Want to be your own boss and quit your day job?
We’ve got you covered with our guide to connect entrepreneurs with their goals. We’ll show you how to become an entrepreneur with advice from five business owners who have turned their ideas into multi-million dollar businesses and opened up even more opportunities.
How to become an entrepreneur
Becoming an entrepreneur requires wearing many hats. You’ll have all kinds of responsibilities, including marketing, human relations, inventory, legal compliance, and more. You’ll want to follow these steps to join the ranks of successful entrepreneurs:
- Identify your passion and expertise.
- Generate and validate business ideas.
- Create a business plan.
- Develop necessary skills.
- Network with successful entrepreneurs.
- Consider the legal structure.
- Secure funding.
- Create a minimum viable product (MVP).
- Build a brand and online presence.
- Market your business.
- Provide exceptional customer service.
- Manage finances and operations.
- Scale your business.
Read from start to finish to learn all about becoming an entrepreneur, from identifying a good business idea to building a brand. Or click on any of the links above to jump straight to the section you need to learn more about right now.

Identify your passion and expertise
To become an entrepreneur, you need to find the intersection of what you’re good at, what makes money, and what people will pay you to do. Start by writing down your hobbies, skills, and experiences. Here’s an example of what mine look like:
Hobbies | Skills | Work Experiences |
Learning | Math | Restaurants |
Helping Others | Writing | Construction |
Traveling | Problem Solving | Retail |
Concerts | Researching | Delivery Services |
New Experiences | Customer Service | Photography Business |
Storytelling | Surveying Customers |
As you can see, my combination of skills, hobbies, and work experience hints that I need to be doing something that uses lots of skills and covers a variety of industries. Writing for UpFlip fits that bill.
Also write down things you don’t want to do or would find inconvenient. For instance, if you’re not a morning person, you might not want to start a construction company.
Try writing yours down and see if you learn something about yourself. You can also take an interest and aptitude test to find businesses you might do extraordinarily well in.
Next, you’ll want to find a business idea to pursue.
Generate and validate business ideas
Next, you’ll want to come up with a business idea that fits well with your life.
We have a vast selection of ideas for you to consider when you decide to start a business. We’ve got you covered for a side business, companies that generate passive income, or a business idea that requires eCommerce.
Check out some ideas from Paul Akers:
After you’ve listed businesses you are interested in starting, it’s time to conduct market research to determine whether there’s a demand for your product or service. You’ll want to research information like:
- How much does the industry make?
- What is the growth forecast?
- What are the emerging trends?
- Who are the market players?
- How much does the average business make?
- How many employees does the average business need?
Check out our blog about market research to learn more.
You’ll want to save your answers, and where you got them, because you’ll need them for the next step.
Create a business plan
A well-structured business plan helps you clarify your goals and strategies. Outline your business concept, target market, competition, marketing strategy, and financial projections.
Small business owners have different ways of writing a business plan. Some just write a one-page business plan to keep themselves on track, while others write a 100-page plan and pursue venture capital money or loans.
It’s important to note that the majority of successful entrepreneurs have a business plan. You should also be flexible, as 93% of Harvard graduates who chose to become an entrepreneur pivoted from their original strategy to increase success.
Check out our interview with Mike Andes to learn how he writes a business plan.
Develop necessary skills
Entrepreneurs need skills like:
- Creativity
- Leadership
- Communication
- Marketing
- Finance
- Problem-solving
- Adaptation
- Persistence
- Resilience
Consider taking courses, reading books, or attending workshops to develop these skills.
Creativity
Making something out of nothing requires creativity. Just like an artist with a blank canvas, a successful entrepreneur will take an idea and paint a picture with their business plan.
Leadership

Successful businesses are teams, and the business owner is the coach. In today’s world, the old model where you could abuse your employees and they’d stay doesn’t work.
A successful entrepreneur looks to find people with aligned interests and empower them to achieve their goals while helping the company achieve its goals.
SessionLab has a great blog on exercises aspiring entrepreneurs can do to improve their leadership skills.
Communication
Successful entrepreneurs know how to communicate. You’ll have to talk to customers, investors, and employees. Everyone has different ways of communicating, and with all the lines of communication available, learning how to communicate with each stakeholder can be a challenge.
Email, video conferencing, in-person, and other methods are consistently used, and each of them has its own challenges. Try some of these exercises to build communication skills.
Marketing

