Becoming a successful young entrepreneur is certainly not an easy matter. Build a path to success by setting goals and providing capital. Grow your company by working hard, having great staff, and advertising goods or services. After making a profit, reinvest your money to expand the business or try another business.
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Part 1 of 4: Finding the Entrepreneur within You
Step 1. Try a personality test
Before becoming an entrepreneur, determine if you have what it takes to be successful. Evaluate your strengths and weaknesses realistically. In particular, pay attention to areas of ability (knowledge and experience), skills (skills and preferences), and personality (endurance, resilience). Do you have the knowledge and experience necessary to succeed in your chosen industry? Can you overcome failures and difficulties along the road to success? Finally, determine whether you have the financial capital to start a business.
Step 2. Be a problem solver
Many people hope to produce something, or envision goods or services that they hope to develop. However, very few people actually make it happen. To be a successful young entrepreneur, you must be open to inspiration by seeing the world around you through the eyes of people who can solve problems. To begin the process, answer the following questions:
- What kind of content do you wish there was on the internet?
- What kind of game would you like to play?
- Are there goods or services that can help you feed the homeless?
- Whichever path you take, start by identifying the problem and dreaming of a solution. Write down all ideas, however crazy they may seem.
Step 3. Take time to generate creativity
Before starting a business, you should take the time to look for inspiration. Find time in your schedule to relax and let your creativity flow. Try walking in the trees, reading a book in a quiet place, or driving aimlessly. Take some quiet time to reflect, weigh, and think about the best way to develop yourself as an entrepreneur.
Have an active lifestyle. Don't just sit in one place for more than an hour. Regular exercise for at least 30 minutes every day is very important for physical and mental health. Even walking can improve your thinking process and make you feel more creative
Step 4. Learn from others
Learn how other young entrepreneurs are finding success. Think about how you can apply their ideas, methods, or techniques into your own activities. Read their books and articles. If possible, network with other young entrepreneurs. Associating with such people will help you grow, learn, and know what it takes to be successful.
- In addition to learning from other young entrepreneurs, seek feedback from employees and coworkers.
- Seek advice on how best to grow your business from wise friends, colleagues and successful business people.
Step 5. Have passion
Success will only come if you are passionate and confident in your own product. Your energy will inspire potential investors and partners, and help grow the business.
Your passion can inspire business activity. Look for missions you believe in and find ways to fight for them. For example, if you're interested in saving whales, you can find apps that help track whale populations or publish whaling around the world
Step 6. Take risks
The most successful entrepreneurs didn't get to where they are today by playing it safe. As an entrepreneur, you need to take calculated risks to move your business forward.
- For example, let's say you decide to create a search engine even though there are many other search engines already available. If you believe your search engine is better or offers something that other engines don't have, go ahead.
- Taking risks is not the same as walking with your eyes closed. Do your research before developing a new service or opening a new store.
Part 2 of 4: Getting Started
Step 1. Set goals
Decide what you want to do, then live it. Goals can be noble or worldly. Do you want to help homeless children to have a better life? Would you like to provide more food or fashion options? Whatever your goal, be very clear.
- Examples of short-term goals are “Increase sales last week” or “Get new investors in these three months”. Try to set and meet at least three short-term goals each week and month.
- Short-term goals are better expressed as sub-goals because their achievement will lead to the fulfillment of longer-term goals. Long-term success is created by consistently meeting short and medium-term goals.
- Long-term goals may take the form of a company or organization's mission or vision statement. An example of a long-term goal is “Ensure that everyone who needs glasses in Bantul Regency can get them.
- Make sure your goals are realistic, clear, and achievable.
Step 2. Target, test, and take a chance
Once the concept is proven, it's time to act. Start with a simple business model before it scales up. For example, if you own a fruit juice or soda business, start by making it at home and selling it at the beach or at school events. If you have a great pet treat, start by giving it as a gift to friends and family. Use this early stage to get feedback on your goods or services, and apply that feedback in the design and planning process to improve your business.
Step 3. Create a business plan
A business plan is a strategic document that should outline your current position and the position you want to be in. You should include the history, organizational framework, and business objectives. Use the vision and mission statements as a starting point when developing a business plan. The final plan should be used as a guide for deciding how to run the business, and provided to potential investors when you seek funding.
- The mission statement describes the day-to-day activities of the business and organization. For example, the lemonade business has a mission that reads, “We make the best lemonade.”
- A vision statement describes what you want to do in the big picture, both now and in the future. For example, a non-profit organization statement might read, “We want to increase literacy in Bantul Regency to 100%.” Develop a plan to achieve the vision.
