What is an entrepreneur?

An entrepreneur is a person who organizes and manages a business, assuming the risk for the sake of profit. An entrepreneur sees an opportunity, makes a plan, starts the business, manages the business and receives the profits.

What are some ideas for a teen business?

Always be on the lookout for ideas, because they can come from anywhere: your work experience, a hobby; your perceptions or experiences as a consumer, when an existing product or service doesn’t work as well as you think it should or when there is no product or service where you believe one should exist.

Learn everything you can about the business you want to start and the marketplace in which you’ll be operating. That means getting work experience in and collecting information about your marketplace so that you know it inside and out. Make sure that your idea is so focused that you can express it clearly in fifty words or less.

There is a world of ideas that you can turn into a business. You’re the best judge of what most appeals to you however. Businesses include: starting a production company for visual arts or music; starting a paper or journal to be circulated within your town, creating Web pages for companies, after-school writing workshops, editing papers, tutoring services, and pet sitting services. Once you determine what product or service interests you, identify a specific niche within the market that may arouse customers’ interest in purchasing your product or service. Ideas for Your Business provides a checklist to help determine if your idea is business-ready.

What is a mentor and how can I find one?

A mentor is a caring, experienced individual who volunteers to be your guide.  Your mentor can help you focus your talents and create a successful business. You can have more than one mentor. The National Mentoring Association ( www.mentoring.org) can assist you with finding a mentor in your community or online.

What are the benefits of owning a business?

If you are actively considering going into business for yourself, you probably have already thought about the potential advantages of owning your own business. These advantages include, but are not limited to:

• Being your own boss and not having to report to a superior;
• Creating and developing your own idea, product, or service;
• Having the independence and authority to make your own business decisions;
• Receiving personal satisfaction and the sense of achievement that comes with being a success, plus the recognition that goes with it;
• Having the opportunity to create substantial wealth and job security for yourself;
• Making a living doing something you truly enjoy;
• Doing something that contributes to the well-being of others, whether it is providing a product or service, providing employment, or doing something else useful that creates value.

What is a business plan and why do I need one?

A business plan is a written document which precisely defines your business, identifies your goals and serves as your road map for your business. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you make the right decisions. Because it provides specific information about your company and how you will repay borrowed money, a good business plan is crucial if you need to borrow money. If you manage your business processes well, with a bit of luck you will be able to convert your product or service into a profit large enough to repay you for all the time, energy and money you will have put into your business venture. For more tips on writing a business plan and to see a sample business plan go to Pu it in Writing.

What legal issues do I need to know about as I start my business?

Before choosing the legal form of your business, you may want to meet with a qualified business adviser, tax and accounting professional or lawyer. Information on patents, copyrights, business structures and other legal issues can be found at Avoiding Legal Business Hassles.

What do I need to do to set up my business?

The importance of structuring your business is for both legal and tax purposes.  Your business can be classified under the following business structures:

• Sole Proprietorship--One individual owns and manages the business. As the sole owner, you make all the business decisions and assume all the risk. There is no formal legal structure that separates you as the owner from the business.
• Partnerships--All partners may be actively involved with the business or they may designate one person to run the business and make day-to-day decisions.
• Corporations--A formal business structure that protects business owners from legal and financial liability, and is created according to your state’s laws. Corporations may be owned by one or more people. Decisions are made by a board of directors that may appoint one person to be president of the company.
• Franchises--May be sole proprietorships, partnerships or corporations whereby the business is operated as part of a large chain.

What type of insurance do I need to protect my business?

You should research and consider the following types of insurance when starting your business:

• Business Interruption
• Product, property and personal liability
• Property insurance (ex: Fire)

How do I know when my business is in trouble?

You can't pay your bills on time. You are not keeping good business records. You are selling products and services for less money than you normally would and you need to keep borrowing money just to get through the day.

Where can I meet other entrepreneurs in my community?

Many national youth groups have local chapters in your community where you can meet other teens with interests similar to yours. Your Business Buddy List provides contacts.

How do I protect my business idea, product or name from being stolen?

There are several ways to protect your business. They include:

Patents - a property right granted by the government to the inventor to make, use and sell his/her invention for a given period of time.

Copyrights - protect your literary or artistic work and, allows you to sell, give away or show your work. For more information on copyright, please visit www.copyright.gov

Trademarks - name, mark, symbol or motto that identifies your company and/or its product and is legally restricted to the use by the owner or manufacturer.

Trade Secrets – is information that you do not want known by your competition because your business may lose significant business advantages.

Please visit www.uspto.gov for more information on Patents, Trademarks, and Trade Secrets.