Fresh Grad, New Entrepreneur: 8 Tips For Starting Your Own Business After College

Most young people have the mindset of looking for employment at a major company straight after college graduation. In countries like Japan, there’s even a season dedicated solely to university students’ job hunt—it’s called “Shūkatsu”. Each year, on an agreed upon date, companies launch a recruitment drive, which culminates in a new intake of employees for the following year.

This is what the majority of college students believe is the natural course of their life. They complete their last year of school, look for a job, land the said job, work for a big company, and work up the corporate ladder.

A Different Mindset

However, if you’re not of the same mold (or you don’t want to be), being your own boss is really the only other option. Setting up a business, especially if that was your major in uni, is the ideal endeavor after college. This is a much bigger challenge though, because you’re fully in charge of your livelihood. Everything rests on your decisions.

Starting a business after college is a scary route to take. It doesn’t help that several studies reveal that only 2 out of 10 new businesses make it past their first year. However, this shouldn’t deter you from starting your own enterprise. With readiness and fortitude, you can actually become one out of the 20 percent of new businesses that fly.

How to Prepare

Meeting the basic requirements is the best foundation for a new enterprise. Here are eight tips for accomplishing that when starting a business as a fresh graduate.

1.     Create your business plan.

If you didn’t study business in college, this may prove to be daunting. However, there are classes that you can take so that when you need to present a business plan to a bank or investors, you can have the confidence that it will meet their standards.

There are also business setup agencies that can actually help with this requirement.

2.     Continue studying your industry.

Gaining as much information as you can about your business scene will always be helpful. Also, since you have no experience in running a company, consider taking short courses on business management.

Don’t stop learning in order to weigh situations properly and make the right decisions for the business you’re starting.

3.     For things you don’t know, find a business consultant.

There are new policies and legalities for industries and they can be difficult to keep up with and understand. To avoid wasting energy, money and time on efforts that may not be necessary, turn to a business consultant. This professional can provide you the information you need so you can organize your responsibilities and make sure all your efforts count.

4.     Take care of the legalities.

Don’t take the shortcut in getting your trade license amongst other permits. Be present throughout the processing to gain a sounder understanding of why there are certain policies to uphold. You’ll also learn the consequences of noncompliance better.

The main advantage here is that you automatically do without complications that may derail your operations.

Do meet with an attorney as well, especially when you need to devise a financing arrangement with investors or partners.

5.     Find an ideal location for your operations.

A good location always has a huge contribution to the success of a business. Find a location that you can afford wherein your target market can easily access your business.

6.     Set up a solid financial framework for your business.

This includes finding investors that can help you generate startup capital, and setting up a bank account at a top commercial bank. You also need to look into banking services that can help manage operational risks and ensure the growth of your business.

Set up a meeting with a banking representative who can discuss services that are compatible with your startup enterprise.

7.     Allocate a good budget for marketing.

Marketing is a vital component for startups – it can make or break the launch of any business. You need to identify the different marketing methods that you can use to draw attention to your business and encourage your target demographic to connect with it.

For startups, 30 percent of the operational budget is a good amount to dedicate to marketing.

8.     Set up a plan B.

Having a plan B is one clever way to silence the fear of launching a business. Know in the back of your mind that you can always find a job or some other source of income.

A startup business for a fresh graduate is clearly not an easy livelihood option. Failure is always a likelihood, but don’t fear it and let it hold you back. As long as you’re committed to doing what you have to do the right way, you’ll be able to keep the business afloat even if it takes some time before you get to give yourself a salary.