Is your heart steering you toward being your own boss and making an impact in the world? If so, you may have researched entrepreneurship but don’t know where to start.
Fortunately, this 8-step guide offers actionable advice on how to become an entrepreneur. We’ll break down the process to set you on the right path.
You’ll also hear from a trailblazing entrepreneur making an impact in their industry. Mine their story for nuggets of wisdom you can apply to your entrepreneurial journey to help you leapfrog the learning curve.
How to become an entrepreneur
There’s a saying in business: “Success isn’t a destination; it’s a journey.” And there’s a lot of truth to it.
Success isn’t about the goal or dollar amount you’re chasing. It’s about the person you become on the way to that goal. With that in mind, most of the steps we give you today will be practical, actionable, and tangible. But the first—and probably the most important—is about strengthening that “muscle” between your ears.
1. Adopt an entrepreneurial mindset
So, how do you shape up your brain and adopt the entrepreneurial mindset for yourself? Start by:
- Focusing on growth. Entrepreneurs view everything as an opportunity. Even in challenging times, treat situations as something to learn from. Yes, this is sometimes easier said than done, but reframing obstacles as lessons prepares you to embrace new ideas and solutions that can transform your business.
- Staying resilient. The road to becoming an entrepreneur is almost always bumpy. There will be ups and downs. Honing your resilience—your ability to stay motivated and keep going in the face of these difficulties—is critical to reaching the goals you have for your business or idea.
- Being flexible. The business world moves quickly. Throughout your time as an entrepreneur, you’ll constantly pivot to adjust to changing market conditions. Track marketplace trends and always be willing to pivot toward embracing new feedback, technology, or opportunities.
2. Find a niche or idea
If you’re reading this, you may already have an idea that you’re ready to run with in mind. If you don’t, then research is in order.
Start by exploring your hobbies or passions. What do you do that makes you so focused you lose track of time? Write these things down. This list could be where your big idea begins.
Similarly, identifying everyday problems can unlock innovative ideas. Think of how Uber and Lyft’s popularity exploded by making it easy to hail a ride straight from a smartphone app. Or how Venmo simplifies sending money among friends. Each solves a problem or opens the door to a new way of doing something.
Examine problems you or the people around you might experience. Can you solve them? Or can you improve the current solution? This could be your opportunity to disrupt the market with a much-needed solution.
3. Build your network
Launching a business idea is challenging enough. Don’t make it harder on yourself by doing it alone. Building a supportive network is invaluable in navigating the challenges of entrepreneurship.
Most areas have networking events for entrepreneurs or industry-specific meetups you can attend. Show up at these events, shake hands, and make connections. It can be intimidating, but remember that everyone is there for the same reason. Approach networking with a genuine desire to contribute value to others. Share your expertise, offer assistance, and actively listen. It’s all about building authentic relationships.
Friends, family, and alumni associations are also great places to expand your network. Regardless of where you find connections, don’t hesitate to turn to others to help you along your journey. Don’t discount any relationship. Whether it’s funding, mentorship, or just emotional support, you never know who will come along to help you (or how they might help you).
4. Validate your business idea
You may have already done some of this research when finding your niche or idea. Now, it’s time to dig deeper. Even if you have the best idea in the world, your launch may crash and burn if there’s no real-world market for it.
Imagine your ideal customer. Who are they? Where do they live? What do they do for work? This is called forming a customer avatar, and the more detail you can provide, the better.
Once you have an idea of your ideal customer, visit social media pages, forums, and websites where they may hang out. Learn their vocabulary and see what they’re talking about. You can even post and ask market and audience research questions to fine-tune your product or service. Another tactic is to design a “coming soon” page to drive traffic. This is a good way to build excitement, test demand, and collect contact information like email addresses or phone numbers.
Competitors within your niche can also be a great source of information. Visit their sites and take note of what you like or don’t like. You might even take it a step further by asking them what’s working and what isn’t. If you’re in the product business, you can order their product and analyze the quality of the whole experience from start to finish.
