Celebrating National Entrepreneurship Week: 10+ Business Resources for Millennial Entrepreneurs
Did you know that nearly a quarter of all new U.S. entrepreneurs come from the 20-34 age group? (source: Kauffman Index of Entrepreneurial Activity) And, as more and more millennials express enthusiasm about business ownership, this number is sure to rise. In fact, back in 2011, a nationwide poll of 18-34 year olds found that 54 percent wanted to start a business or had already started one. But faced with the stagnant economy of the time, many were holding back.
Now that that economy is rebounding, entrepreneurship is once again an exciting proposition for young people.
So, what better way to celebrate National Entrepreneurship Week (Feb 21-28) than to showcase all the great resources that help pave the way for the next generation of entrepreneurs, small business owners and job creators! Check them out below:
SBA’s Young Entrepreneur Guide
This one-stop resource includes information about getting started – including a free online business planning tool, training links and more. For example, this free online course Young Entrepreneurs: An Essential Guide to Starting your Own Business walks you through the steps of turning an idea into a business reality. It also outlines what it takes to get started – making sure your business is registered, structuring it legally, getting financing and more.
Get help – whatever your walk of life
There are numerous resources and opportunities that can help young entrepreneurs get the foot up they need:
- SCORE Mentors – Get advice, counseling and mentorship from someone who’s walked in your shoes. Whether you have a question that can be asked over email or could benefit from regular in-person, one-on-one mentoring, SCORE is an invaluable resource. With a network of over 11,000 mentors across the country (all of whom have run their own businesses), SCORE provides free advice that can help you get your business off the ground. SCORE also hosts regular workshops, webinars and all sorts of good stuff!
- My Brother’s Keeper – Despite the turnaround in the U.S. economy, many millennials are still struggling. One in four are currently out of work and people who grow up in underserved communities face very unique challenges, including higher poverty and unemployment and, in some cases, criminal records. In response to these challenges, the SBA and The White House partnered last year to launch a new initiative – My Brother’s Keeper. The initiative is still in its infancy, but stay tuned for educational in-person and online resources aimed at helping young people harness their talents and learn entrepreneurial basics and financial literacy.
- Other Resources – Small Business Development Centers, Veterans Business Outreach Centers and Women Business Centers all provide entrepreneurs with free business consulting and training services. Find one near you.
Get financial assistance
If you need capital to start your business, consider these options to traditional bank financing (which can be hard to secure – only 27 percent of small businesses get a loan this way):
- Don’t Qualify for Conventional Business Loan? Understand Your Options – From SBA loan programs to business lines of credits and small business friendly banks and credit unions, check out your options.
- Tips for Borrowing Startup Funds from Friends or Family – A surprisingly large number of small businesses get started with money from those they know well. Here are some factors to consider before you do so.
- Crowdfunding – SBA offers several resources to help you learn more about this growing source of small business funding including this Introduction to Crowdsourcing, a self-paced course on the SBA Learning Center, and Crowdfunding Sites: Top 3 Tips to Get Funding Once and For All as well.
Get assistance paying off student debt
If your student loan debt is holding you back from starting your own business, find out how the Income-Based Repayment Plan can help. Designed for federal student loans, this government program can help you lower your repayments.
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5 Reasons to Start a Home-Based Internet Business
According to Forbes, more than 52% of all small businesses in the U.S. are home based. If you're like most people who dream about starting their own business, now may be the best time to take the first step.
Starting a home based business on the internet has never been easier and the opportunities have never been greater. Kevin Systrom, co-founder of Instagram, says, “If you’ve got an idea, start today. There’s no better time than now to get going.” The internet is a store that never closes. It operates 24 hours a day, seven days a week and gives a business with an online presence a global audience.
It has truly leveled the playing field in the world of business; now home-based entrepreneurs have access to the same types of tools and marketing opportunities used by major corporations. Today, you don’t have to have a traditional brick and mortar business to have a profitable business.
Jeff Bezos founded Amazon.com in 1994 as an online bookstore and it was completely run out of his garage. Today it’s the world’s largest online retailer. The point is that everything starts as an idea. Every business has humble beginnings. So don’t think about where you start your business; it’s where you end up that matters.
Here are five compelling reasons to start a home based internet business.
1) Very little risk – Starting a home-based internet business doesn’t require the high costs of a traditional brick and mortar business. You don’t have to dive into your savings. Get Business Lines Of Credit or borrow from friends and family. You can get started right away without breaking the bank. Whether you decide to operate from a spare bedroom or a garage, your new business can be up and running quickly and with very little risk. According to FranchiseHelp.com, 70% of home-based businesses survive at least three years, compared to just 29% of non-home based ventures.
