Entrepreneurs are the lifeblood of every country’s economy. They run small retail shops, grocery stores, online businesses, etc. No matter how small or narrow the scope is, there is an entrepreneur behind every business or private organization in every country. In this blog post, we will discuss everything you need to know about entrepreneurship, how to become an entrepreneur, and how to be a successful entrepreneur.
The Success Rate of Entrepreneurship (Entrepreneur Statistics You Need to Know)
There are numerous examples of successful entrepreneurs around the world who thought of a great business idea and implemented it. For instance, huge giants like McDonald’s, Facebook, and Coca-Cola are very successful business enterprises. Any famous business that you can think of has a renowned entrepreneur behind it.
However, not every entrepreneur is successful. Approximately20% of new businesses fail during the first two years of operations. This is mainly because of a lack of entrepreneurial skills. According toGallup Polling, 50% of businesses usually fail after five years of operations. Moreover,Fortune Magazine states that nine out of ten startups eventually fail after setting up their business operations. These numbers may seem overwhelming and demoralizing, but it does not mean that you cannot become a successful entrepreneur in your life.
If you have the passion, a great idea, the thirst for learning, and the willingness to work hard, you can also become one of the greatest business owners in the world. But before you start thinking about various business ideas, you need to understand what exactly the term ‘entrepreneur’ means.
4 Ways to Become a Business Owner:
Start your own new business.
There are no end to possibilities and verticals, niches and markets. All of them have millionaires.
Buy an established business.
The service is already market proven.
Access to trained staff and valuable SOPs
Faster growth and financial ROI.
Much greater odds of success
Accelerated launch and startup time.
Relying on an established brand
Buy a reputable franchise.
There are many official resources that provide reliable and accurate information about franchises making it safer to invest in, such as the SBA franchise directory.
Sell independently for a brand.
Many individuals rely on a very famous brands to supplement their income or even turn it into a full-time business here’s a list of the most well-known brands allowing to sell directly: Mary Kay, Avon, Tupperware, Scentsy etc
Who Is An Entrepreneur?
The word entrepreneur is something we often hear around us but have you ever wondered what it means? When we hear this word, we immediately think about business owners, such as café owners, photographers, digital business owners, etc. But what is it that clearly defines an entrepreneur?
“Entrepreneur” is derived from the French word “entreprendre,” which means, ‘to undertake.’ This usually refers to any person who takes a significant risk by taking the initiative to make large profits. However, making money is not the only factor that motivates entrepreneurs; rather, the entrepreneurial mindset of taking a risk in the form of making huge investments is the basic definition of an entrepreneur.
Entrepreneurship Education and Training
There are three main types of qualifications you should be looking for if you are an aspiring entrepreneur. They might not seem very relevant to your field, but they will deficiently give you long-term success. Let’s take a look!
Education in your industry
The first type of qualification should be in something that is directly related to your area of work and expertise. For instance, if you are considering opening up an auto shop as a solo investor, you should have first-hand knowledge about car repair and mechanics. If you want to become an electrician, you will need an education and training related to electrical engineering that can help to teach you everything about circuits and wires, or if you want to open up your restaurant, getting certified training in food services would be a great way to go about it. Entrepreneurship education will provide you as a student entrepreneur with ample knowledge to help you understand how a business should be run.
Once you get through with the basic education about the industry you want to be in, you should consider enrolling for a degree program, diploma, or a certified course about something directly related to your work. If we consider the above example again, opening an auto shop would require you to at least complete a couple of training sessions and certifications. An entrepreneurship degree program will teach you the entrepreneurial skills that are required to start your career as an independent business owner. Shorter courses can be completed quickly and help you kick start your business very efficiently. Check out some of theshort courses on entrepreneurship that you can consider taking.
Business and Financial Education
Every entrepreneur, whether it is someone running a food stall on the corner of a street or someone in a fancy corporate office, must have thorough knowledge about business management and financial responsibility, including taxes. You don’t necessarily need to have a master’s degree to learn these basic skills, but having a business degree in management or finance will be very helpful. This is because an entrepreneurship degree can help you run your business like a successful entrepreneur. The qualification will prepare you to meet the daily challenges of running a business and how to move forward with your career.
Check the list and see which entrepreneurship course most appeals to you:
Economics and Finance
Marketing and Advertising
Project Strategy and Management
4. Build your business slowly and gradually
Many entrepreneurs believe that quick growth is a sign of a successful business. However, the truth is that every business should be built gradually, which can often take years or decades. Most entrepreneurs start to build slowly by measuring every step they take along the way. This allows you to learn, gain knowledge, observe, and make relevant adjustments before moving your way forward into the growth of a business. When you encounter and deal with several practical business situations, you learn valuable skills and get the required training that you can’t get from a business degree. In some cases, most entrepreneurs continue to keep their day job while undertaking their entrepreneurial activity on the side.
Mistakes to Avoid When Starting a Business.
There are many things that a prospective entrepreneur should avoid, and some of them may be very obvious. Conversely, other things can be very difficult to avoid and can often sneak up on you and spoil your success. These downfalls can come way before you even start to sell your product or right after selling an initial product.
If you think about it practically, many entrepreneurs advise that getting into the spiral of business debt should be avoided at all costs. Some entrepreneurs say that if you start your business by borrowing money, your business is probably doomed to fail if you don’t pay off that money very soon. Therefore, debt should always be kept at a minimum whenever possible.
Moreover, having faster entrepreneurial success can also become a problem for entrepreneurs if it is not handled and managed properly. For example, if a business gets super busy, there may not be enough time to manage everything at the previous pace. You will have to increase your pace and start working faster or start hiring more people.
Another downfall that should be avoided is depending on a single course of income. For example, a successful entrepreneur will avoid this by not letting a single customer be responsible for more than 25% of the income. This is because if one customer starts to represent too much of your sales, your business is going to shatter if the customer decides to leave.
Several other pitfalls should also be avoided at all costs, including internal conflict, employee turnover, poor management, and business planning, etc.
Whether you have an online business or a physical business, the truth is that it is not easy to become an entrepreneur, but fear is often the most common reason why many people don’t even think about pursuing entrepreneurship. If you follow the above guidelines, you can think about your business and even put your plan into action. If you manage your business properly, becoming an entrepreneur can be one of the best options for your career and your long-term future. Entrepreneurship is rewarding.
My name is Christina. I am a content writer, author and blogger with years of experience in writting, researching and editing content.
I studied journalism at the University of Texas-Austin and have been practicing the craft ever since. My favorite part about being a journalist is getting to interview interesting people from all walks of life who do fascinating things!