Many millennials today are planning to start a business, but they don’t seem to find the correct way to become successful. Millennials are those who were born between 1977 to 1995. If you have the correct mindset and know where to get help, your small business will succeed.
Based on studies on different generations, millennials are more likely to help write a business plan, and money is one of the highest factors that hold them back from starting a business. Forty-five percent of respondents said that finding money or capital to start their business was their biggest problem.
And there’s nothing new about it. A lot of people dream of starting a business, but they have no capital. In this article, we will share tips for millennials on how to run a small business.
Helping Millennials Get Started On Their Business
These five steps will help you to get started on your small business.
1. Think wisely. Are you ready to start a business?
Do not be blinded by the dream of being a boss walking around with lots of money. It will only affect your logical thinking and will make you want to earn money faster. Think first, and make sure that you are ready to take this step. Ask these questions to yourself:
What are your reasons for starting this business? Do not start a business just because you hate your job or are frustrated with your career. Make sure that it is really your dream, you dream of running a business. And that you are not only hiding.
Do you have enough resources, especially financial resources, to help you during your startup period? One of the first things you will need to do is to build business credit and initial financing. Do not rush on starting without enough resources or without extra. Ensure you have enough resources to help you and your business until it starts generating money for you.
2. Have a plan
Create a written business plan, even if you have a good idea on your mind for your business. It is essential to create a business plan to teach you an excellent way to run your business. Write it so that you can revisit it more often and think of a solution as things won’t go according to plan.
You can write it yourself, or if you think you are not good at writing a business plan, there are a lot of free resources to help you. Seek help from your local Small Business Development Center (SBDC). They offer low-cost training on different subjects like finance, marketing. They even provide free one-on-one advising.
You also need to have a concrete plan of whom to deal with. List down several suppliers for your needs and research them one by one. For instance, if you’re planning to offer interior design services, you might need to have a reliable supplier of home appliances, wall paint, or ceiling supplies.
3. Set up a Good Company Structure
Your taxes are affected by your business structure- even your ability to raise money, paperwork, and your personal liability.
Before you register your business with the state, you must first choose a business structure. Some business structures will require you to get a tax ID number and file for the appropriate permits and licenses.
Choose your business structure carefully. There might be a few restrictions based on your location when you want to convert your company to a different business structure. Chances are, it could result in tax consequences. Do not forget to seek professional advice from your lawyer and accountant to help you make the correct choices.
4. If needed, Get a small business startup loan
Technically, a startup company loan is available to businesses without bad history. Various business financing strategies and loans are available for startups, such as business credit cards, SBA microloans, asset-based loans, and many more.
If your business plan needs help obtaining startup funds for its continuous growth, you should consider your options as soon as possible. There are a lot of small business loans that are reserved for companies that had an operation for a couple of years. So, make sure to know if it is possible to use outside funds to fund your startup.
5. Build your business credit
Even if you don’t need startup funding for your business, chances are, you will also need financing to expand your business and grow at some point. Funds are crucial for your business’s growth, especially when there are a lot of opportunities where you need more cash than you have in reserves. That’s why it is important to establish good credit for your business before you need it.
Applying these five steps will ensure that you will be successful in starting your small business. Do not forget to ask for advice or help from people you know who are successful in this field.