If you are considering starting your own business, you're not alone. Currently, there are almost 600 million entrepreneurs in the world and 15 million Americans who are self-employed full-time. What this means for you is not that there is less room for another business, but that there's loads of information at your fingertips. Becoming an entrepreneur has never been easier, or at least more well-guided.
Venturing out on your own requires a few specific personality traits. You need to be a self-starter, disciplined, and willing to take risks. Aside from that, there is a lot of research and preparation that should be done upfront. Most new businesses don't fail due to a lack of hard work. They fail because there wasn't a market for it. In other words, make sure there is a need for your product or service before jumping in with both feet. Once you have that information, you can begin your path to success using these five steps.
Choose Something You're Passionate About
If you've come far enough along in the process to consider becoming your own boss, chances are you have already chosen the business. Hopefully this business is something you have a passion for. Why? Because being passionate about something means it's not as easy to give up at the first sign of trouble. You will have ups and downs in any business. There's no doubt about it. But caring about what you're doing gives you a reason to get up in the morning and keep going until you make something out of it.
Take It Slow
There are two schools of thought on entrepreneurship. One says jump right in, leaving yourself no other options, and the other says to start out slowly while keeping your main source of income. Most of us tend to err on the side of caution, testing our business to see how it's going to work out. Depending on your personality, this will either free you up to try things out and make mistakes or it will frustrate you not having the time you want to devote to it.
Don't Spend Your Profit
In the beginning, you should be putting all of your earnings back into the business. This is especially true if you have decided to keep your day job until you're operating in the black. Also, if you plan on giving up the security net that is your job, most experts say you should have three to six months worth of salary saved up. This will give you the peace of mind knowing that if something goes wrong, you can still pay your bills.
Use An Existing Platform
Depending on what type of product or service you're offering, there's probably a platform already available that you can use. Freelance writers can use Upwork or Freelancer. And online sellers can use industry giants, such as eBay or Amazon. The benefits of using an existing platform to market your business are practically endless. These are marketplaces people are already shopping on so you don't have to try too hard to get people to your store. And if you use a service like Amazon FBA, most of your work will be done for you at a fraction of the cost you'd have to pay someone to help.
Amazon FBA is a program that allows sellers like you to ship your products to them to store in one of their warehouses. Then, when an item sells, they package it and ship it for you, depositing the profit right into your seller's account. Your work comes in on the front end when you source inventory. But Amazon even makes that easy with their Amazon seller mobile app. With this app on your phone, you can simply shop your local discount stores, scan any item you find, and you can instantly see how much it will sell for and how much of a profit you can make, given the current price.
Consider A Franchise
You don't necessarily have to go into self-employment alone. Many entrepreneurs choose the path of franchising and there are a lot of benefits to this. For one thing, while you do own your own business, you also have the support of an established company to keep you on the right track. Additionally, so much of the work is already done for you. The research, branding, location data, and profit projections are all things that franchisors hire professionals to do. After all, they have a big stake in your success, too!
One of the things that stops people from buying a franchise, however, is the cost. Because you are buying not only a business but an established reputation and many years' worth of experience. This sometimes comes with a fairly hefty price tag. But what most people don't realize is that there are places like Franchise Lenders that specialize in helping people get the funding they need specifically for franchisees. They understand the ins and outs of these types of businesses and the profit that can be made when following this structure.
