So You Want to be an Entrepreneur! Here Are the Steps You Need to Take – Like it or Not
Being an entrepreneur is a common aspiration for many today. Oh, the freedom and joy of owning your business! You have always wanted to be your own boss and have your minions do all the tasks you don’t like while the money comes rolling in. Finally, you will enjoy a good life of fame and fortune.
Well, sorry to burst your bubble. For most of us, it’s not that easy, taking years of hard work and dedication to get there. And you are going to have to face some tough challenges along the way. But, there is a lot of appeal to being in charge of your destiny.
This post will describe what it means to be an entrepreneur and the steps to get there. However, this round is to provide only a high-level perspective. Future posts will provide greater detail.
The Entrepreneurial Ladder
A ladder is a good simile for the phases in the entrepreneurial journey. Of course, this definition is my perspective only, and you are free to agree or not. But, in the end, the result most important to me is that you form your own opinion and plan of how to achieve your entrepreneurial dream.
Let’s dive in and look at the entrepreneurial phases or ladder.
Phase 1: Student
The first rung on the ladder is the starting point and phase where you learn about business. The two foundational skills to secure a firm grasp of are generating cash flow and applying capital. Other areas of business you should be open to exploring so you can use them later include:
- Aligning your personal interests and skills with productivity
- Finance
- Accounting
- Marketing
- Sales
- Technology
- Human relations
- Human resources
Phase 2: Employee
In this phase, you learn how to be a business owner without the direct risks or stress. You get to watch, ask questions, and practice skills.
You will have a role in making decisions with consequences, the reality of which is not taught in school. These are invaluable experiences.
Hopefully, you will develop a relationship with older seasoned veterans willing to take you under their wing as a mentor.
In addition, financial stake-holding in the business should increase through profit sharing and incentive programs offered by your employer.
If the company you are working in does not offer some form of mentorship and the opportunity to “earn a part of the action,” you may want to look elsewhere for a more meaningful experience.
You will probably hold experience producing positions within the company in an order something like this:
- Entry-level
- Low, medium, and high-level manager
- Low, medium, and high-level officer
This is also the time to venture out and explore a side hustle of interest. It’s a good way to dip your toe in the waters of entrepreneurship without leaving the security of a consistent paycheck.
But make sure your moonlighting does not violate any agreements you have made with your employer before venturing out.
Phase 3: Business Owner
You officially start or purchase of your own business!
Hopefully, leaving the security and small ownership position in your previous employment where you felt valued was a difficult decision. Remember the mentoring and stake-holding factors in Phase 2 when you were an employee? Now is the time to incentivize your performing employees, so they are vested in the long-term success of your business.
The buck stops with you now as an owner and operator. Your task is to improve the value drivers of your business constantly. It’s time to develop policies, procedures, and desktop procedures. Over time these will allow you to hire, train, and delegate the day-to-day operations of your enterprise to competent, trustworthy employees.
Phase 4: Investor
Because you did such a great job hanging onto the third rung of the ladder, you have been able to step away from the business. Your enterprise now runs itself. While you still need to keep a finger on the pulse of the business. But your role is more that of an investor than an operator. As a result, you receive consistent passive income from the company you started or purchased and grew. Sweet!
Phase 5: Entrepreneur
At this point, climbing up the ladder, an exciting thing starts: Other people come to you to put their time, money, talent, and ideas to work. Partners or capital are plentiful. You can now decide how much you will work, who you will work with, and the terms of engagement. These are all tell-tale signs of a genuine entrepreneur.
Phase 6: Serial Entrepreneur
But wait! You don’t have to stop with Phase 5. If you like, you duplicate and multiply your business holdings. Go serial!
Into the future
The only limit on what you do from here is up to you. I wish you well on your journey forward!
Thanks for reading and thinking for yourself!
Russell Anderson
***
P.S. I appreciate and respect your investment of precious time to read my work! That’s why I strive to provide thought-worthy content that generates a worthwhile return on your investment.