How To Become a Business Owner in 10 Easy Steps

ByJulija A.
October 12,2022

The post-pandemic world has brought dramatic changes to the business landscape. Many brick-and-mortar businesses have closed their doors for good, while others have shifted to an online presence. Starting a business is easier than ever before, and there are many opportunities for those with an entrepreneurial spirit.

If you’ve been thinking about starting your own business, now is the time to take the plunge. But where do you start? We've gathered tips and tricks on how to become a business owner to get you started on the right path.

1. Define Your Niche

The first step to starting any business is to identify your target market. Who are you selling to? What need does your product or service fill? Make sure to brainstorm your general goals for the business, as well as specific marketing strategies that will help you reach your target audience.

Once you’ve defined your niche, it’s time to research the competition. See what businesses are already out there serving your target market. What are they doing well? What could they improve upon? 

Finally, if you are interested in how to become an owner of a business, you should start by identifying the gaps in the market. In that way, you’ll create a unique selling proposition for your business. 

2. Decide on a Type of Proprietorship

Now that you've determined what business you'd like to start and done thorough market research, it's time to choose a career path. Do you want to be a solopreneur or build a team? Are you interested in starting a franchise or an independent business? The options are endless, and the decision should be based on your specific goals and skill set. The three main ways to kick-start your company are:

Purchasing an Existing Business

This is the quickest way to become a business owner, but it comes with some risks. Existing businesses come with a customer base, employees, and established systems. However, becoming a small business owner this way also means that you’ll inherit the company's debts and liabilities. If you're looking to take on an existing business, make sure to do your due diligence and understand all the financial risks involved.

Starting a Franchise

Franchises offer the opportunity to be your own boss while also benefiting from the support of a larger company. When you start a franchise, you're purchasing the right to use the company's name, logo, and marketing materials. You'll also receive training on how to run the business and access to the company's supplier network, in case you don’t know how to become a business franchise owner

The downside of franchises is that you'll have less control over your business, and you'll be required to pay royalties to the franchisor.

Launching a New Company From Scratch

This is the most challenging way to become a business owner, but it also offers the most growth potential. If you're starting a business from scratch, you'll need to generate your own funding, build a team of employees, and create a new brand. While this option is riskier, it also gives you complete control over your business.

3. Draft a Business Plan

Having a business idea isn’t enough. Before you venture into finding out how to become a successful business owner, you should first put together a business plan. This document will serve as a roadmap for your business, outlining your short- and long-term goals, strategies for marketing and growth, and details about your financial projections.

Your business plan should be as specific and detailed as possible. Include information on your target market, product or service, pricing strategy, and expected profits. Don’t forget to include a detailed marketing plan, which will outline how you plan to generate awareness for your business and attract customers.

4. Find Ways to Secure Funds

Unfortunately, we can’t provide you with ideas on how to become a business owner with no money. In fact, according to statistics, 20% of small businesses fail within the first year. One of the main reasons for this is a lack of capital. Before starting your business, you need to find ways to secure funding. There are a number of options available, including loans, grants, and investment capital.

It is ideal for a small business owner to secure enough funds to cover three to six months of expenses before getting started on their business ownership journey. Once you start, you’ll have to find a way to keep the business afloat with operating expenses. Some of the ways you can do this include:

  • Using your own funds
  • Obtaining venture capital from investors
  • Visiting crowdfunding sites
  • Taking out a small business loan

5. Choose a Name and Location 

If you’re researching how to become a legal business owner, you’ll have to choose a proper name for your business. Keep in mind that your business name should be reflective of your brand and what you do. Make sure to protect the name of your company and the domain name by trademarking it.

You'll also need to choose a business location. If you're starting an online business, you can work from anywhere in the world. However, if you're starting a brick-and-mortar business, you'll need to find a physical space to rent or purchase. Consider the local regulations and zoning laws in your area to find a location compliant with all the legal requirements.

6. Choose a Business Structure

Successful business owners understand the importance of choosing the right business structure. The type of business you're starting will dictate the legal structure you should choose. This will further determine the legal and financial liability of your business. The most common business structures include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

Sole Proprietorship

A sole proprietorship is the simplest and most common type of business structure. It's owned and operated by one person, and there's no legal distinction between the owner and the business.

Partnership

A partnership is a business structure that involves two or more people. Before we delve deeper into how to become a part-owner of a business, we should explain that partnerships can be either general or limited. In a general partnership, all partners are equally liable for the debts and obligations of the business. In a limited partnership, there is at least one partner who has unlimited liability and one or more partners who have limited liability.

LLC

A limited liability company (LLC) is a business structure that offers personal liability protection to its owners. LLCs can be either single-member LLCs (owned by one person) or multi-member LLCs (owned by two or more people). Choose one of the top-rated LLC services and outsource LLC formation and ongoing compliance to experienced agents. 

