BusinessHABHow Teenager can Become an Entrepreneur: Becoming a successful, young entrepreneur can be challenging.
Set a clear path to success for yourself by deciding on your goals and securing start-up capital.
Grow your enterprise by working hard, surrounding yourself with great staff.
And getting the word out about your product or service.
Once you hit the big time, reinvest your income in other business ventures or in your original business.
See also: 23 Tips to Become Image Consulting Business in Nigeria
How Teenager can Become an Entrepreneur
1. Think about your priorities.
Ask yourself some questions about what you want out of life, as well as out of your business.
What does achieving your goals in life look like?
What is important to you?
What are you willing to sacrifice?
- Consider what you need to make these priorities and goals happen.
- Is it a certain amount of money? A certain amount of free time to spend with friends and family?
2. The first thing you should do when you’re getting started on the path to entrepreneurship is to:
How Teenager can Become an Entrepreneur
4. Take a personal inventory.
Before becoming an entrepreneur.
You’ll have to determine whether you have what it takes to succeed.
Take a realistic view of your strengths and weaknesses.
Specifically, look at areas of capability (knowledge and experience), aptitude (skills and likes).
And personality (persistence, resilience).
Do you have the knowledge and experience required to succeed within your chosen industry?
Can you deal with failure and hardships along your path to success?
Finally, assess whether or not you have the financial standing required to start a business.
How Teenager can Become an Entrepreneur
5. List your strengths.
Be honest with yourself as you consider your strengths and weaknesses.
When you talk to potential investors or sell to clients.
You will need to have a very clear idea of what your strengths are.
So you can communicate them to others.
How Teenager can Become an Entrepreneur
6. Be a problem solver.
To kick-start the process, ask yourself guiding questions like:
- What kind of content do you wish was online?
- What kind of games do you wish you could play?
- Is there a product or service that could help you feed the homeless?
- Whatever path you take to entrepreneurship, it must begin with identifying problems and dreaming of solutions. Write down all your ideas, no matter how crazy they might seem.
How Teenager can Become an Entrepreneur
7.Give yourself time to be creative.
How Teenager can Become an Entrepreneur
8. Stay active.
Don’t sit in one spot for more than an hour.
Regular exercise — at least 30 minutes each day — is critical to both physical and mental health.
Even walking can improve your thought process and make you feel more creative.
9. Brainstorm a great idea.
Most businesses start with one compelling idea.
Whether it’s a service people need, a product that would make life easier.
Or something that combines both.
The business world is full of great ideas (and many not-so-great ones).
What will set yours apart is whether you can find a niche need to fill.
- You don’t necessarily have to do something revolutionary or brand-new to be successful.
- You just have to be better at something than your competitors.
- You will likely be more successful if you do something you know and love.
- Going into computer programming might make your business very marketable.
- But if your heart’s not in it you won’t have the energy to keep yourself going.
- If you’re having trouble thinking of an idea, create a list of things about your target market.
- Such as places they shop and things they purchase.
- Narrow the list down to about three items, keeping cost, manufacturing time, and popularity in mind.
- Find the easiest, most realistic product you can offer.
How Teenager can Become an Entrepreneur
10. Learn from others.
Being around these people will help you grow, learn, and see what it takes to be successful.
- In addition to learning from other young entrepreneurs.
- Solicit feedback from employees and coworkers.
- Seek counsel from wise friends, associates.
- And successful business persons about how to best grow your enterprise.
- Make it a priority to meet other entrepreneurs if you don’t already know some.
11. Live passionately.
Your energy will inspire potential investors and partners, and help you grow your business.
- Your passions can inspire entrepreneurial activity. Identify a cause you feel strongly about and figure out how to fight for it.
- For instance, if you’re interested in saving the whales, you might invent an app that helps track whale populations or publicize whale hunts around the world.
12. Take risks.
- For instance, you might decide to create a search engine even though there are many search engines available. If you believe that your search engine is better than the others.
- Or offers something the others don’t, go for it.
