The 5 steps to becoming an entrepreneur

The 5 steps to becoming an entrepreneur

Many companies are formed every day around the world. No wonder, because with your own company you are independent and can use all possibilities.

But there is a but… Did you know that almost 40% of companies go out of business within 5 years of their inception? (Source Insee year 2019)

There are different reasons for this. This can be due to poor choice of business idea and business strategy, but not only. In fact, entrepreneurship is also a matter of mindset and lifestyle. So how do you become an entrepreneur? The following 5 steps can help you see clearly.

Make a personal assessment before becoming an entrepreneur

Even though starting a business attracts many people these days, not everyone has the right profile for it. So you have the soul of a successful entrepreneur? To find out if you’re ready to enter entrepreneurship, take a little personality assessment.

Clarify your motives

Motivation has to be one of your best assets if you want to take action. You need to take a long-term view of your professional life. Your desire to be self-employed shouldn’t be due to a temporary problem in your job or a difficult situation you have to deal with. The life of an entrepreneur is a real obstacle course and motivation is one of the keys to success. To find out if you’re really motivated to start entrepreneurship, first make sure you’re in one of the following situations:

  • You have a service(s) to offer
  • You want to sell one or more products
  • You have another revolutionary idea

Whatever your initial idea, you need to be sure that your service or product will solve a problem or fill a need. This is how you quickly find your first customers and stay motivated. To find out if you’ve chosen the right product or service, try answering the following questions:

  • How can my business be useful to my prospects?
  • Does the problem I want to solve really exist?
  • Are people aware of this problem?
  • How can I convince them that my services/products can solve their problem?

List your limitations

Is it really the right time to start? This question arises in the face of the first unforeseen events. Hesitation is perfectly normal when confronted with a problem that you hadn’t thought of before. However, it is important to recognize all obstacles and try to anticipate the difficulties in order to be better prepared. This also allows you to better customize your project.

Here are some points to focus on before you even start:

  • your financial limit
  • Possible changes in your family life in the coming years (e.g. moving house)
  • Your essential needs to get started
  • You are strong
  • Vos contacts
  • your skills

The right mindset for successful entrepreneurship

Being a good entrepreneur isn’t just about having the right business ideas. It is fundamental to have the right mindset. Determination and perseverance are essential, especially in the face of obstacles.

But also :

  • Do you have a penchant for challenges?
  • have management skills
  • Be emotionally strong
  • Knowing how to motivate employees (leadership)
  • ..Etc.

Surround yourself with the right people to do better business

Even if you want to start alone, founding your company should not be a one-off project. Don’t stay isolated. Know how to surround yourself and connect with people who share your vision and stick to your project.

Sometimes it will also be necessary to delegate. Identify the skills and responsibilities related to the tasks you want to delegate to find the right professional who can best support you.

Develop your business plan

Writing a business plan is a crucial step in starting your business. When writing the business plan, you need to set your short-term and long-term goals. With this document you can prepare in advance your action plan to carry out your project.
The purpose of a business plan is to establish how long it will take for your business to be profitable. It is an essential document to obtain financing from your bank or to convince potential investors. It also lets you know if your box can invest to develop

Are you looking for financing for your business start-up project

Starting an entrepreneurship usually requires a financial investment. However, a newly founded company usually does not generate any profit from the very beginning of its activity. The search for funding then becomes essential.
You can apply for different types of financing (alone or combined):

  • Personal Savings : With this personal contribution you can finance part of your project.
  • Public Aid : You can get financial support from the state or local authorities. These business start-up aids also include tax relief. So there are: ARE, ARCE, ACRE, etc.
  • bank loan : You can benefit from a loan from your bank. With a loan of 2,000 to 7,000 euros, the repayment period is often limited to a period of 5 years.

Choosing the right legal and tax status

It is sometimes difficult to know which legal status to choose for your company. In addition, your choice can have important implications for the development of your future business. To make your choice easier, note the following points:

  • The nature of your business and your professional status
  • The size of your company
  • The amount of your sales

You can therefore choose between the following legal statuses:

  • The sole proprietorship (EI) or limited liability company (EIRL)
  • Sole proprietorship or limited liability company
  • The professional civil society or the liberal exercise society
  • The simplified joint-stock company (SAS) or the simplified single-person joint-stock company (SASU)
  • civil society
  • The Limited Liability Company (SA)
  • The bourgeois real estate company

As far as the tax regime is concerned, it often depends on the chosen legal form. However, you can also choose it according to your industry and the needs of your entrepreneurship project. Possible tax regimes:

  • Taxation of micro-enterprises
  • income tax
  • Corporation tax

You now have all the essential steps to become a successful entrepreneur.
If you want to start a business in the digital space, are there additional phases?

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