5 Steps to Become an Entrepreneur
To become an entrepreneur follow this five step plan.
Step 1: Understand the Definition of an Entrepreneur
What is an entrepreneur?
“An entrepreneur is a righteous person that organizes and operates a profitable business or businesses, with courage and perseverance.”
Six characteristics of a business owner are revealed in the definition.
Can you find the characteristics in the above definition?
A person must understand and embrace these traits to become an entrepreneur.
Step 2: Find a Problem to Solve
Every successful entrepreneur views problems as a chance to make money. Successful business owners search for problems that 80% of a population is experiencing. Once the problem is indentified they will organize a group of people to develop a solution. Then sell that solution for a profit.
The first place to search is within. Entrepreneurs start within themselves. Start with your own interest. What problems are frequent with your job, home, hobbies, etc? Are others experiencing this problem and is there a good cheap solution. Even if there is a solution does it meet the needs of everyone? Some solutions only work for those with a six-figure income.
The best solution is a product or service that is cheap to at least 80% of the population. It may take sometime to get the cost low enough. But that should always be the goal. The more people you can help the more you will profit.
For Henry Ford to become an entrepreneur that people would envy. He made the Model “T” car. The model “T” solved the problem of transportation that everyone could buy. As a result he became rich beyond generations.
Step 3: Marketing the Solution
Now that a problem and a potential solution have been identified let the planning and organizing begin.
An entrepreneur cannot sell a solution to people when they are not aware of it. Marketing is a series of three action steps taken to grow customer interest in a product or service to the point of where they have to have it.
Action Step 1: Find the School of Hungry FishAction Step 2: Bait the School of Hungry FishAction Step 3: Feed the Hungry Fish
Step 4: Plan it
It is time to organize the structure and daily operations of the business. By the end of this step an entrepreneur will have completed:
Business Entity – filling of your business name and legal structure (sole-proprietorship, general partnership, limited partnership, corporation, or limited liability company)
Business Bank Account – opened and funded with initial capital
Intellectual Property – applied for trademarks and patents if applicable
Established a bookkeeping system for expenses, income and taxable deductions
Small Business Plan – ready for review by retired business owners, bankers and potential business partners
Step 5: Fund it
“It takes money to make money” is the age old saying. But remember it doesn’t have to be your own money. Successful entrepreneurs complete the above four steps to make step five easy. Finding people to fund their business.
During this step an entrepreneur will apply and submit their business plan to:
- Angel Investors
- Venture Capitalists
- Family and Friends
It is easy to win the money of investors. One must demonstrate the characteristics of an entrepreneur through sufficient planning, organizing and control of finances. When an investor reads your business and marketing plan, they know right away that your solution will make money. And they will want to be apart of a winning team.
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