- Taking risks doesn’t mean jumping in blind.
- Do your homework before developing a new service or opening a new store.
How Teenager can Become an Entrepreneur
13. Determine to succeed.
Energy and determination will get you through many of the hurdles you will face as a beginning entrepreneur.
Be idealistic enough to believe in yourself, but pragmatic enough to examine the realities of your situation.
14. What is the most important reason to know your strengths if you are on the path to becoming an entrepreneur?
15. Set your goals.
Decide what you want to do, then go for it.
Your goals can be noble or mundane.
Do you want to help homeless children have a better life?
Do you want to provide people with more food or fashion options?
Whatever your goal is, identify it.
- Short-term goals might include “Improve on last week’s sales” or “Get one new investor this quarter.” Try to set and meet at least three short-term goals each week and month.
- Short term goals are better expressed as sub-goals, as their achievement should lead to attaining a longer term goal. Long-term success is composed of consistently meeting short- and medium-term goals.
- Long-term goals might take the form of a mission or vision statement for your company or organization. For instance, a long-term goal might be “Ensure everyone who lives in Detroit who needs glasses can get them.”
- Ensure your goals are realistic, clear, and actionable.
16. Target, test, and take a chance.
After a concept is proven, it is time to gear up. Begin with a simple business model before scaling up.
For instance, if you have a beverage business where you create your own fruit juices or sodas.
Begin by making them at home and selling them at the beach or at school functions.
If you have a pet snack that you think is really great.
Start by giving them as gifts to your friends and family.
Use this early stage to get feedback about your product or service.
And incorporate this feedback into your design and planning process to perfect your enterprise.
How Teenager can Become an Entrepreneur
17. Create a business plan.
Your business plan should be a strategic document outlining where you are and where you want to be.
It should describe the history, organizational framework, and goals of your business.
Use your mission and vision statements as a starting point when developing a business plan.
The finished plan should be used as a guide to decide how to run the business.
And delivered to potential investors when seeking funding.
- Your mission statement describes what your business or organization does on a daily basis. For instance, a lemonade business might have a mission statement that reads, “We make great lemonade.”
- A vision statement describes what you want to do in the big picture, both now and in the future. For instance, a nonprofit vision statement might read, “We want increase literacy in Detroit to 100%.” Develop a plan for fulfilling your vision.
How Teenager can Become an Entrepreneur
- Identify the audience for your product or service. Who will buy them? Who do you want to buy them? How can you expand your business to make your goods attractive for new markets? Analyze these problems and work your conclusions into your business plan.
- Think about your competition.
- Is your share of the market going to increase or decrease?
- How can you make it increase more? Use past data on similar businesses to determine how the market is changing.
- Your business plan should include a section on marketing. How will you advertise your goods or services? Who are your ads aimed at?
18. Decide your business’s legal framework.
As an entrepreneur, you could be the head of a corporation, a nonprofit, a sole proprietorship, or a limited-liability company. This formal structure will determine your legal and tax obligations, and must be registered with your state government.
- A corporation is a public company with stock owned by shareholders.
- The corporation is guided by a board of directors. Usually only very large businesses go public as corporations because they have a complex business structure.
- A sole proprietorship is probably the type of business you’ll start out with as an entrepreneur.
- This type of business is run and operated by just one person. While it offers flexibility in decision-making, it can be difficult because you will personally be responsible for the enterprise’s liabilities and losses.
- A partnership is a business arrangement in which two or more parties join forces and have equal stakes in the business profits, decisions, and strategies.
19. Be sure to partner only with people you trust.
- An LLC combines elements of corporations and partnerships. It is run by members, and profits are distributed directly to each member.
- A nonprofit is like a corporation in that they have goals and a business-style organization, but they fulfill a public service mission in exchange for tax-free status.
- Check https://www.sba.gov/starting-business/choose-register-your-business/register-state-agencies for a list of links to state agencies where you can register your business. Choose your state and proceed with the registration process.
