With more than 25 million Americans starting or continuing to operate a business, entrepreneurship efforts are at an all-time high. More importantly, the average age of somebody who starts a successful business venture is gradually decreasing. Although there are innumerable benefits to young businessmen and women entering the workforce, there are also a few downsides. The most obvious one is the fact that they lack the necessary experience to make great decisions all the time. So, what are some useful tips for young entrepreneurs?
Find a Niche
To be successful, one must find something that they are good at and come up with a new way to bring it to the market. To achieve such a complex feat, however, they must start off by entering a niche market. For those unfamiliar, this means that they will focus on a very unique sector that not many competitors are in. So, hypothetically, instead of trying to start a clothing brand, they could come up with a new line of house-wear shoes. Doing so will help them dedicate all of their efforts on one tiny portion of an otherwise enormous market.
Obtain the Necessary Education and Training
Although there are people who struck it rich and became millionaires while they were still teenagers or young adults, such outcomes are uncommon. Hoping to create a successful brand that will be lucrative at an early age is not realistic. Instead, one should never skip on their education and formal training that will maximize their chance of overcoming the barriers to entry the field. More importantly, according to an entrepreneur and student Anthony Helton, going through the necessary education will teach one about the importance of transferable skills. These include things like leadership, time management, planning, detail-oriented approach, and more.
Avoid Giving up the Majority Control
Often times, new companies need investors to raise the necessary capital and begin operating. When they fail to obtain those funds through loans, they tend to resort to outside investors. Even though this approach is perfectly valid when the company valuation is fair, it can turn into a bad decision. This is because many entrepreneurs who lack experience will give up equity to obtain funding. Well, the downside to that approach is the fact that a reduction in equity means a reduction in control. Thus, if someone ends up selling more than half of their stake in a business, they will no longer have the ruling authority.
Create a Detailed Plan of Success
Naturally, young entrepreneurs rarely have issues with putting in the work to succeed. They are, after all, some of the most energetic individuals in the world who are extremely hungry for success. The problem tends to arise when they do not conduct adequate planning. So, even though they work as hard as humanly possible, they overlook some important elements of creating a profitable venture. This is why Anthony Helton reminds that attention to detail can be a crucial virtue with individuals who are known to be extremely fast-paced.
Evaluate and Make Changes
There are always going to be stages during which one’s business seems to be in a rut. Meaning, they may face issues that are difficult to overcome, and their positivity could take a backseat to stress and anxiety. Entrepreneurs must be able to analyze their businesses without any bias to get out of such predicaments. In other words, putting a stop to an unsuccessful project should be done as soon as possible.
Unfortunately, a lot of businesses fall victim to the concept of sunk cost. This means that people do not want to terminate a venture because they already invested a lot of money on it. Well, if the money has been spent, there is no reason why it should impact any decisions that pertain to the future. After all, letting past failures continue into the future is the quickest shortcut to failure.
Ultimately, entering the field of business at a young age is going to be very challenging simply due to the competitive nature of this industry. Those who want to be successful are going to need a very thick skin and must have a high threshold for criticism. That way, they will not take negativity personally, and their failures can be turned into positive outcomes.