If you get explosive feelings of thrill and excitement when you think about creating your own business, you're not alone. Last year entrepreneurship grew at a record pace. According to U.S. Census Bureau “2021 Business Formation Statistics”, more than 4.6 million new business applications were filled in 2021 compared to 2020.
It takes hard work and a resilient mindset, but once you take the big plunge and decide to become a business owner, the benefits of being your boss are countless! So, if what you're dreaming of right now is about becoming the best boss you wish you could have ever had, read on! Here are four different ways you can become a business owner.
1. Start your own business from scratch
Entrepreneurs tend to be visionaries with a knack for developing solutions to existing problems. Does that sound like you? If you already have a fresh idea in your head you want to bring to life, why not opt for starting your own business?
Starting and growing your business requires a lot of perseverance, time, effort, a little knack for risk-taking, and of course- capital. Yes, this can sound like a bundle of exhaustion, but it won't be if you keep that entrepreneur passion burning throughout the experience.
Here are some steps to start your own business:
Do market research to get a better understanding of your business idea.
Write down your business plan
Get funding: opt for alternative business funding if you're just starting.
Choose the best location for your company: it could be physical or online.
Find your business name: get your business branding together.
Decide the business structure that works best for you and register your entity.
Get your and state tax ID: YourEmployer Identification Number (EIN)
Make sure you have all the needed licenses and permits for your small business.
Open a business bank account.
2. Buy an existing business
If you're not up for the high risk that comes along with building your own business from scratch, then why not buy an already existing business?
When you purchase an operating business with trained staff, an existing system for generating revenue, a good base of clients and suppliers, you might save yourself some time and even money. You'll also save yourself the hassle of finding a location or setting up payroll.
But warning! Just because you purchased an already existing business doesn't mean that you'll have to leave things intact as they were! Use your power as a business owner to add your touch to this business. Detect where you can make the needed improvements, add your hint of personality, make renovations, or optimize processes.
You might also want to take some time to research the sector's industry before you make the giant leap and offer a deal to the previous owner. Invest smart, get more insight on the industries that are thriving the most in the U.S. right now: Fastest Growing Industries to Consider for Business Ideas this 2022
3. Purchase a Franchise
According to the U.S. Bureau of Labor Statistics entrepreneurship report, franchises have higher success rates than independent businesses. This doesn't mean that you'll have guaranteed success. But you'll have more support from the franchisor as you grow your business since you are purchasing a proven operating system.
You might want to consider this option if you're looking to expand quickly your growth opportunities and don't want to spend your energy consolidating your business idea. If you happen to find that you are a great franchise business owner, you can purchase more franchises as you continue your trajectory as a business owner.
But of course, with every story, there comes a twist. Don't opt for this option if you want to have the freedom to do things your way; you'll have to abide by the branding, processes, and rules that your franchisors delegate to you. Franchises are prepacked and prescribed business models.
4. Taking over a family business
Family-owned businesses impact our national economy more than you would imagine. According to SCORE, on “The Family Business”, family-owned businesses form 60% of the U.S. workforce and create 78% of all new jobs.
The best part about taking over the family business is that you already have a built-in structure to work from. All you must do is endure and keep it on track. Additionally, this type of business provides built-in support that can guide you as you make your transition into your business.
Many family members who inherit the role of being a business owner often think that they already have a good taste of how to manage a business because of their observations. But this is where they're often mistaken. Don't be afraid to go into depth with questions about what taking over the family business entails.
Tips to make this smooth transition when taking over the family business:
-Don't be afraid to ask your relatives about the potential challenges of taking over the family business. Get ready for the sunny and stormy days.
-Come up with a succession plan. The transition with a family business won't happen from day to night. Come up with a business plan to guide you forward and avoid conflict.
-Be understanding with the previous owner and family member: Imagine handing off your own business. Don't take criticism too personally. Try to put the best on your part and be patient with the previous owner.
-Get some training on management: It's not just about working; formal business training can make you a more prosperous and empathetic leader that knows about what they're talking about.
-Make improvements if needed. Things don't have to remain intact. Get some feedback from your employees, boost your company culture, and assess what areas of the business need a little freshening up.
How can I become a successful entrepreneur and business owner?
This is genuinely the million-dollar question. Unfortunately, there's still no potion out there you can drink to be a successful business owner. Hey, that sounds like a new business idea! Just kidding! But to get an idea about your efforts as a business owner here's a question you should ask yourself: would your business be mayhem if you decide to take a couple of days off? You’re accepting the role of business operator, instead of acting like a business owner. Are you running your business or is it running you?
To become a successful business owner, you need to plan accordingly and execute with perseverance. A successful business doesn't just thrive on its own, but once you create the foundations for it, it will stand on its own while you enjoy sipping on margaritas on your once-a-year vacation.
If you're looking for more inspiration and tips on how to become a successful business owner, check out our six tips on how to kickstart your business this 2022.
Access to capital for entrepreneurs
How do entrepreneurs get capital for a business? As we mentioned before, building a strong business foundation. So what material, tools, and human capacities will you need to incorporate to make that solid structure? Only the best of the best, of course! And for that, you'll need access to funding.
One Park Financials' business funding programs work to give entrepreneurs with more than three months of operations and at least $7,500 in monthly revenue the working capital they need to make it happen- fast. Our funders specialize in providing options designed to meet the needs of small businesses. We're more concerned about your business's potential than your credit score. So, check if you pre-qualify in minutes here and get ready to be the best business owner version of yourself!