Becoming an Entrepreneur

Becoming an Entrepreneur

Why do people become entrepreneurs?  According to Scott Shane, most people become entrepreneurs because they want to be their own boss.  When comparing compensation, job stress, and hours worked of employees and entrepreneurs, the sat are not equal.  People who work for themselves tend to work more hours during the week, more stressed and exhausted, and can earn less money.  Though the numbers may not add up, being your own boss is considered a grater job satisfaction for entrepreneurs.

Knowing that being your own boss can be stressful and pay less, why would you still want to start your own business?  I discussed the idea of starting a business with my cousin, who is going to school for education in hopes of teaching, here is what she had to say.

“I enjoy children.  Getting an education is one of the most important things that a person can do.  For the last ten years, I know that I have wanted to start my own business.  I love working with children and knowing that I am teaching them something new, and providing them with good life experiences. But seeing as I and unable to find employment doing what I love to do, the next thing for me would be to move forward with starting my own business.”

As you can see, she has great passion for children and education.  But having the passion for something is not enough to start a business.  When starting a business you must first have determination, motivation, and know-how.  Darrell Zahorsky provides nine essential steps for starting a small business.

1. Identify your business opportunity
2. Build a business plan
3. Find start-up money
4. Name your business
5. Choose a business structure
6. Get you business license and permits
7. Set up and determine you r business location
8. Get business insurance
9. Create an accounting system

Since careful planning is fundamental to success.  A great resource for starting a business is the U.S. Small Business Administration (SBA).  The SBA provides future entrepreneurs with information to help them become successful in starting a business.

            According to SBA you need to plan for all stages of your business cycle.:

1. Plan your business
2. Start your business
3. Manage your business
4. Getting out

References:

Starting a Small Business 101: The Essential Steps, By Darrell Zahorsky, www.about.com

U.S. Small Business Administration, www.sba.gov

Why Do People Become Entrepreneurs? By Scott Shane, www.usnews.com