How to become an entrepreneur, step-by-step guide
When setting up a business it is important to understand the most important requirements of how to get there. This is why this lesson provides you with useful advice and an explanation of steps to follow in order to start your own business.
To start a business, you need a good idea, motivation and the right support network. You also need a strong business plan and the right funding. In the following, the most important steps to follow will be explained in a little more detail.
Starting your business step-by-step (unsplash)
Identify your Why
Try to understand your motivation: why you want to set up a business. This will help you stay focused throughout the whole process. You can look up some of the main motivations driving people to set up a business here:
Find your best Fit
Find a business idea that is a good fit for your personality: where you can use your experience, strengths, and passions. (more in lesson 3 of this module)
Surround Yourself with Supportive People
Find a mentor, friend or a support network (e.g. local business networks). Ask them to share their experience and advice with you.
Create a Business Plan
Having clear goals is essential in creating a successful business. It‘s important to write your own business plan where you define those goals and how you intend to reach them.
Writing your own business plan is important! (unsplash)
The plan should cover many issues:
- Description of your business idea
- Description of your clients and competitors
- How much should your product(s)/service(s) cost?`
- How will you sell the products? What will the marketing be like? (see modules 5 & 6)
- What kind of business will it be (sole self-employment / small-scale business with employees)?
- How much money do you need? Where do you get the funding from? (see module 7)
- What kind of taxes will you have to pay? Be sure to calculate the difference between expected gross and net income, so you will stay fluid throughout the year. (see module 7)
- What are the opportunities and threats of your undertaking? (see module 5)
- Do you need certain permits or qualifications?
- What kind of insurances do you need?
In more detail, you will learn about how to create a business plan in module 2 „Explore the market“ of this training.
After having completed the business plan, you can officially register your self-employment or business. Next to following the steps outlined in your business plan, there are a few other important aspects to keep in mind:
Continue to surround yourself with supportive people
After setting up a business, new tasks and challenges will arise, and a support network will be invaluable for you.
Have a support network! (created by gstudioimagen)
Schedule
If you want to grow your business, you will need to dedicate time. Write down a schedule and work those hours. In module 4 „Soft Skills“ of this training, you will learn about a successful time management in more detail.
Celebrate Wins
Running a business can sometimes be difficult, and it is likely that some things will take longer than hoped. You should not give up, but rather acknowledge and celebrate your successes and keep going!
Reflect
Reflect on your business regularly (e.g. once a month): what worked, what did not and how can you improve? This will help you to learn and keep moving your business forward.
Possible problems and conceivable solutions
Many new entrepreneurs face common challenges. This overview shows you some of the main problems that can arise.
Possible problems | Solution |
| Cash Flow: Each month, you usually have expenses before you get paid your invoice, which may lead to problems with the cash flow. | You have to properly plan and budget your expenses and expected incomes to mainain cash flow. |
| Highly competitive context: For almost everything you offer, you will face competitors locally, regionally, or internationally. | Find a plan to stand out from your competitors. |
| Time management: In your own business, you’ve to take care of everything, which can often lead to overworking yourself. | You have to enhance your time management skills, for instance by creating goal lists or eliminating unnecessary tasks. |
| Self-doubt: Almost every new entrepreneur goes through a phase where she lacks self-confidence and feels like quitting. | You have to overcome self-doubt to successfully run a business. Your support network can be very helpful during a difficult phase. |
While these are some of the main challenges, new entrepreneurs can face many more problems. You can find a more complete list on here:
References: