Want to start your own business after college? Here’s what you need to know

Starting a business from scratch – especially during or after college – can be a satisfying endeavour, as you’ll get to watch it grow. However, it’s also as challenging as it is satisfying. Although there are no hard and fast rules for getting a start-up off the ground, there are a few ideas you’ll need to keep in mind to ensure profitability and better chances of survival.

Transform your passion and motivation into a business idea
“Turning your passion into a business idea is a sure way of putting your best into the business. Find out what makes you happy and drives you to action. You need to understand why you’re starting the business in the first place. Many successful businesses today started out as the brain child of people who had an idea that drove and inspired them”, says Jason Patel, a Career Coach. Having left his job in the communications industry, Jason spent most of his time after graduation enabling veterans to find work and young people apply for college. He decided to start a business around this concept.

Make a business plan
To avoid falling into the category of businesses that fail within the first decade, creating a business plan for your initial idea is imperative. A strong business plan evaluates for the long term and accesses the feasibility of any start-up idea

Gather enough information
UK Economist at Capital Economics, Paul Hollingsworth, pointed out that many small businesses fail due to a lack of market for their products or services. Starting a business requires that you conduct sufficient market research to determine whether your idea has been implemented before. Find out who your competitors are likely to be and what you can do differently to help you stand apart. Discover the characteristics of your target market and find ways in which to fashion your goods or services to suit their needs. Your market research can make use of focus groups to survey prospective markets and analyse customer feedback.

Obtain financial backing
Many start-ups fail as a result of cash flow issues. It’s therefore necessary to obtain significant funds that will enable your start-up to operate for a couple of months or years, before it can start turning over significant revenue. Ensure you have all the capital you need before going ahead to launch your start-up. “You will also need adequate recruitment finance with which to employ your workers and be able to pay them. It is often the case for entrepreneurs to gradually raise their own funds, as well as seek out investors.” Recruitment Finance Experts New Millennia Seeking out investors would mean you have a well-prepared business plan in place and are able to successfully pitch your start-up idea.

Build your team
Employing the right group of people will go a long way in determining the success of your business. Before you go ahead and employ people, you should evaluate whether you can afford to support them, as well as provide the necessary equipment and training and manage payroll taxes. The indications that you’re ready for your first employees include when you must turn down work due to inadequate manpower, are unable to favorably meet deadlines because of growing demand, and have a constant revenue stream.