Entrepreneurial activity is rapidly increasing. Forbes shares the data from the Census Bureau of the United States; in 2020, 4.3 million businesses started their registration process. We often hear about entrepreneurs and entrepreneurship on social media platforms, in online articles, or on the news, but what do they mean? What are the advantages of being an entrepreneur?
The Definition of Entrepreneur and Entrepreneurship
A person who runs a business is an entrepreneur, but entrepreneurship is the collection of activities used to generate a profit.
Those who are entrepreneurs are self-employed people, have innovative mindsets, aren’t afraid to take risks, and strive to capitalize on untapped business opportunities to gain financial success.
For more insights from experienced entrepreneurs on how to be your own boss, sign up for our EWOR Platform and gain access to over 17 courses and a plethora of resources.
5 Advantages of Being an Entrepreneur
Have Your Own Business
Being an entrepreneur implies having a business that carries your vision and goals. Entrepreneurs have a chance to create the business environment the best way they see fit. You don’t need to look for a career that matches your vision; as an entrepreneur, you can just start your own.
Additionally, having your business guarantees a flexible schedule. Since you’re the boss, you can plan a schedule that works best for you. Building a business requires hard work, and it’s known that entrepreneurs tend to work long hours. However, they have the privilege to balance their work and personal life.
Perhaps you need to attend your kids’ school show, or maybe you just need some time to rest. No problem: you can schedule your meeting some other time.
Not everyone sees continuous learning as an advantage, but entrepreneurship requires that. At the beginning of entrepreneurship, you won’t have many employees to help you out. You’ll need to gain various skills during your journey, for example hiring and interviewing, drafting a business plan and budget or prototyping.
The advantage of continuous learning is networking. To gain or learn new skills, you need to contact people who are good at them or learn from others’ experiences, which will enrich your network.
As an entrepreneur, by learning new skills, you’ll have a better and deeper understanding of your venture and of how to make it successful.
Building an Entrepreneur Network
Networking is not only important in entrepreneurship, but in every job. Entrepreneurs can enjoy the benefit of networking because it helps them connect with people who share their passion for building businesses. This links you to individuals who may also have valuable insights or connections that can boost the business you are trying to start.
If you’ve recently started your entrepreneurship journey, find entrepreneurship schools, and join events or online communities. They will help you meet with like-minded people.
You’ll have opportunities to hear other entrepreneurs’ stories and learn about how they overcome struggles. Check out our article “How to Network as an Entrepreneur.”
Gaining Leadership Skills
Another advantage of being an entrepreneur is that while running your business, you gain leadership skills. For example, communication, budget planning, productivity, time management and many other skills you’ll learn over time as a business owner.
Becoming a confident leader takes time. Your venture’s journey will help you gain the superior skills and confidence, which will turn you into a proactive and inspiring leader. Eventually, one day, your journey will inspire others.
Building Your Team
You should hire people that are excited about your projects and ideas and share your same vision and ethics.
However, it’s better to keep in mind that this doesn’t mean hiring only same-minded people. If you want your business to succeed, focus on diversity as well. Hire people who share their ideas on projects, instead of saying ‘yes’ to you all the time, or introvert and extrovert characters. To learn more about diversity, take a look at our previous article, “The Benefits of Making Diverse Hires to Scale Your Start-Up“.
What Should You Focus on Before Becoming An Entrepreneur?
Here are four elements we believe are essential steps for anyone who considers starting in entrepreneurship.
Clarify Your Business Idea and Plan
Start by finding your passion and ideas. What do you want to do, and which kind of product or service do you want to develop? Later, try to determine the problem, what is missing in the field or what you can improve.
Based on your answers, work on your business plan. A business plan is a guide and strategy that helps you to reach a goal or solve ongoing problems. Furthermore, it helps tailor a timeline to achieve those goals and what the budget is to do so. Additionally, a well-structured budget will make it easier to attract the right investors to your business.
Carry out Surveys and Evaluate Your Product
Create a prototype or a sample of your product or service. If it is software, let your close circle test it first and later expand that circle. Ask your friends and acquaintances if it is easy to use, what would they change or what they like the most about it. If your product is something consumable, get some feedback about the taste or design of the packaging. You want to address every little detail to make your product stand out.
Surveying and evaluating your product will help you to see the downsides and upsides of your product in the early stages of your business.
Learn About the Market and Your Target Audience
Learning about the market will help you know better what your competitors are doing and what does attract your potential customers. Understanding it allows you to create a suitable and profitable market strategy for your product.
Another thing that will help to increase the profit and your business is to identify your target audience. Determine the demographics you want to address and bring the right customers to you.
Establishing a business is hard, and finance is one of the important elements to keep an eye on. There are a couple of ways to find financial support. Some banks support new businesses and loan money; another way to find financial support is to reach out to investors.
Prepare a compelling pitch deck, and explain your business plan, budget and target audience. Find startup events or schools where you can introduce your business and get the attention of the right investors.
Being an entrepreneur will make you grow professionally and personally, but will also require commitment and determination. Therefore, before jumping into the world of entrepreneurship, you’ll need to ask yourself if you are ready to make the necessary changes and adjustments in your work and daily life.
Entrepreneurship is a long journey. At EWOR, we help entrepreneurs by assisting them in building a strong network and developing the necessary skills.