How to Become a Business Owner (and Thrive in the Role)

Originally published September 25, 2024, updated September 26, 2024

Director. Founder. Business owner. Call them however you like — at the end of the day, becoming a business owner is more than just wearing a fancy title. Early in their journey, business owners have to deal with unexpected challenges (ahem-ahem… taxes), hunt for reliable investors, and juggle multiple responsibilities.

With over 305 million startups launching globally each year, it's clear that the road to success isn’t easy. But with the right tech stack like the best CRM for startups and knowledge, you can overcome those challenges.

Before you start wearing the title with pride, find out the essential insights and a step-by-step guide on how to become a business owner in the article below 😉.

What is a business owner and what does being a business owner mean?

Business owner is an individual who owns, manages and takes responsibilities of a business or enterprise. They are visionary leaders who make strategic decisions and oversee daily operations to ensure that everything is smooth and efficient in business workflows.

That’s why being a business owner also involves:

• Knowing how to handle budgets, cash flow, and investments
• Managing business risks
• Being a leader and a team manager
• Understanding your customer needs
• Knowing how to set long-term goals and create actionable plans
• Ensuring your business adheres to laws, industry regulations, and tax obligations

Business owner vs. entrepreneur: the key differences to know

There is a myth that everyone who owns or manages a business is an entrepreneur. Sure, business owners and entrepreneurs share a lot of similarities like owning a business and managing daily operations, but they also differ in their business goals, approach, and mindset.

So, what is a business owner vs entrepreneur? Both manage their companies, lead their teams, and create strategic action plans. Both are leaders who take risks and aim for growth, but the key difference is how they define success. For a business owner, success is stability, consistent profitability, and a lasting presence in the market.

Meanwhile, for an entrepreneur, success is all about innovation. They love pushing boundaries and disrupting markets. Unlike business owners who value stable growth, entrepreneurs aim to expand rapidly. They thrive on change and are more ready to take bold risks compared to an owner of a business to outpace their competitors.

Business owner of a company vs Entrepreneur, compared

The benefits of business ownership and why it is worth pursuing

Once you step into the role of an independent business owner, you’ll find opportunities and rewards that go beyond traditional employment. Let’s delve into the key benefits that can elevate your journey.

Complete control over your career path

As a business owner, you’re the architect of your own success. You’re the one who sets the direction for your business growth and makes all decisions. You have full control over every aspect of your business and can shape it according to your ambitions and values.

Yeap, no more waiting for approvals or navigating corporate ladders.

Significant financial rewards compared to 9-to-5 jobs

Whether you’re an online business owner or operate a brick-and-mortar business, the potential for high earnings will definitely reduce your reliance on retirement plans. The rewards come with risks, sure, but with time, your financial security will increase.

Positive community impact

You won’t find such a thing as a business owner job description on job sites as business owners are people who create jobs for others. And that is probably the most satisfying part of the answer to ‘What do business owners do?’ You can solve community problems with your business products and services and create new jobs to positively impact the local economy.

Building a lasting legacy

The ownership of business allows you to build a company that outlives you and makes a difference that lasts long after you’ve stepped away from your career. For instance, Steve Jobs didn't just build a tech company; he created a culture of innovation and design excellence. Impressive, right? Now imagine your business becoming a household name.

Exploring business ownership types: which one is right for you?

But first, what is business ownership? Business ownership refers to the legal control and responsibility of running a business, where the owner of business makes key decisions, assumes the risks, and enjoys the profits of the enterprise. In other words, it relates to the rights and duties associated with owning a business.

The model you choose directly impacts your legal responsibilities, financial liabilities, tax obligations, and overall control of the business.

So, let’s list the four ways to become a business owner in terms of business ownership models.

Type #1: Sole proprietorship

Definition: The simplest and the most straightforward business model. According to it, there is no legal separation between you and your business.

Best for: Freelancers, consultants, artists, gig workers, and small, owner-operated businesses. It’s ideal if you’re just starting out, want to keep things low-cost, or planning to be a small business owner.

Our advice: Keep business and personal finances separate to simplify tax filing. Planning to grow and need liability protection? Upgrade to an LLC model.

