Becoming an Entrepreneur, Step by Step

Does the idea of being an entrepreneur intrigue you? The potential pay-offs are considerable, including taking charge of your own career, tapping into your creativity, and providing helpful products or services to people who need them. Of course, there are also risks involved, both financial and personal. Most successful entrepreneurs spend a considerable amount of time in thought and planning before launching their business. Here are some of the common steps involved in starting your own business.

Choose Your Lane

Before you can call yourself an entrepreneur, you need to define what it is you’re selling. Most businesses aren’t based on a brand-new concept but rather an improved version of an existing one. Think about the products and services you use and try to identify areas that could be improved. Your business idea needs to solve a problem somehow; otherwise, there will be no market for it.

Keep in mind that demand and profitability alone won’t fuel your personal satisfaction as an entrepreneur. In order to sustain your energy and passion, you need to dedicate yourself to an industry you feel passionate about.

Find the Funding

How to finance your business is a highly individual decision. Options range from traditional business loans through a bank to crowdsourcing online, among others. Be aware that getting approved for a bank loan can be very difficult when you’re first starting as an entrepreneur, so your best bet may be to look elsewhere.

Many successful entrepreneurs start on a shoestring, funding their businesses from personal savings or credit cards. If you decide to go this route, be sure you’ve eliminated or reduced all extraneous expenses so you can funnel as much money as possible into your start-up. One way to economize is to shop around for insurance quotes. You could also consider trading in your car to lower the monthly payment, eliminating unnecessary expenses like movie streaming services and satellite radio, and economizing on groceries and clothing.

Put It in Writing

While it’s exciting to daydream about a wildly successful and fulfilling enterprise, dreams alone won’t get you there. You need a business plan, a written document that defines your business and lays out an action plan for achieving your goals. Entrepreneurship involves making countless decisions on a daily basis. Having your mission, vision, and goals strategically developed and carefully documented will help guide your decision-making as you grow your business.

The format and style you use to write your business plan is entirely up to you. Some plans are very formal and detailed, others are simpler and contain only high-level concepts. Familiarize yourself with the options before settling on which approach you’ll take. You might consider utilizing one of the many available online business plan templates that can help guide you through the process.

Start Small

Your plans may involve turning your small business into an empire one day, but in the beginning, it’s best to stay focused by perfecting one outstanding product. This involves a lot of designing, market testing, redesigning, and testing again, over and over, until it’s as close to perfection as possible. Going to market with a substandard product can quickly damage your brand, especially in today’s market when one negative review can cascade into a marketing nightmare for your business.

Once you’ve proven that your product meets the needs of your ideal consumer, you’ll start to build a loyal customer base. Once your reputation as quality, trustworthy brand has been established, it may be time to expand your offerings. But keep in mind that everything in your product line should maintain the high standards your customers have come to expect.

Focus on Your Customer

Customer service is at the heart of any successful business. Without customers, your business can’t survive, so never take them for granted. Find ways to delight your customers at every step of their journey with you, from the first inquiry through a sale and, hopefully, throughout a lifelong relationship. Maintain a helpful, easy-to-navigate website and a friendly, responsive social media presence that matches the personality you want your brand to project.

While you’ll obviously constantly be seeking new customers, don’t forget to reward your existing ones. Consider loyalty programs, special discounts, and other perks to demonstrate your appreciation. They’ll likely repay you with continued business and word-of-mouth advertising, which is invaluable to your bottom line.

Stepping out on your own as an entrepreneur is both risky and rewarding. Set yourself up for success with careful planning, thoughtful design, strategic decision-making, and a customer-centric approach.