How to Become an Entrepreneur? This question may come to your mind as a potential entrepreneur. If you want to be an entrepreneur, you must know the answer to this question.
I can guess you are very excited that you are stepping forward to be an entrepreneur. This means that from now on you are the boss! Many staff will work under you. Your organization will run according to your wishes.
But you have to keep in mind that most new startups fail. According to statistics, only 10 percent of startups are successful. So before starting business, analyze everything and make a thoughtful decision.
What is an Entrepreneur?
An entrepreneur is a person who takes initiative to establish a business. He goes through the steps needed to start a business. In spite of knowing risk he does not hesitate to take risks, he invests capital and takes various bold steps to make the business profitable.
Entrepreneurs are the assets to the economy. Entrepreneurs make a huge contribution to the economy by harnessing the country’s resources and labor force. An entrepreneur not only earns profits but also create employment opportunities. As a result many unemployed people get job. This improves the quality of life of the common people and gives impetus to the economy.
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How to Become an Entrepreneur
- Entrepreneurial mindset: think like an entrepreneur
- Pick a business idea and work on it
- Educate yourself
- Build your business network
- Take necessary steps to start a business
- Fund collection
- Create a business plan
- Start your business
Entrepreneurial Mindset: Think like an Entrepreneur
The first thing to becoming an entrepreneur is to have an entrepreneurial mindset. You have to learn to think the way an entrepreneur thinks. Entrepreneurs like to take on challenges. Entrepreneurs have a creative mind. Because they develop new ideas and find ways to implement them in profitable portfolio investment.
Entrepreneurs have to be good at decision making. They have to make well thought out and bold decisions to solve any problem. If he fails to do this, he can’t be a successful entrepreneur.
As an entrepreneur, you may fall into many unexpected situations. Then you must be confident to deal with that situation. You have to try to find a solution immediately. Do not go back without tackling the problem.
You have to take responsibility for the decisions you make. You cannot blame others for this. Try to learn from mistakes and utilize that knowledge in future decision making.
Now you think about whether you have an entrepreneurial mindset, if so, then go to the next step.
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Pick a Business Idea and Work on It
This is a very important step to become an entrepreneur. Do you want to start a business with new ideas or old ideas? Most entrepreneurs want to work with new ideas. On the other hand, there are some entrepreneurs who try to modify an old idea and give it a new form.
You need to be very creative if you want to move forward with new ideas. For this you need to do research. Do a study on what kind of things are lacking in your area or whether people are being deprived of any good service.
If you find any solution that is able to meet the demand of people, then it can be a new idea for you.
Travis Kalanick and Garret Camp, they often got into trouble for not getting a car while traveling, then to solve this problem the idea of ridesharing came to their minds and founded Uber. There are a lot of such examples.
You may see that when you want to move forward with a innovative idea, others may laugh at it. It may discourage you but you have to be firm about your idea. Alibaba founder Jack Ma Yun was discouraged by his family and friends when he wanted to start a business with his ecommerce idea but today he has become a big entrepreneur because he was adamant in his decision.
There is no substitute for formal and informal education to build a career as an entrepreneurial. It could be a college degree, short-term course or work experience.A business degree will help you to be successful in business.. If you don’t want to take any formal degree, you can read books written about business and marketing.
Read the biographies of the big entrepreneurs as well. You can learn a lot by reading their biographies. Such as – what kind of challenges they faced while starting the business, their decision making methods, their business strategy, the reason behind their success, their advice etc. You can also read the history of some failures entrepreneurs. It is also necessary for you. If you know the reason why they failed, you can be careful in advance and protect yourself from making such mistakes.
Build Your Business Network
An entrepreneur should have a business network. You can’t start a business without a network. So If you want to start a business then create a network with lenders, advisors, lawyers and other traders. It is necessary to keep in touch with them regularly. You cannot be an entrepreneur without them.
To become an entrepreneur, you need a loan so you have to build a relationship with the lender. In order to run a business, you need to take the relevant advice of your advisor and take action accordingly. If there is any legal problem arises in the business, you have to take the help of a lawyer.
You need to keep in touch with other traders to learn their game changer techniques. That means business network will help you to be an entrepreneur in many ways.
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Take Necessary Steps to Start a Business
The steps that are required to start a business has to be implemented at this stage. Create a structure of your business.
Choose a name that is relevant to your business and apply for registration. Then you have to get permission from the concerned authority to commence a business. Necessary documents have to be submitted to the authority. When you get permission to start your business, then need an office to run your business. You also need a factory to produce products.
