How to Start a Business as a Student: Key Steps
Many students dream of having their own business, but only a few actually begin to implement such plans. There are a number of reasons for this, including time management, uncertainty and serious financial risks.
Running a business while still in college can turn your life upside down. You will have less time for everyday activities, including homework. But don't worry. You can always entrust it to essay writers online to do my research paper and keep your grades under control. Besides, in the guide below, we've collected relevant information on the steps to follow in order to succeed. If you've decided to bring your business ideas to life and start working for yourself, then this article is for you. You will learn how to find your niche, where to get funding sources, and what mistakes to avoid.
1. Choose Your Niche: Business Ideas For Students
First and foremost, answer the following questions as honestly as possible:
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What are you good at?
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What inspires you?
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Who could be your potential client, and what are their pain points and needs?
Here are some ideas that are very popular among students:
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Tutoring;
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Event organization;
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Floristics;
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Summer camps for children;
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Website promotion;
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Photo and video editing;
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Stylist services;
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Beauty services;
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Courier services;
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Opening coffee shops, yoga studios, book shops, vintage stores, etc.
Many experts believe that student entrepreneurship should be based on one's own unmet needs. That is, find "weak" places or shortages of certain services/companies that you face in your area. You can also conduct research and ask your friends and followers on social networks about their experiences. Next, make a prototype of your product or service based on your findings.
To understand the prospects, study the market and assess the demand. To do this, analyze the activities of your competitors, focus on publicly available statistics, etc.
It is best to choose an area with average competition to avoid overestimating your capabilities.
2. Test Your Knowledge
How to start a business as a college student? Well, determine what professional and personal qualities you need to strengthen to become a successful entrepreneur. By filling in the gaps in your business education, you will gain skills and competencies that will help you build an action plan and minimize risks.
3. Create a Financial Model for the Startup
How will your company bring in revenue? A student entrepreneur should remember that a financial model is the accounting and calculation of a company's current and future cash flows. In simple words, it's the economics of your business.
List these four main indicators in your financial model:
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Product price: How much will you sell the product/service for?
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Demand: How many goods/services will people buy from you per month?
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Production costs: How much will you spend to create your product/service?
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Fixed costs: What payments will you need to make on a regular basis, regardless of sales volume (for example, rent)?
The answers to these questions will be in your roadmap, which will take into account expenses and estimated income.
Therefore, it is necessary to reflect on:
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The purpose of your venture;
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The amount of initial investment;
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Estimated income.
4. Find Funding Sources
After crafting a business plan, you will determine the funds you need for the launch. There is no one-size-fits-all minimum sum; it depends on the industry and many other factors. To secure funding, you can:
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Take part in a grant support program for business ideas for schools;
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Try crowdfunding;
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Borrow from friends or relatives. Then, you can pay off the debt without overpayments. At the same time, unlike bank lending, there will be no negative consequences such as bad credit history or large fines and penalties;
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Use your previous savings;
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Find a business partner/investor who will contribute to your business.
5. Take Care of the Legal Side
Most likely, you will need special permits and documents — licenses, certificates, declarations, patents, etc. How to start online business as a student? The secret is to check the legislation in advance.
Any business requires compliance with current regulations, ignoring which will cause issues for you later.
Such nuances include:
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Opening a bank account;
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Selecting and connecting a cloud-based cash register or platform for operating an online store;
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Preparation of permits, certificates and accompanying documents.
6. Decide Where to Do Business
The location depends on the nature and scale of your startup. The cheapest way to bring student business ideas to life is to start by working from home, but this option doesn't apply to all types of activities. You can consider the following:
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Coworking;
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Fairs;
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Renting an office, production and warehouse premises, catering outlets, etc.
7. Remember About Marketing
Now that you have the fundamentals covered, think about marketing. This includes website development, creating a visual brand identity that will appeal to the target audience, and strategies for promoting products/services.
Keep in mind that effective marketing requires ongoing effort. It will take some experimenting until you find tactics that work best for your needs and continuous upgrades in your strategy.
8. Move On to Launching
You have a lot of work to do: buy equipment, get tools and raw materials, hire staff, establish a stable production of high-quality products as well as decide on promotion and sales channels.
You will definitely need:
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Professional consultations with lawyers, accountants and marketers (they will help clearly define the target audience and sales channels) and HR specialists;
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Assistance in launching products on marketplaces (this will expand sales channels);
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Help with developing a corporate identity, logo and website for your company.
Mistakes To Avoid
Mistakes are part of the process. Yet, if you stay aware of the most common ones, you can minimize risks. Try to avoid:
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Searching for excuses to abandon promising projects due to their difficult implementation. Think about all possible solutions instead.
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Forgetting about details. Every little point should be thought through in advance.
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Launching a business without a business plan. Specific numbers will help assess real prospects, not expectations.
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Neglecting the interests of the target audience in favor of personal enrichment.
Final Thoughts
Starting your own business as a student is an exciting journey, but be prepared to navigate the sea of nuances in terms of financial planning, marketing and legal regulations. This guide gives you the basic framework you can rely on to choose the right direction, avoid common mistakes, and, most importantly, start earning money with minimal risks.
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