05/25/2022
How to Be a Teenage
Entrepreneur
If you're a teenager looking to start your own company, it's a great way to get your feet wet in the business world and learn about everything from money management to marketing strategies. Plan out your approach in advance so you can have the best odds for success. Still looking for your purpose? Inbar Group Inc. can help.
What Will You Do?
It's always a good idea to assess your skill sets, talents, and interests before deciding on a business venture. Business News Daily notes that the better suited you are to a job and the more you enjoy the work, the more likely you are to stick with it, be good at it, and earn money. In addition to thinking about what you'd most enjoy doing, assess the marketplace and see if there are holes you can fill. Are there products or services not currently being offered where you could make an entry into the market? Knowing this in advance of launching an operation will give you a head start.
Who Is Your Competition?
Being able to recognize who you'll be going up against is important before you launch your company. According to Qualtrics, scoping out the competition will help you understand common price points and help you determine how you're going to set yourself apart in the marketplace. You'll also want to make sure there are enough customers to go around. Find out how many other people are doing the type of work that you're thinking about and make sure you can do something better, or in a different price range, to stay competitive.
What Do You Need?
Depending on the type of business you're operating, you may need to make an investment in software, supplies, inventory, or specialized equipment and tools. For example, if you're doing graphic design, you'll need a computer and high-level design software. If you're starting a landscaping business you'll need lawnmowers, hedge clippers, weed-eaters, and spraying and fertilizing tools.
Make a list of everything that you'll need and establish a budget to help you manage your finances and ensure you make a profit. Writing out a business plan and marketing strategy can help, and these two items will likely be requested by a lender when it comes time to source funding for your startup. You’ll also want to have a good credit history and credit score, so be sure to have your debt paid down as much as possible before approaching a lender. You can download a free credit report from AnnualCreditReport.com.
If you’ll be working from home, you’ll need to have all your equipment and ergonomic furniture in place in your home office. Set up a dedicated space that’s free from distractions (an office with a door is ideal), has good lighting, and has an internet connection with enough bandwidth and adequate speed for the type of work you’ll be doing every day. The key is productivity, so invest in robust software for time management and accounting.
Have You Legitimized Your Business?
If you're serious about being a business owner, you need to get a business license, develop a website and social media presence, and get business cards. It's also important to consider how your business is formed, as this will determine your personal liability and your taxes. You might want to hire an accountant or bookkeeper - as a self-employed person, you’ll need to pay your own taxes, and you can “write off,” or deduct, a number of business-related expenses.
Forming an LLC, or a limited liability company, will result in less paperwork, give you more flexibility, and make it easier to file taxes. You can do the legwork yourself, hire an attorney, or your best bet - use a formation service. States vary on LLC formation, so you want to learn about your state’s LLC formation requirements in advance.
How Will You Market Yourself?
You can have the best products and services at the best prices, but if people don’t know about your business, you won’t earn a dime. Look for efficient ways to market yourself, whether through a website, social media presence, marketing fliers, or good old-fashioned grassroots networking. Start with family, friends, and acquaintances if you need to, especially as you’re getting established. High-quality customer service should also be a priority - happy customers are repeat customers.
Starting a business as a teen teaches you problem-solving skills, allows you to express your creativity, and it's a great way to learn about commerce and money management. Get all of your ducks in a row before you get started and you're sure to be well-positioned on the road to success.
Photo courtesy of Pixabay
Article written by and courtesy of Jason Kenner, [email protected]
Inbar Group Inc. a recognized leader in the comprehensive marketing and sales of privately held businesses across multiple industry categories. Connect with us today for more info! 212-473-5000
