In the United States, approximately one in eight adults are self-employed. In their minds exists a one common dream. This is the entrepreneurial dream of self-employment. It is the freedom to start, grow, and cash in a new business. Most of the extravagant millionaires of today build up their wealth in this way. An entrepreneur
is someone who has the ability to build and develop his own business
. In today's fast paced world of business, many people chose to work for themselves. A career as an entrepreneur is a risky, yet personally rewarding endeavor.
Entrepreneurs start from ground zero with probably only a dollar in their pocket.
"Entrepreneurship is the ability to create and build something from practically nothing" (Timmons 1). Entrepreneurs should be admired more than anything for
their hard work
"It is initiating, doing, achieving, and building an enterprise or organization, rather than just watching, analyzing or describing one. It is the knack for sensing an opportunity where others see chaos, contradiction and confusion. It is the ability to build a "founding team" to complement your own skills and talents. It is the know-how to find, marshal and control resources (often owned by others) and to make sure you don't run out of money when you need it most. " (Timmons 1). To be an
entrepreneur, it takes the willingness to prosper with calculated risks; both personal and financial-and then do everything possible to get the odds in your favor.
Driven by an intense commitment and determined perseverance, entrepreneurs work very hard at what they do. They excel and want to win. Entrepreneurs are amazing people with a high respect of character. They use their mistakes as something to learn from rather than a failure. No matter the outcome, they believe in themselves and have an extreme confidence not only in themselves, but also in what they do.
"Entrepreneurs who start and build new businesses are more celebrated than studied. They embody, in the popular imagination and in the eyes of some scholars, the virtues of "boldness, ingenuity, leadership, persistence and determination." Policymakers see them as a crucial source of employment and productivity growth. Yet our systematic knowledge of how entrepreneurs start and grow their businesses is limited. The activity does not occupy a prominent place in the study of business and economics. Cliché and anecdote- or laments about the ineffable nature of entrepreneurship- dominate the discourse about new and fledgling businesses" (Bhide 3). Today's economy depends of the production
of our entrepreneurs.
Many entrepreneurs have very strong characteristics and similar ambitions. To have a successful business, one must possess entrepreneur qualities. Studious and hard working, they strive through the ups and downs of start-up companies. They are "self starters" and have a superior belief in themselves. An entrepreneur has to be patient and wait. Companies take time and nourishment. It takes years for a small company to even build up enough to go public. They are very consistent and usually considered work alcoholics. They own inventive and creative traits. Entrepreneurs are willing to stay with a business during rough times. They plan ahead and have good self-discipline in managing their time. Also, entrepreneurs must have social skill in talking with other people.
"Usually, they are risk-takers. They are self-starters. They are confident, and they enjoy a challenge. They are not afraid of hard work or long hours. They are patient. They realize that most new businesses take many years before they earn a profit" (Hurwitz 1). It takes many qualities to be an entrepreneur, but they are outstanding at what they do.
There are many different reasons people want to start up their own business. There are probably as many reasons as there are entrepreneurs today. One of the reasons is to solve a problem. In life there are always hurdles that block us from finishing our race. Some people just give up and others keep trying to figure out a way to get over the hurdle. Entrepreneurs sit and think of ways to overcome their difficulties. For example: Dan Gerber started manufacturing baby food because his wife was spending all day mashing vegetables for their baby. Today, Gerber Products makes more than 187 varieties of baby food. He found something useful that will not only help his family but millions of families around the world. Still others become entrepreneurs because they crave the challenge of trying something different. These people are looking for something new and exciting. They want something that no one else has tried before. Another reason is because they feel they have a dream or idea that they must try out. Whatever the reason, entrepreneurs uniquely accomplish a lifetime ambition. They are the visionaries of our day and the inventors of our future.
Many entrepreneurs have made to the big time and their names have been famous throughout history.
"We have all heard about successful entrepreneurs. George Parker invented his first board game at age sixteen. In 1883, George and his brothers formed George S. Parker Company. Their company still manufactures many games, including Monopoly" (Hurwitz 1). Another successful entrepreneur is Grace McGartland.
In 1981 she founded GM Consultants and has expanded it into a successful consulting firm serving clients nationally and internationally.
"Grace uses her expertise in the areas of planning, creative thinking and training through presentations and speeches. Struck by cancer in 1984, this dynamic lady faced her greatest challenge and emerged with new insight and a new set of goals. In addition to expanding her own business, Grace has become a national leader in the women's business arena" (Pinson and Jinnett 35).