- Identify the audience for your goods or services. Who will buy it? Who do you want to buy it? How do you grow your business to make your goods attractive to new markets? Analyze the issue and incorporate the conclusions into the business plan.
- Think competition. Will your market increase or decrease? How to improve it? Use past data of similar businesses to determine market changes.
- The business plan should include a marketing section. How will you advertise your goods or services? Who is your ad directed to?
Step 4. Decide on the legal entity of your business
As an entrepreneur, you can be the head of a corporation, not-for-profit corporation, sole proprietorship, or limited liability company. The formal structure will define legal and tax obligations, and must be registered with the government.
- A corporation is a public company whose shares are owned by shareholders. The corporation is controlled by a board of directors. Usually, only very large businesses are managed as corporations because the business structure is complex.
- A sole proprietorship may be the type of business you will start as an entrepreneur. This type of business is run and operated by only one person. Even though you are flexible in making decisions, you may encounter difficulties because you are the only one responsible for the company's liabilities and losses.
- A partnership is a business agreement between two or more parties who join and have an equal share in profits, decisions and strategies. Make sure you only partner with people you trust.
- Limited Liability Company (PT) combines elements of corporation and partnership. PTs are run by members, and profits are distributed directly to each member.
- Not-for-profit organizations are like corporations in terms of purpose and style of business, but fulfill a public service mission in exchange for tax-exempt status.
- Register your company at the Regency/City/Municipality Company Registration Office (KPP).
- Get the Company's Taxpayer Identification Number (NPWP) and the Taxable Entrepreneur Confirmation Number (NPPKP) from the Directorate General of Taxes.
- Visit https://ereg.pajak.go.id/login to get NPWP and NPPKP.
- Talk to a business attorney before deciding on the best legal entity for your business. For teenagers who want to open a business, this is very important because they cannot legally set up a business. However, there are some differences in regulations in each region. So talk to an expert (perhaps a lawyer with experience in your business) before making a decision.
Part 3 of 4: Setting Up a Business
Step 1. Get start-up capital
The easiest way to start a business is to get a personal loan. Your business plan should provide reasons that encourage friends or family to invest. Do not ask for funds solely on the basis of personal relationships because failure will lead to rift and hostility. Explain your idea, and get them interested in investing.
Or, you can try online fundraising with the help of sites like GoFundMe or Kickstarter
Step 2. Get a business loan
If your business handles a lot of cash, you may need to seek funding from financial institutions and investors. Look for venture capitalists (investors who are willing to invest in a new, untested idea or business) and talk to financial institutions such as banks and cooperatives about funding.
- Young entrepreneurs who want to be successful in business can seek resources at the local Association of Micro, Small and Medium Enterprises (MSMEs). They have many resources for entrepreneurs and small business owners, including loans and grants.
- In America, there are resources for young entrepreneurs, such as Google Ventures. Through this platform, potential entrepreneurs can find investors who are interested in the goods and services offered. If they like an idea, they will help raise funds.
- Although outside funding can provide a larger amount of money than a personal loan or equity, you will have to pay interest. Make sure you get low interest rates and minimum installments.
- Teenagers will have difficulty getting a business loan. The best option is a personal loan from friends or family. If you are a teenager and need a business loan, ask your parent or guardian to co-sign the loan. Build a credit score by getting a credit card when you're of age and making regular payments.
Step 3. Choose a location
The business must be located in a location with sufficient space as needed. If you're starting a small tech business that makes cool apps, you just need a simple office. However, if you produce clothes, you need a large place for production and warehouses to store clothes, fabrics and raw materials.
- Check the regulations on business zones with the local government. Some types of businesses may not be located near residential or other commercial properties.
- Make room for growth. Think of a long-term strategic plan to ensure your location supports development.
- Consider business needs such as security, distance, exposure, etc.
- If you're a teenager, be sure to ask in advance if the real estate agency you're renting has a policy on renting to minors. Some agencies may be reluctant because contracts with underage tenants are risky for them. If you can't rent a place from a real estate agency, try other alternatives. Or, have a parent or guardian rent the space for you, and pay the rent through them as your representative.
Step 4. Hire staff
When your business is ready to launch, you need staff to help meet your goals. Consider advertising vacancies in local newspapers or job search sites. Ask interested candidates to send a CV and cover letter explaining why they are the right choice for the position you are offering.
- Do some interviews. Don't hire the first person who seems to fit the criteria you're looking for. If you need two people, try to interview at least 15 people.
