7 answers
Cathryn
Student
Murphy, TX
1
Question
7 answers
Aisha Taylor
Mortgage Closing Specialist
364
Answers
Detroit, Michigan
Updated
Aisha’s Answer
Hey Cathryn,
Thanks for your question! Here's a straightforward, 7-step guide to kick off your own business:
1. Generate Your Business Idea
2. Develop a Detailed Business Plan
3. Choose and Register Your Business Structure
4. Set Up Your Business Operations
5. Get to Know the Rules, Regulations, and Taxes
6. Learn How to Keep Your Business Going
7. Always Be Open to Learning from Others
Now, let's delve into the third step: Choosing and Registering Your Business Structure. In the U.S., there are five main business structures to pick from. It's vital to choose the one that fits you best. Here are your choices:
Sole Proprietorship
This is the simplest business structure. If your business is small and only making a little income, this structure is sufficient. However, remember that it doesn't offer any legal protections against liability.
Partnership
This type of business is created when two or more people team up without making a formal business entity. Like a sole proprietorship, it might not provide all the protections your business needs. It could also be tough to get a long-term commitment from another young person to form a partnership with you.
Limited Liability Company or LLC
This is the most favored type of business entity. Setting up an LLC is fast, easy, and affordable. It protects your personal finances and assets. If you're serious about your business and want to see it grow, this is a great choice. However, if you're under 18, you'll need your parents to assist you in setting up your LLC.
S Corporation
This is a more complex type of business and is not typically suggested for smaller ventures like yours.
C Corporation
These are the biggest and most complex types of businesses, generally more than what an average young entrepreneur needs.
For a more in-depth comparison of different business types, check out our complete guide. If you still have questions, our founder has answered all your questions about the differences between an LLC and a corporation.
In some cases, we would recommend an LLC for a young entrepreneur. However, it's always helpful to find a mentor in your field who can guide and support you throughout your entrepreneurial journey.
Thanks for your question! Here's a straightforward, 7-step guide to kick off your own business:
1. Generate Your Business Idea
2. Develop a Detailed Business Plan
3. Choose and Register Your Business Structure
4. Set Up Your Business Operations
5. Get to Know the Rules, Regulations, and Taxes
6. Learn How to Keep Your Business Going
7. Always Be Open to Learning from Others
Now, let's delve into the third step: Choosing and Registering Your Business Structure. In the U.S., there are five main business structures to pick from. It's vital to choose the one that fits you best. Here are your choices:
Sole Proprietorship
This is the simplest business structure. If your business is small and only making a little income, this structure is sufficient. However, remember that it doesn't offer any legal protections against liability.
Partnership
This type of business is created when two or more people team up without making a formal business entity. Like a sole proprietorship, it might not provide all the protections your business needs. It could also be tough to get a long-term commitment from another young person to form a partnership with you.
Limited Liability Company or LLC
This is the most favored type of business entity. Setting up an LLC is fast, easy, and affordable. It protects your personal finances and assets. If you're serious about your business and want to see it grow, this is a great choice. However, if you're under 18, you'll need your parents to assist you in setting up your LLC.
S Corporation
This is a more complex type of business and is not typically suggested for smaller ventures like yours.
C Corporation
These are the biggest and most complex types of businesses, generally more than what an average young entrepreneur needs.
For a more in-depth comparison of different business types, check out our complete guide. If you still have questions, our founder has answered all your questions about the differences between an LLC and a corporation.
In some cases, we would recommend an LLC for a young entrepreneur. However, it's always helpful to find a mentor in your field who can guide and support you throughout your entrepreneurial journey.
Jay Tilak
Product Manager
3
Answers
Branchburg, New Jersey
Updated
Jay’s Answer
I suggest that you reframe the question: what is a problem that needs to be solved?
You can start with a problem that you or your peers have (look up the genesis story for AirBnB) and see if that idea has a market (and have the ability to service that market...I.e. it may be difficult to reach all potential customers that have that problem).
If you have a serviceable market, start charging customers in that market for your solution. Adjust pricing and features according to feedback. Sell to more customers.
Repeat many times and you'll make a lot of money
You can start with a problem that you or your peers have (look up the genesis story for AirBnB) and see if that idea has a market (and have the ability to service that market...I.e. it may be difficult to reach all potential customers that have that problem).
If you have a serviceable market, start charging customers in that market for your solution. Adjust pricing and features according to feedback. Sell to more customers.
Repeat many times and you'll make a lot of money
Angela Clark-Green
Underwriter
9
Answers
Detroit, Michigan
Updated
Angela’s Answer
Hello,
I recommend starting by identifying the needs and interests of your market. What are the popular trends or items among the students at your school? Use this information to shape your business strategy. Conduct thorough research on these trends or items. You might want to think about sourcing or buying products in large quantities. Evaluate the potential profit margin of the product, taking into account the effort required to sell it. Is the potential profit worth the effort?
Self-assessment is crucial in this process. Once you've completed this step, the remaining tasks mainly involve marketing your product to the right audience and reinvesting your earnings.
