So You Want to be an Entrepreneur?

This is a question many of you have heard from peers, family and friends. Possibly along with the question “what is an entrepreneur”. It’s sometime accompanied by a humorous expression.

Something akin to disbelief and pity for your desire to do things the hard way.

Fellow entrepreneurs will have a slightly more concerned look. If honest, they will warn you that it is not as glamorous as the digital nomads would have you believe. No drinking endless mai tai’s at some beach while the dollars land in your international banking account. The experienced and truly honest ones will ask you to reconsider your choice, get a mentor and make sure you know what you are getting into. 

If you survive all the doubt these well meaning folk plant in you, you’re good to go and ready to start as an entrepreneur. Yes, that’s right. You’re ready. You’re ready to face the crickets at your first product launch. Ready to face the months in between pay checks as you try to get established as an entrepreneur. And you are certainly ready to stick it out and return any loans you took out to start. You’re ready to stand up for your dream and make it a profitable one. 

And that is why I am here. I have been there and I want to help get you set up. Minus most of the heartbreaking and unnecessary situations budding entrepreneurs get themselves in. 

First off, what kind of entrepreneur shall you be? 

Will you be an an entrepreneur with a registered business? Does your business have a physical business location? Will you be trading purely online and trade using your real name? Or will you do business under a snazzy trading name? Will you be a solo-preneur or do you plan on growing a team? Will you be a serial entrepreneur, starting and raising a business to profitability then selling it to start another? 

These questions are important to think on as they determine how fast you must grow your business. They also help with what kind of business you will be growing. Take note of the current situation in your location and see which businesses are thriving. Investigate to see what kind of growth is expected in your chosen niche.

How about competitors? Every entrepreneur has a competitor whether you know it or not. What are your barriers to entry? If you start your business today, will there be twenty copycats by next week? Taking all these factors into consideration and putting a plan in place for them will help you stay afloat and pivot should the need arise. Preparation for the worst is just as important as preparation for good outcomes. 

What’s your business name?

Business names can make or break your business so choose wisely. When I started blogging as a third year college student I started a blog under the name Miss CandySpice. It never occurred to me that it may be a bit too cheeky for some audiences. Neither did I realise I would not want to use it professionally. I was an accidental writing entrepreneur to be honest! By the time I knew I wanted to use my blogging skills for copywriting as a service I had developed a healthy following and unfortunately could not quite use the name on my CV and other reputable platforms. It was unfortunate and starting up again disheartened me. So put some thought in the name you want to start with. 

Another consideration to make is whether you want to use your real name or get a name that suits your niche. Using your real name makes it easy to register a domain unless you are a John Smith then you will be in trouble. However, your real name locks you into the business. If you are going to sell your business in the future, your name may affect the goodwill value of the business. This is because people associate meaning and quality into the person who owns and operates a business. There are plenty businesses with plummetting stock price because a founder has been named in a scandal or similar offensive mishap. 

If you do choose a business name, know that a heavily niched one will not allow you to transition into another branch of business easily. For instance Ree’s Write Stuff may be great for a copywriting business but it will confuse a lot of visitors to your website if you decide to start selling photography equipment or gardening hardware. 

Another word of caution is not to be intentionally misleading with your business name. Ree’s Global sounds great and can help you land contracts with big companies. However, you will be a sham if you cannot provide the services that a global entity can provide. 

Finally, your name should be short, memorable and easy to pronounce. Names that are long are hard to remember and if your client or customer cannot recall it when they are recommending you to their circles you lose out on potential business. 

Key takeaway is to keep it short, memorable and relevant to your business. 

Business taxes for the entrepreneur

Oftentimes we forget that a business is more than a passion project and money maker. Once you decide to monetise, you will have some legal obligations to meet. Find out what the laws are in your country. Find out what kind of taxes you must pay. Also check whether you are eligible for certain tax breaks as a business owner. Most countries will not tax you below a certain revenue amount as they understand that starting up is hard. Seek information from the specific ministry or find a business consultant that will provide you with a breakdown of all the relevant authorities. Do not be afraid of getting this information as it is for the good of your health and will keep you from having back taxes and other such nuisances. 

Get to know your finances

You want to be your own business because you want to make money. Perhaps you took an accounting course in college and know all about debits and credits. Or you hated the course and you do not plan on handling the numbers. Wherever you fall on this spectrum, know that you must keep a record of your income and expenses. You will want to use an accounting system like Manager to keep track of your daily transactions. Get one that syncs online so that you will always have a backup. Accidents like water damage, computer crash or theft happen anytime.

In addition to an accounting system, get accounting advice. Most accountants offer advisory packages and can advise you on the best software to use. The best is to get one who will help you with tax returns and look over your finances regularly, be it once a month or once a year. Ask your business consultant to recommend one and if you do not have a consultant, ask someone who is operating a similar business to yours.

Get a mentor 

The journey you have chosen is a hard one. Make it easier on yourself and your dependents (even if it’s just a pet) by seeking advisory support from someone that knows the road ahead. They have done it and know how best to avoid landmines.

Be ready to listen and take their advice and voice your concerns if you feel they are leading you down the wrong path. 

If you do not feel comfortable sharing your business ideas and fear they will steal your business idea stop right there. It is true someone may run and make money from what feels to you like a novel idea. But the honest truth is that most business ideas are just improvements upon someone else’s business ideas. 

Chances are you do not see a business that is like your idea because countless others tried to monetise the concept and failed because the idea was not sound, the market was not ready or countless other reasons why they failed. If you do not open up, share the idea you will not know whether your business idea is solid or needs a bit of tweaking to ensure it can grow.

A mentor will also be in a position to bring light to problems and opportunities that you cannot see because you are yet to see and experience them. This is why it is important you get a mentor, advisor or a consultant. As you are just starting out and money is a limited resource, get a mentor. If you have some money laying around, get a consultant.

Should you get a coach?

Oh and while we are on the subject, should you get a coach? I believe in the power of coaching and some of my biggest aha moments have come under the guidance of a coach. But if this is your first time starting a business getting a coach may not be the best idea as their main function is to help you develop a new way of thinking, approaching your business, or show you how your method is contributing to your present outcome. In my opinion, only get one after you have been in business for a while and need help with a specific problem. And remember that a coach is like a psychologist: they will not do the work for you.

I hope this helps you. Let’s discuss below or share with someone who needs this.