Banks and other financial institutions are nowadays supporting new businesses started by young graduates. The following article discusses how to start a business after doing graduation. The entrepreneurs have to convince the financiers that the business idea would work. Most important thing is to spot a business opportunity and then build a business to make profits by exploiting that opportunity. The young graduate has to build a network of people that would help to get buyers and supporters.
How to start your company after graduation
Every year thousands of students complete their graduation. Many of these students look for jobs in a company. This job brings with it stable earnings and also guidance from their seniors on how to do their work. But there are people who want to start their own business right after doing their graduation. Such people have dreams of opening a business then making it big on their own giving employment to others also. There is need for an entrepreneur to have a business plan which should be formed after doing some research.
Need for research
A business would fail if the entrepreneur does not do some research about the market for the product one intends to make and sell. For example if an entrepreneur wants to make clothing for males, then it is to be decided whether to sell the clothing online or sell it to distributors who would sell it in brick and mortar stores. There is also the need to think about the finances for the new business. Some of the college graduates have their savings or their family or friends offer financial support. There are banks which provide loans and there are also individuals who provide capital for new business ventures.
Learning new skills
Some of the graduates start their business on a small scale and take up a part time job in the same industry to increase their knowledge. There are other graduates who work full time in a job in the same industry. They get an opportunity to see how things are done in an organization, the work culture. They increase their knowledge so that their business ventures can be less risky and more likely to succeed.
Finding a mentor
A new graduate can find a mentor who advises the individual on various matters pertaining to the new business. Such a mentor could be a neighbor, family member or a family friend. Such a person would have done same kind of business or has knowledge about formation of a company. There are people who provide finance for a business and also act as mentors.
Using technical knowledge
Some of the graduates know how to build a website and how to run their Facebook and Twitter accounts. This knowledge would also be used if the new business would have online presence. There are engineers who can use their technical knowledge to start a manufacturing business.
Improve communication skills
In a new business entrepreneur would have to talk to customers to whom goods or service has to be provided. Moreover if finances have to be procured from a bank or other financial institution, the individual has to convince them regarding the business idea. If this is done through smart language the chances of success are more. The entrepreneur can improve communication skills in following ways:
- Read good books and magazines as much as possible.
- Watch news telecast on television.
- Become an extrovert, talk to people as much as one can.
- Give presentations in front of family and friends and get their feedback.
Build a team
The new business which a young graduate starts would need other people also. There are different functions like marketing, finance, personnel and operations. Some work entrepreneur can do but others are also needed. A team can be built as follows:
- Recruitment can be done by giving advertisement in newspaper.
- After recruitment work is distributed among employees.
- If entrepreneur has more funds, more people can be hired.
- Authority and responsibility is divided among employees.
Economic development has taken place in many countries. This has led to exciting business opportunities. If a youngster is talented and hard working, the person can start a business and with time the business grows. Some of the start ups have grown with tremendous speed. The product is revolutionary. More experienced people join the start up. A team is formed that beats the competition and market share of the company increases. The young graduate should be ready to take some risks.