Do this before becoming an entrepreneur

The life of an entrepreneur is an exciting and rewarding experience that requires a lot of hard work, dedication, and preplanning to be successful. It means starting and running your own business, being responsible for identifying and pursuing business opportunities, developing and marketing products or services, and managing the financial and operational aspects of your business.

Entrepreneurs often have a high level of independence and are not beholden to a traditional employer. They are also responsible for taking on the risks associated with starting and running a business and may face financial losses if their business fails.

An entrepreneur is self-motivated, proactive, and able to think critically and make tough decisions. You should also have a strong sense of ambition and be willing to work hard to achieve your goals.

Entrepreneurship requires a mix of business insight, creativity, and determination. Being an entrepreneur is a challenging and rewarding career for people willing to do the work and take on the risks associated with becoming an entrepreneur.

In this article, find out what you should do to take the steps needed to become an entrepreneur.

Here are ten things you should do doing before becoming an entrepreneur:

1. Get educated: Take the time to learn about entrepreneurship and the industry in which you hope to start your business. Education may include taking courses, reading books, or networking with other entrepreneurs.
2. Learn how to develop a business plan: Your business plan is the overall concept for your business that describes your goals, the target market, the marketing strategy, and any financial projections. Developing a comprehensive business plan can help you better understand your business and identify potential challenges and opportunities.
3. Research your market: Get to know your target customer, the competition, and current industry trends. Good market research will help you identify potential opportunities and develop a strategy for success.
4. Test your concept(s): Before fully deciding on your business idea, it is always wise to test your concepts and see if there is any demand for your product or service. Concept testing may involve conducting market research, creating prototypes, or launching a small pilot program.
5. Identify potential funding sources: Starting a business is often expensive, and it is essential to have a plan in place for funding your venture. Funding sources include identifying possible sources of business investment, including finding a venture capital investor, seeking a loan, or using personal savings.
6. Find a strong team: Before starting as an entrepreneur, look for future employees. These people have the right skills and experience you will need to succeed in a future business. Building a solid team may include finding co-founders, employees, advisors, or mentors.
7. Protect your assets: As an entrepreneur, you are personally responsible for your business, so it’s vital to protect your assets by forming a legal business structure, such as a corporation or limited liability company (LLC).
8. Get organized: Good organization is key to running a successful business. Consider using tools like project management software, financial tracking systems, and customer relationship management (CRM) software help organizations stay on top of business-related tasks.
9. Network and seek out mentors: Building relationships with other entrepreneurs and industry professionals can be invaluable. Before becoming an entrepreneur, start by finding a few mentors who can provide guidance and support as you navigate the challenges of starting and growing a business.
10. Stay focused and persistent: Starting a business is not easy, and there will be challenges and setbacks along the way. It’s essential to stay focused on your goals and persist in facing challenges. Don’t be afraid to make mistakes at first; later on, you can pivot or make changes to your business plan if necessary, but stay committed to your vision.

Educate yourself

Learning is a vital part of entrepreneurship and something we never stop doing. Entrepreneurs must always be eager to learn and try new things as industries evolve. Here are a few ways to get smart on entrepreneurship:

1. Take courses or earn a degree: You can enroll in a formal education program, such as a certificate or degree program in entrepreneurship, business, or a related field. This can provide a strong foundation of knowledge and skills.
2. Read books and articles: There are many books and articles available on entrepreneurship, covering a wide range of topics such as starting a business, marketing, finance, and leadership. Reading can be a great way to learn from the experiences and insights of others. Most great business leads write a book at the end of their careers. These books are filled with knowledge and inspiration. 
3. Attend workshops and conferences: Attending seminars and conferences can be a great way to learn from experts and network with other entrepreneurs.
4. Find a few mentors: Mentors can be a valuable resource for learning about entrepreneurship, as they can provide guidance, support, and advice based on their own experiences.
5. Join a professional organization: Professional organizations, such as trade associations or industry groups, can provide information and resources for entrepreneurs. There are hundreds of incubators and accelerators around the world. Do a quick search to see if one is local to you. 

