What do you need to become an entrepreneur?
I'm referring to knowledge, and physical objects or resources.
I'm looking for a more practical answer, not any mindset or attitude answers.
There are plenty of resources online for any aspect that you need to learn more about. There are challenges, but you can do it!
1. A great idea for a good or service
4. Initiative and the courage to try and fail.
5. If you do fail, understand why and then try again because each failure is only one step closer to success.
Typically, the most difficult thing for a small business is cash flow. This refers to your ability to collect your revenues/income in a timely manner and be able to meet all of your obligations (expenses). Lots of small businesses have failed even though on paper they look profitable (i.e. they have more assets than liabilities) because they aren't able to meet their expense/liability obligations. Lending institutions are often reluctant to offer loans or significant amounts of credit unless you have secured assets you can put up as collateral, or you have a long-standing history of a successful business.
However, the fewer assets and expenses required for your business, the less of an issue cash flow becomes (if you don't have to make payments on a loan or purchase inventory or component parts, for example). Digital solutions (web page, mobile app, etc.) can offer a low barrier to entry for your business, provided you don't require a robust eCommerce system to sell your products or services.
As well, depending upon the type of business you are starting up, you may need a business license, a minimum amount of insurance coverage, certifications, or similar requirements. Some things to consider:
* Start with a business plan. Not only will this help you organize your thoughts and get prepared, but it will be required if you apply for a loan. There are lots of different templates online - look for one that closely aligns with your type of business. Be sure to focus on what value your business offers your target customers.
* Legal business name. Does someone else have a similar name? Protect the name you create if it provides value.
* Are you starting the business by yourself? With a partner?
* Do you need a logo?
* Do you need a website? Is the URL you want available? Can you develop the content yourself, or do you need to hire someone to help you?
* Will you be a sole-proprietor or will you need to incorporate your business? There are legal and tax consequences for both of these and there will be costs involved if you incorporate.
* Search up any of the licenses required or restrictions that may be in place at your local municipalities' web site
* Budgeting is key (related to cash flow above). Remember to include taxes that you may need to pay.
* Keeping accurate records and bookkeeping can be an important part of a business, and one often overlooked. These can help when it comes to budgeting, preparing your taxes, managing your cashflow, managing inventory, etc. Programs such as QuickBooks can be a huge help.
* Will you need to hire any staff? If so, what skillsets will you need? How much are you able to pay them - does it correlate with market rates for other similar jobs? How will you onboard or train staff? Do you need to have any documentation in place (dress code, expectations, hours, etc.)?
Doug recommends the following next steps:
- A registered business
- Funding to start/buy equipment/pay employees
- Maybe, an office space - depending on the nature of your business
- Internet Presence - whether social media or blogs or website
- Knowledge - of course you will need basic skillset to start a business in the area of your choice. You can either read up online, or join a school, or ask for help from someone with an experience in the area.