How to Become an Entrepreneur
Updated March 9, 2023
7 Steps to Becoming an Entrepreneur
FAQ on Becoming a Entrepreneur
How do I pick my field?
The main criteria is that it has to be something that adds value. If you don't add value with your business, there's no reason for anyone to pay attention to it.
Do I need to get a business license?
Business licenses might be required for your field of work. Different states and counties have different requirements for licensure. Also, some industries will require other types of licenses as well. A restaurant may require a license for food handling and selling alcohol on top of the normal business license.
Can anyone be an entrepreneur?
Yes, anyone can be an entrepreneur, but not everybody is going to have the same level of success. Entrepreneurship takes a lot of experience, determination and sometimes education. There are no prerequisites to becoming an entrepreneur, though, and there are successful entrepreneurs from every demographic.
Do I need experience in the area I want to start a business?
No, but it certainly helps. If you're opening a marketing agency, then you should have plenty of experience with marketing. Customers won't want to spend their money if they don't think you can provide a high quality product, and experience and a solid track record is a good way to prove you're fit for the job.
What's the best way to become an entrepreneur?
There is no best way to become an entrepreneur. Every entrepreneur has a different experience, and even the best business ideas have the possibility of failing. However, you can mitigate your chances of failure. Education, experience and proper planning can all give your business a better chance of succeeding.
How do I know if my business is successful?
If you've followed your business plan and you're seeing growth, then your business is doing well. Remember that many businesses take time to start making money.
Entrepreneur Salary & Job Growth
With tons of tech millionaires and billionaires, many people have wild expectations when it comes to entrepreneur salaries. But the reality is that entrepreneurs' annual salary varies wildly – perhaps more than any other field. There's also the very real possibility of a business failing, and that can mean a low salary or no salary at all.
All that being said, plenty of entrepreneurs find success and make well above the national median salary of around $60,000 a year. Successful businesses can also grow, and that means more money each year. This can take a year or two, so there is the possibility of losing money over the first few years before a business becomes successful.
| State | Annual Salary |
|---|---|
| Alabama | $57,360 |
| Alaska | $57,360 |
| Arizona | $40,436 |
| Arkansas | $57,360 |
| California | $64,117 |
| Colorado | $72,022 |
| Connecticut | $57,360 |
| Delaware | $57,360 |
| Florida | $62,204 |
| Georgia | $70,750 |
| Hawaii | $57,360 |
| Idaho | $57,360 |
| Illinois | $52,616 |
| Indiana | $40,978 |
| Iowa | $57,360 |
| Kansas | $57,360 |
| Kentucky | $57,360 |
| Louisiana | $57,360 |
| Maine | $57,360 |
| Maryland | $57,360 |
| Massachusetts | $42,000 |
| Michigan | $61,106 |
| Minnesota | $71,031 |
| Mississippi | $57,360 |
| Missouri | $48,867 |
| Montana | $57,360 |
| Nebraska | $57,360 |
| Nevada | $57,360 |
| New Hampshire | $57,360 |
| New Jersey | $69,858 |
| New Mexico | $57,360 |
| New York | $56,643 |
| North Carolina | $51,372 |
| North Dakota | $57,360 |
| Ohio | $44,727 |
| Oklahoma | $57,360 |
| Oregon | $52,920 |
| Pennsylvania | $47,533 |
| Rhode Island | $57,360 |
| South Carolina | $57,360 |
| South Dakota | $57,360 |
| Tennessee | $40,327 |
| Texas | $55,920 |
| Utah | $65,918 |
| Vermont | $57,360 |
| Virginia | $58,391 |
| Washington | $56,813 |
| West Virginia | $57,360 |
| Wisconsin | $57,360 |
| Wyoming | $57,360 |
With population increasing across the country, there will always be a demand for newer and better businesses. Not all fields are the same, though – a restaurant in a dense urban area could see success while the same restaurant in a less populated area could fail. Also, more and more people become entrepreneurs each year. The field that you end up picking to be an entrepreneur in is going to play a large role in both the money you make and the security you have in your position.
Some schools offer bachelor's degrees in entrepreneurship, or a general business degree with an emphasis on entrepreneurship. This degree is not required to become an entrepreneur, though. If you have a business you'd like to start, consider what type of degree might help (bachelor's, associate, master's, etc.) and what field you should study in.
Here's a good way to find a degree program that's right for your entrepreneurial journey:
Entrepreneur Associations & Groups
With networking being such a critical part of entrepreneurship, anyone looking to become an entrepreneur will want to join groups to meet the right people. Not only do these groups offer opportunities for networking, but they often include seminars, conferences and skill building opportunities. Here are some entrepreneur organizations to check out:
-
Founded in 1987, the Entrepreneurs' Organization (EO) is a global network of over 12,000 entrepreneurs. The EO offers networking and mentorship opportunities, making it ideal for future entrepreneurs.
-
Vistage is a business advisory group meant specifically for entrepreneurs and business leaders. Coaching and peer advisory boards are two of the highlights of this organization.
-
A global community and startup of its own, Startup Grind connects entrepreneurs and teaches them new ways to approach business. They have conferences and seminars around the world.
-
The Association of Private Enterprise Education
The Association of Private Enterprise Education (APEE) consists mainly of educators that want to instruct entrepreneurs and business leaders on how to succeed in private enterprise.
-
Aspiring entrepreneurs should consider joining the Young Entrepreneur Council (YEC). As the name insinuates, this is a group where young entrepreneurs can meet each other, ideal for networking and finding potential business partners.
-
The International Council for Small Business
A non-profit organization, the International Council for Small Business (ICSB) educates entrepreneurs on how to grow and manage a successful, profitable small business.
Resources for Entrepreneurs
Entrepreneurs require a lot of different resources to make a business work. From planning a business to running day-to-day operations, any entrepreneur will quickly realize that they need a lot of tools. Here are some of the tools many entrepreneurs find help with their business.
Score is a free counseling service that's made specifically for entrepreneurs. You'll be connected with an entrepreneur who will help educate you and guide you through the process.
International Franchise Association
Not all entrepreneurs start an original business. The international Franchise Association (IFA) helps you find a franchise you can buy.
A government site, the Small Business Administration (SBA) offers guides, programs and other information for anyone looking to start a small business.
US Patent and Trademark Office
If you've come up with an original product or idea, you'll need to get it trademarked to protect it. The US Patent and Trademark Office is the place to go.
G Suite is the combination of all of Google's tools, including G Drive, G Mail, Adwords and Analytics. If you're running a business that depends on web traffic, this is a must have.
Another suite of tools, Microsoft Office is most well known for Word and Excel. This suite will help you keep track of data and information.
Evernote is a web and phone app that allows you to keep information and notes online. You can type a note on your computer then pull it up on your phone, keeping all your info handy.
Related Careers at a Glance
Latest Posts
The 5 Best Online Associate Nursing Degree Programs
Check out some of the best associate nursing degrees. Each of the five programs on our list are hybrid, meaning they offer partially-online work.
How to Become a Nutritionist
Learn how to become a nutritionist. Practical steps, nutritionist requirements and experience you’ll need to become a Nutritionist.
How to Become a Doctor
Are you interested in medicine? This in-depth guide explores information on how to become a doctor, along with education requirements, salary data, and more.
LearnHowToBecome.com is an advertising-supported site. Featured or trusted partner programs and all school search, finder, or match results are for schools that compensate us. This compensation does not influence our school rankings, resource guides, or other editorially-independent information published on this site.
View the most relevant programs for your interests and compare them by tuition, acceptance rate, and other factors important to you.
