News Flash! It’s never too early to become an entrepreneur. Have you ever thought about turning your hobby into a business? Are you good at drawing, painting, sewing, lawn care, graphic design or fixing things? Or have you had dreams of modeling, acting , singing or becoming an author? Is there something you enjoy doing so much you currently do it for free? Have you ever thought about how much income you could earn from your hobbies? Well, if you haven’t …the time is now! Let’s explore what it will take to turn your hobby into a business. With the appropriate planning and an entrepreneurial mindset, you can be on your way to starting a successful business bringing in more cash than any allowance your parents could ever give you.
Tip One: Do you homework!
In order to start a business, you want to make sure you do plenty of research to understand what it will take to be successful in your field. Start by determining the following:
How much start-up funds do I need?
How should I set up the business? ( Ie. Sole proprietorship, Independent contractor, Corporation , Partnership etc. )
Do I need any training or licenses?
How much can I charge?
Will I need to pay sales taxes?
How much time can I commit weekly to the business?
Will I need my parents assistance to set-up my business?
Tip Two: Save…save ..save to Invest!
You want to make sure you can appropriately fund your business with the start up funds needed to get your business off the ground. Start putting money to the side to invest as capital in your business. You may also want to see if you can get your family to assist you with start up funds as investors with a small return on their investment. Open a separate account for your business to start managing your business funds appropriately.
Tip Three: Create a Business Plan
A business plan is a snapshot that potential investors and banks look at in order to predict where your business is headed and what it will look like in the future. “If you Fail to plan, you Plan to fail”. Most businesses are unsuccessful because their business plans were incomplete or ineffective. In addition, your business plan sets the strategic plan and direction for your business to help you make appropriate decisions with the end goals in mind.
The Main Components of a Business Plan are:
Mission Statement – articulate the purpose of the company’s existence, their target audience as well as the products and services.
Vision Statement –focuses on the values, aims and the future direction of the company.
Organizational Plan– is a description of your business, products and services and the long-term goals of the company.
Competition– refers to researching other businesses that offer similar services and products within market. This is comparing prices and other marketing techniques.
Market Analysis – is the study of the market in its entirety that relates to the strengths, weakness, opportunities and threats that may arise when launching your business.
Market Plan– this is where you develop strategies on how to solicit consumers and business. Use all public relation resources and social media to market your brand.
Financial Plan– is a blue print of your business’ current and future financial state. It captures how much money is needed to start the business including all start up expenses. In addition, the financial plan will forecast proposed revenue for years to come to assess growth potential.
Executive Summary– summarizes all the sections of your business plan by extracting the main points. Prospective investors determine whether your business is profitable based upon this section of the document.
Tip Four: Mange your money wisely
From day one, you need to make sure that you are recording all financial information pertaining to your business. Exceptional book and record keeping skills is essential. Avoid commingling business funds with personal funds. As your business becomes more profitable hire an accountant to help you with tax planning and other services.
Tip Five: Get to work!
Take all the tips that you have been given above and get to work! Businesses are built based on creative and innovative ideas that were given wings to fly. Let your passion, ideas, skills and hobbies allow you to become a successful teen entrepreneur. Being your own boss as a teen is super cool! Good for you!
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