Great places for free knowledge

Many organizations support entrepreneurs, and the best ones to help with your new venture will depend on your specific needs and interests. Here are three well-known organizations that may be worth considering:

1. Entrepreneurs’ Organization (E.O.): This is a global network of entrepreneurs that offers education, resources, and support for business owners. E.O. has chapters in major cities around the world. https://hub.eonetwork.org/ 
2. National Association of Women Business Owners (NAWBO): This organization is focused on supporting and advancing women entrepreneurs. It offers resources, networking opportunities, and advocacy for its members. https://www.nawbo.org/ 
3. Small Business Administration (SBA): This is a U.S. government agency that provides resources and support for small businesses, including financial assistance, training, and counseling. The SBA has local offices throughout the country. https://www.sba.gov/ 

Other organizations worth considering include the Small Business Development Center (SBDC), SCORE, and the Young Entrepreneur Council (YEC).

Develop a business plan

A business plan outlines the specific details of a business, including its goals, strategies, and financial projections. It is a written document describing the company’s nature, target market, and expected financial performance over time.

A business plan typically includes the following sections:

1. Executive summary: Is a brief overview of the business plan, including the main points and key financial projections.
2. Company description: This section provides an overview of the company, including its history, legal structure, and mission.
3. Market analysis: This section describes the target market, including market size, demographics, and competitors.
4. Product or service description: This section describes the products or services offered by the company, including features, benefits, and pricing.
5. Marketing and sales strategy: This section describes the marketing and sales strategies for the business, including target audience, marketing channels, and sales tactics.
6. Financial projections: This section includes financial projections for the business, including revenue, expenses, and profit.

A great business plan is an essential tool for any entrepreneur. It can help clarify the business’s goals, identify potential challenges and opportunities, and create a roadmap for success. It can also be used to attract investors and convince lenders to provide financing for the business.

Why is a business plan essential?

Do this to develop an excellent business plan before starting a business:

1. Clarify your business goals: A business plan can help clarify and create a roadmap. It can also help you identify potential challenges and opportunities.
2. Attract investors: If you are seeking funding for a business, a great business plan is key to convincing investors to invest in your company. It can provide a clear business overview, including your target market, competitive advantage, and financial projections.
3. Manage your business effectively: A business plan can help you manage your business effectively by providing a framework for decision-making and setting benchmarks for measuring progress. It can also help you allocate resources and prioritize tasks.
4. Communicate with stakeholders: A business plan can be valuable for communicating with stakeholders such as employees, customers, and partners. It can help you explain your business, its goals, and how your team plans to achieve them.

Don’t go overboard by writing a lengthy business plan. Trust me, if it’s too long, no one will read it. Stick to a short slide deck that concisely conveys the information on your Business Canvas Model (described next). 

For inspiration, search the original first Uber pitch deck, a.k.a Uber Cab. 

Know the Business Canvas Model

The Business Model Canvas (BMC) is a strategic management tool that helps businesses and entrepreneurs design plan and communicates their business model. It is a visual representation of the critical components of a company, including its value proposition, target market segment, channels, customer relationships, revenue streams, essential resources, key activities, key partners, and cost structure.

The BMC is flexible and adaptable and can be used to develop new business models or to analyze and improve existing ones. It is used with the Lean Startup methodology, which emphasizes rapid experimentation and iteration to validate and refine business models.

The BMC is a valuable tool for entrepreneurs and business leaders who want to communicate their business model and test and refine it over time. It can is used to identify potential challenges and opportunities and to develop strategies for addressing them.

The BCM helps pull all of your thoughts together on one sheet of paper. It allows you to better understand the bigger picture and eliminate all fluff. All new founders should start with developing a BCM for any new venture. 

You can review a template and can read more about the BMC here: https://en.wikipedia.org/wiki/Business_Model_Canvas 

Research your market

To start your market research activities, you should ask yourself some specific questions, including: 

• Who is your target market? 
• Who are your ideal customers? 
• Who are your competitors? 
• Why would a customer want to buy your product or service? 
• What are the trends in your market? 

Many online resources can help you answer these questions, including:

1. Google: You can search for information about your target market, competitors, and industry trends.
2. Social media: Social media platforms like Facebook, Twitter, and LinkedIn, can be a great source of information about your target market. You can also use social media to conduct surveys and gather feedback from potential customers.
3. Industry websites and blogs: Look for websites and blogs that cover your industry or target market. These can be excellent sources of information and insights.
4. Online market research firms: Many online market research firms offer various research services, such as survey design and analysis, focus groups, and data collection.
5. Government websites: Government websites, such as the U.S. Census Bureau or Bureau of Labor Statistics, are a valuable source of information about demographics, industry trends, and other relevant data.

Utilize your personal and professional networks to gather information and insights about your market and industry.

