Tips for Young Entrepreneurs

The process of starting, funding and running a business is both exciting and daunting no matter what your age - and studies show an increasing number of younger people are getting interested in entrepreneurship.

Statistics from Gallup show that 69 percent of high school students say they would like to start their own company, while one-quarter of students take an entrepreneurial business course as preparation.

But what does it take to run your own company? Some may argue that what younger entrepreneurs may lack in experience, they make up for in drive, creativity and enthusiasm - a strong set of qualities that are sure to help your business succeed.

Here are some other tips for young entrepreneurs:

Identify your goals

Maybe you want a modest home business that earns you some extra cash and can easily be run with your small business software. Or perhaps you're banking on expanding your company into a national or international presence.

Before you take your initial idea any further, sit down and ask yourself why you want to start a business. What are your objectives? Do you want financial independence, the opportunity to work for yourself or a chance to learn more about an area you love? Remember that if you are passionate about what you do, it is more likely that your business will thrive.

Also consider how much time you are willing to devote to your company. Do you have other time commitments? Will your family or friends help you out? While small business software may help streamline or automate many routine tasks such as bookkeeping, there are bound to be a myriad of other responsibilities to check off on a day-to-day basis.

Do research

Next, read up on your industry and the market you plan to enter. Your basic business idea should be practical and fill a need in the market.

When carrying out research, ask yourself the following questions: Who are my potential customers? Who are my competitors? How is my product or service different than what is already out there? What personal or professional experiences do I have that can add value to my business?

Think about the nuts and bolts of your business, such as where you will be located, what your name will be, what types of equipment you will need and how much money you will need to get your firm off the ground.

Once you have addressed all of these questions and considerations, you can proceed to the next step - putting your ideas in writing.

Make a plan

Crafting a business plan is a non-negotiable step when starting your own company. This plan will set out all of your goals, as well as the actions you will take to reach them. It will also help you plan for challenges and contingencies that arise along the way.

The basic features of a business plan include a company description, organizational chart, financial plan, projected income and balance statements, marketing plan, pricing strategy, and description of operations. You can use small business software to help you prepare the financial data you need for the plan.

Your business plan is not only for your own use. It will also be crucial when you seek financing, whether from a bank or investor. Lenders will want to read how you plan to translate your idea into reality, become profitable and repay any loans.

Reach out to other young professionals

As you carry out all of these preliminary steps on the road to becoming your own boss, you will undoubtedly run into some uncertainties and doubts. There are a number of resources - from the Small Business Administration to your alma mater - that will be able to help.

Additionally, you can reach out to other young entrepreneurs by connecting via online communities, blogs and social networking websites. Not only is reading about and commenting on others' postings a great way to learn, but it will also help you get your name (and your business' name and web address) out there - it's almost like free advertising.

Find a mentor

Seeking out someone with experience in your field is another good way to set your fledgling business on the right track. You can ask around at your local chamber of commerce or small business association - or you can do a bit of online research to see if anyone in your area is involved in a similar field.

Keep learning

Of course, running your business will provide a wealth of lessons in and of itself. But successful entrepreneurs also commit themselves to reading the latest research on their sector, as well as attending conferences, trade shows and other events that will help them grow their business.