19. Obtain an Employer Identification Number
Obtain an Employer Identification Number (EIN) from the Nigerian Internal Revenue Service.
- Visit https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online to obtain an EIN.
- Talk to a business lawyer in your area before deciding the best legal framework for your business. If you are a teen, this is especially important since you probably cannot set up most business types legally. However, the law varies from state to state, so check with an expert (preferably one with experience in your specific line of business) before making a decision.
How Teenager can Become an Entrepreneur
20. Know the potential downside to a sole proprietorship?
25.Choose a location.
Your business should be located in a location with enough space for your needs.
If you have a small tech startup that makes cool apps, you’ll need a modest office.
If you’re manufacturing clothing, however, you’ll probably need a large warehouse to produce and store garments, cloth, and raw materials.
- Check local zoning regulations with your city or county planning agency.
- Certain types of businesses cannot be located near housing or other types of commercial property.
- Give yourself room to grow. Think about your long-term strategic plans to ensure the location you’re in can support growth.
- Consider the needs of your business as far as safety, proximity, exposure, etc.
- If you are a teen, be sure to ask ahead of time if the real estate agency from which you’ll be renting has a policy about renting to minors. Some agencies might not want to risk renting to a minor, since contracts with minors can be risky for them. If you cannot rent space from one real estate agency, contact another. Alternately, get your parent or guardian to rent the space on your behalf, and pay them rent as your proxy.
26. Hire staff.
With your business effectively ready to launch, you might need staff to help you meet your goals.
Consider taking out ads in local newspapers and employment websites like Indeed and Monster to advertise who you’re looking for.
Ask interested parties to submit a resume and statement of interest describing why they would be a good choice for the position you’re offering.
How Teenager can Become an Entrepreneur
27. Conduct multiple interviews.
Don’t hire the first person who seems to fit the criteria you’re looking for.
If you’re hiring for two positions, you should try to interview at least 15 people.
- If you are a teen entrepreneur, you might have trouble getting staff to join your company.
- Because of your youth, people might be skeptical about your ability to manage a business.
- Plus, contracts with minors occupy a questionable legal territory, and potential staff might be wary of entering into an employment relationship with you. In order to give yourself the best opportunity to attract competent staff, have a strong business plan and a number of smaller wins under your belt (like local awards, a growing market share, or a high profit margin) before contracting with staff.
28. Research your market.
The key to starting a business is to know whether there is a demand for your product or service.
Is what you can offer something that is not being done as well as it could be?
Is it a need that doesn’t have enough supply to support demand?
- There are many sources of free industry information.
- Search online for industry and trade associations in your target market and read the articles and press releases they post. You can also get valuable demographic information from census data.
- The Nigerian Small Business Administration has a website with excellent suggestions on how to come up with venture ideas, conduct market research, how to write a business plan, and how to recruit investors. It is an invaluable source of reliable information if you’re starting a business.
29. Talk to potential customers/clients.
You can have the greatest product or service in the world.
But if nobody wants to pay you for it, your business will crash and burn.
Talking to others will also help you prepare to persuade investors.
- Ask for honest feedback when you talk to potential customers.
- Your friends may try to be nice to you when you propose your idea, but critical feedback that points out weaknesses or problems will be much more useful, even if it isn’t always easy to hear.
How Teenager can Become an Entrepreneur
30. Determine what you can risk.
Entrepreneurship is always a game of risk and reward, but often the risk is greater (especially in the beginning). Take stock of all your assets and figure out how much money (and time and energy) you actually have to invest.
- In addition to considering your savings, credit, and other sources of capital, consider how long you can afford to go without making a profit.
- Small businesses are rarely profitable immediately; can you afford to not draw a salary for perhaps several months or even a few years?
31.Understand the idea of “acceptable loss.”
According to ‘’Forbes’’, “acceptable loss” is the idea that you should first determine the possible downside of your business venture and then invest only what you can actually afford to lose should your business turn out differently than you’d hoped.
This limits the scale of failure if your venture doesn’t work out.