Many entrepreneurs struggle with this element of starting a business. You can always outsource, but it helps to have a solid understanding of marketing, and particularly digital marketing.
There are tons of free certifications you can take to learn about marketing. Some of my favorites are:
- HubSpot Digital Marketing Certification: This covers SEO, website speed, social media, email marketing, and paid ads. Take it through HubSpot Academy.
- Google Certifications: You can get certified on Google Analytics 4 and Google Ads through Skillshop.
While you don’t have to have these certifications, successful entrepreneurs need to understand the “language” of the people they supervise.
Finance
The point of a business is to make money. It will be hard to be a successful entrepreneur without a basic understanding of accounting.
Consider taking a course or two so you can better discuss your financial strategies with a certified public accountant.
Problem-solving
Successful entrepreneurs are good at solving problems. Some ways to improve your problem-solving skills include:
- Practicing puzzles and brain teasers regularly
- Engaging in critical thinking activities and games
- Reading business books
Adaptation

One of my favorite quotes is from John Maxwell: “Change is inevitable. Growth is optional.”
You’ll deal with constant change on your path to become an entrepreneur. Employees will come and go, and market trends will evolve, but will you?
If you aren’t adaptable, you’ll probably find running your own business tedious. Many entrepreneurs spend most of their days jumping from one task to another and need to know how to shift gears.
The best way to learn adaptability is to go through trials and tribulations. When something challenges you, take a minute, center yourself, and ask why it evokes a response. Once you understand the emotional response, tackle the problem.
Persistence
A new business venture rarely becomes immediately successful. It can take years for entrepreneurs to find the right combination of product, pricing, and marketing strategies to get the market interested in what it creates.
The best you can do is learn from your mistakes and keep moving forward.
For inspiration, read about Thomas Edison’s persistence when creating the lightbulb.
Resilience
Murphy’s Law states that what can go wrong will go wrong.
A successful entrepreneur needs to be prepared for things to go wrong when they own a business. How quickly they gain composure and find a way to fix it will dramatically impact their success.
Network with successful entrepreneurs

Connect with other entrepreneurs, join business associations, and attend networking events. A support network can provide valuable advice, mentorship, and potential partnerships.
We’re creating a mentorship program that will help you network with other successful entrepreneurs. Sign up for our newsletter to be one of the first to join.
Consider the legal structure
You’ll need to choose a legal structure for your business. It’s best to consult with a lawyer or legal advisor to understand the implications of the different business structures, but the most common business structures are:
- Sole proprietorships
- Limited liability companies
- Corporations
Sole proprietorship

The business owner and the business are the same entity, which means if someone sues your business, they could take your personal assets.
Limited liability company (LLC)
An LLC makes your business a separate entity and provides liability protection—as long as you have a separate bank account, do not personally cause an incident, and do not sign away the protection (beware: lenders try to get you to).
LLCs require less paperwork and compliance work than a corporation, too.
Corporation

A corporation also offers liability protection and also the issuance of shares, but there are numerous compliance issues that may occur.
Learn more in our blog about business structures.
Secure funding
You’ll need money to become a successful entrepreneur. That doesn’t mean it has to be your money, but it’s easier to build a successful business if it is your money.
To fund a business you’ll need to:
- Create a five-year budget.
- Establish how much money you need to follow the budget.
- Decide how to fund the business.
Create a five-year budget
A key step to becoming an entrepreneur is calculating how much money you’ll need to make before your business becomes profitable.
Early-stage companies can become successful within a few months, depending on the business model, but Tesla took 17 years to have a profitable year.
Your financial projections should be made with the following figures in mind:
- How much you need to maintain your lifestyle
- Your current startup funds
- The reasonably expected revenue
- Expenses associated with the small business
We’ve created a startup cost estimator to help you establish how much you’ll need to make to break even.
Establish how much money you need to follow the budget

