The idea of being an entrepreneur is an attractive one to many people. Everyone would like to be in charge of their own destiny, and what better way to do that than by starting your own business. That’s basically what an entrepreneur is, someone who is willing to take on the risk of starting a new business to turn a profit.
This is a lot harder than it sounds, though. Most business start-ups fail within five years. For every success story, there are ten times as many businesses that go under.
So, if you’re wondering How To Become an Entrepreneur, this article will look at the various steps you have to take to make sure your business goes from strength to strength rather than ending up in bankruptcy court.
- What Steps To Take?
- Step 1: Adopt The Entrepreneurial Mindset
- Step 2: Turn Mindset Into Action
- Step 3: Do You Need Further Education?
- Step 4: Identifying Your Market
- Step 5: Don’t Wait – Launch And Learn
- Step 6: Slow And Steady Wins The Race
- Traps To Avoid For
- Follow In The Footsteps Of Millionaires!
- Final Thoughts
What Steps To Take?
Step 1: Adopt The Entrepreneurial Mindset
Successful entrepreneurs think differently from your average Joe. They usually possess a number of mindset characteristics that you’ll need to develop for your business to thrive.
Procrastination is the enemy. Many new businesses have gone under or failed to even get off the ground due to a lack of decisiveness. Always try to make quick decisions once you have all the available information, or you may find yourself going round and round in circles, wasting valuable time and money.
You have to project confidence even if you’re not necessarily feeling it. If it doesn’t look like you believe in your idea 100%, it’s unreasonable to expect anyone else to. Most new entrepreneurs will naturally feel trepidation when they’re starting and will gain more confidence with experience. Until then, if you don’t have it, fake it.
Being your own boss means taking responsibility when things aren’t going quite how you’d like them to. It’s easy to throw blame around in this situation, but that doesn’t help anyone. Learn to become accountable to yourself. This means no shirking off and doing the hard work in the knowledge that it really is solely down to you.
In taking an idea from grassroots to fruition, you’ll encounter many hurdles along the way. You’ll have to develop the kind of thick skin needed to get over these challenges.
Everyone makes mistakes in business. It’s how we recover from them that can often define future success. Too many people give up after the odd setback. Treat these bumps in the road as opportunities to learn rather than excuses to quit.
Yes, being your own boss means you take ultimate responsibility, but that doesn’t mean you shouldn’t seek help or advice when you need it. You won’t always have the answers, so you need to be humble enough to recognize this and act accordingly.
Successful entrepreneurs also understand that the learning process is a continual one. To stay relevant in a rapidly changing world requires knowledge of new developments that can improve your business and personal skill-set.
Step 2: Turn Mindset Into Action
It’s one thing to think like an entrepreneur, but you also have to act like one.
Even if you haven’t developed your business idea yet, practice being accountable, decisive, humble, confident, and resilient in all aspects of your life. As a result, you’ll be more prepared when you get your business off the ground. Once you’ve developed your idea, it’s still only that. An idea. It’s only by taking action that your idea becomes a reality. Actions speak a lot louder than words.
Step 3: Do You Need Further Education?
A lot of people have the idea that most successful entrepreneurs didn’t go to college. This simply isn’t true. The vast majority have a bachelor’s degree at a minimum. Whilst educational achievements aren’t vital to success as an entrepreneur, they go a long way to increasing your chances.
There are even degrees and certificates you can get in entrepreneurship. If you don’t have the time or money for a degree course, certificate courses can be a great way to learn the foundations necessary to kick start your venture.
Basic finance knowledge is needed…
Every budding entrepreneur needs a good grounding in basic business and finance. This doesn’t mean that you have to be an economics major, but if you are clueless about these subjects, then you’ll need to do something about that.
Step 4: Identifying Your Market
There are a few important steps you need to undertake when deciding what your business is going to be.
Identify your skill-set
What are you good at? What kind of knowledge and experience do you have, and how can this be used when deciding what area to focus on? When assessing your skill-set, consider everything. This includes not only educational achievements and experience gained through work but also any hobbies and interests you have. Is your skill-set transferable to a particular market, no matter how obscure that may be?