Staff is required to manage the official activities properly. So recruit some qualified staff. You have to remember that skilled manpower is one of the keys to success of your business.
If the workers are skilled then the productivity of your factory will be enhanced. They will play a huge role in maximizing your profit by minimizing production cost.
The main predicament for new entrepreneurs is the shortage of capital. I have seen many entrepreneurs who have a lot of interest in business but due to lack of funds they could not be successful in business. Most lenders hesitate to disburse loan to new entrepreneurs. Financial institutions, including banks, do not lend to small entrepreneurs in the same way as they lend to large entrepreneurs.
New entrepreneurs start their business with their savings. They also raise funds from their friends and relatives. However, I would suggest that you should not start a business with too much debt at first. Because in the beginning most of the traders face loss or gain very little profit due to lack of experience in business. So try to start a business with your own savings. When your business is in a strong financial position, you can raise funds from external sources to expand your business.
Create a Business Plan
A business plan plays an important role in running a business properly. A business plan is a document that discusses in detail the methodology of a business, human resource management, business activities, marketing strategies, budgets, business goals and steps to reach those goals.
As an entrepreneur you need to create a business plan before starting a business. If you have the capacity to make a perfect business plan, you don’t need anyone else’s help. But crafting a perfect business plan is a very complicated task. In this case, I would advise you to make a business plan by a professional business planner, because your success depends on it. From Fiverr you will easily find an experienced and professional person who can help you create a perfect business plan.
Start Your Business
After completing everything, now is the time to carry out your dream. It is time to prove yourself as a successful and visionary entrepreneur. At this juncture you will understand how much you are qualified as an entrepreneur. The reality is much harder. You will see that you cannot do everything according to your plan. New problems will arise and you may have to change your plan to solve these problems or adapt new environment. However, seeing the problem, do not be scared and go away. Move forward with courage.
Qualities of a Successful Entrepreneur
A person can be a successful entrepreneur only when he has the qualities of an entrepreneur. Below I discuss some of the qualities of an entrepreneur.
A successful entrepreneur must be patient and persevering. Those who do not have the patience and the morale to work hard will never be successful entrepreneurs. No matter how many problems you have to deal with, you have face it with strong hand. If someone says it is not possible by you then don’t care it, just keep working. Successful entrepreneurs do not want to lose easily.
The risk-return tradeoff indicates that the greater the risk, the greater the gain. You may notice ordinary people don’t want to take risks. They always invest in risk free assets. As a result they can invest safely but get very little profit. Successful entrepreneurs, on the other hand, know how to take risks. They can make a lot of money because they can take risks.
Passion for work
Successful entrepreneurs have a lot of passion in their work. They do not like to cheat at work. It is a simple equation that without passion you can not be motivated when you’re stressed and tired. It may hamper your productivity and as a result you may get derailed from your track.
To be a successful entrepreneur, you must be self-determined. You have to have faith in yourself. The word ‘I can too’ should always be kept in mind. Successful entrepreneurs are not afraid to take steps to expand their business operation and capacity. They have a sense of confidence that the steps they are taking are profitable. This confidence makes them affluent.
Hire a great co-founder
A skilled and qualified co-founder can play a huge role in the growth of your business. If you read the biographies of big entrepreneurs, you will see that almost all of them have co-founders. Co-founder’s support is very necessary to overcome any pitfall.
Lack of capital can often make it difficult to run a business, so having more than one co-founder can relief you from this problem. Their skills, knowledge and cooperation makes the business successful.
Successful entrepreneur never ignores opportunities
Bill Gates said in an interview that the difference between a successful entrepreneur and the common man is that successful entrepreneurs never ignore opportunities, and the common man is hesitant to take the opportunity. “Opportunity doesn’t always come, so try to take advantage of it when you get it,” he said in the interview.
Take advantage of time
Success doesn’t come overnight. It requires a lot of hard work. To be a successful entrepreneur, you must work on time. You need to do lots of work. I have read in the biographies of great entrepreneurs that they are very concerned about time. There are many entrepreneurs who work 14-15 hours a day.
Ability to Identify the right customer
Identifying the right customer is also a great virtue of a successful entrepreneur. Many entrepreneurs get lost from the market only in the absence of customers. And that’s normal. Who do you sell to if you don’t have a customer? But successful entrepreneurs are able to find the right customer. The take various steps to build a long-term relationship with them. The always receive feedback about the service from customers and tries to resolve customer’s complaints.