Once you have a budget, you need to establish whether you have the money or need to find funding. The funding you’ll need for the small business needs to be high enough to cover you through the time when the business model is not making an operating profit.
You may also want to add wiggle room because many businesses fail when they run out of money. Assuming an additional 20% should cover unexpected expenses.
Decide how to fund the business
You can get business funds from numerous sources, including:
- Personal savings
- Potential business partners
- Venture capitalists
- Angel investors
- Loans
- Small Business Investment Company (SBIC) financing
- Investors
- Crowdfunding
Let’s discuss how to become an entrepreneur using each of these funding sources.
Personal savings
Many entrepreneurs start by self funding. This is the most common way to start a small business. You might use your own money from working, savings accounts, or rollover business start-ups (ROBS).
A ROBS allows a business owner to own company shares with their retirement account. The small business then has funds and doesn’t pay a penalty for early withdrawals.
Potential business partners
When you become an entrepreneur, it may be beneficial to have a partner.
Business leaders will often want additional sources of revenue and agree to be a business partner and mentor to other people. Whether the partner is a silent partner or active in the business model can be negotiated.
Venture capitalists
Venture capital firms look for startup entrepreneurs who have ideas that could make them millions or billions of dollars.
The firms help promising business models get the funds they need to make it through the startup grind, and they effectively manage these businesses until the company qualifies to go public. The venture capitalists gain massive wealth in the process.
Learn how Keith McCall raised millions of dollars for Pollen Systems through venture capital firms.
Angel investors
Angel investors are similar to venture capitalists, but there are some major differences:
- Angel investors do not manage others’ funds, while venture capital companies do.
- Venture capitalists tend to invest in more established companies than angel investors.
- An angel investor tends to invest less than a venture capital firm.
- Venture capital tends to be less hands on than angel investors.
Loans
You can take out personal loans or small business loans to become an entrepreneur, but unless the company is an online business with a business model that is likely to scale, you may find it difficult to get funding until after you don’t really need it.
You can learn more about small business loans on the Small Business Administration’s (SBA) website.
Small Business Investment Company (SBIC) financing
The SBA also licenses SBICs. They’re a cross between venture capitalists and banks, where they offer both debt and equity options. For every dollar the SBIC provides you, the Small Business Administration provides two.
Crowdfunding
Another way to start an entrepreneurial career is crowdfunding, which is when new entrepreneurs list offerings to potential investors on a website in exchange for debt, equity, rewards, or donations.
Check out our interview with Jason Hernandez. He started Pooch Selfie by fundraising on Kickstarter.
Create a minimum viable product (MVP)
An MVP is a basic version of your product or service that allows you to test the market and gather feedback. This might be a prototype of a physical product that people test before mass production, or it might be a less sophisticated version of the intended software.
You’ll want to follow these steps to create an MVP:
- Define your idea and objectives: Clearly articulate your product idea and identify the core problem it solves or value it provides users.
- Identify key features: Determine the features that are essential to addressing the core problem or delivering the primary value proposition. Avoid adding unnecessary features at this stage.
- Prioritize features: Rank the identified features based on their importance. Focus on the must-have features that are critical for the MVP’s functionality.
- Design user interface (UI) and user experience (UX): Create a basic design for the user interface. It should be intuitive and user-friendly. You can use wireframes or mockups to visualize the layout.
- Select the technology stack: Choose the appropriate technology and tools for development. Consider factors like programming language, frameworks, and databases.
- Build the MVP: Develop the basic version of your product with the selected features. Keep the development process lean and focused on the core functionality.
- Test and assure quality: Thoroughly test the MVP to identify and fix any bugs or issues. Ensure that the product functions reliably.
- Launch the MVP: Make the MVP accessible to a small group of early users. This could be through a closed beta test or a limited release to a select audience.
- Gather user feedback: Encourage users to provide feedback on their experience with the MVP. This feedback is invaluable for refining and improving the product.
- Analyze metrics and user behavior: Use analytics tools to track user interactions, engagement, and other relevant metrics. This data will help you understand how users are using the MVP.
- Iterate and refine: Based on the feedback and data gathered, make necessary improvements and iterate on the MVP. Focus on enhancing existing features and possibly adding new ones.
- Continue testing and iterating: Keep testing and iterating based on user feedback and data. Continue to refine the product to meet user needs and expectations.
- Scale and expand: Once you have a solid foundation and a validated product, you can start thinking about scaling and adding more features to meet broader market demands.
Remember, the key to a successful MVP is to keep it simple, focused, and aligned with solving a specific problem or delivering a clear value proposition. It’s about learning from real user interactions and using that knowledge to guide the development of your product.
Learn more in our blog on product development.
Build a brand and online presence

