5 New Financial Tips for Entrepreneurs Out of College

For entrepreneurs just out of college, starting an online business has become a very common pattern. Tech savvy college grads are taking advantage of the many opportunities to get online and make a business boom. Young people are finding ways to create highly successful businesses. Facebook, MySpace and myyearbook.com were all founded by high school or college students and these all became very popular, successful sites all over the world. Everyone isn’t as successful as these three have been. Today, there are challenges that young entrepreneurs face. Below are five financial tips for young graduates who aspire to be entrepreneurs.


1. Challenges

You need to be prepared to run a business with challenges. Customers, clients, staff and others can call you any time of the day or night with problems. There is financing to think about, inventory, staffing needs and start up costs. Think long and hard about everything that it takes to run a business before you make a commitment to do it.

2. Time

You must know as well that time is going to be an issue. Running a business can be far more demanding than a full time job and some people will attest that they work up to 20 hours a day to have a successful business. Along with the challenge of time is the challenge of having your business financed.

3. Plan Your Idea

Always have your idea ready and written down on paper to explain to others. You may see a potential customer while out at a conference, party, or at the bus stop. The more people know your idea and business, the better your chances are of getting through those first few months. Getting the word out that you are in business is essential. Design a great business model. Writing this plan out with a pen and paper is much better than typing it out. Writing gives you time to think and make changes. Print business cards and hand them out everywhere you go. They win customers! Without a good plan, you won’t be able to get finance.

4. Financial Assistance

Just as soon as you have that great idea that you know will work, you realize you need some cash. Just as you will sell the product to customers, you have to sell your product to people who can back you financially. Being clear with the people you want to borrow money from is extremely important. Make sure your product is fully developed before you try to get financial support for it. Put together a video demonstration to let your potential lender see how good your product is. The better you demonstrate it, the better it will be. Your financial backers are the ones that can make your business successful so you need to give them plenty of time and attention.

5. Communications

When you deal with your financial backers as well as your customers, you will be spending a lot of time talking to professionals. You need to have a professional attitude and communicate professionally for them to take you seriously. If you come across professionally you will be treated professionally. Financial backing won’t be given if the lending company sees you as an immature adult.

Know ahead of time that you have your work cut out for you to become a young, successful entrepreneur. You must have a strong financial head, a drive and the desire to put all you have into success. 

About the Author:

Donna Feldman writes on finance, business and even boat insurance rates.