Entrepreneurship is the process of organizing, managing, and assuming the risks of a new business. It creates wealth by adding value to an existing product or service or inventing a unique product or service that solves a problem.
Inventions and technological innovations, often created by entrepreneurs, increase employment, expand the economy, and contribute to a nation’s gross national income. They also help governments fund public projects and foster social change.
The entrepreneurship process starts with an idea. The idea is then developed through market research and a solid plan.
Doing your market research and planning will help you decide if your business idea is viable, or if you need to refine your idea. The best way to do this is by analyzing your target customers, competitors, and industry trends.
Your business idea should answer a specific problem or pain point for customers. For example, if you find that people are having trouble making appointments at their dentist, a solution could be to build an online booking system.
Choosing the right business structure is crucial, especially if you plan to hire employees. A limited liability company (LLC) is one of the more common options and will make your personal assets separate from those of your business if the business fails.
You should also consider whether you will need licensing and permits for your business. These are not always required, but can save you money and time in the long run.
Lastly, you should have a bank account for your business and keep your personal finances and business finances separate. This will help you maintain an accurate financial picture of your business and also make tax preparation easier.