Ever since the COVID-19 pandemic, people have realized the importance of using local products and resources, and small businesses have been on the rise. According to Forbes, the number of applications for starting a business reached an all-time high of 551,657 00 in July 2020, a 95% increase since 2019. Most people perceive entrepreneurs as innovators or founders of a business. However, it is so much more than that. An entrepreneur not only starts a business from scratch but also implements a strategy and a proper business marketing plan to take it further. Let’s understand the basic question of how to become an entrepreneur.
What is Entrepreneurship?
Entrepreneurs must take complete responsibility for their endeavors and embrace the risks and rewards. Therefore, the process of establishing a business from scratch is known as entrepreneurship.
Related content: What is Entrepreneurship?
How to Become an Entrepreneur
Every entrepreneur has a different journey and takeaways they learn along the way. No fixed rule book can ensure an entrepreneur’s success, but a few of the steps that have been tried and tested. Here’s how to become an entrepreneur:
Step 1: Come up with Business Ideas
Successful entrepreneurs often do not directly start by looking for solutions but the ones that identify a problem. Then, based on the problem, they plan the next steps in their business plan and create a niche for themselves.
Step 2: Validate the Profitability of Each Idea
Identifying a problem is only the first step and it does not end there. Entrepreneurs need to have business ideas that can cater to the demand created by the problem to add value for customers.
Step 4: Understand the Risks and Procure Funding if Necessary
No form of entrepreneurship comes without risks. Financial risks are the biggest of them all. So it is not uncommon for entrepreneurs to find a partner to help alleviate some of the financial burdens.
Step 5: Prepare to Launch Your Business
An entrepreneur is not only a boss but also their own employee. As a result, they are self-accountable and responsible for the success of their venture. They do so by learning essential skills related or unrelated to their business, such as digital marketing, leadership, and programming. You can find online courses for the same on Emeritus.
Step 6: Research the Market and Demand for Each Idea
It is important to conduct market research and study your competitors to see what they have to offer their customers, learn from their mistakes, and make better decisions for your business.
Then, you launch and manage your business, improve wherever necessary and help it grow. However, the process of becoming an entrepreneur may not always be so linear. These steps may overlap or occur simultaneously as a new business is launched.
Must-Have Entrepreneurial Skills
1. Good Communication Skills
An entrepreneur needs to possess good communication skills. They often market their business to potential clients, customers, investors, and employees with whom it is imperative to have good relationships. Therefore, effective communication and negotiation skills help an entrepreneur build a strong business network.
2. Critical Thinking
As an entrepreneur, it is not enough to only be passionate. They should also have practical decision-making skills. It is essential to be mentally agile and develop cost-effective, adaptable solutions. In addition, they must make logical decisions to sustain the business.
3. Time Management
Time is of the essence when it comes to running your venture. Business owners must manage their time between completing tasks and overseeing their employees, understand what tasks need to be prioritized, and run things orderly.
4. Financial Management
Managing finances might not be second nature to all entrepreneurs, but it is an integral part of entrepreneurship. Without setting financial goals and budgeting, it isn’t easy to track a business’ success and ensure it continues to run successfully.
Frequently Asked Questions
1. Can You Become an Entrepreneur With No Money?
You needn’t use your own money to start a business, but capital is often required, especially when it comes to legal and business registration fees. You can crowdsource or gain funding.
2. What are the Different Types of Entrepreneurs?
MIT recognized five types of entrepreneurs and they are:
- The Curious Entrepreneur
- The Joiner
- The Ready-to-go Entrepreneur
- The Corporate Entrepreneur
- The Amplifier
3. How to Think More Like an Entrepreneur?
Successful entrepreneurs look for opportunities and are consistently evolving. Develop a mindset for solving problems, innovating, and adding value.
4. Are Entrepreneurs Born or Made?
Entrepreneurs are neither born nor made. Instead, one learns how to become an entrepreneur through experience and education.
5. Is Building an Online Ecommerce Store Considered Entrepreneurship?
Yes, if you are solving a unique problem with resources and innovation. Starting a brick-and-mortar business requires a similar skillset and passion as starting an eCommerce business. The main difference is that an eCommerce store typically requires less investment upfront.
Have you been considering taking the path of entrepreneurship yourself? Then, check out our selection of online entrepreneurship courses offered by Emeritus!
By Delna Wadia
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