The United States thrives on entrepreneurship, with new business ventures both big and small driving job growth each year. However, that doesn’t make success a given for those with an idea and working financial capital. Seven out 10 businesses fail within 10 years and a half don’t survive five.
Still, the U.S. continues to rank among the best countries to start your own business. The key to how to become an entrepreneur is knowing all the potential pitfalls and the tools and strategies needed to successfully manage your business.
Earning a Business Administration and Management (BSBA) degree with an Entrepreneurship concentration prepares graduates to take on those issues, and much more.
What You Learn In BSBA in Entrepreneurship Program
The Touro University Worldwide online BSBA in Entrepreneurship teaches students important business skills, including a detailed understanding of how to start a successful business. Professors in the program have experience in entrepreneurship. They not only know the latest strategies, including the use of innovative technology and data analytics, but also how to best put them to work to solve business challenges.
The curriculum covers topics that teach students how to:
- Create a business plan for a startup, as well as improve an existing business.
- Develop a marketing plan for a product or service.
- Implement strategies to finance, control, and staff a small business.
- Assess the feasibility of a new business idea by applying a solid business analysis framework.
- Analyze the viability of new business ideas, as well as strengths and skills of personal, professional and financial goals, business environments, and competitive analysis.
- Access the impact of the digital world on new ventures
- Explore the multiple factors that influence their opportunity for success and achieving long-term growth.
All the above help students increase their chances of success once they leave college and begin working without a net in the free market.
How To Start Your Own Business
In theory, starting a new business only requires an idea and financial capital. The challenge is making that idea work long-term. To encourage and support entrepreneurs, the Small Business Administration offers a 10-step process for starting a business.
Before you spend a dime, find out if the idea you have can make money given the potential customers and competitors in your target market.
Create a Business Plan
No plan equals no business. Every business needs a blueprint that details business goals and the steps needed to reach them.
Depending on the size of the business, funding sources can range from investment funds to family and friends loaning the entrepreneur money.
Pick a Location
Location impacts the market you serve, legal requirements, and potential taxes, among other issues.
Create a Business Structure
Entrepreneurs need to decide the type of business that best fits what they plan to launch. These include sole proprietorship, LLC, S-corp, and full corporations. Choosing the right one is best done with the advice of a tax professional.
Choose a Name
You want something that captures the spirit of your brand – and isn’t already taken by someone else (which is a frequent issue).
Register the Business
Most business owners, even small ones, hire an attorney to handle all the paperwork needed to start a business. Each state has different requirements. You may also have to file paperwork with the federal government.
Get State and Federal ID
Some states require you to get a state ID. The federal government requires businesses to get an employer identification number (EIN), which will help you file taxes and do things such as open a bank account.
Licenses and Permits
Get the appropriate business licenses and permits to stay compliant with government and industry regulations. These vary by your location and type of business.
Open a Business Account
A business checking account is used to pay employees, taxes, and day-to-day expenses. Most banks make the process of setting up an account easy if you have all the proper IDs and permits.
Why Businesses Fail
Business failures are often the result of more than one issue. However, in the first few years, cash flow ranks as one of the top issues small businesses face. A frequent mistake is not accounting for the cash needed to keep an operation going as you work to build up profits.
Other reasons that businesses don’t make it include:
- Failure to bring value to the marketplace
- Not creating an effective sales funnel
- Failure to properly market a product or services
- Accounting issues (this can cover everything from cash flow to inadequate initial funding)
- Lack of effective leadership
The TUW BSBA in Entrepreneurship focuses on developing the skills that make these issues easier to surmount. Don’t let the 50% failure rate of business in the first five years scare you. Preparation is the key to success as an entrepreneur. Earning a BSBA in Entrepreneurship teaches students the best way to prepare and eventually enjoy the fruits of being a successful business owner.