What does it take to be an entrepreneur: A Friendly Guide

1. Undestanding why you want to become an entrepreneur and what does it take to be an entrepreneur?

So you are considering becoming an entrepreneur? You are officially part of that 5.5M group of people that each year start a new business, at least in the USA.However, 90% of startups fail during the first 10 years, with 50% over the first five (Source: U.S. Bureau of Labor Statistics). So why take this leap?

Entrepreneurship can be a very attractive journey when looking at the end goal, financial freedom, but it does come with perils and obstacles. It's a tough journey so, before you get started you need to ask yourself, why become an entrepreneur?

✅ Freedom from becoming your own boss

✅ The willingness to learn during the process

✅ Potential impact on people's life, communities, or the environment

✅ Eventually, financial reward

This guide is meant for all aspiring entrepreneurs, potential career switchers, side hustlers and others considering a professional change. Our goal is to give you the basic structure on what it is that you need and what it takes to become an entrepreneur before starting this adventurous journey.

2. Developing the Right Mindset

Before you start with any project or activity, it's key to develop the right mindset. Just like you start with breathing exercises before a yoga session, there are specific activities and mindful states you should aim to achieve before comencing your journey.

• Think out of the box: one of the key aspects that sets you apart from your corporate colleagues is your ability to think of original solutions or, even better, to come to the realization of actual problems and pain points that others are blind to see. Make sure you think beyond the structured mindset you have gathered during the years and open up to new ideas and solutions
• Be resilient, positive and build a support circle: according to Entrepreneur.com, one of the key aspects in developing a good entrepreneurial mindset is positive attitude.
• Overcome the fear of failure: again, over 90% of the startups fail! But the world progresses thanks to those who try! Just look at the stories from some of the best businesspeople globally: Bill Gates failed at Traf-O-Data, Max Lechvin from PayPal failed at SponsorNet, NetMomentum & NetMeridian, Travis Kalanick failed "for 10 years" before Uber. Great success comes from great risk, but oh! is the potential reward nice for those who keep trying.

"Entrepreneurship is about resilience—making decisions without all the answers and pushing forward despite uncertainty. Fear of failure never fully goes away, but the best way to handle it is to see every setback as a lesson rather than a roadblock" (Matt from WorkStory)

• Take calculated risks: knowing that entrepreneurship comes with risks is not be taken as a lure to jump into a pool full of hungry sharks just for the sake of taking risks. As an entrepreneur you hace uncertainity, and that cannot be controlled; however, risk can be measured, can be calculated. Best way to do so is by developing a multi-scenario business plan, so that you are ready for the good, the bad, and the very worst of outcomes. Harvard Business Review shares some good reads in risk management.

"When it comes to skills, having an analytical mindset is essential. You need to be able to assess risks, evaluate opportunities, and make well-informed decisions." (Anastasia from DreamX)

3. Finding the Right Business Idea

🔹 Identify problems to solve

This is something easier said than done. However, sometimes we believe that creating a startup means going for AI, advanced tech, something extremely futuristic because that's the only business with potential to unicorn. We get stuck on these businesses or B2C ideas and we ignore other traditional pathways. The below video on Nate Jones gives you a great insight on finding those more unattractive business ideas:

🔹 Develop quick validation techniques

Before you start with developing your idea and taking it to paper, YC explains there are several questions to ask yourself when starting a business idea

✅ Do you have founder / market fit: are you the right team?

✅ How big is the market? You need a big market, for startups normally it means either existing $1Bn+ markets or smaller one with high growth prospects.

✅ How acute is this problem? Is is a problem that people care enough about?

✅ Do you have competition? Having competition is actually good!

✅ Do YOU want this personally? Would you use your own product?

✅ Did this something recently become possible or necessary?

✅ What are the proxies to your business? Are there companies that do something similar without being the same, which are successful at what they are doing?

"When building a business plan, the most important focus should be on understanding your customer’s needs and how your product or service solves those needs. (...) It should clearly outline who your target market is, what challenges they face, and how your offering can provide a solution. (...) When I created my business plan, I focused on how we could stand out from competitors by providing high-quality service." (Sean Clancy from SEO Gold Coast)

4. Taking the First Steps

🔹 Start Small: Build a Minimum Viable Product (MVP)

A Minimum Viable Product (MVP) is the simplest version of your product that can be tested in the market. Instead of building a fully-fledged app or service, focus on:

• Key features that solve the primary problem: What are the MUST features your app should have?
• A landing page or prototype to gauge interest. Even before starting coding, buying inventory, etc. you may want to create a landing page and run some Google Ads to view if there is any real interest from your market and target customer.
• Early feedback loops to refine your product: try to get your easly beta users involved.

Example:

• Dropbox started with just a demo video instead of an app (How Dropbox validated their idea).
• Airbnb launched by renting out their own apartment to test demand before scaling (Airbnb’s MVP story).

🔹 Test Before You Invest

Many startups fail because they spend months (or years) building a product nobody wants. Instead of assuming demand:

• Run surveys & pre-orders before building.
• Use Kickstarter or Indiegogo for crowdfunding (Crowdfunding tips).
• Launch a basic version on platforms like Gumroad, Shopify, or Etsy to gauge real interest.

🔹 Decide Between Side Hustle vs. Full-Time Leap

Entrepreneurs often ask:
📌 “Should I quit my job and go all in?”
The answer depends on financial security & risk tolerance.

✔ If you have savings: Going full-time can speed up growth.
✔ If you’re unsure about demand: Start as a side hustle and scale gradually.

🔗 Further Reading: Should you quit your day job to start a business

5. Next Steps & Encouragement

Now that you understand the core steps to becoming an entrepreneur, it’s time to take action.

🔹 Recap: The Entrepreneurial Formula

✅ Mindset → Stay resilient & embrace risk.
✅ Idea → Find a problem worth solving.
✅ Action → Build an MVP & start testing.

🔹 Start Small, But Start Today

• You don’t need a perfect plan to begin.
• Take one step: Write your idea, sketch a prototype, or talk to potential customers today.
• Track your progress and adjust as you go.

Bonus: Essential Questions to Ask an Entrepreneur

• What inspired you to start your business?
  Understanding their motivation reveals insights into passion, vision, and problem-solving.
• How did you validate your business idea?
  Learn how they tested market demand through research, feedback, and prototyping.
• What were your biggest early-stage challenges?
  Discover common struggles like funding, hiring, and customer acquisition.
• How did you secure funding?
  Explore financing options such as venture capital, bootstrapping, or crowdfunding.
• How did you attract your first customers?
  Understand effective marketing, networking, and referral strategies.
• What key skills should every entrepreneur have?
  Identify crucial abilities like leadership, sales, and financial management.
• How do you handle failure?
  Learn how they overcome setbacks and build resilience.
• What’s the biggest lesson you've learned?
  Gain valuable insights from their business experiences.
• How do you balance work and personal life?
  Understand strategies for maintaining a sustainable routine.
• What advice would you give to new entrepreneurs?
  Get actionable tips on perseverance, networking, and financial planning.

🔹 What’s Next?

In the next articles, we’ll cover:
📌 How to create a business plan.
📌 Funding options & financial management.
📌 Managing business risks & avoiding pitfalls.

Starting your journey is the hardest part, but every entrepreneur started somewhere. Your future business could be the next big thing—start now! 🚀