After you spend money creating your product, it’s time to build your brand. You’ll need to complete the following tasks to build a winning brand:
- Design a logo.
- Create a website.
- Create social media accounts.
- Get packaging for any physical products.
- Design uniforms, building, and vehicle signs (if applicable).
- Write your brand guidelines.
Design a logo
Your logo can be basic or elaborate. Most companies try to keep at or below three colors and want the logo to help explain what they do.
MaidThis is an online business that focuses on booking Airbnb and home cleaning jobs. Hear how Neel made the logo and has turned the remote cleaning business into a $2M per year company.
Create a website
Entrepreneurial success normally relies on digital marketing, and the center of any digital marketing strategy should be your website. It’s where new customers find you after typing something relevant into a search engine.
Learn more in our blog on website creation.
Create social media accounts
You’ll probably want to at least have a small presence on every popular social media platform. Make sure your business’s profile fits its company culture.
You’ll want to research best practices for each one and start building a following. We’ll talk about that more in the marketing section.
As you gain traction on several platforms, you can focus on the ones that help you get more satisfied customers.
Get packaging for any physical products
Companies selling physical products need to have packaging that matches the brand image they want to portray.
Check out Packlane’s blog about custom packaging to get your creative juices flowing.
Design uniforms, building, and vehicle signs (if applicable)
Many local businesses find success, and part of what plays into that success is how they use their vehicles, buildings, and uniforms to convey a brand message.
Mike Andes started a lawn care business that is one of Entrepreneur’s top 500 franchises. He discusses elements of branding in the video below.
Write your brand guidelines
Your brand guidelines will provide information to employees and marketers about how to use your brand assets. Check out the brand guideline example below.
Market your business

Develop a marketing strategy to promote your business. You should include:
- Content marketing
- Social media marketing
- Search engine optimization
- Email marketing
- Advertising
Content marketing
A profitable business focuses on finding ways to bring people to its website. Content marketing focuses on creating content that people will remember and find useful—and hopefully develop a positive relationship with your brand in turn.
Social media marketing
You’ll want to share all the content you create on social media platforms. You want to use that content to encourage actions, including:
- Following your page
- Going to your website
- Providing an email or phone number
- Downloading a useful product
- Buying a product
- Leaving a review
- Referring friends
Notice that each of these steps is building a closer relationship with your audience and will help you get closer to your goal of becoming a profitable business.
Not all entrepreneurs have the patience to go through this process on their own. You may find it easier to hire a marketing team with experience in your product category if you are hoping to be an overnight success.
Search engine optimization (SEO)

