So you want to become an entrepreneur?
Entrepreneurship
What is an entrepreneur?
Merriam-Webster: “one who organizes, manages and assumes the risks of a business or enterprise.”
An entrepreneur is someone who identifies a problem and attempts to solve it through a product or service.
The pros and cons of entrepreneurship
Being an entrepreneur is no easy task but is also an exciting journey.
Twenty percent of small businesses fail in the first year. Fifty percent of small businesses close down by year 5. Only 33% of businesses that start today will still be operating in 10 years. What does this tell you? Running a business is not easy. There are many pros and cons to entrepreneurship that are important to consider before diving in.
Pros
No boss to answer to
You decide when to work
Unlimited earning potential
The satisfaction of creating and growing something you own
Cons
You’re the boss of people who don’t like you, don’t listen to you and want more money
You don’t get paid just for showing up and no paid vacations or sick time
You may at times work harder to make less money than a “normal” job, especially at the beginning
You accept the risk of having your business fail
How to get started
A business name
A legal structure
Licenses and permits
Federal and state tax IDs
Business bank accounts
Business insurance
Types of businesses
Sole proprietorship
Business assets and liabilities are not separate from your personal assets and liabilities
Good choice for low-risk businesses
Partnership
Simplest structure for two or more people owning a business
Limited liability company (LLC)
Makes your business a separate entity from your personal finances
You’re not personally at risk of bankruptcy or lawsuits; just the business entity
Corporation
Legal entity separate from business owners
Provides strongest protection to owners from personal liability
What is your goal? Finding your ‘why’
Before starting your business, it is important to establish your ‘why’. Why are you wanting to start your business? Maybe you have a specific problem that you are passionate about solving. Maybe you have a specific career interest but you want to become your own boss.
Take time to think about your why and purpose surrounding your business.
Next steps for starting your Spirit Box business
If you are here reading this, chances are you may have some interest in joining the Spirit Box community or expanding your Spirit Box business.
So, how can you get started? We have created resources to help you figure out if Spirit Box is a good fit for you in four steps: market research, writing a business plan, calculating startup financing, and funding your business. View each article to take the tangible next steps in starting your business.