The idea of being an entrepreneur appeals to many. Some people dream of being their own boss and calling all of the shots. Entrepreneurs come in many different forms, from those whose aim is to build a business into a corporation that is publicly traded to those who plan on staying small and managing the company themselves. Many people used to feel that entrepreneurs were born and not made, however, nothing could be further from the truth. To become an entrepreneur, there are certain steps to follow and nearly anyone can follow these steps. While there are some skills that are needed, many can be learned along the way. FOUNDR have put together a guide that will help you decide if being an entrepreneur is right for you. We have summarised their findings:
Have a Great Idea
The first step is to have a great idea. It is likely that someone who is considering becoming an entrepreneur already has an idea of what kind of business they want to start. It is important for budding entrepreneurs to conduct some research on the current market. An entrepreneur who wants to begin a restaurant, for example, might look at what types of restaurants already exist in their market and how well they are doing. It is vital to the company’s success that the market be able to sustain their business. After some study, an entrepreneur might decide to move to another geographical area in order to ensure profitability.
Form the Company
All companies must be started by filing the appropriate paperwork. Usually, this filing is done with the secretary of state. Most filings can be completed online. A sole proprietorship is the easiest one to start and also the cheapest. Some entrepreneurs may choose to form a limited liability company, also known as an LLC. Once the filing is complete and the fees are paid, the secretary of state website will allow the entrepreneur to download proof that their business is established and is in good standing.
A Business Plan
Often a step that is skipped, entrepreneurs are wise to write a business plan. Business plans are living documents that not only help during startup, but throughout the life of the company. A plan should include forecasts of financial information, information about the market served, a description of what the company does and pricing structure, plus a contingency plan should anything go wrong. Business plans are not just used to find funding, but also to guide managers and employees.
Are You Ready?
Once the business idea has germinated, the company has been formed and the business plan written, it’s time to get started. Many entrepreneurs choose to run their companies out of their homes initially, although this does not work for all businesses. Most companies will want to set up an online presence and many will exist solely online. Entrepreneurs contribute a lot to the economy and increase diversity in the marketplace.