How to Become an Entrepreneur or Franchisee
An entrepreneur, just as the word is defined in the French, starts a business from scratch, assuming all the risk and all the rewards, according to Inc.com. Consequently, entrepreneurs need no special degree or accreditation, just high motivation, strong business skills and an excellent idea. However, becoming an entrepreneur or franchisee is risky, as about 50 percent of small businesses fail within the first five years, according to the U.S. Small Business Administration (SBA).
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Instructions
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1
List your interests, strengths and personal qualities. You will be more successful as a business owner if you are passionate about your company and its products or services. Write down things you like to do, such as working with kids, conducting research reports, designing, photography or advising others. In addition, look at your interests and work experience, as it is easier to sell products, or market within an industry in which you understand and know well.
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2
Brainstorm ideas. Review your list and think of ideas for businesses in which you see a need going unfulfilled or less than fulfilled. For example, if you have experience as a photographer and see a need for an instructional website on how to use Nikon DSLRs, then your experience and understanding of the market will benefit you in this endeavor.
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3
Research and evaluate your top ideas. Find out more about the industry, competition and costs. In addition, verify there is demand for your product or service today and in the future.
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4
Select the idea that resonates the best after carefully considering your research, which business represents the highest level of potential profit and which excites you the most. Sometimes having that extra bit of excitement will help you gain more momentum, giving you a higher probability of success.
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5
Finalize the legal structure by preparing the necessary paperwork. Determine if you would like to be a sole proprietor, partnership, corporation or franchisee. Each has its advantages and disadvantages, which vary from state to state. If you decide to become a franchisee, find a franchise that coincides with what resulted from your brainstorming session in step 2, as well as review the specific rules and regulations of the franchise.
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6
Develop a business plan. It is a valuable tool for entrepreneurs and franchisees, comprising the vision for the company, marketing and pricing strategies, competitive analysis and financial forecasts. It also includes projections, such as the number of employees required, costs and potential obstacles. A business plan is generally between 15 to 45 pages, depending on the industry, and is a requirement if you seek outside funding.
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