Business Tips

7 Questions: Can you become an entrepreneur?

Many may think or say, “I am a small business owner. So, I am an entrepreneur.”

Is this true? Let’s ask ourselves,

What is the difference between a small business owner and an entrepreneur?

Simply put, there is a difference between being a small business owner and identifying yourself as an entrepreneur. “Small businesses usually deal with known and established products and services, while entrepreneurial ventures focus on new, innovative offerings. Because of this, small business owners tend to deal with known risks and entrepreneurs face unknown risks.”

While each have their own unique challenges, entrepreneurs take on multiple business ventures while handling a larger financial risk and navigating the unknown. Entrepreneurs work endless hours for themselves to ensure they are not working 40+ hours for someone else.

More specifically, an entrepreneur is “an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.”

So now,

Do you have what it takes to claim the name?

Becoming an entrepreneur has become a new trend, this does not mean that it is a trend. There will always be a need for entrepreneurs. During this era of increased work-from-home employment, many translate that to mean they are entrepreneurs or decide to take on the entrepreneurship journey.  The biggest concept to understand is business development. Do you have the tenacity to endure and lead a fast-growth startup that can develop into bringing in a significant increased profit?

  1. Become a leader in your industry
  2. Take on many new roles to ensure success
  3. Must have relentless grit with perseverance
  4. Determination to never quit no matter the challenges

Did you determine a need in your industry?

As an entrepreneur, you probably have ideas all the time. The first step is to determine which one to act on. You have to make some decisions. Put your ideas up on a board, somewhere you can literally look at them as reminders as you process them. Then, determine which can you let go? Which are a must to put into action? Can any of them create other business ventures that feed each other? Most entrepreneurs actually had a good job or were on some level successful. They all had one thing in common. They found a need that needed to be filled. This is what motivated them to begin their startup. They found a true need that could be monetized. Once you have made the decision of which idea to pursue, you have some work to do.

  1. Check out the competition
  2. Check for viability. Is this possible to bring into fruition?
  3. Is it a real need? If you build it, will they come?
  4. Can you generate income from it?

Do you have a team in place?

Most entrepreneurs work to put a dream team of experts together to support their business ventures. You will need to compile a team of mentors, advisors, lawyers, investors, and industry experts. Your dream team needs to be organized as early as possible. Your plans and ideas will grow and develop with collaboration and networking. You are not the only that can help to streamline and innovate your process.

Is your business organized?

Before doing anything in business that can grow, you need to be sure to handle all of the legalities. You have to create a foundation that will support your business through its growth, expansion, and evolution. There would be nothing worse than to create a money-making business that succumbs to the pitfalls of business ownership and takeovers.

  1. Choose the best location--physically or virtually
  2. Incorporate your business
  3. Obtain a tax ID
  4. Open a business bank account and get your accounting set-up properly

Have you tested your idea out?

As an entrepreneur, you have to pitch your idea to as many people who may listen to it. You have to determine which areas are underdeveloped. The logical place to begin this process is with your dream team. But, it is also important to begin this conversation with those in need that you feel confident would benefit from your service or good. Their information or response will be invaluable in your business development. Listen to their experiences and excel where others have failed in the process.

Can you raise the money?

After these steps, you should be able to get financial support from others. So far, you may have been dealing with the financial hardships alone as you navigated the process and streamlined it. You should now be able to pitch your idea, share your team, and explain how your product or service will be different.

Can you remarket your business model?

The increased investments from the money you raised will allow you to determine how you can recreate your model and take it to the next level in your respective industry or expand to other industries. As an entrepreneur, you can use your business development know-how and begin to acquire other businesses and increase your hiring. You will have replicated your business model and if you so desire, you can begin your profitable exit because you would be a position to sell, sell, sell!

In the economy, we need small businesses and entrepreneurs. We all have to know and consider what it takes before being called an entrepreneur. Entrepreneurship is a voyage into the unknown to fill a need that many may not even know exists yet.

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