7 Steps to Become an Entrepreneur
Who Is an Entrepreneur?
An entrepreneur is a person who takes on the financial risk by setting up a business venture from which he hopes to earn a profit. In simple words, any person who owns his or her own business be that a small shop or a large-scale organization, is an entrepreneur.
However, small-scale business owners do not like to think of themselves as an entrepreneur. Regardless of what they might think, they are still entrepreneurs because, by definition that we discussed, the popularity, area or scale of business does not matter. Anyone who owns any type of business is an entrepreneur.
What Is Entrepreneurship?
The activity of initiating, developing, and handling a system that sells or promotes any type of services or products by taking a financial risk, in the hope to earn profit is known as entrepreneurship. Entrepreneurship deals in commodities, services, business solutions, or any type of facilitation that will earn the organization a profit.
Types of Entrepreneurship
Before you think to become an entrepreneur, it is important that you thoroughly understand entrepreneurship and its types. The world is evolving and people keep on coming up with different and innovative ideas. Every entrepreneur has its own way of initiating and operating a business. Therefore, entrepreneurship can be of several types and some of them are as follows.
1- Small Business Entrepreneurship
The type of entrepreneurship that deals in small businesses. Entrepreneurs often run these businesses on their own. They can hire local workers or they take in a family member to help them with it. Your local retail shop or your local barber who owns a shop all are dealing in small-scale entrepreneurship.
2- Large-scale Entrepreneurship
This is the type of entrepreneurship, which starts as a small-scale business and then grows to be a large-scale business. Potential and innovation are the key differences between the two types. Large-scale businesses are often led by creative and innovative minds who know how to indulge a business into success and prosperity.
3- Imitative Entrepreneurship
Imitative entrepreneurship works by copying others' ideas, goods, and services by signing a deal with the original business. The original company authorizes other companies to carry out their operations in their regions or countries through franchising. This type of business works as an agent for a larger corporation.
4- Social or Nonprofit Entrepreneurship
This type of entrepreneurship is least concerned with profits. Entrepreneurs establish nonprofit organizations for a social cause. These businesses work for the betterment of society. They work by taking donations and aids and utilize them for public services.
5- Private and Public Entrepreneurship
The business that a private sector undertakes and initiates it independently from the help of the government is private entrepreneurship.
The business that the government undertakes and public employees operate its functions, is public entrepreneurship.
There are many other types of entrepreneurship. The nature of business is dependent on the mind of an entrepreneur and we never know what a brilliant mind can come up with.
How to become an entrepreneur in 7 easy steps?
If you think you have a strategic mind and you can play your cards right to be an entrepreneur, you have to follow these simple steps to be successful at it.
1- Learn and Educate Yourself
A very wide misconception about entrepreneurship is that it does not need any education. That to be an entrepreneur you do not have to spend time and money in high school. We are going to debunk this wrongly spread rumor. An entrepreneur has to study as much as anyone else has to. So here is the first step. Educate yourself about business. Learn different strategies that will help you in the long run. Get a degree in business studies.
2- Build Your Network
Networking is important before you get started with your business. You have to make contacts that can help you. Share your vision and seek feedback. Do not forget to reconnect with people. Utilize social media and get along with your social contacts. Engage with the people in your community. Spend time with them regularly to have good relationships. All this will be beneficial for you as an entrepreneur.
3- Plan Your Business
Planning is the key. You may think you are ready to start your business but you have not thought it through. You need to have a strategy to conduct your business. Share your plan with an experienced business analyst if you can. Revise your plan and lay down a proper path that you think will lead to success.
4- Focus on Selling the Problem
Before you start to sell your product or services, you have to make people see why your services are important. Show them the problem that they encounter and connect it with your solution. You may advertise the problem first before you market the solution. You and your audience need to be on the same page. If what you see as a problem is not a problem for your audience, they will never take an interest in your solution.
5- Determine the Right Target Audience
Your business area cannot cover everyone’s needs. That is why you need to recognize who your audience is. These particular people might take an interest in your services. See what they need. You can conduct surveys to know who your audience is. You can also determine your audience by Facebook or Twitter insights. Take help from web analytics.
6- Market Your Idea
Your idea can be unique and unique ideas do not sell themselves. Your idea can be targeting a problem that your audience does not understand. That is why you need to market your idea properly so your audience can understand its need. You do not have to necessarily spend on marketing. You can market your idea on your social media accounts. The network that you built will come in handy now. You can discuss your idea with them and tell them what wonders your idea can do. Thomas Edison was not the first person to invent the light bulb. Although he was the first to market the idea.
7- Be prepared for Failures
You cannot expect your business to do wonders on a primary level. It can and it might but you have to consider the fact that it might fail at first. Mark Zuckerberg introduced facemash before Facebook, which was a hard failure. You should always be prepared for failures. How do you do that? You analyze the risk that your business can go through and you must consider it. Assume the unexpected and be ready for it. The key is to never give up. Your business venture could be a disaster at first but you must learn from it and start looking for flaws. Work on them and you will take your business to the skies.
To be an entrepreneur is not a child’s play. There are many risks involved. However, if you follow and master the above-mentioned steps, you will start handling things more effectively as an entrepreneur.