Corporation

Finally, if you’ve been wondering how to become a business owner within a corporation, you should get familiar with what a corporation is. A corporation is a business structure that offers limited liability protection to its shareholders. Corporations can be either for-profit or nonprofit. Additionally, an S corporation is a special type of corporation that offers tax benefits to its shareholders.

7. Register Your Business 

Once you have a business plan in place, it's time to register your business officially. If you're not sure how to become a licensed business owner, you can consult with an attorney or accountant for help. This process will vary depending on the type of business you're starting and your location. 

In most cases, you'll need to choose a legal structure for your business and obtain a business license or permit. You'll also need to open a business bank account and obtain any necessary insurance for your small business. These steps will help you get started on the right foot and ensure that your company is compliant with all local, state, and federal laws.

8. Open a Business Bank Account

One of the last steps to take to become a business owner is to open a business bank account with a reliable bank that deals with small businesses. This is a separate account from your personal one and is used to track the income and expenses of your company. The most common business accounts are savings accounts, credit card accounts, merchant services accounts, and checking accounts for small business owners.

Most banks will require you to have a federal employer identification number (EIN) before they open a business account for you. You should also provide them with your business's formation documents, ownership agreements, and a business license.

9. Hire Team Members 

Knowing how to become a small business owner isn't enough - you also need to know how to run your business effectively. If you're starting out, chances are you won't be able to do it all on your own. You'll need to build a team of employees, contractors, or freelancers to help you with the day-to-day operations. 

When hiring team members, it's essential to consider the skills and experience they bring to the table. You'll also want to ensure they're a good fit for your company culture.

Once you've built your team, it's important to manage them effectively. This includes setting clear expectations, providing feedback, and offering incentives for good performance. By taking the time to build a strong team, you'll set your business up for success.

10. Develop a Marketing Plan 

Being a business owner means wearing many hats. One of the most important hats you'll wear is that of a marketer. As the face of your business, it's your job to generate interest in your products or services and convert that interest into sales.

The best way to do this is to develop a marketing plan. This plan should include a mix of online and marketing tactics, such as search engine optimization, content marketing, social media marketing, and traditional advertising. You can hire one of the many email marketing services to create and execute your marketing plan for you.

What Do You Need to Become a Successful Business Owner?

Success doesn't come overnight. It takes time, dedication, and hard work. You'll need a clear vision, a strong team, and a comprehensive marketing plan. You'll also need to constantly learn and grow, monitor your progress, and make adjustments as needed.

You can acquire certain soft skills through formal education, such as leadership and communication. Also, many online resources, such as Coursera and Udemy, offer affordable business courses. For example, if you want to learn more about marketing, you can take some online courses in digital marketing.

However, in most cases, you won't need a business degree to start a business; knowing how to become a business owner is more important. You can pick the knowledge you need to run a business through the work experience you have gained.

Some people are born entrepreneurs, while others develop the skills over time. If you have the drive and determination to succeed, you can become a successful business owner regardless of your formal qualifications.

Final Thoughts

Becoming a business owner requires hard work and dedication. But with the right knowledge and tools, it can be an enriching experience.

By following our tips for business owners who are just starting their entrepreneurship journey, you'll be well on your way to success. Just remember that running a business is not a sprint - it's a marathon. So take your time, build a strong foundation, and continuously learn and grow. 

FAQ
Can anyone become a business owner?

In most cases, you don't need a business degree to become a successful business owner. However, having some formal training to gain soft skills can be helpful. If you don’t have it, you can go for one of the many online resources, such as Coursera and Udemy, that offer affordable business courses.

How long does it take to become a business owner?

There's no set timeframe for becoming a business owner. It depends on many factors, such as the type of business you're starting, your experience, and your dedication. In most cases, it takes a year to build the fundamentals, but most small businesses need at least two or three years to become profitable. 

Is it easy to become a business owner?

The answer is both yes and no. It all depends on the business you want to start, the amount of money you're willing to invest, and your experience level. If you were reading our article to get the idea of how to become a business owner with limited capital, then the answer is yes: it can be pretty straightforward. There are plenty of businesses you can start with very little money.

However, if you're looking to start a large business or one that requires a lot of capital, then it will not be easy. Instead, you’ll have to invest hard work, dedication, and a lot of money.

