‘What is entrepreneurship?’ is the first question would-be entrepreneurs ask themselves, and it’s undoubtedly a fundamental one. Before diving into a new enterprise you need to grasp what you’re getting yourself into. Hence, reading this article may dissipate your doubts. Below, you’ll learn what is entrepreneurship all about, how to start your own business and the basic qualities of every entrepreneur.
What is entrepreneurship?
There are hundreds of definitions for ‘entrepreneurship’ but, to put it plain and simple, it’s the capacity to launch a new business venture without certainty of the gains and despite all the risks involved in the process. Of course, the goal is to make a profit, but the stakes are usually high given that entrepreneurs invest a lot of money and success is never guaranteed.
Where should you start?
You’re still clueless about what is entrepreneurship? It entails a lot of hard work and because of this, there are certain steps you should follow:
#1- Take up a finance and accounting course
Yes, you may be contemplating the idea of hiring an accountant (definitely a smart move). Nonetheless, before drawing up a new business strategy, you have to understand the risk and the return, the transactions involved and the taxes you have to pay in order to make a balance sheet, which will help you understand the finances of your business.
#2- Define your business goals
Besides establishing the mission and values of your company, you need to figure out what you aim to achieve with it. There are two main business plans and you have to decide between one of them:
- Lifestyle business: Your aim is to maintain a steady income with a viable business but without much further development.
- Growth business: Your aim is to grow and expand your business as rapidly as possible, considering the reinvestments you’ll have to make and the employees you’ll have to hire.
#3- Develop a client base
By the time you get to this step, you probably will understand what is entrepreneurship, the risks it involves and how exciting that makes it. However, before turning down a full-time job to dedicate yourself entirely to your venture, take baby steps: find regular clients that will grant you a steady income while you start growing your business.
Do you have what it takes?
There’s one thing you surely need to succeed in entrepreneurship and, mostly, to enjoy the ride: the ability to get up every time you fall. Failure is inevitable but it just brings you closer to the right approach for your business. If you can’t take disappointment, entrepreneurship will be hard to handle.
One thing you must know is that updating your business is a must for staying in business. Think about Google or Facebook… Do you think they have remained unchanged since their creation? No way! So what you’ll definitely need to become an entrepreneur is a passion for constant learning. Knowledge is power, and you have to engrave it in your mind.
If this article didn’t scare you away, you probably will take the risk and start your own business. Remember to enjoy the ride!