Once you’ve graduated college, you’ve decided to do things a little differently from your peers and not take a well-earned rest. Instead, you’ve decided to keep your flames of ambition burning and get your business up and running. However, you may have reached a roadblock and are stuck without a clue on what to do next. Fortunately, you’ve come to the right place. We’ve done most of the research for you and compiled the most relevant information to help you overcome what’s giving you trouble. The world of business isn’t for the faint of heart; it requires someone who’s tenacious, able to adapt to stressful situations, is open to change, and can effectively plan things out. In this article, we’ll be providing everything you need to start your own business right out of college.
Figure Out the Type of Business You Want to Run
First off, you need to sit down and contemplate the type of business you want to run. Do you want to own a restaurant or is a food truck more up your alley? Are you going to go with the flow and start an online store on Etsy? Perhaps you want to provide a specific type of service to the general public. You need to answer these questions before you can move on with your plan.
Choose a Structure
No business can legally operate without being classified with a certain structure. A business structure is basically what dictates how a business handles liability claims, files taxes, and ultimately runs the company. There are four main types of structures you can choose from: sole proprietorship, partnership, corporation, and limited liability company (LLC). Each structure functions differently and has varying stipulations. Sole proprietorships are where you own the business in its entirety.
This means you’re legally responsible for everything within it, including taxes and claims. Partnerships are generally the same as sole proprietorships, except more than one person is involved. Corporations turn a business into a separate entity. They’re usually run in the shadows by investors and shareholders. Limited liability companies are a three-in-one package and are the most beginner-friendly. Since you’re fresh out of college, we strongly advise you not to choose sole proprietorship as the taxes and fees can be outrageously high, and you most likely won’t have enough capital to handle it either.
An LLC is recommended because it gives you the ownership of a sole proprietorship, you can put as many people as you want like a partnership and will have the protection as a corporation. Becoming a corporation isn’t bad, but multiple sub-divisions exist, such as S-Corp, C-Corp, and B-Corp. If you want to go this route, you’ll want to research each of these.
Start Your Own Business – Financially Secure Yourself
To truly succeed in the business world, you need to be financially secure in your personal life. Running a business is a massive investment in both time and finances, as there are so many expenses you need to budget for. In fact, many new business owners end up dipping into their personal funds to finance certain expenses, such as the creation of your website and domain. If you’re still in college, then now’s the time to look to credit cards for students. Student credit cards give you a little more leeway than traditional credit cards as they come with benefits that aren’t attached to the latter.
You could get cash back through certain reward programs as well as obtain bonuses based on the status of your grades. Seeing as how this is your first credit card, there are a few things we should point out. First, credit cards have a limit, and you cannot wildly spend them on your business ventures. They should only be used when necessary to avoid debt piling up. Second, it’s important for you to build up your credit so you can be approved for a bigger amount on your business loans.
Optimize Your Business Finances
Managing finances efficiently is fundamental in the early stages of starting your own business. One method to ensure financial security without accruing unnecessary costs is to leverage no-cost business credit cards. These cards can provide you with the necessary liquidity to cover initial expenses while also helping you build a strong business credit score. By choosing cards with no annual fee, you minimize your overhead expenses, ensuring more of your hard-earned money can be reinvested back into growing your business.
Connect with Your Target Audience
Running a business and making it successful are two different beasts. Before ensuring success, you must take advantage of business communication tools and get your business out there. Today, almost everything is on social media, for better or worse, so your best bet is to start advertising on TikTok and Instagram. However, don’t just make posts for your account; you also want to engage with people to draw more attention to yourself actively. To maximize your chances of being noticed, you’ll have to research what’s currently trending in your chosen niche. Furthermore, make sure to use hashtags to increase your brand awareness.
Start Your Own Business – Be Open to Change
When you start seeing success, repeating the same processes is incredibly tempting. However, this can only last so long as your audience wants to see something different. At first, you’re obviously hesitant because you’re uncertain whether changing your tactics will garner as much success as the last. But stagnating will only hurt your business in the long run. But does that mean you have to wing it? No, not at all. This is why you need to research your competition and take a page from their book, so to speak. Don’t copy what they’re doing outright, as that’s just asking for trouble. Instead, see what they’re doing and come up with a strategy that’s different. This is how you’ll stay two steps ahead of your competition and prove your business is the best. Choose a niche that has low competition, similar to RV and Boat Storage.
Don’t Fear Failure
Another common problem among new business owners is letting failure get to them. While it’s understandable that you’re disappointed and feel unaccomplished, failure isn’t as bad as it first appears. If anything, it’s a fantastic learning experience as you’ll be able to see where you went wrong and come up with ways to prevent history from repeating itself. Remember that even the most successful companies fail from time to time.