Type #2: Partnership

Definition: A partnership involves two or more individuals who share ownership, responsibilities, profits, and liabilities. In general partnerships, business owners are equally responsible for all liabilities. Meanwhile, in limited partnerships, some partners might have limited roles and risk exposure.

Best for: Startups with two and more co-founders, professional service firms, family businesses.

Our advice: Create a detailed partnership agreement that outlines roles, profit sharing, and conflict resolution. This document will be your playbook when disagreements arise.

Type #3: Limited Liability Company (LLC)

Definition: This approach combines the simplicity of a partnership or sole proprietorship with the liability protection of a corporation. Owners (called members) aren’t personally responsible for business debts. Therefore, the personal assets are safe with this model.

Best for: Small to medium-sized businesses, online sellers, real estate investors, or any entrepreneur looking for a balance of flexibility and protection.

Our advice: An LLC offers flexibility in taxation. You can choose to be taxed as a sole proprietorship, partnership, or corporation, depending on what benefits your tax situation the most.

Type #4: Corporation

Definition: A corporation is a separate legal entity from its owners. That’s why it offers the strongest protection for shareholders but requires way more rigorous regulation compared to other models.

Best for: Startups planning to raise venture capital, tech companies, and businesses that need to attract investors or eventually go public.

Our advice: Corporations face double taxation because both the company’s profits and the dividends paid to shareholders are taxed. To avoid this, you might consider forming an S Corporation, which allows profits to be taxed only once on the shareholders' personal tax returns.

Business owner roles and responsibilities - this is what you should know before starting

You might think that business owner duties vary between industries and business types, and you’d be right. However, there are several aspects where the responsibilities of a business owner are consistent across all industries and business types.

Mastering market moves and driving sales

That doesn’t mean you’ll have to do it alone. Hopefully, you’ll have a team of skilled marketing and sales professionals to help you execute compelling marketing campaigns and close multiple deals. But as you get more leads with time, there is a risk that your customer data will get scattered all over the place. This is when you’ll need the right tech stack for efficiency, precisely, a robust CRM system. Like NetHunt CRM.

Can you become a business owner without a CRM? Sure! But you’ll lose the game. Just imagine all these amazing things that you can do with NetHunt CRM:

• Native Gmail integration. Respond to customers, track sales progress, and automate tasks—all without leaving your familiar Gmail environment.
• Customer base Organization and segmentation. NetHunt CRM keeps your contact list synchronized with Google Contacts and automatically removes duplicates.
• Lead capture. Automatically capture leads from websites, calls, social media, emails, and more.
• Email marketing. Run bulk campaigns, track their performance, and utilize templates and drip sequences.
• Sales pipeline automation. As deals advance, NetHunt CRM automates task creation and assignment.
• Multiple integrations. Connect easily with the tools you already use and love, including messengers, social media channels, Google Workspace, and VoIP services.

Keeping your finances on track

In the beginning of their journey, most business owners prefer balancing the books by themselves. To be exact, 60% of small business owners would rather manage their own than hire professional help.

What happens once you decide to turn financial management into one of your business owner daily tasks? Well, you’ll have to:

• Track expenses and income
• Pay taxes accurately and on time
• Stay updated with tax regulations and compliance requirements
• Invest in accurate record-keeping to ensure all financial data is organized (again, a good CRM will save you time and money here)
• Monitor cash flow to maintain financial health

Recruiting and leading with impact

One of the key business owner roles and responsibilities, recruiting and leading involves finding the right talent and guiding them toward achieving the company’s goals. Most business owners, especially owners of small businesses, prefer to personally oversee the hiring process.

You can delegate the recruiting process to HR specialists. However, you’ll still have to:

• Define the company’s hiring needs and set clear job expectations.
• Review candidate profiles and participate in final interviews to ensure the right fit.
• Develop onboarding processes that align with your company culture and values.
• Set performance goals and provide ongoing feedback and mentorship.
• Make strategic decisions about team structure

Manage operations effectively

Dealing with operations and logistics is surely one of the least glamorous duties of a business owner. Nonetheless, these areas are also a part of the business owner definition. As your business expands, you can hire a team of specialists to manage your operations and supply chain. Or you can do it yourself.