Test your concept

There are several ways to test out a new business concept to see if there is demand for your product or service:

Conduct market research: Market research can help you understand the needs and preferences of your potential customers, as well as the size and characteristics of your target market. Do this through online research, surveys, focus groups, and other methods.

Create a minimum viable product (MVP): The MVP is a simplified version of your product or service that allows you to test your business concept with a small group of users. The MVP can help you gather feedback and make improvements before launching a full-scale product or service.

Utilize social media and online platforms: Social media and online platforms, such as Kickstarter or Indiegogo, can be a great way to test your business concept and gauge interest from potential customers.

Talk to potential customers: Engaging with potential customers through one-on-one conversations or focus groups can be a valuable way to gather insights and test your business concept.

Run a pilot program: A pilot program is a limited test of your product or service that allows you to gather feedback and make improvements before launching on a larger scale.

Testing a new business concept is essential in the development process. By gathering data and feedback from potential customers, you can make informed decisions about the viability of your product or service.

Identify potential funding sources before becoming an entrepreneur.

There are several places to look for funding for a new business, including:

Personal savings: Many entrepreneurs finance their businesses using their savings. These sources can be a good option if you have a solid financial foundation and are comfortable taking the financial risk of a new venture.

Family and friends: Some entrepreneurs turn to family and friends for funding, either as a loan or investment. This can be a good option if you have a strong relationship with these individuals and they are comfortable with the risk.

Angel investors: Angel investors are individuals or small organizations who fund early-stage businesses in exchange for ownership equity. They may be easier to secure funding from than venture capital firms but will often expect a higher return on their investment.

Venture capital firms: A venture capital firm invests in businesses with the potential for significant growth. They typically invest larger amounts of money in exchange for ownership equity and often provide mentorship and other resources to help companies to grow.

Small business loans: There are many sources of small business loans, including banks, credit unions, and online lenders. These loans can be a good option if you have a solid business plan and good credit.

Grants: Some government agencies and non-profit organizations offer grants to small businesses. These grants are typically given for specific purposes, such as research and development, and do not need to be repaid.

Remember, it’s essential to carefully consider the terms and risks of any funding option before accepting funding.

Develop your pitch deck

A pitch deck or elevator pitch is a brief, persuasive set of slides you use to sell an idea, product, or service. 

Pitches are used to:

1. Introduce yourself or your company to potential clients, partners, or investors.
2. Summarize the main benefits or features of your product or service.
3. Explain why your product or service is better or unique versus the competitors.
4. Convince the listener to take action, such as setting up a meeting or purchasing your product.

Pitch decks are delivered in a conversational but engaging and persuasive manner. They should be clear, concise, and focused, leaving the listener wanting to know more.

Pitch decks are used in various settings, including networking events, pitch competitions, and job interviews. They can also be helpful in online environments, such as social media or email communications. Pitch decks are a great set to start long before becoming an entrepreneur.

Find a strong team

Finding great employees is an integral part of building a successful business. Here are a few tried and true steps you can follow to find great employees:

Define your hiring needs: Before you start the hiring process, it’s essential to define your hiring needs. Defining your needs include identifying the skills, experience, and qualifications required for the position.

Develop a job posting: Create a detailed job posting that outlines the responsibilities and requirements of the position. Include information about your company culture and any benefits or perks you offer.

Use various recruitment methods: There are many ways to recruit employees, including job boards, social media, employee referral programs, and recruitment agencies. Consider using a combination of methods to reach a vast pool of candidates.

Screen applicants: Once you receive applications, it’s important to screen applicants to determine which candidates are the best fit for your company. Screenings may include reviewing resumes, conducting phone or video interviews, or administering skills tests.

Conduct in-person interviews: Invite the most qualified candidates for in-person interviews. An interview is an opportunity to learn more about the candidate’s skills, experience, and fit with your company culture.

Check references: Before making a final hiring decision, check references to better understand the candidate’s work history and skills.

Remember, finding great employees takes time and effort, but it’s an essential investment in the success of your business.

Protect your assets before becoming an entrepreneur

There are several steps to take to protect your assets when starting a new business:

1. Incorporate your business: One of the most effective ways to protect your assets is to incorporate your business. Incorporating your company creates a legal entity separate from you personally, which can help protect your assets, such as your primary home, if your business faces legal action.
2. Purchase insurance: It’s essential to have the right insurance coverage to protect your assets and business. Consider purchasing business insurance to protect against property damage, liability, and financial losses.
3. Create contracts and agreements: Use contracts and agreements to clearly define the terms of your business relationships, including those with employees, contractors, and clients. Contracts can help protect your assets in the event of a dispute.
4. Use separate business accounts: Keep your business and personal finances separate by using different bank accounts and credit cards for your business.
5. Protect your intellectual property: If your business involves creating intellectual property, such as trademarks, patents, or copyrights, it’s essential to protect these assets. Consider registering your intellectual property and preventing others from using it without your permission.

