Frequently Asked Questions(FAQ)

Can I Become An Entrepreneur With No Money?

You can become an entrepreneur with no money of your own but you may need some sort of funding. Many would-be entrepreneurs rely on family and friends for initial investments, possibly in exchange for partial ownership. It’s also possible to take on a personal loan, or even donations, as a revenue source.

Do You Need A Business License?

Depending on both the state where you live and the industry you work you may need to purchase a business license.  You should be able to locate specific information with your state’s Department of Revenue.

How Much Do Entrepreneurs Make?

The average salary for entrepreneurs is $69,482 annually, according to Bear in mind this is only an average and the amount you make depends on the type of business, location, and myriad of other factors. You may make more or less — if you are able to draw a salary at all. 

Do I need experience in the field I want to start a business in?

Perhaps there are businesses or industries that intrigue you or you see emerging trends in new fields where you don’t currently have any experience. Technically speaking, you do not need experience in the field you want to start a business in. However, many business experts advise you to spend time in the field prior to launching your business so you can better understand the needs of your potential customers or see where your business can provide an improved service.

Can I start my business in or right after college?

One of the key benefits of entrepreneurship is the ability to start a business at any time, during any phase of your life. If you are in college, you could start your business on a smaller scale and eventually build upon it as your schedule allows, assuming you have the necessary certifications to run your business.

How to advertise my new business on my own?

In the beginning of launching a business, you may find it difficult to devote a portion of your budget to marketing. The good news is, there are several marketing strategies you can use while in the early stages that require smaller investments and you can do on your own. 

First is social media marketing, including being active across the key platforms where your potential customers are most likely to be. 

Secondly, you can invest in digital marketing advertising with one or two platforms (again, depending on where your potential customers are) and gradually increase the budget as you see results. 

You can add other low-cost marketing strategies such as creating your own website and producing all the content until you can afford to outsource these tasks.

Do entrepreneurs need to be creative?

Successful entrepreneurs come from a variety of backgrounds, including those who are more creative than others. While creativity is certainly a useful skill, other skills are as important, if not more. Being resourceful, wise time management, basic financial skills, and the ability to communicate effectively are all key traits of successful entrepreneurs, even if you aren’t labeled as a “creative.”

How do I know if my business is successful?

As an entrepreneur and someone who owns their own business, you get to define what success is. For some, this is a metric based on money and how much revenue the business generates. For others, success is defined as how many people’s lives are impacted in some way by their business product. Or, perhaps for others, it may be successful when people are able to generate revenue while achieving the right work-life balance. Before launching your business, spend time defining what success means to you and the metrics you need to hit to achieve the success.

About the Authors

Sara Coleman

Written by: Sara Coleman

Freelance Financial Writer

Freelance writer with several years of experience covering personal finance topics such as insurance, loans, credit cards, budgeting and more.

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Kal Salem

Reviewed by: Kal Salem

CPA, PMP and Finance Consultant

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA Services LLC.

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Somer G. Anderson, Ph.D.

Fact checked by: Somer G. Anderson Ph.D., CPA

Accounting and Finance Professor

Somer G. Anderson has been working in the Accounting and Finance industries for over 20 years as a financial statement auditor, a finance manager in a large healthcare organization, and a Finance and Accounting professor at Maryville University.

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