur yourself.
What are the 4 successful Strategies for entrepreneurial success? ›- Study the competition. ...
- Conserve cash no matter how good business is. ...
- Research new products and services. ...
- Don't tackle huge markets at first. ...
- Listen to customer feedback and adapt. ...
- Respond to change.
- LLP Registration with EMI Option. The first step in starting any business is to incorporate a new business entity. ...
- Sell on Ecommerce Portals. ...
- Start providing Services. ...
- Compile a Great Business Plan. ...
- Government Schemes.
...
Sell your services
- Freelance writing.
- Virtual assistant.
- Social media marketing.
- Handyman services.
- Find a free business idea.
- Write a business plan.
- Choose a business name.
- Launch a website.
- Validate ideas with preorders.
- Source funding to grow.
Success comes only from hard work.
Successful entrepreneurs always give 100% of their efforts to everything they do. If you know you are giving your best effort, you'll never have any reason for regrets. Focus on things you can control; stay focused on your efforts, and let the results be what they will be.
- Teamwork and delegation. ...
- Focus and productivity. ...
- Work-life balance issues. ...
- Developing good habits and achieving goals. ...
- Procrastination and time management. ...
- Business growth and scaling.
Irrespective of what “Success” means to each, what has been clearly understood that there are three key elements of success. They are - Clarity of Purpose, Growth Mindset, and Courage. Without purpose, it is hard to have a clear direction. It is important to know what you want and what you are striving for.
What business is best to start? ›- Handyman. Image Source. ...
- Woodworker. ...
- Online Dating Consultant. ...
- Sewing and Alteration Specialist. ...
- Freelance Developer. ...
- Personal Trainer. ...
- Freelance Graphic Designer. ...
- Life/ Career Coach.
- Dizzying pace of change. He used the smartphone to describe the dizzying pace of change. ...
- Leadership and governance. ...
- Incentives. ...
- Teaching and learning. ...
- A culture of entrepreneurship. ...
- Relationships and partnerships. ...
- Internationalisation. ...
- Conclusion.
What are the 6 P's of entrepreneurship? ›
For any business, whether a global enterprise or small company, a comprehensive plan that outlines every possible avenue to attract customers' attention is vital. The building blocks of an effective marketing strategy include the 6 P's of marketing: product, price, place, promotion, people, and presentation.
What's the first important step of an entrepreneur *? ›The answer: Find your unique thing.
What should an entrepreneur do first? ›Experts say some good first steps in starting a business are researching competitors, assessing the legal aspects of your industry, considering your personal and business finances, getting realistic about the risk involved, understanding timing, and hiring help.
What qualifies you as an entrepreneur? ›What Does It Mean to Be an Entrepreneur? An entrepreneur is an individual who takes the risk to start their own business based on an idea they have or a product they have created while assuming most of the risks and reaping most of the rewards of the business.
How do entrepreneurs make money? ›They make money by capitalizing on an innovative solution for a unique, large-scale need and if, possible, repeating the process by providing additional solutions for additional needs.