The most important five branches of the U.S. economy include industries ranging from healthcare to technology to manufacturing. The founders who run many of the most well-known businesses are the mainstay for wealth throughout the United States, says Dr Jay Feldman
If you’re planning on opening a small-sized grocery shop, starting your own online business, as well as either (hello, Blue Apron), You are on your way to becoming part of a worldwide community of entrepreneurs that supports every private and business venture you can think of.
There are plenty of examples of entrepreneurs all over the place. McDonald’s was started by a businessman. A businessman developed Facebook. An entrepreneur launched Coca Cola. Name a famous company with an investor behind the company.
However, for every entrepreneur who succeeds, many are unsuccessful. According to the 2020 Investopedia article, 20% of businesses do not make it through the initial two years, and 45 per cent could fail within the first five years. According to an article in 2014 Fortune Magazine, an astounding 90% of businesses will fail at some point. These numbers might seem daunting, but that isn’t a reason to not think about pursuing entrepreneurship as a career option.
With a genuine desire, dedication, great ideas, and a keen interest in taking classes, any person can create an organization and turn it into success.
This article will discuss the definition of an entrepreneur and what it’s not and what you need to do to become one. It is important to know the kind of education you need, from experiences to college degrees, to aid you and the potential pitfalls to avoid when starting your own company.
Do you think you could become your very own boss and set your path as an Entrepreneur? Then, let’s take a look at the thrilling and unpredictable field of business.
What is an Entrepreneur?
When you think of entrepreneurs, it’s feasible to think of entrepreneurs of all kinds. For example, restaurant owners and auto shop owners, CEOs of digital startups, and self-employed photographers are all considered to be entrepreneur-related careers.
So, what is the key aspect?
The word”entrepreneur” comes in the French word enterprising, or “to undertake.” So consider someone who takes risks and initiative for the ultimate purpose of earning financial profits.
Entrepreneurs are those who take on a risk intending to earn financial profits, says Dr. Jay Feldman
While earning money is not the only motivation for entrepreneurs, taking risks, typically through financial investment, is the main principle of all entrepreneurs.
Entrepreneurs are also trying to create something that can last. One of the most important aspects for entrepreneurs is taking the necessary steps to establish an enterprise that can continue earning money even when they’re not working. A cafe’s owner, for instance, can earn income while the cafe is in operation regardless of whether she’s working off for personal tasks in her shop.
Freelancers Vs. Entrepreneurs
Many individuals have decided to take their expertise online in our digitally connected world and are now freelancers. They accept jobs as they are offered and operate on their terms, generally with design, writing, and consultants of a certain kind. But are freelancers entrepreneurs?
Freelancers have several characteristics as entrepreneurs; however, they’re not building something that eventually makes profits while they rest or go on vacation or even leave on vacation. Although the terms “entrepreneur” and “freelancer” can be confusing, they are different. In the majority of cases, freelancers aren’t entrepreneurial.
Is Becoming an Entrepreneur Right for You?
How do you know whether being an entrepreneur is the right one for you? There are certain characteristics, traits, and values those successful entrepreneurs share. While they aren’t a guarantee of success, these characteristics of an entrepreneur give a solid basis for a lifetime of risk-taking and rewarding.
Most importantly, entrepreneurs are adamant about independence. They wish to be their bosses, create their hours and manage the affairs of their lives. They are the kind of people who hate the idea of having a boss in charge of their activities even though entrepreneurs have thousands, hundreds of thousands or millions of bosses. They’re known as customers.
The self-reliant entrepreneurs of today are. They love being accountable for their achievements and feel proud of building something bigger than them.
They should also be able to deal with the risk. If the idea of not being regularly paid and not being able to sell your product or being a complete failure is enough to make you feel paralyzed and despair, you might have trouble coping with the unpredictable nature of entrepreneurship.
Because of the higher level of risk, successful entrepreneurs are also wise. Contrary to popular opinion that entrepreneurs drink champagne and take cruises on costly yachts, most entrepreneurs are savers rather than spenders. According to lifehack.org, the most effective business owners’ financial habits include having a 6-month financial backup, a budget-conscious approach to life, and accounting and budgeting for each purchase you plan to make while prioritizing your business and personal spending.
