How to Become an Entrepreneur
03 August, 2023
An entrepreneur is a person who organises, manages and assumes the risks of a business or enterprise. The term 'entrepreneurship' can be defined as the process of designing, launching and running a new business.
The word "entrepreneur" comes from French and means "to undertake". An entrepreneur has many qualities in common with other people who start their businesses, but some unique characteristics separate successful entrepreneurs from those who fail to succeed. Entrepreneurs have innovative minds, are good at multi-tasking and have determination.
Steps to Becoming an Entrepreneur
There is no fixed rule for becoming an entrepreneur. The rules of entrepreneurship change every moment. Trends in business and market conditions change quickly. Hence, you need to be flexible to embrace those changes and redefine your business. However, there are some basic steps you need to follow if you are starting your entrepreneurial journey:
Build Your Skill Set and Knowledge
As an entrepreneur, you need to continuously learn to be on top of the game. You can do this by reading industry publications and attending conferences and seminars. Joining organisations that are specific to your industry will also help you learn more about what's going on in your space. If there are influencers in your area who have a lot of followers on social media or other platforms, it might be worth following them so that they can share their knowledge with you through their posts as well.
Identify Your Business Idea
Before you start your journey to become an entrepreneur, you need to identify your business idea. This could be a problem that needs to be solved or a service that is missing in the market. Start exploring solutions for the everyday problems of your friends and family and target markets. The most innovative ideas often come up with simple solutions to common problems. You need to research the market and understand what people want from your product/service. Select an industry or niche for which you have a passion that can sustain your entrepreneurial journey.
Conduct Market Research
Once you have identified your business idea, it is time to conduct market research. The purpose of this exercise is not just to understand who your customer is but also how they want to be served. Determine what products/services they need and how much they are willing to pay for them. This will help you create a unique value proposition. Research your competitors and know what they are doing. Evaluate the strengths and weaknesses of their products and services. It helps identify key industry trends.
Focus on a Growing Category
It is important to choose a category that’s growing and has the potential to scale up in the future. The best way to do so is by identifying an underserved market or one that hasn’t been tapped yet. After you've picked the category, study all the products in that category. Benefits of the products, packaging and marketing strategy, reviewers' view, potential improvements. Once you've picked a product, consider questions like what can be done to improve it, adding a new feature, using a different material, personalisation etc.
Also Read: What Is Business Loan For MSME?
Create a Minimum Viable Product (MVP)
An MVP is the simplest version of a product that can be developed and launched to test the market. It's a prototype that has just enough features to satisfy early adopters and gather feedback. The idea behind the MVP is to get the product into the hands of customers as quickly as possible, so the startup can validate its assumptions, learn from feedback, and iterate.
An MVP is an essential development technique for startups. It allows them to reduce risk, get to market faster, and gather feedback from early adopters. By focusing on the must-have features, startups can create a functional product that can be tested and iterated upon.
Develop a Business Plan
The next step is to develop a business plan. This is where you will map out all the steps needed to turn your idea into reality. You should include your long-term goals, short-term milestones, and estimated timelines. A good business plan should be able to answer the following questions:
What problem will this business solve?
Who are my customers? How can I reach them? What makes my product/service unique?
Plan out the sales process that you'll use to acquire new customers. What will be your marketing strategy?
As an entrepreneur, your role is to set the mission and vision of the company.
Also Read: MSME Small Business Loans for Women Entrepreneurs
Find a Co-founder
You could find a co-founder when starting a new business. There are several advantages to having a co-founder. It is easier to get funding as usually venture capitalist investors believe that multiple founders contribute to a company's success. Your co-founder might bring more connections, vast experience and skills that could help the business. A co-founder can share responsibilities with you.
Funding
Get funding from family and friends, banks or other financial institutions that are willing to lend money on reasonable terms.
Build your business
Now that you have secured funding, it's time to build your business. You will need to figure out a location for your business, whether you want to rent out or lease a building. You'll need to consider the actual structure of your organisation and plans for incorporating your business. Keep on marketing and advertising your business. After the initial buzz dies, you'll need to find new ways to reach out to new customers. Review the campaign performance, and social media channels to know what's working and what's not.
In conclusion, becoming an entrepreneur is a challenging but rewarding path. By identifying a problem, developing a solid business plan, securing funding, taking risks, and networking, you can increase your chances of success. Remember to stay focused, remain adaptable, and never give up on your dreams.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank recognises the challenges entrepreneurs face while acquiring capital. Thus, HDFC Bank has created MyBusiness, a one-stop solution that gives you easy access to loans, digital solutions and provides you with the essential knowledge you need to run your business. With HDFC Bank MyBusiness, you can scale up, expand your operations, and nurture your business.
