If you want to be an entrepreneur, you may be asking an important question: do you need a business degree to start a business? The fast and quick answer is no. You don’t need a business degree to start a company, but that doesn’t mean it’s not helpful to have one.
Getting a business degree can help improve your credibility, network, confidence, and expertise. Even a degree in finance, marketing, or communications can be beneficial since those are critical parts of starting and running a company. However, having a degree doesn’t determine whether you can be a successful entrepreneur, and that’s good news.
Annual tuition for public, four-year colleges is incredibly expensive. On average, in-state residents can pay $10,740 per year, while out-of-state residents can pay $27,560 annually. Private for-profit colleges are also expensive, costing 64.7% higher than public school tuition.
Paying such large amounts for a degree isn’t always accessible, even though it can be worth it. But want to know what is accessible? Books, articles, webinars, business coaches, and online courses that can help you start a business.
Tips for starting a business
While a degree isn’t necessary to become a successful entrepreneur, that doesn’t mean you should walk along this path without learning tips for starting a great company. There are many resources you can use to learn how to start and run a successful business, and you should take advantage of them.
Without the proper knowledge, your business could easily fail. New research suggests that 18.4% of private sector companies in the U.S. fail within the first year. After five years, 49.7% of businesses fail. Once the 10-year mark passes, 65.5% of businesses collapse.
If you don’t want to be a part of these percentages, you need to utilize the many opportunities to grow your entrepreneurial skills, which means you should start looking for business coaches, business books, and online courses and resources. But while you’re searching, here are five tips you can begin implementing to build the foundation for your business.
1. Create your business name
One of the first steps to starting a company is choosing a great name. Think of one that embodies your mission, values, culture, and spirit. Also, make sure it’s not being used by someone else. You can do this by typing your potential business name into Google or seeing if anyone else has the same domain name.
2. Determining your business structure
There are many ways to structure your business. How you choose to do it will determine your ability to secure funding, how much you pay in taxes, your personal liability, and the paperwork you file. It’s important to choose the right structure so that you can avoid headaches in the future. Your main options include the following:
- Sole proprietorship: This structure gives you control over every aspect of your business. With sole proprietorship, your business isn’t a separate entity from you. Your liabilities and business assets are all tied together. That’s why this option is great for low-risk companies.
- Partnerships: There are two types of partnerships. One is a limited partnership (LP), which includes one partner with unlimited liability while the other partners have limited liability. The second is a limited liability partnership (LLP), which is a similar structure to an LP, but everyone has equal limited liability.
- Limited Liability Company (LLC): With an LLC, you get the benefits of the corporation and partnership structure. An LLC protects you from personal liability so that your assets aren’t at risk. The profits and losses from your business also get passed through to your personal income, but you won’t face corporate taxes.
- Corporation: This structure makes your business a legal entity that’s completely separate from you and the other owners. There are multiple types of corporations, including a C Corp, S Corp, B Corp, Close Corporation, and Nonprofit Corporation.
- Cooperative: With a cooperative, your company will be owned by and operated for the benefit of the people using your services. All of the profits and earnings are divided amongst the members.
Taking the time to determine the best business structure will help ensure you start on the right foot. Thinking of your long-term goals can also help guide you toward the right decision.
3. Register your business
This next step is relatively easy. All you have to do is register your business. That way, it’s legal and protected. If your business name is different from your own, you’ll need to register it with the federal government and, most likely, your state government.
4. Get organized
Running a business requires you to tackle multiple responsibilities, especially in the beginning stages. That’s why it’s essential for you to stay organized. One easy way to achieve this is with a to-do list.
Write down your top priorities for the day and scratch them off the list as you complete them. This habit will help you stay on track and finish everything you need to get done each day.
If you want to get a bit more advanced, you can also use specific tools for entrepreneurs that help improve organization as well as productivity and efficiency.
5. Be creative
It’s hard creating a business that stands out. Regardless of the market that you’re in, the business climate is competitive. If you want to get your audience’s attention, you’ll have to get creative with your sales and marketing tactics.
Running unique social media campaigns, developing attention-grabbing ads, and writing engaging and persuasive copy are all things you’ll need to get really great at doing. So start brainstorming creative ways to stand out and resonate with your target audience. Otherwise, it’ll be hard to run a business that lasts long-term.
Guidance is key
The above tips are just the initial strategies you should utilize to start your business. But if you really want to jumpstart your company with success, take the time to find helpful resources and a good business coach. While you don’t need a degree to be an entrepreneur, you still need guidance, so make sure to get it if you want to experience success.