Here are the business owner responsibilities in operations and logistics management:

• Overseeing supply chain management (in case you’ve hired someone)
• Managing inventory levels
• Monitoring the quality of products and services
• Building and maintaining strong relationships with suppliers
• Developing strategies to manage potential risks

How to become a business owner: a step-by-step guide to success

How to be a business owner who transforms their business idea into a thriving enterprise? Well, here is the guide. We’ll walk you through everything you need to know about how to become a business owner.

Let’s learn everything from discovering your winning idea to becoming a SAFe business owner with skills to navigate challenges.

1. Turn your passion into a business idea

How to become a business owner if you aren’t passionate about what you do? The things you love will fuel your business. What is more important, we, humans, tend to be very competent when it comes to our hobbies and interests. And the more competent you are, the higher your chances of surviving the competition.

So, here is the plan:

• List activities you enjoy. This can range from hobbies to skills you've developed over the years.
• Validate the idea. Is your idea viable? Look for gaps where your interests could meet customer needs. Tools like Google Trends or industry reports can be helpful during this stage.
• Gather feedback. Share your idea with your network or potential customers through social media. Create polls or ask for opinions to refine your concept.

2. Conduct thorough market research

How to be a business owner if you have no idea who your customers are? Impossible, right? So, this is what you’ll have to do:

• Learn your ideal customer. Create detailed buyer personas. What is their age, gender, interests, values, and buying patterns?
• Analyze competitors. Who are the key players in your niche? Here, you can conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to understand their positioning and how you can differentiate your business.

3. Create a comprehensive business plan

A business owner gets a business up and running. But for that to happen, you need a solid business plan that will serve you as a blueprint for success.

This is what your business plan should consist of:

• Executive summary. A concise overview of your business, including your mission, vision, and the problem your business solves.
• Marketing strategy. Detail how you plan to attract and retain customers through various channels, including social media, SEO, and traditional marketing methods. Add specific tactics, timelines, and budget estimates.
• Operational plan. Outline day-to-day operations, including location, staff requirements, and technology. Add logistics details and customer service protocols.
• Financial estimates. Create a detailed overview of your startup costs, revenue projections, and operating expenses.

4. Secure financing

This is where ownership in business gets tricky. If you don’t consider bootstrapping (and most startups don’t, by the way), then you’ll surely need substantial financial support from other sources. They can be:

• Loans. You can apply for bank loans or Small Business Administration (SBA) loans. The latter often offer favorable terms.
• Investors. Yeap, you can prepare a compelling pitch to attract angel investors or venture capitalists.
• Crowdfunding. Platforms like Kickstarter and Indiegogo allow you to raise funds from the public. All you need to do is create an engaging campaign that highlights your business idea and its value proposition.
• Grants. There are available grants from government programs or private organizations that support small businesses. The best part? Grants don’t require repayment.

5. Choose and register your business and domain names

Your business name is the first impression customers get of your brand. It should be memorable and unique. Meanwhile, securing a domain name is important for your online presence. Especially if you’ve decided to be an online business owner.

Registering your business name would differ depending on the country, state, and local regulations. In the U.S., you’d need to look up your state's business database to make sure your chosen name isn’t already taken. If it’s available, you can then file to officially register your business or set up a DBA (Doing Business As).

There is one more thing you can do here. To prevent others from using your business name or logo, you can apply for a trademark.

The next step in your ‘how to become a business owner’ journey is registering your business domain name. Actually, this is way easier than registering your business name. For this purpose, use domain registrars like GoDaddy or Namecheap to purchase your domain.

Don’t forget to choose a domain suffix that fits your business model:

• .com—ideal for global reach.
• Regional—suffixes like .co.uk or .ca give a local touch.
• Industry-specific—consider using specialized suffixes (e.g., .tech, .fashion) to reinforce your niche.