How to Become an entrepreneur by Dr Jay Feldman
What are the steps required to become a business owner? There are a variety of routes you could take. For instance, the proprietor of a delivery business will not take the same route as an interior designer. But there are a few similar steps entrepreneurs can take.
In general, these are the steps to follow to be an entrepreneur:
Step 1: Find Your Industry or Niche
The first step is to identify your niche or lucrative talent. For example, many people would like to be entrepreneurs but don’t know which industry to pursue.
Most of the time, it will be one that you have been working in for a long time. If you’ve been an apprentice carpenter at a local construction firm or home renovation and repair, then this could be your field of expertise. If you’ve worked in the restaurant for several years, you probably have a good understanding of the way to manage a food service business. Your present experience is the perfect place to begin seeking your dream job.
It is also helpful to be passionate about your field. To be successful for a long time, you must be passionate about your work. At some point, money won’t be enough of a motivator to keep you working 60 to seventy hours per week to support a business. There’s more to it than money to stay motivated, and you’ll require an objective.
Step 2: Research Your Market
Entrepreneurs must research the market and analyze the space to determine the demand and needs.
Perhaps you’d like to start the first Korean food truck near your town. Are other food establishments succeeding? Are there any other successful food trucks operating in your region? Do locals prefer an eatery that is more moderate, or are they seeking an upscale restaurant? Are they even interested in Korean food?
The ability to answer similar questions to these and many more is crucial to your success over the long term.
Step 3: Educate Yourself
There’s a belief in popular culture that successful self-made entrepreneurs do not graduate from the university. However, the statistics don’t support this claim. According to a group consisting of scientists from Duke, Akron, and Southern California, over 95 per cent of entrepreneurs working in high-growth industries hold at least an undergraduate degree.
Entrepreneur Education & Training
There are three kinds of education that you can consider when considering working as a business owner. Although they may not be necessary to your career, they will certainly enhance your chances of achieving long-term success.
A. Education in Your Industry
The most important type of education you should consider is research or work experience specifically relevant to your field of research. For example, if you’re looking to start an auto shop, you’ll require some certifications and education in the field of repairs to cars. If you’re thinking of becoming an electrician for yourself, you’ll need the latest instruction and certification in circuitry and wiring. Finally, if you’re planning to own an establishment, learning about food service can benefit.
B. Entrepreneurship Degree
Once you’ve got your education, many prospective entrepreneurs are interested in getting a certificate or degree in entrepreneurship. They are an excellent method to learn the basic abilities needed to start an exciting new career. An undergraduate degree can provide general studies base and specialization in entrepreneurial studies. In addition, shorter entrepreneurship courses are quick to complete and are great for in the right direction to start a new venture.
C. Education Related to Business and Finance
From the owners of roadside cafes to multinational startups, each entrepreneur must know about finance, management, taxes, and other related business issues. There is no need for an economics master’s degree, but a strong academic foundation in business will assist. Entrepreneurship education can mean the actual degree of entrepreneurship or education in general business that prepares you to tackle the daily issues of an entrepreneurial career.
Step 4: Build Your Business Slowly
Many ambitious entrepreneurs believe that rapid and explosive growth is the mark of an effective business. But the reality is that most companies are constructed slowly, over years or even years. If they can, entrepreneurs start slowly, beginning with their first sale and then moving forward. The process of building slowly lets you adjust and learn before diving headfirst into your business. Moreover, adjusting to new situations can provide invaluable on-the-job training in entrepreneurship that you can’t obtain from any formal education. As a result, entrepreneurs can often keep their job while building their businesses during their free time.
Potential Earnings for Entrepreneurs
It’s difficult to forecast the income of entrepreneurs. According to Ziprecruiter, in July 2021, an average businessperson earns $43,430 annually. Indeed.com states the median earnings of entrepreneurs to be more than $64,051 a year! Given that most entrepreneurs also have a second job, this amount of money can be difficult to achieve.
Finding out the entrepreneur’s salary is the biggest problem for any statistician. Many factors can affect the amount of money an entrepreneur earns, such as taxes, investments, certifications, purchasing of products and pay, all of which could drastically reduce the profits of an entrepreneur. While you might sell the equivalent of $2 million worth of goods, that doesn’t mean that you’ll make $2 million.
