Becoming an entrepreneur: the complete guide

What is an entrepreneur?

An entrepreneur is someone who creates, develops, and manages a business. They often have limited resources and accept financial risks in the hope of making a profit.

But being an entrepreneur isn't just about chasing a huge turnover or a new social status.

An entrepreneur is:

• a risk taker;
• a creative person;
• a good manager;
• a hard worker;
• the captain of his own ship.

Who can become an entrepreneur?

Anyone can become an entrepreneur, no matter their status: student, employee, retiree, or job seeker. All you need is an idea, a solid plan, and some determination.

Before becoming an entrepreneur, it is important to consider the following points:

• the requirements for setting up a business;
• training to become an entrepreneur;
• the skills you need to succeed as an entrepreneur.

Conditions for creating a company

To start a business, you must meet the following 4 conditions:

• Be of legal age (over 18 years old) or be an emancipated minor over 16 years old;
• have French nationality, be a national of a member state of the European Union or hold a residence permit (more specifically, the temporary residence permit for entrepreneurs/liberal professions) authorizing the exercise of a professional activity in France;
• not engaging in an activity incompatible with their profession (for example, certain legal professions, such as court clerks, notaries, bailiffs or even lawyers, are not allowed to engage in commercial activity);
• have the legal capacity to manage (not be under guardianship/curatorship or be subject to a ban on managing or practicing due to personal bankruptcy).

Training to become an entrepreneur

Training is essential to acquire or develop the skills needed to do a job. Often, entrepreneurs go into a field related to their initial training.

Several courses can be useful for making your entrepreneurial project a success, including the following:

• professional degrees in entrepreneurship;
• business schools ;
• MOOCs on entrepreneurship;
• training courses from the Chambers of Commerce and Industry (CCI), etc.

And if you don't want to go back to school, you can take online courses on various topics like business management, marketing, sales, or finance.

Skills to succeed as an entrepreneur

To succeed as an entrepreneur, it's advisable to develop certain key skills and train on specific tools:

• the marketing tools (SEO tools, CRM tools, emailing platforms, etc.);
• the social networks (LinkedIn, Twitter, Instagram, Facebook, YouTube, etc.);
• the sales techniques (prospecting, negotiation, sales, customer relationship management, etc.);
• the regulations applicable to your company (accounting, tax and legal obligations);
• Competitive monitoring (analyzing your competitors and market trends);
• the development of your network (participating in trade shows, conferences related to your activity);
• the relationships with your employees (motivation, leadership, team management).

What are the advantages of entrepreneurship?

Becoming an entrepreneur has many advantages. Several arguments are regularly put forward by business creators to embark on entrepreneurship: 

• Be your own boss;
• manage your schedule;
• achieve your passion ;
• expand your professional network;
• creating a company based on your own values.

To make starting a business more accessible, the government has introduced a unique and simplified system, the micro-entreprise, for entrepreneurs starting their business. Thanks to simplified procedures, you can get started without being overwhelmed by administrative formalities.

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Creating a micro-enterprise allows you to benefit from the following advantages:

• simplified accounting;
• simplified administrative procedures;
• a VAT franchise;
• a CFE (Corporate Property Contribution) exemption for the first year of business, etc.

What could be better than starting your business as a micro-enterprise? And if you want to grow your business, the law allows you to change your status to create a company.

How to prepare your business project?

Getting your project ready is a must before you start your business. You'll need to do some market research and put together a business plan.

Conducting market research

Do you have a project in mind? Conducting a market study is essential to guarantee the success of your business creation project. The market study allows you to understand the needs of your target audience and market trends. It also allows you to analyze your idea and assess its viability.

A market study involves several steps:

• identifying market trends;
• analyzing the demand;
• analyzing the market supply;
• analyzing the project's environment;
• building your budget forecast.

Build a business plan

A business plan is essential for convincing investors to finance your project. It helps you evaluate your company's costs and revenues while anticipating risks and opportunities. Plus, it's essential for defining your commercial and operational strategy.

The business plan consists of 5 elements:

• your presentation pitch;
• Presenting your product or service;
• Presenting your business model (commercial and marketing strategy);
• A summary of your market research;
• A summary of your financial forecast.

How to become an entrepreneur in 6 steps?

Once you've built your business plan, you're ready to create your company. To do this, you need to follow these 6 steps:

• choose your legal status;
• register your company;
• establish and deposit the share capital with a bank;
• draft your articles of association;
• publish a creation notice in a publication authorized to receive legal announcements (SHAL);
• register your company on the single window portal;
• take out professional insurance;
• open a bank account specifically for your business.

Which legal status should you choose to create your company?

To start a business, you first need to choose your legal status. The choice of legal form mainly depends on your project and the needs of your business. To make your choice, you need to consider several factors: the number of partners (alone or with others), the amount of share capital, and the tax system applicable to the manager, etc.

How to finance your business creation project?

There are many business creation aids available, but entrepreneurs looking to grow their business are often unaware of them. However, they allow you to finance your project with ease.

There are several options for financing your project:

• public assistance (ACRE, ARE, ARCE, etc.);
• bank loans;
• Grants;
• crowdfunding;
• investors, etc.

It is even possible to use your own funds to finance your business creation project, as is often the case for micro-entrepreneurs.

How much should you budget to become an entrepreneur?

To become an entrepreneur, you need to anticipate the cost of setting up a business. It varies depending on the nature of your activity and the legal status you choose:

• Micro-entreprise (sole trader): the creation formalities are free, regardless of the nature of your activity.
• company (SAS, SASU, SARL, EURL): you need to budget for certain costs, which vary depending on the nature of your business (commercial or artisanal). On average, it costs between €255 and €3,000 to set up a company.

To find out all you need to know about current rates, visit the Guichet unique des formalités d'entreprises website.

You now have all the keys in hand to embark on your entrepreneurial adventure! So what are you waiting for?