Updated: Sep 17
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To become an entrepreneur, you turn an idea into a business you own and run, and that starts with a viable idea, a defined audience and a way to reach them. Around 5.1 million new businesses are started in the United States each year, according to data from the U.S. Census Bureau, so the opportunity is real and so is the competition. Wix Harmony democratizes vibe coding for websites so the next generation of entrepreneurs can succeed online in an AI-powered world.
That puts creating a business website within reach on day one rather than months in. This guide walks through ten steps to become an entrepreneur, from finding an idea to building a brand and making money as an entrepreneur.
TL;DR: How to become an entrepreneur: 10 steps for success
Becoming an entrepreneur means identifying a real problem, validating that people will pay to solve it and building a business around that demand. The ten steps below cover idea selection, audience research, testing, planning, your website, partners, network, finances, brand and go-to-market. Wix lets business owners register a domain, build a website and manage hosting and email from one platform.
What an entrepreneur actually does and how it differs from being self-employed
The ten steps that take an idea from concept to a launched business
How to test demand before you spend money
The signs you are ready, covering rejection, funding, mentorship and risk
Got a business idea? Lock down your brand’s domain before someone else does. Wix makes it easy to get your domain, email, hosting and SSL all in one place. Plus you'll get 24/7 support every step of the way.
How to become an entrepreneur
Use the following 10 steps as your personal checklist for success. Here’s how to become an entrepreneur:
01. Find a business idea
When trying to start a business, choose a business idea that will set you apart from others. For example, if you start a clothing line, mull over how you’ll niche down. What products will you sell? Will it be sustainable or ethnically made? Once you’ve narrowed it down, you can think about potential business names or use a business name generator to get your creative juices flowing.
On top of finding your competitive edge, think about what you really love doing. What problems are you passionate about solving? Is it reducing waste from plastic straws? Your recipe for business success is sticking to what you love, know best and feel the world needs.
Take a page from Kangaroo Hanger, which aims to reduce waste in a billion-dollar industry. The business started with a personal problem. Founder and CEO Angus Willows couldn't get his clothes to stay on their plastic hangers. As Angus dug deeper into the hanger industry, he discovered two problems that needed solving. Most hangers had design flaws, and the hanger industry is horribly wasteful. Learn more about Kangaroo Hanger's story.
02. Get to know your target audience
Although an idea can sound great, make sure that others will pay for it before you pat yourself on the back. A big reason why businesses fail is weak product-market fit, according to CB Insights, which reviewed more than 400 startup shutdowns and found poor product-market fit behind 43% of them.
Ilan Shaki, Head of Global B2B Channel Partnerships at Wix, puts the tradeoff plainly. “Without market demand, passion won’t matter. But having passion will take you a long way in addressing market demand.”
This was something that Arkady Kovalev, founder and CEO of Heroes INN, witnessed firsthand. Now the go-to seller of trading cards and comic books in Mönchengladbach, Germany, Arkady saw many other comic stores shutter before he started Heroes INN. The problem? They didn't understand local preferences.
Arkady launched Heroes INN after devoting an entire year to research. Today, the 'inn' is a hotspot for local city-dwellers in addition to travelers from all across the Eurozone.
As you perform your own market research, list out the characteristics that define your target market. For example, what age range do they fall into? What are their hobbies? Where are they located? And so on.
03. Test your idea
A trial period is important for gauging the interest around your product or service with your potential customers, getting first-hand experience understanding how you can best serve them, and seeing where you can make improvements. Treat this stage as the first step in selling your idea.
The more you get your idea into the hands of consumers, the more feedback you’ll get and can use to build on your concept and create awareness. For example, you can send out samples, host focus groups or even work one-on-one. Your success depends on seriously taking in this feedback.
04. Use a business plan template
Becoming a small business owner requires a lot of planning, from picking a type of entrepreneurship to building your concept and turning your idea into a reality.
Start in an organized fashion with a business plan template that details your idea’s core components, from your mission statement to your marketing, operations plan and more. This document will help you visualize your goals and help you carry them out.
It’s advised to also create an executive summary, or a high-level overview of your business. This report is essential when you need to communicate your business in brief, such as when looking for partners or requesting funding.
05. Create a website
Whether you’re using it for online scheduling or eCommerce, or simply directing organic search visitors to your landing page, every business needs a website.
In fact, entrepreneurs like Chef Tammy Maki attribute a lot of their long-term success to having an online presence. According to Tammy, her chocolate business, Raven Rising, was able to weather many obstacles and understand customer behaviors better from having an online shop.
