Steps from Employee to Entrepreneur (Business Owner)

Steps to go from Employee to Entrepreneur

It’s not that easy being green.

This is the opening line of a song made famous by the Muppet Kermit the Frog. It tells the story of the singer being unhappy with what and who he is, wanting to change, but in the end, deciding that it is best to accept things as they are.

A similar quandary faces many employees. Many employees are happy remaining as employees, but others desire to change, to change from employees to entrepreneurs, to change from belonging to a business to owning a business. This article is for those who desire to change; this article offers the steps necessary to make that change.

As an employee–

1. You cannot get answers if you do not ask questions. These are questions that only you can ask, and ask only of yourself. What is it that you want to get out of life and work? What do you want to accomplish? What is your passion? What is more important to you: the time to enjoy things, or the money to get and have those things?

2. Not everyone has the mindset needed to run his or her own business. Kermit the Frog obviously does not have that mindset. On the other hand, we know of one individual who desired to become a real estate loan broker. He decided that he would work for a large bank for a few years to get more knowledge, experience and contacts. He did have the mindset to change from being an employee to being self-employed. In general, although some employees face some of the following, entrepreneurs must be ready to take on more responsibility, interact with more (and all types of) people, accept uncertainty and mistakes, and think of new solutions and possibilities.

Begin the groundwork:

1. Get and have ideas. It ought to be something that you are familiar with, either now or in the past. If you are a nuclear physicist then you are certainly intelligent and rational enough to do almost anything, and you may even have significant financial banking, but if you want to go into the carpet cleaning business then do you really know anything about that? Sometimes even familiarity will not save you. The field of restaurants is replete with chefs who want to own a restaurant and then failing.
2. Research the market. Is there a market? If not then you could be an innovator and be on the ground floor of having and extremely profitable business. However, it is more likely that there is no market because no one wants the product or service. Where is the market? Perhaps you have found something that is wildly popular in the Philippines but if you are in Ecuador then that may not necessarily help you. The U.S. SBA (Small Business Administration) website is filled with good ideas on generating ideas, doing market research, and how to write a business plan and attract investors.

The business plan–

1. Create a business plan. A business plan is like a blueprint for your company. A building cannot be built without a blueprint, and neither can your company. Potential investors and customers may be happy to hear what you say, but they will be more eager in reading your plans, goals and research for what you are going to do for the next three to five years.

2. In short, it should include

1. a) The company description: an “elevator pitch”; a succinct and positive promotion of your product or service, much like what scriptwriters tell Hollywood producers;
2. b) Your market analysis: how you will be different from and better than your competition;
3. c) The organization and management of your company. Even if it is just you now, show how it will be in a few years’ time;
4. d) Your product or service. If you have something truly unique then do you have it patented?
5. e) Your marketing and sales strategies. This is what separates the employees from the entrepreneurs. Employees know how to follow a strategy, but you must know how to create a new and unique one; and
6. f) Ask for funding, and provide specifics. Asking for money is not enough; you will need to show why and how you need it, how it will be spent, and how it can be mutually beneficial.

Beginning and growing the business–

1. In real estate, it is “Location, location, location”. In business, it is “Network, network, network”. Go out and meet anybody and everybody who is a potential investor or customer of your business. Associations and trade shows should be in your schedule.
2. Promote your named product. Show how it is different from and better than any competition, and why people should buy it from you rather than a similar product from your competition.
3. As you gather more contacts, ask your potential and actual investors to refer customers to you, and ask your potential and actual customers to refer investors to you.
4. Sell your product or service. Once you have done so, congratulations!
5. You are now an entrepreneur!

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