- If you are a teenager, you may find it difficult to get staff to join. Since you are young, people may be skeptical of your ability to manage a business. Plus, contracts with minors have their own legal issues, and potential staff may be concerned about having a working relationship with you. To give you the opportunity to attract competent staff, prepare a solid business plan and a number of other perks (such as local rewards, a growing market, or high profit margins) before hiring staff.
Step 5. Get equipment
You may need a lot of equipment or you may already have everything you need, depending on what you need. If you need equipment, you can rent, buy new, or buy used.
- You can rent equipment, such as a workbench, machine, or vehicle, to reduce the initial investment cost. However, if the business continues to grow, you will need to buy the equipment yourself or have to pay more in the loan post than if you just bought it. Or, look for rentals that offer the option to buy at the end of the contact, with the rental payment calculated as part of the purchase price.
- You can buy used equipment. When a company goes bankrupt or buys new equipment, old equipment is sold. You can also consider government auctions of used equipment.
- You can buy new equipment. This is the most expensive option, but you'll have everything you need and won't have to worry about extra fees for rent.
- If you are a teenager, you may need a parent or guardian to help you rent equipment. If you're having trouble with one rental, try another.
Step 6. Get the required materials
Depending on the business, you may need a lot of materials or only a few. Think about the type of material needed in the beginning and in the long run. Look for the main producers of the material and choose the offer that provides the best balance between price and quality.
For example, if you open a chicken geprek shop, look for distributors of chicken, chili, vegetables, and other ingredients to ensure a stable supply. Contact local farmers and ranchers, and find out how to order the ingredients you need
Step 7. Implement a marketing and sales plan
Once the business is up and running, start using the marketing and sales plan outlined in the business plan. Buy ad space, network with local business owners, and reach your planned target market. Then, monitor marketing efforts to gauge which ones are working. Look for an increase, or no increase, in sales that goes hand in hand with marketing efforts. Ask customers how they heard about your business, and record their responses. Then, you can use that information to focus your marketing strategy.
Above all, focus on providing good goods or services. Word of mouth recommendations are free advertising and one of the best ways to get customers
Part 4 of 4: Growing Your Business
Step 1. Promote your business
Take advantage of local and online media to promote your business. Create a YouTube channel specifically about your business, including new developments. Overall, you should aim to build a brand which is how customers recognize what you are selling. Brands need to be able to connect you and your customers on the same value frequency.
- You can build your brand through developing out-of-store customer interactions or direct business interactions. For example, with involvement in the community or charity.
- For example, if you own a snack business and are about to release a new type of snack, make a YouTube video about the new snack, its taste, what people who have tried it think, and where to buy the product.
- Active on social media such as Facebook and Twitter. Advertise promotions, new items and discounts.
- In addition, you can contact a local newspaper or TV station and tell them about your career.
- As your business grows, you can add more marketing staff to create the right ads.
Step 2. Gradually scale up the business
Once you have customers and start refining your methods, grow your business. If you own a beverage business, make a deal with a local shop to sell your bottled drinks. If you own a clothing business, take samples to a clothing store to see if anyone is interested in selling your clothes. How to develop a business depends on the type of business activity. Consider:
- Hiring employees or volunteers
- Open your own shop
- Looking for additional funds
- Advertise
- Expand distribution network
- Adding new related services
Step 3. Keep investing
Don't stop looking for new ways to grow your business, and don't get stuck in just one method of working. Reinvest revenue for advertising, better equipment, or stockpiles of raw materials.
- Or, invest the income in a new venture or business.
- Whatever you do, don't spend your earnings on toys, games, cars, and other consumer goods. Manage money carefully.
Step 4. Work hard
Starting a new business requires hours of dedication and sacrifice. You may have to divide your time between school or college and your business. Whatever field you are in, define and stick to a regular work schedule.
For example, you need to set aside some time between 18:00 and 20:00 to build a business
Step 5. Plan for the future
Think about your life and the future of the business. Ask yourself every day if you are running a business and living in the best way possible. If every day was the same as today, what would the cumulative effect be? Will you be happy? Do your actions have a positive impact on others and the environment in the long run?
If it seems like something is missing from your business or personal life, you need to be proactive and make positive changes. Remember, success doesn't just mean having a lot of money. Success also means having personal achievement and satisfaction
Step 6. Be prepared to swerve
If your initial business or organization idea doesn't work, don't be afraid to swerve. Or, if you find another business sector or related industry more promising, try a new venture in that sector.
- If your business model needs revision, shift focus with the rest of the team. For example, changing the production of soda into fruit juice.
- If your business is growing too fast, you may need to scale back by reducing staff, closing unproductive stores, or discontinuing low-selling products.
- Always agile and looking for new opportunities.