Remember, protecting your assets is an ongoing process, and it’s essential to regularly review your protection strategies and make adjustments as needed.

Get organized before becoming an entrepreneur.

Business software can be a valuable tool to help you organize a new small business. Here are a few things a new entrepreneur should consider before becoming an entrepreneur:

Project management: Business software can help you manage projects by tracking tasks, setting deadlines, and assigning tasks to team members. Business software helps you stay organized and ensure that projects are completed on time.

Invoicing and billing: Business software can help you create and send invoices and track client payments. Business software can streamline your billing process and make it easier to manage your finances.

Customer relationship management (CRM): CRM software can help you manage customer relationships by storing and organizing customer data, tracking interactions, and automating follow-up tasks. Good billing tools can help you build strong customer relationships and grow your business.

Accounting and financial management: Business software can help you manage your business’s financial transactions, including tracking expenses, generating reports, and preparing tax documents. Accounting software can help you stay organized and make informed financial decisions.

Collaboration and communication: Business software can help you and your team communicate and collaborate more effectively. Video conferencing, messaging apps, and document-sharing platforms can help you stay connected and productive, even when working remotely.

Network and seek out mentors

It’s generally a good idea to ask someone with knowledge, skills, or experience in a particular area that you are interested in and willing to share that knowledge with you before becoming an entrepreneur. Mentors could be coworkers, friends, family members, or someone you meet through a professional organization or networking event. You can also consider reaching out to a mentor through a mentorship program or asking a professional in your field if they would be willing to mentor you.

When asking someone to be your mentor, it’s essential to be respectful and considerate of their time and resources. Be clear about what you want to gain from the mentorship, and be willing to put in the effort to make the most of the opportunity. It’s also a good idea to be open to feedback and willing to follow the guidance of your mentor.

Also, meet face to face as much as possible. Body Language communicates as much information as someone’s words. Don’t just trade emails with your mentor. 

Roge Entrepreneurs Challenge: Ask three professional business people you know to mentor you. Most people will be flattered and agree right away. If they decline, ask why and ask if they could recommend someone else that could mentor you. Let us know how you make out in the comments below. 

Stay focused and persistent before becoming an entrepreneur.

Staying focused and persistent when pursuing a startup can be challenging, but it’s essential to achieving success. Here are some specific tips for staying focused and persistent when working towards a goal:

• Set clear, specific goals: Having clear, specific goals will help you stay focused and motivated. Break your goal into smaller, achievable tasks to make it more manageable.
• Make a plan: Develop a plan that outlines steps you should take to achieve your goal. Propper planning will help a new entrepreneur stay on track and progress toward a goal.
• Eliminate distractions: Identify and eliminate low values distractions preventing you from focusing on your goal. Eliminating distractions includes turning off notifications on your phone or finding a quiet place to work.
• Stay motivated: Find ways to stay motivated and keep your energy and enthusiasm up. Ways to stay motivated include setting rewards for yourself as you make progress. Or finding a supportive community of people working towards similar goals.
• Stay resilient: Persistence is key to achieving a goal, which often requires resilience. When you encounter setbacks or challenges, remind yourself of your long-term vision and why you are working towards your goal.

Remember, achieving a goal takes time and effort, and it’s natural to face challenges along the way. You increase the chances of success by staying focused, persistent, and resilient.

Conclusion 

Entrepreneurs always wear many hats, find the hats that fit your skillset the best and bring in others to wear the rest.  

Don’t go overboard with an extensive business plan. Instead, build a great pitch deck and see if you can get people excited about the idea. 

To think like an entrepreneur, you want to surround yourself with other entrepreneurs. Find places to network with them long before you take the plunge. 

Be ready to drop your pitch at any time. You never know when and where you will get an opportunity to give your elevator pitch to an investor. 

Mentors are an invaluable resource for the up-and-coming entrepreneur. Leverage this technique to the fullest, as it provides vital insights and can open doors for you. 

I love the idea of a startup; what do I do next? Find the answer in this article. 

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