Around 60% of Teenagers Plan On Forming Own Businesses in the future, rather than becoming regular employees, CNBC reports. Almost 2 in 5 teens say celebrities and social media influencers are the key inspiration for their entrepreneurial ambitions. Additionally, 45% of teens are keen to be taught by existing successful business owners, while 37% would attend any programs teaching entrepreneurship. Indeed, forming a successful business involves a host of key considerations (such as, legal structure and location), and it’s never too early for budding entrepreneurs to start thinking about these issues.
Ways to teach Teenagers Plan On Forming Own Business
1. Teaching teens about entrepreneurship
“I think that’s very encouraging — it’s not just a whim or a flight of fancy,” said Ed Grocholski, chief marketing officer of Junior Achievement USA. “They literally are interested in delving deeper and learning how to do this the right way.” Junior Achievement runs sessions to teach teenagers the ins and outs of business ownership.
The JA Company Program Pop-up, in particular, encourages middle and high school students to start brainstorming and launching their own operations — even if they don’t plan on going to college. “This class shows them there are other opportunities where you can be just as successful,” said Juan Cruz, who teaches the program at Lawrence High School in Lawrence, Massachusetts.
2. Fostering the entrepreneurial spirit
Milleana Santiago, a high school sophomore, says the program’s responsible for introducing her to the world of entrepreneurship. “I didn’t know it could be as simple as thinking of a problem and thinking of different solutions and ways to make a profit off of that,” she said. Thanks to the program, Santiago created a Lawrence High School keychain, which she sold as a recent pop-up shop — an event which involved students marketing and selling products to their classmates.
As such, Mr. Cruz also ensures money management is a key part of the program. Students need to know the importance of saving some of their profits and/or putting that money back into their company.
3. Choosing the right business structure
Choosing the right legal structure is another crucial element all budding entrepreneurs need to learn about business formation. A limited liability company (LLC) is one of the most common structures; 35% of small businesses are LLCs, while, in comparison, 22% are S corporations, and 12% are sole proprietorships. LLCs are popular as they protect business owners from personal liability, so personal assets, such as, their house, car, and savings, won’t be at risk if the business faces a lawsuit or bankruptcy.
Forming an LLC can be complicated, but, fortunately, registered agents exist to help with the process. Registered agent services can help entrepreneurs form their LLCs, as well as take care of related official documents on their behalf. By taking time to compare registered agent reviews, entrepreneurs can be sure they’re choosing the right service for their needs. For example, does the service have any hidden fees? Do they keep your address private and off public records?
4. Location, location, location
Location also plays a key role in making or breaking the success of a business; in addition to expenses, including payroll and taxes, location also determines customer and employee base. California, in particular, has been named the best state in the U.S. to form a business, followed by Texas, New Jersey, Illinois, and Georgia, as reported by CNBC.
In addition to numerous high-profile businesses, California is packed with plenty of small businesses with under five employees. It also ranks first for annual profits for businesses with fewer than five employees, and has one of the best survival rates for new businesses in the country. In 2021, nearly 83% of new start-ups were still in business after their first year in California, while the national national average is 81%.
Texas is the second best state to form a business; here, entrepreneurs can enjoy no personal income tax, a comparatively low cost of living, and the second-highest annual profit for organizations with fewer than five employees. Rhode Island, on the other hand, has been found the worst state to form a business. The Ocean State is home to the lowest volume of new businesses in the country, as well as an average survival rate of 77% for new businesses — one of the nation’s lowest.
Entrepreneurship is an increasingly popular career path for people of all ages. That’s why Teenagers Plan On Forming Own Business. By making an effort to learn about all key elements of business formation, budding entrepreneurs have the best chances of setting themselves up for future success.
