Entrepreneurs start their own business based on a product or service idea. They create a firm with capital and labor to convert the idea into reality with the ultimate goal of generating money. The size of the business can vary from small to large. The entrepreneur is responsible for planning and managing daily operations, supervising progress, taking corrective actions, and maximizing sales through marketing, etc. When a business reaches a certain size in terms of revenue or breadth of operation, the entrepreneur may be able to hire specialists for various divisions within the business; until then, he/she will be responsible to handle most of these business functions on their own.
Entrepreneurship can be in any area; it could be a restaurant or a manufacturing plant; it can be a traditional brick-and-mortar, physical shop or an IT company that provides its services over the internet.
This particular entrepreneur is focused on branding and advertising.
Education and Qualifications
As a business can be in any industry, there is no defined educational path or qualifications you must have. Per various successful entrepreneurs, entrepreneurship or business degrees can help, but they are not a must. On the other hand, if you are technically strong in a specific area that could be an added advantage. For example, let’s say you are in the software development business; if you have a computer science background and programming skills along with business administration knowledge, you will have an easier time dealing with not only developers, but also finance or marketing specialists as well.
Other successful businesspeople also suggest gaining some type of experience in the specific industry that you wish to start a business in. As large companies usually have various specialists/departments to handle specific functions of the business, it is hard for an individual to gain experience in multiple disciplines. So, working for a small or medium size firm to get experience in various business functions will probably be more beneficial than working in a large corporation.
Responsibilities
- Creating and evolving a vision for the business
- Securing capital: only few can afford to invest their own money (bootstrapping) or get support from family. Others need to handle this through various means like business loans or acquiring finances through venture capitalists, angel investors, or partners. Once capital is acquired, it must be invested and managed well.
- Building a team: recruiting and training employees.
- Guiding and motivating employees to deliver the best they can
- Managing finance and accounting (expenses and income)
- Handling sales and other customer interactions directly (at least at the beginning)
- Receiving direct feedback from customers and fine-tuning your products/services
- Being flexible to take on any type of task as needed
- Constantly learning and staying ahead of competition in the target market and understanding the strengths and weaknesses of your business (crucial step to staying afloat)
A Day in the Life
As entrepreneurs are responsible for all areas of a business and success directly depends upon how well various tasks are being executed, this does not fall into the 9-to-5 job category (for the majority). While workdays can be unpredictable, it is possible to create a routine for the repetitive tasks.
Other Necessary Skills
- Leadership skills
- Time management
- Decision making
- Networking – whether you need advice to resolve a problem in your business or want to meet a potential customer or reliable supplier for your business, networking plays a major role.
- Communicating well with employees, customers, suppliers, etc.
Career Progression
As stated in the ‘Education/Qualifications’ section there is no defined path to become an entrepreneur. But having a college degree in the specific field and/or a business or entrepreneurship educational background will certainly help. Similarly, having some working experience in the specific industry will also help.
Salary
Many entrepreneurs take a fixed salary from their business to meet their family/personal needs. The remaining profit is typically reinvested to grow the business. While the salary withdrawn is decided by the business owner(s), typically it varies from $30K to $150K.
Job Growth
There are about 32 million businesses in the US; opportunities vary by location and industries.
Summary
What worked for one business may not work for another which is part of the reason why this is such a difficult path to go down. However, there are some basic rules to follow in order to have a high chance of attaining success.