2) Flexibility – Working out of your home provides much greater flexibility and control than starting a conventional business. With an internet business, you can choose when you want to work and where you want to work. You’re not confined to a single location; you can be on beach or in a plane and still be able to work. “In a way, the Web is like your Hollywood agent: It speaks for you whenever you’re not around to comment,” says Chris Brogan, CEO of Owner Media Group, Inc.
3) Earnings potential – With an online, home-based business, your income potential is unlimited. You can reach a very large market, directly, quickly and affordably, no matter the size or location of your business. For example, Kelly Lester, a stay-at-home mom, built a very successful million dollar online business that came straight from her kitchen table. She’s built her brand by working closely with bento bloggers and other diehard fans of her product, EasyLunchboxes.
4) Financial independence – When you learn how to generate profits online, you’re teaching yourself how to become financially independent. As you start selling products online successfully you can scale up your business. By repeating this process, you have the potential to create multiple streams of income. With an internet business, your income isn’t dependent on the number of hours you work. “To be successful online, you have to be nimble and evolve where the opportunities are. You have to layer revenue streams,” says Angelo Sotiro, CEO and founder of DeviantART.
5) Personal fulfillment – Running your own business online can be a very rewarding and gratifying experience. No matter how big or how small your idea is, by doing something you’re passionate about, your journey to success can be much easier and fulfilling. Ben Silbermann, co-founder and CEO of Pinterest says, “If Google teaches you anything, it’s that small ideas can be big.”
To improve your chances of success in business, it’s essential that you do your homework and research your business idea. Identify your target market and analyze the competition. To find a profitable niche for your home-based internet business, you have to find the crossroads between what people want and what you’re passionate about. John Jantsch, author of Duct Tape Marketing said it best: “Bring the best of your authentic self to every opportunity.”
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6 Home Business Ideas That Can Pay Off (+ Tips for Getting Started)
Home businesses are a booming! In fact, 52 percent of all small businesses are home-based, according to the latest data from the SBA Office of Advocacy.
It’s no surprise; home businesses afford the luxury of being your own boss and can be started with relatively little investment.
But what types of businesses thrive in the home environment? Here are six ideas to explore (plus some tips on getting started).
According to a 2014 survey by Elance.com, 34 percent of the U.S. workforce – that’s 53 million Americans – is now freelancing. In fact, freelancers are the new normal, contributing $700 billion to the U.S. economy.
Freelancers take many forms – tax advisors, bloggers, accountants, graphic designers and more – and with advances in mobile technology, the remote office has made it easier than ever to become one. Those who hire freelancers understand the benefits too – freelancers have a lot of experience with different businesses, don’t require training or benefits. Plus, they get things done fast.
Freelancing as a career is finally gaining the respect it deserves and the potential for earning is increasing. Elance reports that three times as many freelancers expect their hours to increase in the next year.
If freelancing might be for you, here are a few resources that can help:
- Starting a Freelance Business – How to Take Care of Legal, Tax and Contractual Paperwork
- How to Calculate and Negotiate Your Hourly and Project-Based Pricing
- 8 Steps to Becoming a Consultant at 50+
- 5 Ways to Become an Indispensable Freelancer and Earn More Money From Your Clients
Monetize your creative skills and hobbies
Doing what you love is a great incentive to get out of bed in the morning. What better way to do this than finding a way to make money out of your hobby?
If you’re crafty, you could start small with an online store on Etsy. If cookery is your thing, home-based food production businesses are a great option, but remember to consider the laws that govern any food-handling business. Read Starting a Home-Based Food Production Business: Making Your Culinary Hobby Your Job.
Be a professional organizer
From bridal consultants to travel agents, if you have passion and experience in a certain field, consider becoming a home-based professional organizer or consultant. Other ideas include business coaching, virtual assistants (companies hire you to help manage their email, appointments, etc.), life coaches and event planners.
Whether you are washing, walking or sitting pets, the pet industry is huge and people are always looking for a trusted sitter. Like so many other home-based businesses, this is one you can do on your own or work freelance for an established company. You can also offer your services through online portals like DogVacay.com or Rover.com
Personal trainers affiliated with gyms don’t always get paid well as employees and the work is often infrequent, so the incentive to going it alone can be strong. Convenience, flexibility, and the knowledge that you earn what the client pays (less any overheads, of course) are some of the benefits of starting a group or one-on-one home-based fitness business. Your customers benefit too – no gym fees, privacy, one-on-one attention, results-focus, etc.
Before you do, weigh the cost-benefit ratio carefully. What equipment will you need to buy? Do you need to make any renovations?
