How Do You Become an Entrepreneur?

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EntrepreneurIf you’re interested in being your own boss and taking control of your own income, you may want to know how to become an entrepreneur. It takes a certain type of person to become successful in business, but it doesn’t require any special skills or education. Street vendors who sell food from carts on the side of the road are entrepreneurs, and so are the thousands of eBay and Amazon sellers earning money through e-commerce.

Depending on how ambitious you are, you may need to make a substantial investment in your business to get it off the ground, but if you don’t have the starting capital, you can work part-time selling your product online. Many online businesses require very little starting capital, and the Internet provides many opportunities for free advertising. It usually takes a few years to get a business started this way, and launching a brand requires a greater investment of capital.

Common Industries for Small Businesses

It may seem like the technology industry is a great place to start a business, but this path is about as difficult for most people as getting rich in day trading, according to The Guardian. Less than 10 percent of tech startups make money, and most Silicon Valley entrepreneurs start five or six unsuccessful businesses before giving up and applying for jobs. The good news is that there are many other industries that are much easier to get started in, and if you have a clear, well-defined picture of the business you want to create, you don’t have to wait for anyone to give you permission to get started.

Most entrepreneurs start small businesses such as carpet cleaners, landscapers, home repair contractors, painters and window and door installers. These types of businesses don’t require a significant amount of industry knowledge, and most focused, motivated people can become profitable in one of these niches without extensive connections or brand promotion.

Financing a Small Business Startup

To start a business in a specialized industry, such as cloud computing or defense contracting, you usually need a college degree, industry connections, experience, lawyers, accountants and a business loan from a bank. You will need a business plan to be approved for a loan, and the Small Business Administration has a list of government and private loans available for small business startups in every state. These low-interest loans are offered so that small businesses can help improve the national economy, and your background and area of business make a difference in the type of loan you qualify for.

For example, women, Native Americans, minorities and veterans qualify for a greater number of small business loans than others, and there are different loans available for businesses in different industries. These loans are also available for expanding a business or financing environmentally friendly initiatives.

Businesses don’t always need to be started from the ground floor. Thousands of entrepreneurs buy franchises that come with a corporate brand name and a system for doing business already in place. Franchisees pay a certain amount to the corporate chain that owns the trademark on the brand they represent.

Related Resource: How an Entrepreneur Different From a CEO

Politicians spend a lot of time talking about small business owners around election time, because entrepreneurs are the job creators of the economy. If you’re interested in trading the comfort of a steady paycheck for the stress and rewards of running a business, find out more about how to become an entrepreneur.

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