Entrepreneurs are essential to the economy. These individuals bring their initiative to bear to anticipate market needs and come up with new ideas that improve individual lives, the economy, and society more broadly. However, there are multiple ways to reach that goal. Read on to find out about opportunities available to aspiring entrepreneurs who are willing to put in the work.
Buying a Business
For those who are just starting to consider the idea of entrepreneurship, acquiring all of the skills and capital required to get a brand-new business off the ground can take some time. That doesn’t mean aspiring business owners need to wait it out behind cubicle walls. Instead, they can buy a thriving business that’s easier to finance and already has a successful corporate structure in place.
This approach to breaking into entrepreneurship offers opportunities to learn and makes it easier to find willing investors. Unfortunately, most start-ups don’t succeed, and only around one-third provide returns to investors. With that statistic in mind, it’s easier to see why most investors won’t put their money into backing aspiring entrepreneurs’ initial projects.
Financing the purchase of an existing business is much easier. Instead of having to pay for everything out-of-pocket, which is what entrepreneurs who want to start brand-new companies usually have to do, business buyers have more options. They can look into business acquisition loans through the Small Business Administration, for example. Private equity and venture capitalists are also more likely to invest in an existing business, especially if it is performing well.
Getting a Start-Up Off the Ground
The alternative for aspiring entrepreneurs is to start a brand-new business. Because the process is more arduous and requires a large personal investment, many entrepreneurs start their own companies only after they have learned the ropes of running an existing business. Either way, the process of getting a start-up off the ground is largely the same.
Prospective startup entrepreneurs should begin by making sure they’re financially stable enough to support both their families and a successful business. They should also take the time to build a relevant skill set before quitting their day jobs. Consider trying to work in different departments at a company, for example, or attending classes after work. For those who don’t want to pay for related degrees, there are also plenty of DIY options for learning the ropes, including podcasts, books, lectures, and more.
Of course, the most important aspect of starting a new business is making sure that the products or services it provides address a current market shortage or specific pain point for consumers or other businesses. Once an entrepreneur has figured out how to provide distinct value within their industry, they can start networking. Making contacts and meeting the right mentors, financiers, and suppliers can make the difference between success and failure for new business owners, so don’t assume that it’s a waste of time.
How to Get Started
Unless they already have a significant amount of working capital set aside to develop a well-thought-out idea, acquisition entrepreneurship is the best place for all aspiring business owners to start. Find a business broker who can help seek out the right business, negotiate with the seller, and facilitate the sale. Some people find that they’re perfectly happy with running an existing business and watching it grow and thrive, while others gain the skills and connections they need to eventually sell the business for a profit and start a new one. Both of these are good options for aspiring entrepreneurs.