I’ve been self employed for a couple of years now – time certainly does fly! Some of those who know me in the real world see me as a businesswoman. Honestly, I’m not sure how I feel about that. Technically, I’m a sole trader, not a business owner. So when I was asked recently, at what point do you become an Entrepreneur? I had to do some research.
This is a partnered post
At What Point Do You Become An Entrepreneur?
The definition of Entrepreneur is, “someone who makes money by starting their own business, especially when this involves seeing a new opportunity and taking risks”. So based on that, anyone who quits their 9-5 and sets up their own business or company is an entrepreneur. However, I’m not convinced it’s that straight forward.
For me, the hardest part of being self employed is making ends meet month on month. The constant pressure of not knowing if I’ve got the bills covered is overwhelming at times. Personally, I wouldn’t dream of calling myself an entrepreneur until I have had at least a full year of profit, and a nice little safety buffer in the bank.
Signs Of A True Entrepreneur
Many people and business owners are referred to as Entrepreneurs in the media or business circles. While there’s no hard and fast rules as to what exactly is required to deserve that title, I do have a few things I look for.
Firstly, an Entrepreneur should be a bit of a hustler. They will have either started their business on a shoestring budget, or secured financial investment. Most new businesses carry a risk, so it’s very difficult to get investment, in most instances.
Additionally, a successful entrepreneur will usually be a philanthropist on some level. Some may be sitting on a chair listening to business pitches like the guys on Dragon’s Den. Alternatively, others will offer scholarships to bright students or potential employees. Matt Redhawk did exactly this, when he gave a $4000 scholarship to an Engineering student.
Making The Leap To Self Employment
So many people are becoming self employed now, that it’s no longer quite as impressive as it once was to be your own boss. From multi level marketing companies to freelancers, there’s many ways to become your own boss.
For me, I started blogging as a hobby, and over the years, I realised I could make money from it. Eventually, I took the leap and registered as self employed. Of course, there’s nothing to stop you starting your business and remaining in employment until things reach a level at which you’re confident your business is viable. In fact, many people do just this.
Other people will save up for years to have a safety net which will allow them to navigate the early days of self employment without financial pressure. For me, it was more like ripping off the metaphorical band aid. I went from being a stay at home mum who was financially dependent on her husband, to being the breadwinner.
Finally, I hope this post has answered the question, “at what point do you become an Entrepreneur?” for you. Why not check out more of my business content here.