W.K Kellogg was also a successful entrepreneur. He formed the Kellogg
Company. His company is a major manufacturer of breakfast cereal. Henry Ford developed the very first Model T car. He worked in his garage and came up with a new design. His company, Ford Motors, is a huge company today. Another famous entrepreneur is McDonald. McDonald is the founder of a famous restaurant. He came up with the idea of food on the go and opened up the first fast food restaurant. Then, Ray Kroc bought the company, and brought McDonalds to where it is today. William Wrigley became a famous entrepreneur by luck. He was working at a local grocery store and was trying to advertise his baking soda. So, he gave out chewing gum as a bonus for customers who bought his baking powder. His gum became very famous known as Wrigley's Chewing Gum. Entrepreneurs have had such a big impact on our lives. Their accomplishments have changed and sculpted our very society in many ways.
There can be many benefits of being and entrepreneur. The rewards of the hard work are bountiful. One of the benefits is that they get to do what they want. Entrepreneurs make their own decisions.
"Just as people are different, so are their styles of decision making. Each person is a result of all of the decisions made in their life to date" (Making Tips). They
get to choose their path in life and follow their dreams.
"The benefits of my job are that I get to do what I want when I want and get paid to do it. I like doing what I do. I get to set my own time, days, and vacation. I don't have to show up to work until I want to. I am the boss of me and I don't have to work under anyone" (Ristau). When the business is successful, life
becomes easy for the entrepreneur.
The salary of an entrepreneur can be rewarding also. They can decide how much they want to pay themselves. Entrepreneurs make choices on how much money will come into their business. They can also decide how much they want to pay their employees. That is, if they even want employees. Entrepreneurs also get to pick out whom they want to work for them. They can choose the kind of people that they want to work with. The employee's hours depend on what the entrepreneur wants. In addition, the amount of time required for working is another benefit of being an entrepreneur. They can choose how many hours and days of the week they work. An entrepreneur can hire someone to manage his business while he sits at home raking up the cash. They can go on vacation any time they want. Many hours of the day can be spent home with family and friends.
Though being an entrepreneur may be rewarding, there are some negative aspects of being an entrepreneur. First, there is the pressure of the shareholders. Most entrepreneurs get their money from shareholders. Shareholders expect to see profit off of their stock. Shareholders repeatedly call you and nag you. They want to know how their stock is doing. The entrepreneur must try and convince each shareholder why his business is a good investment. They are the ones who pressure you and potentially set deadlines for you. This leaves many entrepreneurs working late hours and long weeks. Entrepreneurs work to please the shareholders. Some days the job may require working long, tedious hours. The shareholders are only interested in their profit off of their stock. Even though they are the most stressful part of a entrepreneur's life, they are the backbone of an their business.
"It is not enough simply to posses an entrepreneurial mind-set. There are external demands that have important implications for the entrepreneurial task, and for the eventual success or failure of a venture. Successful entrepreneurs may think and act in common with successful people in other careers, but it is their willingness to take on the demands and sacrifices of entrepreneuring that is their principal distinguishing feature. These demands and sacrifices are called "external" because they are imposed upon every entrepreneur by the nature of the job. You must be able to adapt yourself to them; they are fixed and unforgiving, and are occasionally rewarding and punishing. Some of these external demands are: a knowledge of the business environment in which you want to launch your venture, apprenticeship and experience, people and team building, and creativity"(Timmons 45).
This job can sometimes be unreliable. An entrepreneur can suddenly have little or no money. An entrepreneur's money comes from someone else. So if their stockholder decided to not finance them anymore the money would stop. The business might not work out and will not prosper. Then the entrepreneur has to start all over again from the beginning. This costs them years of a setback. Every year, ninety five percent of start-up companies fail. Only five percent ever make it in the entrepreneur business.
The major negative factor that is placed on the entrepreneur is the high demand. There is always pressure that is placed on the entrepreneur to survive, stay alive, be strong for the company, and constantly out beat and outplay all competitors. In the early set-up years, entrepreneurs have to be ready do sacrifice everything to be devoted to the job. This includes money, friends, family, and extra leisurely activities. In able to be committed to the job, friends, and family, the entrepreneur has to be prepared to take on a hard, realistic burden of work. On the other hand, some small-business owners are capable of attending their personal needs while showing a high potential in their firm. Owners of small businesses are probably dominated as much by personal and family considerations as by the profitability of the business.
There are many steps required in starting a new company. First, decide what is to be accomplished and what the overall dream is. Set short term, mid term, and long term goals. These are called established milestones. Know what the vision, dream, and lifetime vision is. The entrepreneur must also know what they want to come out of the idea.