Another challenge with predicting entrepreneurs’ salaries is the wide range of disparities in the business. For instance, Elon Musk, founder of PayPal, Tesla Motors, and SpaceX, is a businessman. However, the owners of a mom and pop eatery are entrepreneurs too. Perhaps parents have a few million in savings and are happy; however, the odds are high that Musk earned more than Mom and Pop in the last 15 years.
Tips for Becoming a Successful Entrepreneur by Dr Jay Feldman
There are various steps you can take to improve your chances of succeeding as a businessperson.
Entrepreneurs require many tools, abilities and qualities to sustain the business. One of the most crucial things they can accomplish is to remain positive. It’s not about positive thinking your way to success in business, but keeping a mindset of positive thoughts even when things aren’t going well. If something goes wrong, people with negative thoughts might dwell on their failures and then decide to quit, While a positive outlook will analyze the situation to figure out the cause and the best way to rectify it.
A successful entrepreneur will be a student and grow both from a personal and a professional perspective. It includes obtaining the most recent certifications, if required, taking classes to enhance communication skills, or signing up to publications in the industry that offer important information that will help make decisions for the future. Engaging and actively striving to improve their skills continuously is a typical trait in successful entrepreneurs.
Additionally, entrepreneurs often manage their personal and professional financial affairs separate. They set budgets and make sure you are paying promptly, and it is recommended that business owners have separate accounts in their banks for the funds that belong to the company and for funds that belong to the individual. It might appear like a minor distinction. However, it could impact your work schedule and how you budget your time.
Another key method is to create an environment of support in both business and emotional. Entrepreneurs have lots to be concerned about, and removing some of these burdens off your plate will help you concentrate on the running of your business. Many entrepreneurs have a support team that includes an accountant or financial professional or a marketing expert or a similar kind and a mentor who can offer advice and direction.
Pitfalls to Avoid
There are a lot of pitfalls that entrepreneurs who are just starting should avoid. While some are obvious, others are hidden and can ruin the success of your business. Unfortunately, these issues can occur before you’ve even completed an initial sale or may occur after you’ve begun to create your reputation.
Almost everywhere, successful entrepreneurs will tell you that you should avoid debt as often as possible. Others, such as Mark Cuban, will tell you to avoid debt completely. According to Cuban, the moment you’re creating a business using borrowed money, you’re likely to fail. Some entrepreneurs will adopt a more moderate approach on debt, arguing that one should keep the debt amount to an absolute minimum. The idea of starting a business without money is difficult; however, the burden of debt is an issue for entrepreneurs.
It may sound contradictory, yet it can be a problem for business owners if it’s not handled properly. When a business is busy, they might not be able to handle every order, and flaws in management could start to show themselves, and communication might start to unravel. What will result? A steady decline in income until the bottom is reached. So being prepared to succeed with flexible management systems and quality control is crucial.
Another risk to avoid is dependence on a single source of income. A successful entrepreneur will avoid dependence by not letting anyone’s client make up over 25% of the revenue. If a single customer or customer is a significant portion of your business, what will happen if they decide to end their business? You lose a significant amount of your earnings.
It is evident in a large size during the financial meltdown of 2008. American Axle manufactured parts primarily to General Motors, with GM making up around 70% of the earnings. Following the automaker’s drastic reduction in the number of orders it received, American Axle was nearly forced to go bankrupt. A diverse client base will assist you to avoid this pitfall.
There are other risks to be avoided, including internal conflicts and a high level of employee turnover; however, with a good manager and a solid business plan and good support, a businessperson can move forward.
Becoming an Entrepreneur: Is it So Risky?
Entrepreneurship isn’t straightforward, but it could not be as dangerous as some think. It can be a long day, working on weekends, and navigating through a range of uncertainties that can make people stop before they even begin.
Being exposed to risks is usually the primary reason people do not want to become an entrepreneur. However, take a look at this: a person working for a business only has one source of income, the employer, whereas entrepreneurs have a variety of sources. If an employee is laid off, they’re without a paycheck, and if the entrepreneurial person loses a client, they’ve got a lot of other sources to draw on. If they are managed correctly, becoming an entrepreneur could turn into one of the most secure and most lucrative professions you can have.