Entrepreneurship is increasingly popular among young people – in fact, 17% of students start their own business while they’re still in college, while 43% plan on doing the same after graduating.
Indeed, starting your own business is a rewarding yet challenging task that comes with a significant learning curve.
By taking time to research how to start your own business, you’ll know what to expect from the world of entrepreneurship and better set yourself up for long-term business success.
Decide What Kind of Business You Want to Start
The first step in launching a business is determining exactly what products or services you want to sell.
So, take some time to think about the type of work you like best.
Where do your strengths lie? What kind of skills do you possess that can provide value to others? What business ideas have you had in the past?
Keep in mind that your business idea doesn’t necessarily have to be related to your degree.
Arlete Turturro, for example, has a degree in merchandising from the Fashion Institute of Technology, yet she launched Night Owl Cleaning Services: a cleaning business offering a range of services like commercial cleaning and 24/7 emergency services.
Turturro has been in business for almost thirty years now and won Westchester Business Journal’s Woman of the Year Award in 2004.
So, remember: staying flexible and open to change can put you on the path to success.
Research Your Niche
Once you have a business idea, it’s important to research your niche. Start by checking there’s actually a demand for your idea.
What does your target customer base expect from the type of business you’re planning?
Look at Grace Beverly as an example: she founded the sustainable fitness label TALA in response to the growing consumer demand for eco-friendly solutions in all areas of life.
Beverly studied music at both the University of London and Oxford before attaining a Harvard Business School certification and launching her own business.
Beverly was also included in Forbes’ “30 Under 30” list at just 23 years old.
TALA champions slow fashion and body positivity by creating sustainable and high-quality activewear for people of all shapes and sizes.
Beverly’s advice to budding entrepreneurs? Believe in yourself, and never let age be a barrier to achieving your dreams.
It’s also important to research the competition before launching your own business – for example, how profitable are other businesses in your niche?
How do they advertise their products or services? What does their pricing structure look like?
With this information, you can then improve your own business plan while also eliminating any flaws you may not otherwise have noticed.
Register Your Business
Registering your business is another important step involving a number of tasks.
In particular, you’ll need to select the right business structure.
An LLC (limited liability company) is one of the most commonly-used structures; this option provides you with personal liability protection, which means you won’t be held personally responsible for any business losses.
So, your personal assets, including your home, car, and bank account, can’t be used to collect your business debts.
In turn, with this protection, you’ll be in a better position to embrace risk-taking and grow your business.
To form your LLC, you’ll need to choose a registered agent service who’ll receive all official business correspondence on behalf of your business.
For example, Northwest Registered Agent offers a wide range of services, including LLC formation, registered agent services, and annual report reminders.
You’ll also need to choose a name for your business – this has to be different from any other existing registered business already in your state.
Ideally, you want your business name to be simple – and easy to spell – without being forgettable.
A good name can help your business stand out from the crowd.
Next, you’ll need to apply for an employer identification number (EIN): a unique nine-digit number assigned by the IRS.
You need an EIN to register your business, as well as open a business bank account, apply for a business loan, and file your taxes.
Lastly, you’ll also need to register your new business with your state’s Secretary of State office.
This is a fairly straightforward process that involves providing information about the nature of your business and paying a small fee.
Takeaway
Starting your own business after graduating college is an exciting yet challenging endeavor.
By deciding what kind of business you want to start, researching your niche, and registering your business, you can best set yourself up for long-term business success.