5. Write a business plan
Your business plan sets the tone for your success. It lays the groundwork for how your business operates and is essential if you’re trying to secure funding from investors or banks.
Ensure your business plan contains the following components:
- Mission and vision: Lay out the goals, long-term plans, values, and purpose that fuel your business. You may already have these in place when you start, but if you still don’t have them and have a team onboard, involve your team in the process. You’ll get more buy-in from people when they feel like part of the story.
- Industry strategy: Lean on your market research from earlier to create an in-depth strategy for how you plan to start out and grow in your chosen industry.
- Financial plan: Outline the basics of how you’ll finance your entrepreneurial endeavor, including how much you estimate you’ll spend in startup costs and your projected profitability. You’ll also set clear financial goals like target revenue amounts for each month, quarter, or year and make predictions about the amount of fundraising you’ll need to do.
- Operations architecture: Lay out the overall structure of your business. Provide in-depth descriptions of how your operations will work, your organization’s management structure, and the technology or nonfinancial resources you need.
6. Fund your business
It’s entirely possible to launch your business with little or no money. But most businesses require some level of startup capital. Securing this money will require you to provide in-depth financials on your business’s current and future performance.
Thankfully, you already have this information in your business plan. Also, most banks and investors will look at more than just financials before loaning you funds. An organized, in-depth business plan provides them with everything they need. And this level of professionalism won’t go unnoticed.
Some of the ways you can secure funding are through:
- Investors: These can be professional, accredited investors or friends and family who loan you money directly to launch your business. Even if you get money from friends or family, there is typically paperwork to protect everyone’s interests.
- Business loans: This is official funding from a bank or other lending institution. Generally, it requires an application and underwriting to receive your funds.
- Self-funding: Depending on your startup costs, you may be able to fund your business yourself.
- Crowdfunding: You can also turn to a crowdfunding platform to generate capital. These sites advertise your request for business capital to people who want to invest in business ideas that resonate with them. Different crowdfunding models offer different risk profiles for investors. Reward-based campaigns allow people to support your project in exchange for products or perks, while equity crowdfunding gives investors a stake in your company’s success.
7. Formalize and launch your business
Now that you’re ready to launch your business, you’ll need to consider how to structure your business and secure the proper permits and licenses.
Regarding business structure, you can talk to an attorney or certified public accountant (CPA) for guidance. Forming a limited liability company (LLC) offers liability protection and flexible taxation, while a C-corporation can attract investors and issue stock options, and an S-corporation allows for pass-through taxation and potential tax benefits. So, talk to a professional and ensure it gets done right the first time.
After choosing your structure, work on your licensing and permits. Here’s what you’ll need:
- A federal employer identification number (EIN). Think of this as the Social Security number for your business.
- State and local tax registration and business licenses. See what permits you need to do business in your area and consult an accountant about specific taxes you may have to pay.
Lean on the knowledge of experts with this step. Don’t underestimate the importance of a good accountant. Hiring a CPA can do even more than help you with your tax liability. They can advise you on what business structure will work best for you and guide you through how to establish it.
8. Manage and grow your business
Experience is the best teacher. Most likely, you’ll learn more from the daily management of your business than you would from any business class. There are always new things to learn as an entrepreneur, and maintaining a constant thirst for knowledge is essential to success.
Take the time to learn from those who have come before you—within your industry and entrepreneurs in general. Follow their lead (or learn from their missteps) to remain innovative. Listen to podcasts, read books, and take classes whenever possible to strengthen your weaknesses. Find what works for you and keep learning throughout your journey.
How Intuit supports entrepreneurship
Through Intuit Ventures, we train high-growth, mission-aligned startups on how to become entrepreneurs and usher in new and exciting waves of innovation. Our investments represent opportunities to power prosperity and improve the financial lives of individuals and small businesses.
We strive to be strategic and value-add partners who bring more than just an investment. We’re a values-aligned team that believes diversity powers better results and are always excited to hear from diverse founders within our thesis areas.
If your company is building in one of our focus areas (more information) and wants to discuss an investment by Intuit Ventures, please submit information about your company and funding round here or get in touch at ventures@intuit.com.