If you’re thinking of how to become an entrepreneur then, congratulations, because you’ve already taken the first step. That’s because “being” an entrepreneur is less about specific accomplishments or accolades, and more about the mindset.
In fact, if you were to search for “entrepreneurial mindset” you’re likely to find dozens of blogs, videos and webinars discussing secrets and characteristics of how entrepreneurs work to develop a mindset that focuses on achieving success. So if you’re thinking about it, you’re probably motivated to explore it more deeply and perhaps, ultimately, pursue it.
The reason developing a mindset is so important is because, to really be an entrepreneur, to truly embody that creative drive and determination, you need to develop a fundamental nature in how you think of a problem or approach an issue. Just following a checklist of “have an idea, get a loan and then start a business” isn’t going to do you any good when you come across a problem that you don’t already have an answer for, and no list – not matter how thorough – is going to light that fire of inspiration to help see you through difficult times.
Not everyone is going to have an intrinsic mindset of an entrepreneur, but the principles and process can be learned – after all, you were born unable to walk or talk, but that didn’t prevent you from learning how. Becoming an entrepreneur is about learning to recognize the knowledge you need to acquire and the moves you’ll need to make.
7 Steps to Becoming an Entrepreneur
1. Build Your Skill Set and Knowledge Base
No matter what, you want to start and stay curious. There’s a lot out there to learn, more than you’ll ever have time to master and any entrepreneur needs to be adaptable and open to new information. That can seem daunting, but there are a few things you can do to simplify the process of continual learning.
- Take a “first principles” approach to problems – as Elon Musk has said, first principles is a “good framework for thinking… boil things down to their fundamental truths and reason up from there, as opposed to reasoning by analogy.”
- Get comfortable with research – subscribe to trade publications to see what’s trending within an industry. Research the market you’re interested in exploring. Get out and meet people who are doing the things you want to do; not only can they provide good advice, they’ll be an invaluable part of your network.
- Focus your attention on what matters – while some serial entrepreneurs have a reputation of being jacks-of-all-trades as they jump around from industry to industry, you can likely find more success by focusing on an area of interest and specialization. Pursue a degree or program that teaches entrepreneurial skills and knowledge specific to the industry that you want to get into.
2. Build Your Network
No one ever succeeded alone. Every successful entrepreneur has benefited from their own network of mentors, partners, employees and investors. Once you’ve found a mentor or advisor who can assist you, it’s important to reach out and find other systems of support.
- Unsure of how to go it alone? Partner with a cofounder or small team that will offer complementary skills to your own. Being part of a larger whole provides additional skills and expertise, plus it can make it easier to secure funding.
- Talk to friends and family about your venture. Not only are they the surest way to secure additional support, some might be sources of possible “seed” funds or low/no interest loans.
- Get professional help! Research and vet professionals like financial advisors and lawyers that you feel comfortable trusting and relying on – you’re going to need them.
3. State Your Idea, Claim Your Niche
If you don’t already have a solid idea, then it’s time to consider what type of product or service you’re able to offer and – more importantly – what’s going to set you apart from everyone else.
- Start exploring solutions for every-day problems or frustrations experienced by friends and family and your target markets. As Entrepreneur magazine explains, the most innovative startups are often simple solutions to common problems.
- Determine if you’re going to meet an underserved demand or improve on an existing service. The former is a way to claim a space within a market and differentiate yourself from competitors. The latter is more disruptive, where you can position your business as a new way of doing things.
- As always, you’ll want to do your research on the categories and fields you’re thinking of entering and start asking questions about how a new product/service can exist within that space. If you’re unsure of how to do the legwork, or need to dedicate time to other aspects of your startup, consider hiring a marketing researcher for assistance.
4. Find and Understand a Market
The best product in the world isn’t going to succeed if there isn’t a market interested in buying it. Starting broad may seem like a good idea, after all that’s the highest possible number of buyers, but trying to sell to everyone means that you’re really selling to no one. To get a better idea of what your market is going to be, you’ll need to develop an understanding of what people are looking for.
- Who are the people most likely to buy from you or would be most interested in your service?
- Develop profiles of your potential buyers – what jobs do they have? What lifestyles do they lead? What needs do they have? What pain points do they experience?
- Narrow your list down to the best opportunities and select the one that you want to start with first.
- Set up interviews or surveys with people who fit that profile to continue refining that initial understanding. Which pain points are most urgent for them? Would they prioritize convenience over price? What benefits of your product/service might excite them the most?
5. Design Your Business and Idea
Once you’ve settled on what you want to do, then you’re going to have to outline your business structure and develop your product to show that it’s viable. That’s the only way you’re going to be able to win over investors.
- It’s time to start laying out exactly how your business will be moving forward. You’ll want to create a business model, aka a business plan, that details how your business will be organized, a prospective budget for the future, details on how your business will make money. If you’re looking for models to follow, consider these business plan templates from Score and from Hubspot.
- Plan out the sales process that you’ll use to acquire new customers. What’s your marketing strategy – are you using certain social media accounts? Are you attempting a viral marketing campaign? What sales materials will you need? Most importantly, what’s the process by which you’ll convert those who express interest into actual sales?
- It’s time to truly show what your business is about and build out a proof of concept, or what’s also known as a minimum viable product (MVP). The MVP, whether it’s software, a service or a physical product, should be capable of executing the basic and most important functions of your idea.