To create your own website, start by choosing a website template and customizing it to meet your needs. (Alternatively, you can create your site from a blank canvas or using a reliable AI website builder.)
Wix Harmony takes you from a single prompt to a business-ready site for any industry or creative vision.
Rebecca Tomasis, Head of Organic Growth Marketing at Wix, sees the workload behind that choice. “Creators and entrepreneurs are usually managing everything at once, from design to SEO to content updates. That’s why it’s important to choose a website builder that makes all of those workflows intuitive in one place, while still helping you achieve professional-level results.”
From the Homepage and About Us page to a contact form, consider what type of pages you’ll want for your professional website. After you’ve selected your template, free web hosting takes your website online and keeps it there. Finally, pick a domain name or online address, so people can find you online.
Worth a look: .ventures is a domain extension saying you start things where .capital says you supply money, so it fits a founder building companies rather than writing checks.
Tip: Wix offers free business tools for your website and to build your brand, including a logo maker, pay stub generator, QR code generator, invoice generator and form builder.
06. Hire great partner(s)
Flying solo is great, but a supportive partner will help you see different challenges and opportunities you otherwise might have missed.
When looking for a partner, think of the qualities you would like them to have and the people you know who possess them. Have a semi-planned business proposal when you reach out to your chosen potential partner, (your executive summary, for instance).
Your first hire can set the mood for your company culture, the vision, norms and mores your employees hold in common, even if you aren’t hiring a full team just yet. Such foresight can determine your business’s future success, as it ensures that everyone on your team will be in-sync.
07. Build your network
Business is not a solitary journey, even if you choose not to have partners. Having knowledgeable and experienced mentors will help you understand your market better, take advantage of opportunities and avoid costly mistakes.
To find this support system, attend relevant networking events, speaker series, fairs and expos. You can also host your own networking events or create an online community.
08. Plan your finances
Planning your business finances might not be the most exciting step, but it is mandatory. Begin by getting a good grasp of the cost of starting a business. How much do you need? Run through the costs of materials and production, supplies, hiring employees, promotion, office space, etc.
As a novice, it’s likely you’ll need to request help, so make sure to keep your expenses as low as possible to give yourself some financial room for external consulting. Once you have a good idea of how much funding you’ll need, check in with your financial situation. How much will you invest in yourself? If you’re looking for investors, having some of your own skin in the game will make them more willing to support you.
Once you have the funds, open up a dedicated bank account to track your profits and expenses. It’ll streamline accounting and give you useful data to plan your business growth.
09. Develop a strong brand
Like Spotify’s distinguishing vibrant green and black or Dove’s subtle “real beauty,” a consistent brand identity helps generate recognition and build trust amongst customers over time. Verbally, it’s composed of your core values, language, employees and customers. Aesthetically, it involves your brand colors, font choices, logo and more.
Ronell Smith, brand strategist and small business coach, frames what that identity has to do. “Effective branding means creating a unique, one-of-a-kind identity that not only sets you apart from the competition but also highlights your unique value proposition to the audience you want to attract.”
Editor-in-Chief of Entrepreneur Jason Feifer has a side business of his own. His website, podcast, newsletter and recently published book are all dedicated to teaching fellow entrepreneurs how to be more resilient to change. His podcast and book share the name Build for Tomorrow. Similarly, he uses the same font and colors of his logo to decorate his website.
Tip: Use a logo maker and business card maker to showcase your brand identity.
10. Create value in your market
Now that you have a tested product or service, a strong network and brand channels for promotion, it’s time to choose how you will go to market. Whether it’s through routinely publishing relevant thought leadership on social media or an elevator pitch that shows why your offering beats your competitors, a clear, defined go-to-market message will help your customers see the unique reason to choose your brand over another.
Are you ready to become an entrepreneur?
So, you may already know starting a business takes more than having a good business idea. Not every new business makes it past its first year. With entrepreneurship being a highly competitive and complex practice, you need to be prepared to deal with its ups and downs.
While the work may be fulfilling, it can also be incredibly stressful. You’re building a life around your business, possibly putting a strain on your p. And not only that, you will need both emotional and financial support systems to keep you on the path.
Here are some clear signs that show you’re ready to become an entrepreneur.
Learn to handle rejection
Roughly one in five new businesses close within their first year, according to the U.S. Bureau of Labor Statistics. As an entrepreneur, one of the first things you’ve got to learn is how to handle rejection.
