In today’s age, starting a business has never been easier. With the emergence of the internet, there are a plethora of tools available to assist those in pursuit of entrepreneurship.
Whether it’s low-cost, or even free marketing tools or free information to help your business, there is plenty of aid to help you start your entrepreneurial journey. That being said, the journey to success is not easy. Entrepreneurship is a path that is difficult, but can be extremely rewarding if properly executed.
Entrepreneurship is a term that you have probably heard, and can loosely relate to business. But what actually is it?
What is entrepreneurship?
Entrepreneurship is defined simply as the pursuit of creating and operating a business, introducing an innovate idea or solution to the market. This also means taking the financial risks that follows with any business venture. Because of this, entrepreneurs also enjoy the most benefits if the business is able to achieve success.
Entrepreneurships means making use of available resources, a vision, as well as skills to create a successful business venture. They usually have a long-term vision rather than a short one, and aspire to grow something big.
How do taxes work in entrepreneurship?
This is a question that has multiple answers, which will vary based on the way you structure your business. Your business structure will determine the way you pay taxes.
The first business structure we will discuss is the most commonly known, the limited-liability-company, or LLC. This business structure ensure that members are not personally liable for any of the company’s debts. It legally exists as a separate entity from the owners. LLCs allow for pass-through taxation. This means that the business’s income is “passed through” to owners and reported on their personal income tax returns.
The next business structure we will talk about is the sole proprietorship. This type of structure contains one owner who is responsible for personal income tax on any profits that the business generates. There are numerous other business structures to choose from, which each having their pros and cons.
What is an entrepreneur?
Those who pursue entrepreneurship are known as entrepreneurs. They are aspiring individuals who create and produce a product or service. As mentioned before, entrepreneurs undergo financial risk for their business.
There are numerous characteristics of an entrepreneur. To name a few:
- They are innovative and have critical thinking
- They are problem-solvers
- They are forever curious
- They take risks
- They can adapt to roadblocks
Additionally, entrepreneurs adopt an entrepreneurial mindset. In this state of mind entrepreneurs are dedicated to their business, are content with failure, are goal-oriented, and keep an open mind to new learning opportunities.
How do I start my entrepreneurship journey?
Entrepreneurship is something that can be started with something as simple as a side hustle. However, for those who wish to create a business, it is a more complex journey that will take proper planning and execution.
It all begins with an idea. Once this idea has been realized, it has to be developed and refurbished so that it is market-ready.
Entrepreneurship is a process that involves numerous steps, such as choosing a business structure (like we discussed earlier) and creating a business plan.
After the essential steps of creating a business are complete, it is time to secure funding. This can be from personal savings, a loan, from a collaborative partner, or from some other source.
After the business and product is up and running, you need to market your business. This is when you are your most creative, utilizing various methods to reach new users.
Now your business is operational! Obviously this is easier said than done. It is a month-long, sometimes even year(s)-long process that requires discipline and dedication.
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