32. Commit to a goal, not a plan.
33.Include a section on organization and management.
34. Provide information on your service or product.
This is where you can get into the specifics of what exactly your business will provide your customers.
What are you going to provide? What need will it fill?
What competitive advantages does it have over other similar products?
- Provide details from potential customers’ point of view. If you have already talked to potential customers, you should have a good idea what their opinions of your service or product are.
- If you are planning to sell a proprietary good or service, include any patent information or other ways you plan to protect your intellectual property. Investors don’t want to invest in a business only to have their product scooped by a competitor.
How Teenager can Become an Entrepreneur
35. Describe your marketing and sales strategies.
36. Outline a funding request.
If you are seeking investors or a bank loan, you will need to state exactly what you need to get your business started.
You should include any amount you are investing yourself, how much money you need from your investors, and (most importantly) how you plan to use this funding.
- Investors like specifics. A funding request that just says “I need a million dollars” is less likely to be persuasive than a requests that breaks down costs and expenditures.
37. Outline your financial projections.
If you’re just starting out, you won’t have much historical financial data to work with.
You should include any collateral you have that can guarantee your loan.
But only list what you can truly afford to lose.
- You should also include information on prospective financial data.
- This may seem like simply making up numbers, but it should incorporate the data from your market analysis. How well are your competitors doing? What do their expenditures and cash flows look like? You can use these to help you make projections for your company.
- Make sure that your financial projections match the figures in your funding request.
- If your projections show that you will need $500,000 but you’ve only asked for $200,000, this could suggest to investors that you haven’t done your homework.
How Teenager can Become an Entrepreneur
38. Network, network, network.
Attend trade and industry shows in your field and talk with exhibitors.
Join relevant professional associations.
Build a strong social network with other entrepreneurs, both online (using social media and professional sites like Linkedin) and in person.
- Attending networking events such as local fairs hosted by your chamber of commerce is a great way to connect with other entrepreneurs in your area. These connections can provide you with support, ideas, and opportunities.
- Be generous to others. Don’t consider networking with other entrepreneurs only in terms of what they can give you. If you offer advice, ideas, and support to others, they will be more likely to want to help you as well. Nobody likes to feel exploited.
- Pay attention to others’ ideas. Even if you’re in direct competition with someone, you can probably still learn from them. You can learn from others’ mistakes as well as their successes, but only if you listen to them.
How Teenager can Become an Entrepreneur
39. Develop a strong brand.
You need to be able to effectively communicate your business to others in person and online, and that means having a strong brand presence.
Professional-looking business cards, a website, and social media accounts (Twitter, Facebook, Pinterest, YouTube, etc.) that provide information about your business in an attractive, cohesive way will help show that you’re serious about your venture.
It will also give people the opportunity to look you up and learn more about you.
- Look at the websites and branding of some successful companies.
- See what they have in common, what they do that’s interesting, and try to emulate that formula with your own brand. (Never steal or copy someone else’s intellectual property, though.)
- Consider starting a professional blog, especially if you are in a service field. This can be an excellent way to show off your experience and ideas and help investors and customers get to know you.
Read on: Top 10 Chemicals for Veterinary Business in Nigeria
40. More tips
- You don’t necessarily have to go it alone. Particularly for new startups such as law firms or restaurants, having a team of people with experience and skills in the field will boost your chances of success.
- Entrepreneurship is hard, even when you’re successful.
- Try to maintain healthy relationships with your friends and family so that you have the emotional support you need.
- Don’t get complacent once you’re successful. Businesses have to continually adapt to changing market needs and customer demands, even when they’re doing well. Continue to network, communicate with customers, and innovate.
- Ask for customers feedback about your products. This helps to know what to improve on your products.
Conclusion:
- 8 out of 10 small businesses fail in the first 18 months. Even if you do everything right, failure is always still an option, so while you need to believe in yourself, you also need to understand the risks you’re taking and accept the possibility that your first business won’t work out the way you wanted.
BusinessHAB