If you’re looking for the steps to become an entrepreneur, you’re in the right place. Here, you’ll learn 7 steps to become an entrepreneur.
This is part five of the “What is an Entrepreneur?” series. I’ve found there are many people interested in entrepreneurship, but many myths surrounding what an Entrepreneur is. I plan to answer these questions:
- What’s the definition of an entrepreneur?
- What’s the meaning of an entrepreneur? Life Purpose, Vision, and Purpose
- Can I Become an Entrepreneur?
- What are the Characteristics of an Entrepreneur?
- What’s the Evolution Process to become an Entrepreneur? (you’re here)
I hope this series can clear some myths for you and expand your entrepreneurial creativity. You can read the entire series by going HERE. Please read to the bottom and get all the AMAZING FREE STUFF at the end!
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Everyone gets the opportunity to choose their path: some choose a corporate profession and others choose entrepreneurship. Unfortunately, there is a lot of uncertainty about how an entrepreneur forms, what path they should take to develop, and what separates the entrepreneurs who hit the apex of the economic charts versus those who live a life of struggle. In this article, we’ll discuss the steps to become an entrepreneur.
- 1 How We All Start Off
- 2 The Common Steps to Become an Entrepreneur
- 3 1. Commit to Learning
- 4 2. Find a Problem in the Market
- 5 3. Identify a Solution
- 6 4. Have a Dream and Desired Outcome to Eradicate the Problem
- 7 5. Share the Vision with others and Rally Allies (Employees, Vendors, and Customers)
- 8 6. Keep Learning and Testing to Scale
- 9 7. Train the Business to be Independent
- 10 Final Words on The 7 Steps to Become an Entrepreneur
- 11 Now, it’s Your Turn…
How We All Start Off
While some of us have a vision of “who we want to be when we grow up” very early in life, we all have to explore. We look at varying professions to choose what will be a good fit for us.
The Common Steps to Become an Entrepreneur
With any profession, there’s education required. If you want to become a teacher, firefighter, banker, child development specialist, or entrepreneur, there’s a development process. Regardless of what you want to do, there will be a training period. Some positions will have more on-the-job training, and other`s won`t. For entrepreneurs, there’s a big stereotype about whether its a feasible goal since there are so few people who do it successfully full-time, so the steps can be unclear. These are the steps I recommend and have found work.
1. Commit to Learning
For entrepreneurs, there are many training options. There are university training options and private training options. While it’s not vital that entrepreneurs choose a university program or spend thousands on education prior to starting their business, It is important for us to be very disciplined with our reading and developing new skills.
You want to start listening to successful entrepreneurs, reading their books, watching interviews with them, and taking the courses that will develop the entrepreneurial skills that you need.
Once you have some clarity with your business plan, it’s good to get feedback or help developing a solid startup plan. You can get feedback on your business plan thru one-on-one consulting, group consulting, or even some mastermind groups.
Once you start learning, it improves your creativity. You’ll see how others have been successful before, what business models exist, and you can find fragments of business ideas you may like to explore.
2. Find a Problem in the Market
With your continuing education under your belt, you’ll start to think like an entrepreneur. Overall, the position of an entrepreneur is a “Professional Problem Solver” position. In order to begin creating a business concept, you have to identify pain points for those around you or those you plan to be of service to.
To find some good concept direction, you can ask:
- What target audience do I feel passionate about?
- What are their pain points?
- What are things they struggle with?
- How can I use my skills and resources to alleviate their pain points?
3. Identify a Solution
Brainstorm things that could alleviate the pain points for the target audience.
- Would a product solve the problem?
- If so, what kind?
- Would a service solve the problem?
- If so, what kind?
- Can information solve the problem?
- If so, how will you compile it?
4. Have a Dream and Desired Outcome to Eradicate the Problem
Ray Kroc, the visionary behind the international McDonald’s food chain had a desired outcome that kept him motivated. From the point that he saw the McDonald’s restaurant, he had a vision for it. He said:
“When I saw it working that day in 1954, I felt like some latter-day Newton who’d just had an Idaho potato caromed off his skull. That night in my motel room I did a lot of heavy thinking about what I’d seen during the day. Visions of McDonald’s restaurants dotting crossroads all over the country paraded through my brain.” (Source: TheBalance)
As entrepreneurs, we have to have a desired outcome that is bigger than dollar signs. The desired outcome will keep us motivated and working to reach higher and higher to achieve new and steeper goals that impact more people.
Other visionaries like Dr. Martin Luther King had dreams of racism being eradicated, obesity eradicated, small businesses able to scale, or other problems eradicated. Make big bold statements and release your creativity to envision big change.
You can only grow an organization so big with your own personal labor. In an interview called How To Turn a Small Business into a Big Business, Verne Harnish said “The hardest person to hire is your replacement”.
Most entrepreneurs struggle with hiring, and usually the first hire is the hardest. We try to hire cheap or hire as a means to give back. When we keep bad hiring practices, rather than being able to scale, we add more work: continual training and normal work duties.
When we hire, we need to be mindful that the people we’re hiring are our replacements. They should have a skill level sufficient that they can briefly be trained, then work independently in a way they take something “off of our plates”.
Prototyping jobs is something we have to be good at. In my article, How To Create a Training Manual, I give instructions for how you can make a training manual that helps with delegation. Having a training manual can expedite the training process, create more independent training opportunities, and show you whether the new hire is a self-starter, if they are resourceful, or if they will require alot of “babysitting”.
Remember, you are inventing a system that makes money in your absence–not a job!
To invent the system, you’ll have to continue building training, prototyping positions, and creating new profitable positions that increase the value and efficiency of the company.
6. Keep Learning and Testing to Scale
Most companies don’t scale. According to the SBA, there are almost 28 million small businesses in the US and over 22 million are self employed with no additional payroll or employees (these are called non-employers).
There’s a big pain point between startup and scaling up. Be mindful that once you want to grow past being a solopreneur, there will be more learning. Books like Scaling Up by Verne Harnish can be extremely useful for advising you about how to approach hiring, prototyping jobs, scaling execution, ramping up marketing, and all other things you’ll need to ramp up.
7. Train the Business to be Independent
Business owners are parents to an entity. The business requires ongoing training like raising kids. It won’t automatically be independant which is why majority of the entrepreneurs work more than 40 hours per week. On the contrary, there must be intention in training the business to be independent.
If you regularly take strategy time, you can analyze which portions of the business are consuming most of your time, and decide whether you need to be more efficient, or if you can create a list of tasks that can create a profitable work position. You can begin prototyping the new position, so it can be filled, and more time is freed up.
Final Words on The 7 Steps to Become an Entrepreneur
The goal of this article was to show you 7 steps to become an Entrepreneur. Entrepreneurship is a vital component of the world economy, and I hope this article empowered you to fuel our economy in powerful ways! If you have questions or concerns about this, don’t hesitate to leave them in the comments section. I’d love to help you out!
If you’d like to start or scale your business, I’d love to help you out. Check out my free e-course! It’s a framework to start a business with an idea and grow it into an enterprise. Get started with the free e-course here.
Now, it’s Your Turn…
What do you think about the steps to become an entrepreneur? Have you been thru them? Do you think there are more or less? What’s your advice for how to become an entrepreneur? Leave your comments, questions, and feedback below.