It’s a good idea to have a strong body of clients established elsewhere before starting out. That way your reputation will take care of that much-needed start-up marketing. Be sure to invest in liability insurance. You’ll also need to insure your premises and any equipment as well.
If you don’t have the business savvy to do it on your own, you could go the franchise route. You provide the classes, but the franchisor takes care of the backend business like marketing, a centralized website, booking system, accounting, and even coaching.
Home childcare businesses offer a potentially lucrative and long-lasting business opportunity. A home environment is often appealing to parents and once their kids are settled (and assuming you are doing a great job), then it’s likely you’ll have that business until they are old enough not to need care.
For information on starting a child care business including financing options, licensing requirements and other regulatory matters read: Starting a Child Care Business? Government Tools and Resources that Can Help.
Special consideration for starting a home business
Starting a home business is much like any other business venture. You’ll need to ensure you comply with certain legal and regulatory requirements (yes, even home businesses need various permits and licenses), most of which are listed in this guide: 10 Steps to Starting a Business.
If you’re not sure what applies to your business idea, give your local Small Business Development Center a call. You might even benefit from the advice of a mentor, which you can get this for free via email or in-person from SCORE.
In addition, look into buying insurance (even if you operate as a freelancer). Check with your homeowner’s or renter’s insurance if you intend to work with customers in your home. Liability insurance, as mentioned above, is also a wise investment. Read What Kind of Business Insurance Do You Need? for more information.
Finally, contact your local planning and zoning office to see if there are any restrictions on home-business activities and what permits you’ll need. If a homeowner’s association (HOA) administers your community, read over the HOA documents to see whether there are any restrictions on certain types of home business (especially if you intend to have people visit your home and park in the street).
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Get a Fresh Start for the New Year with SBA Resource Partners
Each year the SBA helps more than one million aspiring entrepreneurs and small business owners with their business start-up and growth. If you have thought about starting your small business in the New Year, the SBA can help you with a fresh business start.
SBA directs a national entrepreneurial network that provides mentoring, training, resources and business assistance for entrepreneurs just like you, and to more than one million entrepreneurs and businesses each year. During fiscal year 2014, these efforts helped small businesses get more than $4.7 billion in capital infusion, start over 13,500 new companies, and create and retain more than 70,000 jobs.
Under the direction of the SBA’s Office of Entrepreneurial Development, one million of you who were interested in starting or expanding a business received business counseling and assistance through one or more of the SBA’s counseling and training programs:
- Small Business Development Centers (SBDCs) counseled and trained over 570,000 clients;
- SCORE, For the Life of Your Business, counseled and trained over 442,000 clients, and
- Women's Business Centers (WBCs) provided assistance to more than 140,000 clients.
These dynamic SBA resource partners provide quality one-on-one consulting, training, counseling and entrepreneurial education that can help you start, grow and compete in the marketplace. They have helped countless small businesses across the country to raise start-up and growth capital, start new companies and sell billions of dollars in products and services world-wide.
SBA also helps target market segments like as women, those over age 50, veterans, young entrepreneurs and growth-oriented businesses ready for development or expansion. You may be the next budding entrepreneur looking for resources to start, grow or manage your small business. Reach out today to connect with SBA’s resource partner network or one of our online or in person services for all of your small business needs.
One small business that got the help it needed is accounting firm Professional Services LLC in Brooklyn, N.Y. The business owner, a public accountant, got help from her local area Women’s Business Center with technical assistance. The counseling, training and encouragement she received helped with the success of her business in providing a range of accounting, tax preparation and credit services.
We’re here to help you connect with your nearest SBA District Office, SBDCs, SCORE Chapter or WBCs. Go to SBA’s Local Assistance map to get started. Here you can find useful counseling, training and mentoring from any of these partners for starting, growing and managing your small business.
Once there, simply enter your zip code to access the descriptive information about each SBA resource and narrow your search based on where you would like to go for assistance. It’s that easy!
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How to Guesstimate Your Starting Costs
How much will it take to start that new business you’re thinking of? Use these simple steps to develop a good estimate. You don’t get to know for sure, but if you have the discipline to break things into meaningful pieces, and then research each of the pieces, you’ll have a good idea.
Starting costs for any new business are a matter of two simple lists. The first is expenses.
Step 1: List Expected Expenses
Some common startup expenses are always associated with starting up. For example, legal expenses related to setting up the company, or expenses for fixing up a location, designing a logo, signage and so forth.
Other expenses are normal running expenses, like rent and payroll, which take place before launch. Lots of startups need to rent the location and pay some employees before they launch. While these are the same as running expenses later, they belong on the startup expenses because of timing.
