Entrepreneurship used to be this shining beacon of light in one’s dreary days as a corporate employee. However, pundits say that the entrepreneurship craze has died down. But has it? Can entrepreneurship in 2022 still be a thing?
In 2015, the Wall Street Journal said that business ownership for Americans under 30 reached a 24-year-low. Post-recession challenges and a generation struggling to find a spot in the workforce contributed to the decline. Yet, the tide seems to have shifted. According to the National Bureau of Economic Research reports, business creation in the country has unexpectedly increased in 2020 and 2021. There are many reasons for this, including the move towards more online commerce and an increase in shipping needs.
Add to that the recent pandemic, layoffs and shifts in remote work trends and it would seem that now is an excellent time to start your own business. But it’s not going to be easy. Here’s how you can take the plunge into business and not flounder.
Identify a problem you can solve
You’ve heard about a successful company starting from a single brilliant idea. So, most would-be entrepreneurs rack their brains for the next big profitable thing. Wouldn’t it be better to identify a problem you can solve and let that be your business? There is always something that needs fixing. The things that frustrate people are sources of innovative ideas for future businesses.
Know your target audience
Identify your target demographic — age, income, culture, gender, and race. Your audience determines how you run your business. Your product or service will solve a problem or challenge that your target audience has. Conducting market research is essential to crafting effective business strategies. Many businesses agree as well. The global revenue for the market research industry passed 73.4 billion US dollars in 2019.
Create a business plan
After identifying a problem you’re passionate about solving, come up with a business plan. Sound business plans have an executive summary, marketing strategy and analysis, financial planning, and a budget. This plan should be centered around your consumer problem-solving idea.
Don’t hesitate to expand your education. This way, you’re better equipped for the entrepreneurial journey. Whether taking an online class or going back to school to get a relevant degree, do it. Expand your education (formal and informal). Learn the business basics, build your vocabulary, and have solid business acumen. Also, look for mentors who can help you navigate the ins and outs of running your enterprise.
You’ll encounter frequent problems when starting a business. Knowing how to overcome them is vital for you to thrive.
Learn to manage money
A big chunk of running your own business would be managing cash flow to maintain low operational costs. Honing your money management skills and learning basic accounting will become indispensable once you become a full-fledged entrepreneur. Having enough capital is necessary to get your startup past the planning stage. Study the options you have out there. Should you find an investor? Do you take out a loan to fund your venture?
Last, familiarize yourself with financial tech services. Various platforms are now available allowing entrepreneurs to manage business expenditures easily. Automation is slowly becoming the norm, and it’s best to keep up with these trends. Fintech and automation help speed up your company’s accounting processes. Using these services frees up a significant part of the workday to focus on more urgent tasks.
Entrepreneurship has its seasons but becoming one is a choice anyone can make. Timing and funding matters contribute to having a successful business venture. However, the persistence and determination of the entrepreneur will allow a company to scale at great heights.