6. Build your brand identity

A strong brand identity is your ticket to standing out in a market. Your brand identity will include:

• Brand purpose. These are your mission and values. What does your business stand for? Your purpose should resonate with your target audience and shape all your messaging.
• Visual elements. Craft a memorable logo that captures your brand’s essence. You can use tools like Canva for DIY projects or hire a professional designer.
• Brand voice. Which tone suits your brand best? Is it professional, casual, or playful? This voice should be consistent in all your communications, from website content to social media posts.

7. Develop a marketing strategy

A business owner who takes the risk of owning and operating a business must know how to attract and nurture leads. How to get leads for your business and turn them into loyal customers? Well, this is where an effective marketing strategy comes into play. Commonly, it includes the following elements:

• SEO. Optimize your website and content to rank higher in search engine results and increase organic traffic.
• Content marketing. Create valuable content like blog posts, videos, and infographics that address your audience's needs and pain points. High-quality content establishes your brand as an authority and keeps your audience engaged.
• Social media marketing. Use platforms such as Instagram, LinkedIn, Facebook, and TikTok to connect with your target audience through social media posts, polls, and stories.
• Email marketing. Build an email list and use targeted campaigns to communicate with your audience.
• Influencer partnerships. Collaborate with influencers or industry experts who can help amplify your brand’s message.

How to become successful as a small business owner: 4 tips to support your growth

Well, we already did list the four ways to become a business owner. But we still want to share some extra tips to help you succeed.

#1. Choose the right tech stack to automate your business processes

The right tech stack can help you optimize sales and marketing operations, reduce manual tasks, and save time. Let’s find out which technologies can be of the greatest value to a small business owner.

• CRM systems. Did you know that 71% of small businesses already use CRM solutions? A CRM like NetHunt organizes your customer data, helps you track sales, and automates marketing tasks like email campaigns. With a small business CRM, you can understand buying patterns better and personalize your communication with customers through multiple channels.
• Finance management software. Tools like QuickBooks or Xero help you keep track of income, expenses, invoices, and taxes. In the end, your financial records are always accurate.
• Project management tools. Apps like Trello or Jira are intuitive platforms that help manage tasks, deadlines, and team collaboration. These tools align perfectly with the small business owner definition—someone who juggles multiple tasks and needs to keep projects on track.
• Social media management tools. With tools like Buffer and Later, you can schedule and manage your social media posts across different platforms.
• E-commerce platforms. If you’re selling products online, platforms like Shopify, WooCommerce, or Squarespace offer easy-to-use solutions to set up your online store, manage inventory, and handle payments.

#2: Boost your business with a powerful online presence

Building a strong online presence is the key answer to ‘How to become a business owner?’ Your website is often the first impression that potential customers have of your brand. So, use user-friendly platforms like WordPress or Wix to create a stunning, professional website that showcases your products or services.

And don't forget about SEO! Optimize your content to rank higher in search results, therefore, making it easier for customers to find you. And while you're at it, leverage social media to connect with your audience, share your story, and build community.

#3: Learn the art of strategic networking

Networking isn’t just about exchanging business cards; it’s about building meaningful relationships. Attend local events, join industry groups, and engage on platforms like LinkedIn. Don’t hesitate to reach out to other business owners—collaboration often leads to unexpected opportunities.

And a personalized approach goes a long way. Remember, it’s not just about what you can gain, but also what you can offer to others in your network.

#4: Remember that your customers are what truly matters

At the heart of every successful business is a deep understanding of its customers. Use your CRM to collect insights about customer preferences, behaviors, and feedback.

Engage with your customers regularly—whether through newsletters, social media, or direct outreach. By fostering strong relationships, you create loyal advocates for your brand.

Final thoughts

Launching a business is no walk in the park. Get to know your market inside and out, craft a compelling value proposition, and lay the groundwork with a solid business plan. Trust us, you’d be just fine in your new role as a business owner if you follow these steps.

As you reach new heights, however, don’t forget to harness the power of tools like NetHunt CRM. With its seamless integration into Gmail, NetHunt CRM helps you manage leads, track sales, and automate workflows—all essential for driving your business forward.

Stay focused, adapt to feedback, and keep refining your approach. Your business journey is just beginning!

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