"When it comes to setting goals, start off with what's important to you in life. Take out a sheet of paper. Sit quietly, and on that sheet of paper, brainstorm what is to be accomplished between now and the end of your life. Then, consider yourself and your personal goals for the next twelvemonth period. Some key areas in which you might set personal goals include: family, personal growth, financial, health, social, career, hobbies, spiritual, and recreation. Write down the thing that you plan to accomplish or achieve or attain during this one-year period" (Goal Setting Tips). The vision is the key aspect of any successful business.
Always dream big and never dream small.
Now, the entrepreneur is ready to take the first big step. Buy a license from the State Building of Government building.
"Call your state's Department of Commerce to see if your type of business will need a state license. Among those that probably will are building contractors, auto mechanics, hairdressers, and private investigators. Restaurants that serve alcohol will also require a state liquor license." (Lawrence) A business license
costs about one thousand dollars. The entrepreneur must come up with a title for their company. It should be sharp and impressive. Then, the entrepreneur signs an article of incorporation. This determines how many shares, states who founded the company, and what the title of the company is.
The next step is to get a city license. Go to the city's business licensing building. A city license costs about a hundred and eighty dollars to buy. The city makes the entrepreneur sign a contract to ensure that they get a tax profit off of your company.
"If you'll be purchasing wholesale merchandise for resale, your state will probably require you to register for a seller's permit or sales tax permit. Check with your state's Equalization Board, Sales Tax Commission, or Franchise Tax Board" (Lawrence). The business has to pay taxes to the city that the entrepreneur lives in.
A federal tax ID number is required for all businesses. This is the most important step. The tax ID number doesn't cost anything. The entrepreneur calls the Federal lists 1-800 number to get a SS-4 form.
"If you plan on hiring employees, you need to let the IRS know by filling Form SS-4 (available from your local IRS office). You may also need to register with your state's Department of Labor. Most small businesses won't need any federal licenses or permits, but there are some exceptions: interstate trucking companies, businesses that will by offering investment advice, and businesses involved with meat preparation" (Lawrence). They send the SS-4 form and then the entrepreneur fills out the document. Then, they give the business a tax ID number. No business can operate without it. A company can't open a checking account for their company without a tax ID number.
Finally it is time to follow the vision. If the business is one of high-tech technology, then they should follow this kind of method. Now that a business has been established, the entrepreneur decides weather to run it from home or to find a suitable office. Many decisions must be made at this point.
" Do not make decisions tat are not yours to make. When making a decision you are simply choosing from among alternatives. You are not making a choice between right and wrong. Avoid snap decisions. Move fast on the reversible ones and slowly on the non-reversible. Choosing the right alternative at the wrong time is not any better than the wrong alternative at the right time, so make the decision while you still have time. Do your decision making on paper make notes and keep your ideas visible so you can consider all the relevant information in making this decision" (Goal Setting Tips). Then, start to think and invent up
ideas. The ideas should be creative and unique. Put the ideas on paper and write up claims. Claims are definitions and details of the idea. Don't leave out any details. The idea has to be very thorough and looked at from every possible angle. Also, state how to build it and prove that the founder is you.
Next, file it to the United States Patent Office. The United States Patent Office looks to see if anyone else has the same idea. If no one else has it, then they look to see if the idea is unique, new, and useful to society. It usually takes about three years to get a patent approved. Once it is approved the entrepreneur must pay anywhere from ten to fifteen thousand dollars to receive the patent. Many entrepreneurs do 4-6 patents. This takes many years to do.
Start-up businesses take about five years to set up. But unfortunately ninety five percent of start-up companies fail. They either go bankrupt or can no longer support the company. Many entrepreneurs start a couple of companies before ever getting a successful one. This takes years of work, but in the end is very rewarding.
Building a career is no simple matter. But, start-up companies are being established every day. Entrepreneurs have a strong stature that allows them to lay sturdy foundations for their company. "When life hands you lemons, make lemonade." Entrepreneurs learn from their mistakes and take their failures as learning tools in life. An entrepreneur has a significant amount of diligent characteristics. Hard working and patient, they raise and care for their company. They possess the necessary needs for a maximum dependency on themselves. Entrepreneurs invented ideas and wonderful visions that have formed and molded our society. Our very culture is enriched by their ingenious minds. Many entrepreneurs have become famous in history and known forever by their great works. When a business finally makes it, the profit of the company begins to multiply and things begin to slow down. The rewards are extremely intense because of all the hard work and dedication put into it. But, to get to that place it takes years of practice and perseverance. There is a lot in common between the demanding activities and the challenges, rewards, excitement and pain that entrepreneurs face in life. Entrepreneurs usually feel tremendous amount of pride for all they have created. It is a long hard journey, but in the end the benefits and relief of it all is amazing.