Identify your competitive advantage
What is unique about you that gives you a leg up on the competition? What sets you apart?
It could be firsthand knowledge from life experience that helped you overcome a big challenge. Maybe you have a distinctive set of skills that not many people possess. Knowing these things can help steer you towards a potential market that isn’t being served.
Extensive knowledge of your target market is very important. Is there a real demand for your idea? Is there a particular niche you can exploit that you hadn’t realized? This kind of information can be found via customer research.
Reach out on social media, maybe create a survey. Explore the competition and if any other company has already brought your idea to market. If so, are they successful, and could you improve on what they have done in some way? Did they miss something?
Step 5: Don’t Wait – Launch And Learn
It’s important to remember that most entrepreneurs didn’t hit success at their first attempt. On the contrary, if things don’t quite go to plan on your first few attempts, don’t treat it as a failure, but rather a lesson. Learn from it.
With this in mind, your first project doesn’t have to be perfect before you launch; you can make improvements as you go. First and foremost, it has to be out there before you can get that valuable customer feedback that will improve your product or service.
Step 6: Slow And Steady Wins The Race
There is a common misconception that entrepreneurship is all about growing your business at a record pace. The truth of the matter is that most successful businesses took a long time to achieve their position, decades in some cases.
Going too fast too early can often lead to over-extending yourself and your business. Slower development allows more room for learning and making the necessary adjustments on the fly, in other words, invaluable entrepreneur training.
This doesn’t mean that you can’t have grand designs of where you want your business to end up; just make sure you don’t find yourself in an overwhelming situation that you’re not prepared for yet.
Traps To Avoid For
Once you have your business up and running, or even before that, there are a number of key traps you need to avoid if you want to give your venture the best chance of success.
Over-reliance on debt
If at all possible, avoid debt completely. Businesses saddled with a lot of debt before they’ve even turned a profit are way more likely to fail. If this is an impossibility for you, keep debt to as low a level as possible. As long as you don’t owe large sums of money, your business will be in a better position to handle slower progression or adaptation than if you constantly have to pay off creditors.
Overly rapid growth
You need to ensure that you can handle the speed at which your business grows. If things spiral upwards too fast without the necessary structure in place to handle it, the results can be disastrous. You may struggle to process orders, or quality may suffer, causing damage to your reputation. Make sure you have a plan of action in place for rapid growth if it happens to come quickly.
Don’t put all your eggs in one basket
Try not to be too over-reliant on single clients or income sources. If one client represents more than 25% of your turnover, things could go horribly wrong if they stop buying from you suddenly. Try and have as wide a client base as possible to avoid this.
Follow In The Footsteps Of Millionaires!
What better place to get business advice than from successful entrepreneurs themselves! So, take a look at the Baby Steps Millionaires: How Ordinary People Built Extraordinary Wealth, the Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth, and The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime.
We also recommend the insightful Think and Grow Rich and The Dropout Multi-Millionaire: 37 Business Lessons on How to Succeed in Business With No Money, No Education and No Clue, or perhaps you’d like The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich, all available online in 2023.
Lastly, why not try reading the How about trying or the Millionaire Success Habits: The Gateway to Wealth & Prosperity, as well as The Blue Collar CEO: My Gutsy Journey from Rookie Contractor to Multi-Millionaire Construction Boss, and the inspiring Black Fortunes: The Story of the First Six African Americans Who Survived Slavery and Became Millionaires.
Becoming a successful entrepreneur isn’t necessarily easy, but with the right mindset and preparation, it doesn’t have to be nearly as risky as most people imagine it to be. You also don’t have to hit on a revolutionary idea either.
As long as you’ve established a niche you can exploit, your idea doesn’t have to be a groundbreaking one. Whatever your venture, following the steps outlined in this article will give you a solid advantage over the competition.
Good luck in Becoming a Successful Entrepreneur!