Moreover, you need to organize your business based on who has invested in it and who deserves to share the profits. If you have a business partner, you should structure your business as a partnership. If someone joins your company after its establishment and you pay them a salary, your business would be more like a corporation. Make sure to structure your business appropriately. Good Luck on your endeavors!
I recommend starting by identifying the needs and interests of your market. What are the popular trends or items among the students at your school? Use this information to shape your business strategy. Conduct thorough research on these trends or items. You might want to think about sourcing or buying products in large quantities. Evaluate the potential profit margin of the product, taking into account the effort required to sell it. Is the potential profit worth the effort?
Self-assessment is crucial in this process. Once you've completed this step, the remaining tasks mainly involve marketing your product to the right audience and reinvesting your earnings.
Moreover, you need to organize your business based on who has invested in it and who deserves to share the profits. If you have a business partner, you should structure your business as a partnership. If someone joins your company after its establishment and you pay them a salary, your business would be more like a corporation. Make sure to structure your business appropriately. Good Luck on your endeavors!
Shari Mitchell
HR
2
Answers
Atlanta, Georgia
Updated
Shari’s Answer
Concentrate on identifying what sets your business apart and the specific issue it addresses. Next, determine your target audience and the most effective methods to connect with them. These insights will serve as a foundation for creating a strategic business plan to promote your product or service. While financial gain is a significant incentive, avoid letting it dictate your actions as it could cloud your business execution planning. Embrace an attitude of ownership and cultivate a genuine affection for your customers - the financial rewards will naturally follow.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity.
3818
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Hello Cathryn,
Absolutely, I'm here to assist you! 😊
To kickstart your business and pave the way to financial success as a teenager, consider these actionable steps:
1. Discover your interests and skills: Reflect on your hobbies and areas where you excel. This could spark ideas for the type of business you may want to establish.
2. Investigate your market: Explore which goods or services are sought-after and who your potential customers could be. This research will guide you in deciding what business to launch and how to promote it effectively.
3. Develop a business blueprint: Jot down your objectives, intended audience, marketing tactics, and financial forecasts. This plan will keep you organized and focused as you initiate your business.
4. Begin modestly: Resist the urge to take on too much too soon. Embark with a small, manageable business concept and gradually expand as your experience and confidence grow.
5. Embrace learning and flexibility: Operating a business can be tough, so be ready to learn from your errors and adjust to evolving situations.
For an in-depth understanding and more guidance, you may want to delve into these authoritative books:
1. "The Lean Startup" by Eric Ries
2. "The 4-Hour Work Week" by Timothy Ferriss
3. "The Young Entrepreneur's Guide to Starting and Running a Business" by Steve Mariotti
These books are packed with invaluable insights and hands-on tips on initiating and scaling a thriving business. They can be an excellent resource for teenagers eager to earn money and transform their hobbies into profitable enterprises. 📚
Absolutely, I'm here to assist you! 😊
To kickstart your business and pave the way to financial success as a teenager, consider these actionable steps:
1. Discover your interests and skills: Reflect on your hobbies and areas where you excel. This could spark ideas for the type of business you may want to establish.
2. Investigate your market: Explore which goods or services are sought-after and who your potential customers could be. This research will guide you in deciding what business to launch and how to promote it effectively.
3. Develop a business blueprint: Jot down your objectives, intended audience, marketing tactics, and financial forecasts. This plan will keep you organized and focused as you initiate your business.
4. Begin modestly: Resist the urge to take on too much too soon. Embark with a small, manageable business concept and gradually expand as your experience and confidence grow.
5. Embrace learning and flexibility: Operating a business can be tough, so be ready to learn from your errors and adjust to evolving situations.
For an in-depth understanding and more guidance, you may want to delve into these authoritative books:
1. "The Lean Startup" by Eric Ries
2. "The 4-Hour Work Week" by Timothy Ferriss
3. "The Young Entrepreneur's Guide to Starting and Running a Business" by Steve Mariotti
These books are packed with invaluable insights and hands-on tips on initiating and scaling a thriving business. They can be an excellent resource for teenagers eager to earn money and transform their hobbies into profitable enterprises. 📚
Glenn Fitzgerald
Federal Account Executive (Sales)
18
Answers
Hatboro, Pennsylvania
Updated
Glenn’s Answer
Social media is the best way to gain attention to your business. You start with a website, create a professional Zoom background, sign up for LinkedIn and create a personal and company page, same for Meta. Start posting everyday, write LinkedIn articles and think about signing up for Medium. You can create a website in minutes with platforms like Squarespace and WIX. Find a professional background of a modern office and add it to your Zoom backgrounds. Once you create your LinkedIn profile you will see on the left side of the screen you have the option to a company page. Make it professional and relevant to your business.
That should get you started!
That should get you started!
Carmen Sánchez
Program Manager
4
Answers
Dublin, County Dublin
Updated
Carmen’s Answer
Look for a coach or mentor, and try to build a network with similar minded people. If you can, consider enrolling in a course that covers the skills that Aisha mentioned above, such as a marketing course, MBA qualifications. For example: https://www.thesimplifiedsocialmedia.com/
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