More and more people want to become Entrepreneurs to be their own bosses and run their businesses to archive financial freedom.
But what is the definition of an entrepreneur? What motivates entrepreneurs, and how can you become a successful one?
What is the definition of an entrepreneur?
The word entrepreneur is from the french word "to undertake" and means a person who undertakes the risk and initiative to reach the goal of financial profit.
Entrepreneurs build a business that will last while having the risk and getting most of the reward. They play a key role in economies as entrepreneurs use their skills and initiative to bring new ideas to the market. For most, it is important to create a business that is managed properly and makes continued money even while the owner is not working on it.
Those that become successful are rewarded with profits and growth opportunities. But entrepreneurs who fail will suffer losses and become less relevant in the markets.
Many think freelancers are similar to entrepreneurs; however, there are some minor differences. More and more people use their skills and become freelancers to do jobs like writing, designing, or consulting. They have similar characteristics to entrepreneurs, but freelancers don´t build something that eventually makes them while they sleep.
What an Entrepreneur does?
The first step of an entrepreneur is to identify the needs of the market and to find a solution to people's problems. Then develop and launch the new business and do marketing to turn into profit either by growing it further or later on selling the company.
Entrepreneurs that regularly launch and sell new businesses are called serial entrepreneurs. Any Startup and small business founder starts as an entrepreneur.
An entrepreneur creates a business plan, hires people, and acquires resources while providing leadership and management for the business. The most challenging obstacles have been properly managing the company, hiring talented workers, and obtaining finances.
To launch a new business, you need money, but it doesn´t always have to be your own cash; you also can seek funding from external sources.
If your new company has a good business plan and a high growth potential, you can get angel investors that give capital to cover startup costs and later expansion costs. Also, venture capitalists could help with your funding in exchange for receiving equity in your business.
How to become a successful Entrepreneur?
Entrepreneurs follow, unlike traditional professions, not a defined path. What can work for one entrepreneur might not work for another one. But there are some steps that every entrepreneur follows:
1. Finding the idea
Without an idea, you can´t become an entrepreneur, so you need to find the niche you are interested in. It has to be a field where you not only can get successful but also something you are passionate about. Building a business is hard work, so focus your attention on something you care about.
If you find your niche, you need to identify various problems you can solve in the market. It is important that you solve a specific pain point for consumers or other companies. When you discover a solution, you can create a business around helping with a particular problem.
Do your research by using different types of sources, not only blogs but also magazines, newspapers, podcasts, and videos. This way, you can find a problem that others might not think about.
When you add value to a specific problem and solve it, you can become a successful entrepreneur.
2. Learning the skills
Not only knowing your market is essential, but you also need diverse skills that you can apply to the real world. To get new skills, you need to learn and try tasks in real-world settings. As an entrepreneur, you need skills in accounting, marketing, sales, management, leadership, and know-how as much as possible about the industry you are in.
It is also important you have knowledge about productivity and how to stay motivated. But motivation should be there if you choose something you see as passion and purpose. While many learn these entrepreneurial skills in universities and colleges, you can also study with the big selection of online courses that are way cheaper and sometimes have even better information.
Yes, it is riskier not to go to a business school, but if you really want to become an entrepreneur, you need to take risks. Also, think about the time you lose if you need to write exams and learn. Many learn better if they want it, not if they have to. But it doesn´t mean you shouldn´t go to business schools or work in the industry if you want to build a business.
It is something you need to consider and think about so you can learn more effectively and faster. And ultimately, become an entrepreneur and start your business.
3. Plan your business
When you get your ideas and improve your skills further, you need to make a plan for your business. Depending on what type of company you want to start, it is essential to make a business plan.
Find the vision and values you want to build your business on. Also, think about the sustainability of your company, especially if you want to save our environment and be a good example for society.
You need to write down what your goals are, what audience you want to target, and what you want to offer. As well as the strategies you want to use and if you need employees—anything that layout how you archive your objectives.
4. Getting Finances
For a business plan, you also need to know how you finance your new company. As well, think about your personal living cost if you have enough to cover these costs while building a business. Or do you need a side job and start a part-time business?
How much money you need depends on your idea and what industry you are in. Building an online business is way cheaper as you often don´t need a specific place where you can work and don´t have to pay for rent or need to get specific resources and goods.
Many successful entrepreneurs started with a small amount of money, but without funding from investors, they wouldn't be where they are now. Getting investors for your company is also a hard process because you have to prove that your idea will be profitable. So you need to have a good business plan.
Also, never choose an investor that only wants to make a profit with your company. It is important that your values and vision are similar. When you choose something you are passionate about, you don´t want someone who orders what you should do or is even more worthy will later on, drive you away from your mission.
What will help you a lot as an entrepreneur is networking with other people. You get to know other business owners and also can find talented people or even investors. With networking, you can learn from others and gain more insights and experiences in your area. And once you open your business, your network can help you get new customers.
6. Starting your business
When you have your idea, a business plan, and the money and have learned the important skills, you can launch your business. You can do this by officially registering your company in your country. Also, make sure to keep the different types of legal forms in mind and choose the most fitting one.
Ensure to open up business bank accounts and register trademarks, brands, logos, and anything you want to have as your intellectual poverty.
Creating your product or service will take the time you also need to build a good team and get the best resources to archive the quality and quantity you want to offer. When you have a solution that is unique and brings value to your customers, you are on the right track.
Your next focus should be on marketing because even if you have the best product, you won´t sell it if nobody can find it. Look for fitting marketing channels, be it an online advertisement or more traditional ways like billboards, local marketing, and ads on radio and tv.
What motivates Entrepreneurs?
There are many different motivators to start a business one of the main ones for entrepreneurs is to be their own boss. This gives them control of the process and runs of their company. They know the success or failure of their business rest on them, but they don´t see the responsibility as a burden but rather as a maker of their freedom.
Another factor is that entrepreneurs have a clear vision and know what they want to accomplish. They genuinely believe that they have a product or service which fills a void. They are committed to keeping pushing ahead to reach their goal, and they would rather fail while moving forward than stay inactive.
Not everyone likes the traditional corporate culture, which is why entrepreneurs are looking to get free from these constraints and find a better work-life balance. It doesn’t mean they want to work fewer hours, especially in the early stages; they often work longer and harder. But rather to work on their own time and later have the freedom that the business runs for a few days or weeks without them.
What most entrepreneurs realize is they will not be overnight billionaires. However, it doesn´t mean they are not interested in potentially making a ton of money but rather in becoming hugely successful and having full control over their business. Some also want to have a financial safety net for both their families and themselves while also creating the next big thing.
One of the biggest motivators for entrepreneurs is to build something that outlasts them. Others want to create a brand that has longevity and will become an institution. Or some want to pass their source of income and security to their heirs.
There are also entrepreneurs who want to make a lasting impression on the world and make innovation that improves people’s lives in some way.
No matter what your motivation is, they need to be so strong that you keep going even in the hardest times.
AshleyOctober 26, 2020 at 10:51 pm
This article has some great information in it! It is so true that entrepreneurs need to be entirely self motivated. Once you get the plan down and start implementing it, you are well on your way to developing a successful business. I like that you have include the step of networking. It is often overlooked how important the role of networking is in forming a new business, especially for those of us who want to create an online business. One of the aspects that is appealing about a business online is lack of direct contact with your customers. It is so important to reach out to others in your niche though, to learn from them and to grow your business to be the best it can be.
PatrickOctober 28, 2020 at 5:43 pm
Thank you for your comment. Yes, to be an entrepreneur, motivation is one of the most important parts to become successful.
It is true when you network with the right people it can help your business a lot, no matter if online or offline.