SEO works amazingly alongside content marketing and social media marketing.
The goal with SEO is to identify the intent and questions that search engine users have, then provide them the information they want to know. When you successfully help answer questions better than other websites, you may rank higher in the search results.
You can use software like Semrush and SurferSEO to identify the best strategy for answering searchers’ questions and ranking highly in search engine results.
Email marketing
After you have collected a person’s email, you can use email marketing tools like MailChimp to separate people into email lists and automate when you send them emails.
This helps you keep your customers and followers informed about new developments in the company and can increase their lifetime value.
Advertising
Paid advertising still has a place in marketing, but it is extremely costly if you don’t narrow your target market.
For instance, just by narrowing their ads to people who live in New York City, local businesses can get nearly 40 times better results than if they allow the ads to be shown nationally, and almost 1,000 times better results than if they showed globally.
Local (NYC) | National | Global | |
Number of People | 8.6M | 340.4M | 8.1B |
Percent of Global Population | .11% | 4.2% | 100% |
Savings | 99.89% | 95.8% | 0% |
Cost to Show Whole Area One Ad on Google | $26,832 | $1,062,048 (39.6x Local) | $25,272,000 (941.9x Local) |
Cost to Show Whole Area One Ad on Facebook | $73,960 | $2,927,440 | $69,660,000 |
Given New York City has over eight times the population of most U.S. cities, that means you can market to almost any city for less than $4,000.
Reduce your target market even further, and you can start making it so locals think about your company when they need the service you offer.
Provide exceptional customer service

Providing exceptional customer service is crucial for building customer loyalty and a positive reputation for your business. Here are some steps you can take to deliver outstanding customer service:
- Understand your customers’ needs: Take the time to truly understand what your customers are looking for. Listen actively to their concerns, questions, and feedback.
- Be responsive: Respond to customer inquiries, messages, and feedback promptly. This shows that you value their time and are committed to assisting them.
- Practice active listening: Pay close attention to what your customers are saying. This helps you address their specific needs and concerns more effectively.
- Empathize and show understanding: Put yourself in the customer’s shoes and understand their perspective. Acknowledge their feelings, frustrations, or excitement.
- Maintain a positive attitude: Stay positive, even when dealing with challenging or difficult situations. A positive attitude can help diffuse tension and create a more pleasant interaction.
- Personalize interactions: Use the customer’s name, refer to previous interactions, and tailor your responses to their specific situation. This shows that you value them as an individual.
- Provide clear and accurate information: Ensure the information you provide is accurate and easy to understand. Avoid jargon that the customer may not be familiar with.
- Go the extra mile: Take initiative to exceed customer expectations. This could be by offering additional assistance, providing special discounts, or offering solutions beyond what was initially requested.
- Admit mistakes and take responsibility: If your business makes a mistake, acknowledge it, apologize, and take steps to rectify the situation. Customers appreciate honesty and transparency.
- Follow up and follow through: After providing assistance, follow up with the customer to ensure that their issue was resolved to their satisfaction. This demonstrates your commitment to their well-being.
- Provide multi-channel support: Offer various communication channels, such as phone, email, chat, and social media. This allows customers to reach out in the way that is most convenient for them.
- Solicit feedback: Ask customers for feedback about their experience. Use this information to identify areas for improvement and make necessary adjustments.
- Train your customer service team: If you have a team, ensure they are well-trained in customer service skills and have a thorough understanding of your products or services.
- Monitor and measure customer service performance: Use metrics and customer satisfaction surveys to evaluate the effectiveness of your customer service efforts, and make improvements as needed.
- Foster a customer-centric culture: Ensure that everyone in your organization understands the importance of exceptional customer service and is committed to delivering it consistently.
Remember, exceptional customer service is an ongoing effort that requires dedication and a customer-centric mindset. By prioritizing your customers’ needs and consistently delivering high-quality service, you can build strong, lasting relationships with your customer base.
Manage finances and operations
Keep track of your finances, manage cash flow, and ensure you have efficient operational processes in place. Most companies use QuickBooks to manage their finances.
Scale your business

Once you’ve established a solid foundation, consider ways to grow and expand. This could involve hiring more employees, entering new markets, or offering additional products or services. Check out our blog about how to grow a business.
Remember, becoming an entrepreneur is a journey that requires continuous learning and adaptability. Stay open to new ideas, seek feedback, and never stop refining your business.
Become a successful entrepreneur: Start your own business
Now you know how to become an entrepreneur. We’ve discussed everything from choosing an idea to finding funding and building your brand.
Want instant access to business models that work? Skip the formal education and join our global community of young entrepreneurs by taking one of our online courses. Learn more here.
What kinds of businesses do you want to start?