All these expenses create a formal accounting loss at startup. In the example here, the loss at startup is $16,000. That loss won’t matter to taxes until there’s a profit, and at that point it can be deducted against taxable income.
The value of the list is that you can estimate items one by one. What will the attorney cost? How much do you need to send on computers? Each of these estimates is the result of calling and asking and finding out.
Step 2: Assets You Need to Buy
Your next list is what you need to buy to own, such as starting inventory to stock the store, or office furniture, vehicles, land or equipment. These are assets, not expenses. You won’t be able to deduct them from income later, but you will be able to depreciate them as an expense at some point.
As with those starting expenses in the first list, make this one a list of educated guesses. Call people and ask and get good estimates of what things will cost.
The starting cash you need in the bank is also one of those assets, but leave that one for the next step.
Step 3: How Much Startup Cash
People will say you need six months or even 12 months worth of expenses before you start, but those who say that probably never had to raise money for a startup. Unless you have your own funds to use, having some arbitrary cash stockpile is not realistic. What you want to estimate is how much cash you need, not how much you want.
For that, make two lists. Both have months on top, one after the other, as columns. The first has your sales forecast, month by month. The second has your spending budget, month by month, for the same months. Make as many months as you can reasonably expect it to take before your startup sales cover its spending. The vast majority of startups have a period of deficit spending before they start to break even with sales and expenses.
After you’ve made those lists, calculate the total cumulative deficit you have to manage before the business breaks even. Round that number up to the nearest thousand, or ten thousand, and that’s what you need to put into your starting assets as starting cash.
So that, in a nutshell, is your estimated starting costs. It’s not a definitive list, of course. And it’s not certain. But at the very least, you should have a fairly good idea of how much money that business you want will require to get going. And a good idea is better than a wild guess.
(Image: courtesy of leanplan.com)
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Small Businesses Create 2 Million Jobs
Last week’s jobs report offered more evidence that our economy is gathering a head of steam as we ring in the New Year. Last month, American businesses added back 252,000 jobs and our unemployment rate fell to its lowest level since June 2008. We’re in the midst of 58 month of consecutive job growth – the longest streak on record since the mid-1990s.
Once again, it was not large corporations driving this train, but entrepreneurs and small businesses powering us out of the greatest economic crisis since the Great Depression. Small businesses created nearly 2 million of the roughly 3 million private-sector jobs generated in 2014. More than 7 million of the 11 million jobs created during our recovery have been generated by startups and small enterprises.
December’s jobs picture is a microcosm of the upswing: 73 percent of last month’s job growth came from small businesses, according to ADP. Meanwhile, twice as many small businesses added jobs as cut them last month, according to a separate report by the National Federation of Independent Business (NFIB), which also found that small-firm revenues are on the rise.
American manufacturing is undergoing its best stretch of job growth since the 1990s. The U.S. auto industry is back, creating a half-million new jobs in the last five years. The United States is now the world’s number No. 1 producer of oil and gas; President Obama’s policies have helped cut our national deficits by about two-thirds; and 10 million Americans gained health insurance in the last year alone.
In short, we’ve come a long way.
Entrepreneurs have been our life preserver in this economic storm, because of their resilience in budgeting wisely and effectively deploying their capital. While commercial small business lending is still only at 91 percent of the pre-recession level, SBA-backed lending has now eclipsed its pre-recession output. In fact, small business borrowers have received more SBA-supported capital under President Obama than any president before him – $163 billion total since 2009.
In other words, SBA continues to play a pivotal role in America’s economic comeback story. Upward pointing arrows on graphs and ascending numbers on spreadsheets don’t always capture the real-life impact our agency has on this nation’s improving economy. But I’ve heard story after story from entrepreneurs who tell me they would’ve gone belly up during the recession if not for timely SBA assistance.
One industry that’s surging is computer systems design, which now employs 1.8 million Americans – 25 percent more than before the recession began. EarthWalk Communications is a pioneer in education technology, bringing mobile wireless computer labs and patented battery technology to schools across the globe. Five years ago, the Manassas, Virginia-based company was forced to cut more than half of its workforce due to recessionary pressures. But in 2010, Earthwalk received a $1.5 million SBA loan to secure additional working capital and refinance its debt. Since then, the company has added back 20 workers and last year celebrated a record year of $3 million in revenue growth.
There’s ample reason to believe 2015 will be a ripe environment for small business growth. Consumer confidence is at a 7-year high. Our economy has added at least 200,000 jobs for the last 11 months in a row, and hiring is at levels we haven’t seen since the Great Recession. The wind is finally at our back, and SBA is ready to help make this a breakthrough year for entrepreneurs on Main Street and beyond.
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