How to Become an Entrepreneur

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Start a business is to start something new, organize, arrange, launch. At the same time, entrepreneurial activity has a risky nature, because the start of any project does not guarantee its success. How to become an entrepreneur from scratch to reduce possible risks? How to become a sole proprietor and get the official right to do business? Is it possible at least in general terms to predict whether the business will bring income or not? You will find out the answer to these and other questions from our article.

Who Are You: an Entrepreneur or an Employee?

Psychologists distinguish a special type of thinking — entrepreneurial. A certain percentage of people have this type of thinking from birth, but it can also be developed. The main features of this thinking are called initiative, the ability to take risks, readiness to fail, responsibility, and sociability.

A real entrepreneur will not be stopped from implementing his/her idea by the lack of resources at the start. He/she will go forward, even if all the surroundings or circumstances are against it. There are very few such people, but even they do not always succeed.

Most people have an employee mindset. They are focused on working under the supervision of a boss and performing only certain job functions. Of course, employment can also bring significant income, but it is no coincidence that more than half of employees periodically think about how to become successful business professionals. Competition in the labour market is very high. To count on a high salary, you need to bring your employer income several times more than he/she pays you.

If you are not yet ready to take the risk of independent entrepreneurial activity, but at the same time, you do not want to work for someone all your life, there is a way out. You always can learn what is VPS in Forex and start trading to get a source of passive income.

Where to Start Your Business

So, if you are basically ready to start your own business, you need to understand how to become an entrepreneur from scratch. The main idea of the business is that income comes from people whose needs or requests you meet at a high level. All types of entrepreneurial activity can be divided into three large groups: services, trade, production. You need to choose the direction that you like, and where you see a certain potential. For example, you can choose the financial sector, study Forex trading in Nigeria with the help of Forextime and try yourself in this field.

After you have chosen your idea, and, at a theoretical level, you already imagine how to become an entrepreneur from scratch, you need to prepare a business plan. Of course, this document does not guarantee entrepreneurial success at all, but at least it will outline the framework for the implementation of your idea:

  • necessary costs;
  • consumer market analysis;
  • marketing analysis;
  • estimated income;
  • payback period of the project.

A good business plan can be written by professional marketers, but their services are quite expensive. What if you are not ready to spend money on a business plan? You can develop this document on special portals for aspiring entrepreneurs. Such business navigators assess the prospects of a business idea for different cities. Moreover, the calculations are based on real statistics of consumer demand for a specific product or service. Besides, data on the profitability of operating business entities are used.

Business navigator allows you to choose an area of focus according to any of the following criteria:

  1. According to the ratio of supply and demand. In the city of your choice, the districts where there is insufficiently satisfied consumer demand in specific areas will be the first to be offered. You will immediately see where there is a lack of a food service point, a fitness club or a furniture store.
  2. By the amount of investment. Business without investment is, of course, a myth. Yes, some services can be provided with only a phone, computer, and car. These are personal resources that you can use in business, but for which you have already paid once. Such a navigator still takes into account certain investment amounts.
  3. According to the type of business. Here you can choose from a whole list of objects: shops, consumer services, leisure, sports clubs, etc.

In What Form to Register a Business

You can conduct business both in the format of a legal entity and while remaining an individual. There are approximately equal parts of both those and other subjects of entrepreneurial activity. But if this is your first business, then it is easier to start it as a sole proprietor.

Of course, there may be reasons why you may want to register a company immediately, and not becoming a sole proprietor. Usually, a limited liability company is registered if several partners start a business or when in the future it is planned to attract serious investments.

But remember that in the question of how to become an entrepreneur, the choice of the form of business registration still does not play a decisive role.

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