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I had to help my mother implement this with her website. She has two separate businesses but she uses this same principle of a subdomain.
My best advice is to call the tech support for your web hosting and have them walk you through the process. That is what I did.
To be honest, it is very confusing the first time. Click here, create a folder there, hit submit… Then wait 24 hours until it takes effect.
That is what I did.