How to Increase Your Opportunities to be an Entrepreneur

Running a small business takes time, energy, and lots of planning. But this probably isn’t news to you: if you’re thinking about becoming an entrepreneur or already are one, you know how much work goes into growing your business.

That’s why SaverLife is committed to using members’ insights on self-employment to create information and resources to support your work. This way, you can take action to grow your business in ways that fit your financial needs and goals.

In a 2022 research study, SaverLife uncovered that self-employed members are looking for financing options and business advice to help them manage their daily operations and plan for the future. One SaverLife member shared: “I would benefit from free assistance: being able to speak with somebody and be like, ‘What can we put together?’ Like a game plan. Because I have an idea, but putting all of the pieces together is kind of difficult for me.”

To provide SaverLife members with the information they need to build a game plan, SaverLife put together a list of ways that you can strengthen your business practices. Because when building the right plans for you, it’s important to:

  • Get support from people and places that can provide the right support for your entrepreneurial goals
  • Find funding that will give your business the best chance of success on your terms

Let’s look at how to increase opportunities to build up your small business.

Consider Forming an LLC

One thing you can do to increase your opportunity to be an entrepreneur is to start a limited liability company, or LLC. An LLC is a business entity that protects small business owners and their personal assets from creditors who want to come after the company. LLCs are allowed throughout the US by state statute, o the requirement to start one in your state may vary. Usually, starting an LLC involves filing paperwork, including articles of organization, with your state and paying an application fee. You can then file for an EIN, or federal tax identification number for your business, open a business bank account, and start operating your business. 

Forming an LLC can be helpful to entrepreneurs because they’re often very easy to start. An LLC offers flexibility for how the business is taxed and prevents double taxation. LLCs also provide protection for your personal assets by shielding them from business debts.

Find a Startup Incubator

If you want help launching your business, a startup incubator might be a good place for you to look for help. A startup incubator is a place where small business owners can develop their business idea and learn more about running their business. Often, startup incubators provide training to help new entrepreneurs learn about taxes, accounting, developing business ideas, and the legal side of operating a business. Incubators can also help entrepreneurs find funding and connect with potential partners and investors

To get started with a startup incubator, you’ll want to find one in your area. Some startup incubators are general and open to business ideas in any sector, but others specialize in specific industries. When you determine which incubators you’d like to go to, keep an eye out for calls for applications.  Startup incubators will often put out calls for new applicants. When these calls go out, oyou’ll want to submit your business idea and a business pitch to them. If you’re selected, you’ll work with the incubator to develop a business plan and launch your business.

Look for Angel Investors

Looking for ways to secure or increase funding? This could be a good time to look into angel investors.

An angel investor is a person who’s willing to invest money into a business to help get it off the ground. The investment typically isn’t a loan, but acts as a true investment. This means that the angel investor often gets an ownership stake in the business. In other words, as the business grows and does well, they recoup their investment through a portion of the profits, rather than you paying them back for the loan.

It can be good for an entrepreneur to look for an angel investor because the terms of the investment are often more favorable than a conventional bank loan. And unlike a traditional loan, an angel investor doesn’t expect the money to be repaid unless the business is successful. Angel investors can also bring business knowledge and experience that can guide you and your work.

To find an angel investor, you can look for angel investor networking groups, talk to fellow entrepreneurs, look for startup competitions and events in your area, or look to connect with potential investors via social media. Be sure to have any contracts with this investor reviewed by a legal entity before signing to ensure you both understand the agreement terms. 

Consider Microloans

A microloan can also offer funding options for your business. Microloans are offered by the Small Business Administration to help businesses cover the costs of smaller expenses. The typical microloan is $13,000 and can be used for things like:

  • Purchasing inventory
  • Establishing working capital
  • Buying supplies, furniture, fixtures, machinery, or equipment

Getting a microloan usually requires collateral, a guarantee from the business owner, and a good credit score. To learn more about microloans in your area and find a potential lender, look at the List of Microlenders provided by the Small Business Administration.

When it comes to starting or operating a small business, there’s no one way to do it. The examples provided above are just some of the many options you can take to grow and strengthen your business.

No matter how you map out your business plans, try to choose options that make sense for your financial health journey, now and down the line. And remember: you’ve got a support network of SaverLife members who can provide the information and resources you need to take steps toward your entrepreneurial goals.

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