Whether you hear a “no” from a potential investor, client or publisher, having the right attitude about rejection can go a long way. Take the example of J.K. Rowling. The Harry Potter novelist has always been straightforward to fans about her own bumpy road to becoming a billionaire. In 2016, she tweeted two rejection letters she received, stating to her fans that they were an inspiration to keep going.
Another good way to deal with rejection is to take a step back and focus on self-care, writes Dr. Leslie Becker-Phelps in Bouncing Back from Rejection: Build the Resilience You Need to Get Back Up When Life Knocks You Down. Practicing self-care, Becker-Phelps explains, can be anything from meditating, running or even listening to music. Think of rituals that calm you down, thereby bringing you back to a balanced place.
Have a steady flow of funds
One of the most common small business challenges is lack of capital and cash flow, reported a recent Guidant Financial survey. At the early stage, a steady source of funding could mean either personal or family savings. If you need to search beyond your immediate reach, you could also apply for a public or private small business loan, business credit cards or extend your line of credit at the bank.
Aside from having a steady revenue stream, you’ll also need to ensure steady profits to grow a business once it’s launched. By doing extensive market research on your business idea, you’ll be able to say whether there’s an actual demand for your product or service and the size of your potential customer base.
Have a mentor
Mentors are one of the most direct ways to shorten the learning curve. Ilan Shaki, Head of Global B2B Channel Partnerships at Wix, keeps his own answer short. “How have I overcome business challenges? Ask for advice and consult often.” Mentors give you that consult on demand, and some of the biggest entrepreneurs in history have said they would not be where they are without their own.
In 2014, Oprah Winfrey said, “I’ve been blessed to have [poet] Maya Angelou as my mentor, mother/sister, and friend since my 20s. She was there for me always, guiding me through some of the most important years of my life. The world knows her as a poet but at the heart of her, she was a teacher. ‘When you learn, teach. When you get, give’ is one of my best lessons from her.”
Through proper mentorship, you will gain not only wisdom, guidance and perspective, but also all the necessary skills for professional growth, such as communication and self-awareness. Check out SCORE, SBDCs and the Women’s Business Centers for mentorship opportunities online.
Be passionate about your idea
Venmo, Instagram, Uber and WhatsApp all launched during an economic downturn. Their founders were resilient in pursuit of innovation and creativity. Being passionate about what you’re doing can help you stay motivated, even when the stakes are high.
Read more: Take inspiration from entrepreneur and Cuppapug founder, Aaron Carty who launched his unique pug cafe idea, following his passion for pugs.
Be comfortable taking risks
Risk-taking plays a major role in becoming an entrepreneur. Without it, business leaders may not have gotten as far as they did. Facebook CEO Mark Zuckerberg famously said, “The biggest risk is not taking any risk. In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”
Get ready to be comfortable with uncertainty and step out of your comfort zone. Some risks you might face include:
Leaving a full-time job and a steady paycheck
Sacrificing time you'd normally take to enjoy your weekends or see friends and family
Using your personal finances with no guarantee you’ll see a return on investment
Miscalculating whether your product or service idea will take off
That said, if you’re not quite ready to follow through with your plan, take it slow. Instead, start with adjusting a tiny part of your career at a time with one of these successful habits.
How to become an entrepreneur FAQ
Do you need a degree to become an entrepreneur?
No. There are no formal qualifications required to start a business. Some fields do require licensing or certification, such as accounting, law, healthcare and the trades, so check the rules for your specific industry before you launch.
How do you become an entrepreneur with no money?
Start with a business model that has low upfront costs, such as services, digital products or dropshipping, and validate demand before you spend. Keep your existing income while you test. Wix lets business owners register a domain, build a website and manage hosting and email from one platform, which keeps early overhead low.
What is the difference between an entrepreneur and a small business owner?
The terms overlap. An entrepreneur typically builds something new and takes on the risk that comes with an unproven idea, while a small business owner may run an established model such as a franchise or a local service. Most people are both at some point.
How long does it take to become an entrepreneur?
You become one the day you launch, but profitability takes longer. Most new businesses take two to three years to become profitable, so plan your finances around that timeline rather than around launch day.
Is there an age limit for becoming an entrepreneur?
No. You can start at any age, though anyone under 18 will usually need an adult to sign contracts, open a business bank account or register a company.
What skills do you need to become an entrepreneur?
The core ones are customer research, financial planning, selling and the ability to keep going after rejection. None of them require formal training, and most are learned by running the business.