About the author

Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

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Much before the first barcode scanner was invented, Collins incorporated a mirror that enabled the code to be reached from multiple angles, making things much easier and more reliable.  Collins and his Computer Identics Corporation installed the new barcode scanning system at a General Motors factory in Flint, Michigan, in 1969 to monitor the production of car axles. This marked the start of barcodes’ commercial journey. UPC Is Born After the successful installation at General Motors, the next step was to develop a system to be used on all products in a store. In 1966, the National Association of Food Chains (NAFC) formed a committee to develop such a system. RCA Corporation was among the committee’s members, and as it purchased the rights to the Woodland-Silver patent, it became one of the main players in the history of the barcode. 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By Danica Djokic · November 22,2022
Do you ever wonder how those little black-on-white lines can hold so much information? Or how do barcodes work, and why are they so important to businesses? In this article, we will explore the world of barcodes and learn how these simple markings can do so much. Stay tuned for an in-depth look at one of the essential pieces of technology in the modern world. What Is a Barcode? A barcode is a machine-readable code in the form of numbers and parallel lines printed on product packaging. Barcodes were first developed in the 1970s from an earlier idea based on Morse code. They have since become an essential tool for businesses of all sizes. Barcodes can be printed on labels or directly onto products and are read by scanners that are connected to a computer system. Barcodes are used extensively in retail and have helped streamline the checkout process. In addition, barcode technology can be used to track inventory levels and product movement throughout the supply chain. 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Each Data Matrix has its own perimeter finder and timing pattern, and they are made up of square or rectangular blocks of black and white cells. Data Matrix codes may store both large and small symbols. A barcode scanner can more easily read the code if there is a blank space around its perimeter. PDF417 Code PDF417 is a type of 2D barcode used to store information. The name stands for Portable Data File 417. PDF417 codes are used in various contexts, including but not limited to driver’s licenses, passports, and other identification documents.  The information stored in a PDF417 code can include text, numbers, and other data. These codes are read by scanning them with a barcode reader. The reader decodes the information, displays it on a screen, or prints it out.  PDF417 codes are also used in some financial transactions, such as mobile payments. In these cases, the code typically represents a unique identifier for the transaction. PDF417 codes have been used since the early 1990s and are now one of the most common barcode types. QR Code QR codes are becoming increasingly popular, especially as a way of sharing information or accessing content quickly and easily. But what exactly is a QR code? Simply put, a QR code is a two-dimensional barcode that can be read by a smartphone or other devices with a camera.  When scanned, the QR code will direct the device to a specific website or online content. QR codes can be used for various purposes, including sharing contact information, providing directions, or linking to a video or social media account.  Businesses have also begun using QR codes to offer customers special deals or promotions. While QR codes are most commonly used with phones, they can also be scanned with laptops and tablets. So, the next time you see a QR code, go ahead and give it a try. Benefits of Using Barcodes Barcodes have become essential to modern life, appearing on everything from groceries to library books. While they may seem like a simple way to handle inventory tracking, barcodes offer businesses various financial benefits. Here are some of the key benefits of using barcode systems: Improved accuracy: Barcodes can be read quickly and accurately, which reduces the chances of human error. This is especially important for businesses that need to track a large number of items. Reduced costs: Using barcodes can help businesses save money on labor costs associated with inventory management. Barcodes can also be used to automate the ordering process, which can lead to further cost savings. So if you’re unsure how to use a barcode system, consider hiring a professional to help get you started. Faster transactions: Barcodes can be read quickly, which helps speed up transactions. This is especially beneficial for businesses that experience high volumes of traffic, such as supermarkets and department stores. Improved customer service: Barcodes can help businesses keep track of sales data and customer purchase history. This information can be used to improve marketing efforts and customize the shopping experience for individual customers. Improved security: Barcodes can be used to track products and prevent theft. This is especially important for businesses that sell high-value items or handle sensitive information. As you can see, barcodes offer a variety of financial benefits for businesses, large and small. How Does a Barcode Scanner Work? A barcode scanner is a device that can read and interpret barcodes. It encodes the data from the barcode into a form that a computer can read. The computer then uses this data to look up information about the product, such as the price, in a database. Barcode scanners come in various shapes and sizes, but they all work using the same basic principle. So, how are barcodes read? A barcode scanner contains a light source, a photosensor, and an electronic decoder.  The light source is used to illuminate the barcode. The photosensor is used to detect the reflected light from the barcode. The electronic decoder is used to interpret the data encoded in the barcode. Barcode scanners can be handheld or fixed. Handheld barcode scanners are portable devices that can be held in one hand while scanning barcodes. Fixed barcode scanners are mounted on stands or other surfaces and are used to scan barcodes placed within the scanner’s range. Barcode scanners are commonly used in retail settings for pricing and inventory control. However, barcode scanners can also be used for other purposes, such as tracking assets or collecting data. Final Thoughts Barcodes are essential to many businesses, helping track inventory and product movement throughout the supply chain. By understanding how they work, you can ensure you’re making the most out of them. There are different barcode types, so choose the one that best suits your needs.
By Nikolina Cveticanin · November 21,2022

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