Here’s how to navigate the “real world” with confidence
At one point or another, we’ve all thought about being our own boss. The lure of working on something you’re truly passionate about, creating your own hours, and possibly striking it rich can be very strong. Many of us aren’t able to take the leap, but for those who are seriously considering it, here are some things to keep in mind.
What’s the Idea?
Every entrepreneur needs an idea. What is your business going to be? Will it provide a service? A product? A combination? What are you passionate about? If you don’t already have an idea, start at home. What everyday problems do you wish you could solve? What would make your life easier? Keep in mind that you may have to work through many ideas before finding the right one.
Once you have an idea, do your research. Check the market to see if your idea already exists — it probably does. So what is it about your version that will make it more appealing? If your idea doesn’t exist, start looking into how you can get funding, what the industry looks like for your concept (Is it already saturated? Has it seen any recent disruptions?), and gather feedback. Talk to your friends and family, let them know what you’re thinking and see if they’d be interested. Their insight can be valuable — especially if they are totally honest.
Secure Your Financing
For many entrepreneurs, the biggest hurdle is money. Early on figure out a plan to finance your new venture. Will you need money for marketing, research, and distribution? Create a business plan that includes funding. Will you need money from investors? You can also look for companies that provide funding to small businesses to help you get started financially.
Put aside some funds on top of what you’ve budgeted to bring your idea to fruition. Unforeseen issues always arise, and you’ll be glad to know you have money in reserve. Many entrepreneurs put their own money into the business, and while not necessarily a bad idea, be cautious. It could be years before you get that money back (if you do), so make sure you have cash set aside to meet expenses while the business is in the red.
Line Up Legal Protections
While securing funding is paramount, just as important is making sure you (and your business) are covered legally. Taxes, liability insurance, patents, licenses, and incorporating can be difficult to navigate on your own. Consult an attorney to ensure that you and your business are in compliance with — and covered by — the law.
At the end of the day, you need to understand what you’re getting yourself into. What are the potential risks? Many businesses fail within a short time, and others take years to become profitable. For many entrepreneurs, starting a new business is all-consuming, leaving little time for anything else. Ask yourself if this is a commitment you’re ready for — personally, professionally, and financially. If not, that’s OK. Timing is important. If you can’t fully commit to starting a business now, it’s probably not the right time.
Be Patient and Resilient
If it’s time to start your business, don’t quit at the first sign of trouble! There are always bumps in the road with new enterprises. It’s up to you to determine what you can overcome. You need to be ready to push through when times get tough. But you also need to know when to cut your losses. Not every business is the right one and knowing when to end a faltering enterprise is just as important as knowing when to start a new one.
Don’t feel that you need to do it all on your own. Consider enlisting a business partner or finding a mentor. A partner can help lighten the burden, and a mentor can help you navigate the process of becoming an entrepreneur. They may also have connections to colleagues and friends who can help advance the business in some way.
If you’re ready to take the leap and become an entrepreneur — good luck! It’s not an easy road, but it can be incredibly rewarding. After all, you have the opportunity to truly make something your own.
April D. Tinhorn is the owner and “digital visionista” at TINHORN Consulting, LLC, an interactive media consultancy that originated on the Hualapai Indian Reservation in Peach Springs, Ariz. Her business provides on-demand access to web and social media consultations, offers strategic online planning services, and is well versed in Indian Country. While a computer science student at Arizona State University, April was a member of the school’s AISES College Chapter. And during her time as a member of the Phoenix Professional Chapter, April was part of the local planning committee for the National Conference. Most recently, she graduated from the inaugural cohort of the Growing Native STEM Businesses in the West.
What is your definition of entrepreneurship?
Entrepreneurship is working for yourself. As an entrepreneur, I take on all the risks in order to have freedom of choice — what projects we take on, whom we work with, and being there for my daughter’s milestones. For many of us Native entrepreneurs, we skew toward social entrepreneurship where we factor in the benefit to our tribal communities.
What are the most important skills for a successful entrepreneur?
I can name five crucial skills: (1) be an active listener — if you listen, people will tell you what they need and, oftentimes, how to do it; (2) be a calculated risk taker — opportunities arise from calculated risk taking; (3) Be comfortable in being uncomfortable — there’s no instruction manual for creating a successful business, so there are many, many, many moments of being uncomfortable; (4) be a relationship builder — people buy from people, not businesses. As an entrepreneur, relationships matter; (5) be part of what’s next — entrepreneurs must adapt or go the way of the floppy disk.
Do you have a favorite business tool?
My Samsung Galaxy S10+ is my office on the go, so the following apps save my life:
Google Suite: Google Calendar keeps me on track. Gmail is my go-to email program. I collaborate on Google Drive and save all my business photos and videos on Google Photos.
Timesheet: My business is fueled by billable hours, and Timesheet keeps track of my time.
Calendly: I’m frequently scheduling meetings, and Calendly finds times everyone’s available
Zoom: This online video meeting tool is integrated with Calendly.
Wunderlist: It’s a simple app for managing tasks.
QuickBooks: I use this online financial management tool for invoicing and as an online payment option.
Is there anything you wish you’d known earlier?
Setting up and documenting internal business operation processes in the beginning of my business would have saved me time and resources. So as in programming: Document! Document! Document!
What tips do you have for prospective entrepreneurs?
Perform market research to determine if there are enough people who will PAY for your services/products to keep your business afloat. If there aren’t, you have a hobby. Develop a plan. Make sure you have finances to keep your business afloat for a predetermined amount of time, as you may not have paying clients while you develop your business. Choose a business structure and register your business with your tribal business entity or state. Definitely be legit as the IRS does not play when it comes to collecting taxes.
