Entrepreneurs are individuals who identify opportunities, take risks, work hard and then reap the rewards. The pandemic has not faltered the spirit of entrepreneurs, on the contrary, U.S Census Bureau has reported the fastest pace of business applications in 2021. To debunk a a few myths, entrepreneurs are not confined to a small group or bound by age or gender, as research clearly shows:

On the heels of these stats, here are 4 steps to start the Entrepreneurship journey

Ideation – What problem to solve?

We are all walking, talking data collection machines. Additionally, we are all consumers of products or services. As such, ideas to serve our fellow consumers are all around us, every day. An entrepreneur’s first and foremost task is to identify an unmet demand or provide incremental/supplemental improvement to existing product or service . If one restaurant could serve the need for all customers, there wouldn’t be a fast food chain on every corner.

Validation – Supply and Demand?

Online search can very quickly help validate ideas. If it’s a brand new concept or even an existing business, validation tools such as Business Model Canvas, Experimental Canvas + Validation Canvas, can ensure hypothesis, risks and results can be quickly pressure tested. Zappos did this effectively and eventually got acquired by Amazon for 1B+.

Startup cost – Will it drain your nest egg?

Entrepreneurs in the U.S. use a mix of cash, gifts and loans to get their businesses off the ground. Some notable statistics here:

  • In the U.S, 58% of small businesses start with less than $25,000, and 1/3 start with less than $5,000. (Kabbage)
  • 37% of owners in the U.S, use cash to start their businesses. (Guidant Financial)
  • Venture capital, such as seed funding, is another lever to bootstrap. This however, implies you have already given away some equity in your business, albeit gained some advisors in the process.
Success Rates – Growth comes with time.

Starting and running a business is challenging. According to research, age and experience play key roles in Entrepreneurs success. A few data points in this regard:

In summary…

An entrepreneur is a person who takes an idea (vision) to start a business, a process known as entrepreneurship. Starting a business takes dedication, risk management and much sacrifice to achieve that vision. Entrepreneurs enter this realm because they love what they do, believe their vision will have a positive impact, and expect to benefit from their efforts. Entrepreneurs stimulate the economy, employ people and offer product/services that add value for consumers.